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Why did the AGC withdraw corruption charges against Iswaran despite pursuing them twice?

The AGC reduced corruption charges against former Transport Minister S Iswaran, citing challenges in proving corrupt intent. This raises the key question: Why did the AGC press corruption charges twice if these evidentiary difficulties were known from the start, only to amend them at the last minute?

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In an unexpected turn of events, the Attorney-General’s Chambers (AGC) reduced the corruption charges against former Transport Minister S Iswaran to lesser offences under Section 165 of the Penal Code just before what would have been a historic trial of a political officeholder.

Iswaran was initially charged in January 2024 for allegedly receiving gifts worth approximately S$384,000 from Ong Beng Seng in exchange for advancing Ong’s business interests, particularly related to the Singapore Grand Prix.

Additional charges followed in March 2024, accusing Iswaran of receiving valuable items—including whisky bottles, golf clubs, and a Brompton bicycle—from David Lum Kok Seng, managing director of Lum Chang Holdings.

These items, valued at approximately S$19,000, were linked to Iswaran’s role as Transport Minister, bringing the total value of gifts to over S$400,000 and the total number of charges to 35, including corruption and obstruction of justice.

However, just before the trial was set to begin, the AGC made a significant decision to amend the charges. The more serious corruption charges under the Prevention of Corruption Act were reduced to lesser offences under Section 165 of the Penal Code, which deals with public servants receiving valuable gifts without corrupt intent.

As a result, the corruption charges were effectively removed, and Iswaran pleaded guilty to the revised charges after months of maintaining his innocence.

In its statement to the media on Tuesday, the AGC cited significant challenges in proving the original corruption case beyond a reasonable doubt.

It stated that both Iswaran and businessman Ong Beng Seng would need to implicate themselves to establish corrupt intent, posing litigation risks.

While the AGC provided reasons for dropping the charges against Iswaran, it raises an important question: Why did the AGC press corruption charges under the Prevention of Corruption Act (PCA) not once but twice if these evidentiary challenges were known from the start?

The AGC’s rationale—difficulty in proving corrupt intent—should have been foreseeable when the charges were initially brought forward.

Ong and Iswaran, including Lum, all had a vested interest in denying the allegations, which would make conviction difficult. Nevertheless, the AGC proceeded with the charges twice, only to backtrack on the day of the trial itself, according to the prosecution, when asked in court by Justice Vincent Hoong.

If these concerns of litigation risks were apparent from the outset, why were the charges filed under the more severe PCA in the first place? Was this a mistake?

Apparently not, as Deputy Attorney General Tai Wei Shyong clarified in court that the corruption charges against Iswaran were not withdrawn but amended, and reiterated that there was a strong basis for why they were originally brought.

That begs the question: Why amend the charges then?

This puzzling approach mirrors the AGC’s handling of the Keppel Offshore & Marine (KOM) bribery case, where six senior executives were issued stern warnings but not prosecuted after five years of investigation.

Minister Indranee Rajah explained in Parliament that the AGC and the Corrupt Practices Investigation Bureau (CPIB) faced similar evidentiary difficulties, citing insufficient proof to establish guilt beyond a reasonable doubt.

The KOM case involved cross-border transactions, which authorities claimed made it difficult to secure witness testimony or documentary evidence that could hold up in court.

Despite a U.S. investigation resulting in a Deferred Prosecution Agreement (DPA) with Keppel admitting to the charges against it and a US$422 million fine, the AGC found that references to individual actions in the DPA were insufficient to support prosecution in Singapore.

Foreign witnesses allegedly refused to testify, and key individuals denied knowing that commissions paid were used as bribes.

Ultimately, the AGC issued stern warnings as an “in-between” measure, suggesting that while there was insufficient evidence for prosecution, the individuals involved were not entirely “off the hook.”

The similarities between the Iswaran case and the KOM scandal raise broader questions about the AGC’s consistency in applying its prosecutorial discretion. In both cases, the decisions to scale back or drop charges are said to be due to alleged insufficient evidence after lengthy investigations.

