Car retailer fined $12k over Audi service centre explosion

SINGAPORE - A car retailer has been fined $12,000 over an explosion at the Audi service centre in Ubi in 2023, leaving a gaping hole in the wall.

On Sept 10, Premium Automobiles pleaded guilty to failing to immediately stop the operation of a lift it owned despite it being used in a dangerous way.

On March 7, 2023, an explosion blew open a section of the service centre, leading to the evacuation of around 100 people.

The explosion also damaged nearby brick walls, the lobby and the lift landing doors at the premises.

Building and Construction Authority prosecuting officer Bertinus Teo said a man had been using the lift at the time of the explosion, but he was not injured.

Following the explosion, investigations revealed that in the machine room of the lift, there was a waste oil tank that Premium Automobiles had installed in 2002.

The purpose of the tank was to receive waste oil from motor vehicles poured into pipes from the second and third levels of the service centre.

BCA prosecutor Teo said Premium Automobiles had engaged a lift service contractor for monthly repairs and maintenance, among other things, but did not tell the contractor about the waste oil tank.

The explosion resulted from arcing in the control panel's relay switch, igniting flammable vapours that had accumulated in the machine room from the waste oil tank.

The prosecutor said the relay arcing, or electrical sparks, usually occurs within the control panel when the lift begins to move during regular operations.

Seeking a fine of $12,000, he said Premium Automobiles had failed to consult the relevant authorities on the requirements before and after installing the waste oil tank.

"Considering the extent of the property damage caused, the explosion could have resulted in significant injuries had there been persons near the machine room or the lift lobby," said the prosecutor.

In mitigation, a representative of Premium Automobiles pleaded for leniency in sentencing.

"Since our incorporation in 1999, this is the first time the organisation has been brought to court and charged," said the representative.

"We believe we were ill-informed and did not have the impression that the waste oil tank needed approval. But we accept full responsibility for this incident and will work better and safer for the future."