SINGAPORE: The Attorney-General’s Chambers (AGC) announced on 4 October 2024 that no charges will be filed against businessman Lum Kok Seng  (林國城).

Mr Lum, the managing director of Lum Chang Holdings, had been named in March this year as one of two businessmen involved in a case concerning former transport minister S Iswaran.

The AGC had previously stated that it would take a decision regarding Mr Lum following the conclusion of Iswaran’s case.

On 24 September, Mr Iswaran pleaded guilty to a total of five charges, including receiving luxury items from Mr Lum between November 2021 and November 2022.

The items, allegedly given without any compensation, included several bottles of high-end whisky and wine, expensive golf equipment, and a premium bicycle.

The specific gifts from Mr Lum to Mr Iswaran were detailed as follows:

• Four bottles of Gordon & MacPhail Caol Ila whisky valued at S$1,084.46
• Fourteen bottles of whisky and wine worth S$3,255.75
• A TaylorMade golf driver valued at S$749
• Two more bottles of Gordon & MacPhail Caol Ila whisky, priced at S$542.23
• A set of Honma Beres BE-08 Black AQ MX golf clubs worth S$4,420
• A Brompton T Line bicycle worth S$7,907.50
• Two bottles of M&H Elements Sherry Cask whisky worth S$198
• A Scotty Cameron Phantom golf putter and two golf chippers valued at S$800

In total, these gifts amounted to approximately S$18,956.94.

These items were given during a period when Lum Chang Holdings was involved in a contract for construction work at Tanah Merah MRT station.

Attorney-General’s Chambers cites evidentiary risks in reducing Iswaran’s corruption charges

On 3 October, Iswaran has been sentenced to 12 months in jail after pleading guilty to four amended charges under Section 165 of Singapore’s Penal Code and one charge of obstructing the course of justice under Section 204A(a) of the Penal Code.

Iswaran admitted to accepting valuable gifts from prominent businessmen, including Ong Beng Seng, chairman of Singapore GP, and Mr Lum, while holding public office.

These gifts, which included private flights and other benefits, were worth over S$400,000 in total.

The 35 charges against Iswaran were amended by the prosecution on 24 September from corruption to lesser offences under Section 165, which pertains to public servants receiving valuable items in connection with their official duties.

The court also took into account Iswaran’s admission of obstructing the course of justice, for which he had repaid over S$5,000 to Singapore GP for a business-class flight he had taken at Ong’s expense.

The remaining 30 charges were taken into account during sentencing.

Iswaran had originally faced 35 charges, including two counts of corruption.

The charges were amended from two counts of corruption under the Prevention of Corruption Act (PCA) to offences under Section 165.

This section, unlike Section 8 of the PCA, does not include a presumption of corruption, which would have placed the burden on the accused to prove the gifts were not given as inducements.

The AGC in an explanation cited substantial evidentiary risks in proving the original corruption charges, which involved  Ong Beng Seng and Lum Kok Seng.

The AGC noted that proving the original corruption charges under PCA would have been difficult due to the involvement of both Iswaran and Ong as primary parties.

Both would have had to implicate themselves to establish corrupt intent.

The AGC explained that “there are two primary parties to the transactions, and both would have an interest in denying corruption in the transactions.” This made securing a conviction for corruption highly uncertain.

In light of these risks, the AGC amended the charges to offenses under Section 165 of the Penal Code, which carries a lower evidentiary threshold and a reduced maximum sentence of two years’ imprisonment.

According to AGC, the amendment was made to ensure a fair and just outcome while considering public interest.

SINGAPORE: Property tycoon and hotelier Ong Beng Seng charged in court on Friday (4 October) with two offences linked to former Transport Minister S Iswaran’s case.

Mr Ong, who serves as Hotel Properties Limited (HPL)’s managing director, faces one count each under Sections 165 and 204A of Singapore’s Penal Code for abetment.

Section 165 pertains to a public servant obtaining valuables from individuals with whom they have an official relationship, while Section 204A deals with obstructing justice.

If found guilty under Section 165, offenders face up to two years in jail, a fine, or both. Abetting such offences carries the same penalties if the crime is committed due to the abetment.

Ong’s charges stem from his involvement in a high-profile corruption case linked to Iswaran.

The defence has requested a six-week adjournment for further instructions from Ong, a motion the prosecution, led by Deputy Chief Prosecutor Christopher Ong, did not oppose.

The case has been rescheduled for a pre-trial conference on 15 November at 9 am.

Ong is currently out on S$800,000 bail and is represented by Aaron Lee from Allen & Gledhill.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha.

These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.

Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165.

Iswaran pleaded guilty on 24 September, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.

The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong was arrested by CPIB in July 2023

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter.

Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.

The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022.

CPIB investigators uncovered the flight manifest and seized the document.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.

Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

In addition to Ong, construction tycoon Lum Kok Seng was also linked to the additional charges filed against Iswaran in March this year.

Iswaran, who became transport minister in 2021, admitted to accepting valuable items worth approximately S$19,000 from Lum, including a Brompton bicycle, luxury wines, and golf equipment.

However, no charges have been publicly announced against Lum.

Controversies surrounding Ong

This is not the first time Ong has found himself embroiled in controversy.

The 1990s saw questions over luxury condominium units sold by his company to Senior Minister Lee Kuan Yew and his son. The units, part of the Nassim Jade and Scotts 28 condominiums, were allegedly sold at special discounts.

This raised eyebrows due to Ong’s familial links with the Lees – his uncle, Lee Suan Yew, was a director at HPL. Although then Prime Minister Goh Chok Tong cleared the Lees of any wrongdoing in 1996, the incident has remained a notable mark on Ong’s business record.

Furthermore, an investigative report by the Organized Crime and Corruption Reporting Project in 2018 revealed allegations of corruption involving Ong in the leasing of two islands in the Maldives.

The report suggested that HPL had sidestepped Maldivian laws requiring public tender for island leases, instead conducting direct negotiations with Maldivian officials.

It was also alleged that a US$5 million payment made for the lease of Fohtheyo island had been siphoned off through a company associated with friends of the then Maldivian Vice President Ahmed Adeeb. Ong did not respond to these allegations.

Ong, who is the founder of the Singapore-based organization Hotel Properties and a shareholder in many businesses, has a net worth of S$1.7 billion.

Together with his wife Christina, they ranked No. 25 on Forbes’ Singapore’s 50 Richest list, which was published in August 2022.