But shouldn’t public prosecutions prioritize ensuring that justice is being sought by allowing the facts to be fully examined in court, even if securing convictions isn’t guaranteed—especially to promote public awareness and reinforce Singapore’s strong zero-tolerance policy on corruption?

In Iswaran’s case, the decision to amend the charges could be seen as a pragmatic move by prosecutors to avoid a lengthy and costly trial with uncertain outcomes. However, for the public, this creates a perception of inconsistency in how different cases are pursued.

This perception is reinforced by the AGC’s decision to prosecute opposition leader Pritam Singh for allegedly lying under oath to a parliamentary committee, relying solely on the testimony of a former Member of Parliament who had confessed to lying.

Why does Singh’s case appear more straightforward to convict than Iswaran’s, without similar evidentiary challenges, when the prosecution primarily relies on verbal testimony? In contrast, in Iswaran’s case, the gifts from Ong and Lum were undeniable and proven, yet the AGC chose to amend the charges due to difficulties in proving corrupt intent.

Iswaran is set to face sentencing on 3 October 2024, with the prosecution seeking 6-7 months of imprisonment while Iswaran’s defence is seeking a maximum term of 8 weeks.

Regardless of the sentence, the fundamental question remains: Why did the AGC pursue corruption charges in the first place, only to drop them at the last minute, despite citing evidentiary concerns?

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Opinion

Iswaran unlikely to serve full 12-month sentence under conditional remission and possibly home detention

Former Transport Minister S Iswaran is unlikely to serve the full 12 months of his sentence. Under Singapore’s Conditional Remission System, he could leave prison after serving less than eight months, with the remainder of his sentence served under strict supervision, including home detention. While Iswaran is scheduled to surrender on 7 October 2024, there is a possibility of an appeal.

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Former Transport Minister Iswaran was sentenced to 12 months in prison on 3 October 2024 for accepting valuable gifts while in public office and obstructing the course of justice.

The court granted Iswaran’s request to surrender himself at 4 p.m. on 7 October 2024 to begin his sentence. However, his lead lawyer, Davinder Singh, indicated that the start of the sentence could be delayed depending on “instructions,” hinting at the possibility of an appeal.

However, despite the 12-month sentence, it is highly likely that Iswaran will serve less time in prison due to Singapore’s Conditional Remission System (CRS) and potentially the Home Detention Scheme (HDS).

Under the CRS, prisoners in Singapore may be released early if they demonstrate good behaviour.

Typically, under the CRS, inmates are eligible for release after serving two-thirds of their sentence. In Iswaran’s case, this means he could be released after serving eight months in prison, with the remaining four months of his sentence subject to a Conditional Remission Order (CRO).

The CRO, a legal mechanism that enforces strict conditions post-release, requires compliance with several terms, such as reporting to authorities and avoiding any criminal activity. If Iswaran violates these conditions, he could face penalties, including being sent back to prison to serve the remainder of his sentence.

Alongside CRS, there is also the possibility that Iswaran could serve part of his sentence under the Home Detention Scheme (HDS), which allows prisoners to serve their final months under strict supervision at home.

Take the case of former Singapore Civil Defence Force (SCDF) Chief Peter Lim Sin Pang, for example.

Lim was sentenced to six months in prison in 2013 for corruption.

After serving three months in Changi Prison, he was supposedly placed on home detention for one month — if we consider how CRO grants him two months of remission — allowing him to complete his sentence under supervision.

Home detention meant that Lim would spend his remaining sentence at home under electronic monitoring, fitted with an electronic monitoring device, typically worn as an ankle bracelet, which allows authorities to track his location at all times.

Like other inmates under the HDS, his movements were tightly controlled, and he was allowed out only for specific activities, such as attending work, medical appointments, or rehabilitation programmes, during limited hours.

Any deviation from the permitted activities or failure to return home on time could lead to immediate consequences, including being returned to prison to complete the sentence.

Eligibility for home detention depends on various factors, such as the inmate’s behaviour during incarceration and the level of risk they pose to society.

This scheme aims to reintegrate prisoners into society while maintaining strict oversight.

