Six mamasans and one papasan who handled these hostesses ended up being charged with helping to manage a brothel.
They worked for Ace De Club KTV in People's Park Complex. Another business has since taken over the premises.
The papasan, Lim Teck Hock, 47, and the mamasans, Wong Lee Pheng, 45, Sim Seow Ping, 34, Song Yun Pei Kaige, 25, Tam Huey Peng, 38, Ng Choy Fong, 48, and Tham Kam May, 36, pleaded guilty.
They were each fined $3,000 yesterday.
Lim, Wong, Sim and Song are Singaporeans, while the rest are Malaysians.
The court heard that police officers, including those from the Anti-Vice Branch, had gone undercover at the KTV lounge on 3 Apr last year at about 11pm.
They had received a tip-off of sexual activities there.
The male officers spent some time observing the goings-on before raiding the place.
The seven were then arrested, together with 55 hostesses from China, Vietnam, Thailand and Malaysia.
It turned out that this was not the first time that the KTV lounge had been raided.
It was formerly known as Lisbo KTV, and the police had also received information that sexual activities were being conducted there.
They raided the place in September 2006 and the owner's licence was suspended.
The lounge was then re-named and came under a different licensee.
But the overall organisational structure remained the same and vice activities in the KTV lounge continued - this time, more discreetly.
To keep a low profile, the management allegedly told the mamasans and papasan to remind the hostesses not to provide sex in the rooms.
Instead, the hostesses were to provide sex only in the toilet cubicles or outside the premises, the court was told.
Two minders were even hired to man the toilets and sell condoms to the clients at $10 each.
The mamasans and papasan briefed the hostesses to charge their clients between $150 and $200 for a short session of sex and between $250 and $300 for an overnight booking.
They also helped the hostesses by performing 'cash rolling'. This happened when a client chose to pay for sex using credit cards.
The KTV would earn a 10 per cent cut from the amount and the cashiers would then hand over the remainder in cash to the hostesses, using money from their cash registers.
Sometimes, if the hostesses were busy, the mamasans and papasan would be the ones helping the hostesses to collect payment from their clients. They would later hand them their earnings.
The court was also told that the mamasans and papasan supervised only the Singaporean and Malaysian hostesses.
The other hostesses were allowed to work as freelancers in the KTV lounge as long as they had valid social visit passes.
If a client specifically asked for hostesses of other nationalities, the mamasans and papasan would ask them to entertain these clients.
All seven who were charged were represented by lawyer Shashi Nathan.
In a joint mitigation, Mr Shashi said that the main job for the seven was to assign hostesses under their care to entertain customers by singing and drinking with them.
The hostesses were supposed to promote and sell bottles of alcohol to customers.
Mr Shashi added that all seven did not profit from the sexual services which the hostesses provided to clients.
He said: 'They earned money from the commission obtained from the sale of alcohol to customers.
'Their motivation was not greed as they did not profit from it.'
Mr Shashi also pointed out that the hostesses were not coerced or forced into providing sexual services and none of them were minors.
Except for Sim and Song, the rest were all first-time offenders. Sim had been convicted for a drug-related offence, while Song was previously convicted for affray.
Mr Shashi told The New Paper that the management of the KTV lounge has not been charged yet.
For assisting in the management of a brothel, the supervisors could have been jailed three years and fined $3,000 each.
This article was first published in The New Paper on Sep 19, 2008.