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Why did AGC drop corruption charges against Iswaran despite PCA’s section 8’s presumption clause?

Opinion: Why did the AGC drop corruption charges against former minister S Iswaran despite Section 8 of the PCA, which presumes corruption when public officials receive gifts? This unexpected decision raises serious questions about transparency, accountability, and the use of anti-corruption laws.

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In an attempt to explain why corruption charges against former transport minister S Iswaran under the Prevention of Corruption Act (PCA) were dropped, the Attorney-General’s Chambers (AGC) cited challenges in prosecuting him under the act.

The AGC argued that proving corruption would be difficult, given that both Iswaran and property tycoon Ong Beng Seng would be unlikely to implicate themselves.

This explanation is surprising, given the provisions of Section 8 of the PCA. For those charged under Sections 5 or 6, the law presumes corruption once a public officer receives any form of gratification, placing the burden on the accused to disprove corrupt intent.

Since Iswaran was charged with two counts of corruption under Section 6(a), read with Section 7 of the PCA, the legal framework should have facilitated, rather than complicated, the prosecution’s task in this case.

More perplexing is the AGC’s decision to amend the charges, ultimately charging Iswaran under Section 165 of the Penal Code rather than under the PCA, effectively removing the corruption charges altogether.

Notably, this is the first time in Singapore’s 153-year history that Section 165 has been invoked. Section 165 addresses the acceptance of valuable items by public officials without requiring proof of corrupt intent, and it carries significantly lighter penalties—just two years’ imprisonment compared to the seven years possible under the PCA for corruption charges.

While the AGC cited “litigation risks” in proving the PCA charges beyond a reasonable doubt, this explanation seems to sidestep the fact that the PCA presumes corrupt intent once gratification is accepted by a public official.

The AGC also stated to the media, “AGC also considered whether the amendment would lead to a fair and just outcome that is in line with the public interest.”

But is the public interest better served by reducing the severity of the charges? Or does this decision represent an overly cautious approach to a case that, on the surface, appears to meet the conditions for prosecution under the PCA?

The AGC’s decision becomes even more questionable when considering the total value and scope of the gifts involved.

These gifts, valued at over S$218,000 from Ong alone, were not casual or one-off gestures but involved high-value items, including tickets to the Singapore F1 Grand Prix, football matches, and exclusive theatre performances, alongside luxury golf equipment, expensive whisky, and a high-end bicycle.

From November 2015 to December 2021, Iswaran allegedly received 24 valuable gifts exceeding S$384,000 (US$285,000) in value from Ong, often tied to the business dealings related to his official role as Chairman of the F1 Steering Committee.

Similarly, between November 2021 and November 2022, Iswaran allegedly accepted several expensive items worth S$18,920.94 from David Lum Kok Seng, managing director of construction firm Lum Chang Holdings (LCH), including whisky, wine, and golf equipment, during a period when Mr Lum’s company was managing a major contract for the Land Transport Authority.

These transactions were far from casual or isolated. Iswaran did not merely receive a token gift on a single occasion—he received a series of high-value items over several years, all from individuals with business interests directly tied to his official roles, raising significant concerns about conflicts of interest.

Given the substantial value and frequency of these gifts, Iswaran’s acceptance of them is far from a minor infraction that Section 165 might traditionally address.

This is especially concerning when considering that civil servants in Singapore are prohibited from retaining gifts worth more than S$50 and must declare any gifts received from external stakeholders to their permanent secretaries.

Iswaran’s failure to report these substantial gifts only heightens concerns about the AGC’s decision to amend the charges to the lesser offence.

While the AGC’s caution in considering “litigation risks” is understandable, the presumption of corruption under Section 8 of the PCA would have shifted the burden to Iswaran to prove that these extensive gifts were not corruptly given.

In this context, the unprecedented use of Section 165 seems out of place, given the clear legal mechanisms provided under the PCA for such cases.

A comparison with the case of Wee Toon Boon, the former Minister of State for the Environment, is instructive.

In 1975, Wee was found guilty on five charges of corruption, similarly under Section 6(a) of the PCA, and was sentenced to four years and six months in prison and fined S$7,023—later reduced to 18 months upon appeal after a three-year sentence for one charge was quashed.

The judge ruled that Wee had failed to cast reasonable doubt and concluded, on the balance of probabilities, that he accepted gratifications as rewards for favours shown.

Notably, Wee received a six-month sentence simply for accepting S$3,500 (roughly S$11,410 in 2023, adjusted for inflation) worth of galvanized roofing for his house.

Given the overlapping relationships between Iswaran, Ong, and Lum during Iswaran’s time in office and the undeniable acceptance of extravagant gifts, it raises the question: why is it considered challenging to prosecute Iswaran, given the presumption of corruption in Section 8 of the PCA?

Considering the above, Deputy Attorney-General Tai Wei Shyong’s assertion in court that there was a strong basis for originally bringing the corruption charges appears valid.

Therefore, it is baffling and difficult to understand why the AGC chose to withdraw the charges at the eleventh hour, citing possible difficulties when the burden of proof is not on its side. Equally puzzling is how Iswaran, after professing his innocence for months, so unexpectedly agreed to plead guilty to the amended charges.

Public expectations for transparency and accountability are understandably high in a case involving a senior public official. The decision to downgrade the charges, particularly when stronger anti-corruption laws were available, risks undermining public confidence in the judicial process.

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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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