If HDS is applicable, Iswaran might spend even less time behind bars, as he could transition to home detention before completing the full period under the CRS.

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Opinion

Why the silence by Minister Shanmugam on his S$88 million property sale?

Despite being quick to rebut allegations, Minister K Shanmugam has remained silent on the S$88 million sale of his Good Class Bungalow (GCB) in August 2023. The lack of public commentary, especially given the potential conflict of interest with the Singapore Land Authority’s role, raises questions.

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When it comes to addressing allegations, Minister for Home Affairs and Law, K Shanmugam, has shown he can respond swiftly and decisively, as seen in his and Dr Vivian Balakrishnan’s rapid legal actions against Mr Lee Hsien Yang (LHY) for defamation, as well as their recent rebuttal to LHY’s statement regarding the defamation costs paid to the two ministers.

However, the stark contrast in how Mr. Shanmugam has handled recent revelations about his own financial dealings, and his silence regarding the S$88 million sale of a Good Class Bungalow (GCB), is puzzling and raises concerns about transparency and potential conflicts of interest.

TOC had earlier disclosed that Mr Shanmugam sold his GCB at 6 Astrid Hill for a staggering S$88 million in August 2023.

The sale was to UBS Trustees (Singapore) Ltd, a transaction managed by legal professionals from his former law firm and concluded without any encumbrances like a mortgage. This deal turned a home bought for S$7.95 million into an S$88 million sale—garnering a massive profit.

This sale was made just a month after he made his ministerial statement explaining the circumstances of his leasing of the massive black-and-white bungalow estate at 26 Ridout Road from the Singapore Land Authority (SLA), a statutory board that he oversees as the Minister for Law.

This transaction, particularly the identity of the buyer and the approval process for such a high-value sale, is of public interest because GCBs are subject to stringent sale conditions.

They are generally only sold to Singaporeans or approved Permanent Residents who have made significant economic contributions to Singapore. The approval for such transactions typically comes from the SLA.

This raises an inherent question: Why has Mr Shanmugam not addressed the public regarding this substantial financial transaction, especially when such approvals could potentially involve his direct oversight? We have written to him for his comments but were met with silence.

We do not know who the actual beneficiaries of the property are, as it was sold to ‘The Jasmine Villa Settlement,’ a trust managed by UBS Trustees. The beneficiaries could be Singaporeans, foreigners, or a mix of both.

His silence is notable because it contrasts sharply with his and other ministers’ rapid responses to allegations made by LHY.

The potential conflict of interest in the sale of the minister’s GCB is similar to earlier concerns about his rental of a black-and-white property at 26 Ridout Road, which also involved the SLA from which he has said to have recused himself from decisions made. Notably, the government has also cleared him of any wrongdoing.

The lack of public commentary from Mr Shanmugam about the sale of his GCB, despite the potential need for SLA’s approval, and the silence from the mainstream media on this revelation, merit scrutiny.

The public deserves to know:

  • Who was the buyer and, if the buyer is a non-Singaporean, who approved the sale to UBS Trustees and under what criteria? Especially since GCBs can only be sold to Singaporeans or Permanent Residents who have not only been resident in Singapore for over five years but have also made exceptional economic contributions—a criterion subject to the subjective approval of the authorities.
  • Was there any conflict of interest given the minister’s role over the SLA? This is particularly pertinent given that the SLA, which falls under the purview of the Ministry of Law, would typically be involved in approving such transactions if the buyer does not meet the usual criteria. Moreover, given the huge sum involved in the transaction, extra scrutiny is warranted, especially as Mr. Shanmugam is a public servant holding significant power.
  • Why has there been no public statement from Minister Shanmugam on this matter, especially given the rapid response to defamation accusations? His silence contrasts sharply with his prompt responses to other public issues, raising questions about consistency and transparency in handling personal financial dealings versus public allegations.

Minister Shanmugam’s transparency in this matter would reaffirm public trust and ensure that his actions as a minister do not conflict with his personal financial dealings.

His response, or lack thereof, will significantly influence public perception of his commitment to transparency and accountability in his official capacities.

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