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The presumption of guilt in the PCA and MDA: Why the withdrawal of corruption charges against Iswaran contradicts Singapore’s zero-tolerance policy

The AGC’s decision to downgrade charges against Iswaran raises serious concerns, especially when considering the legal presumptions in Singapore’s Misuse of Drugs Act (MDA) and Prevention of Corruption Act (PCA). Both laws shift the burden of proof to the accused, making the AGC’s reasoning for dropping the PCA charges highly questionable.

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The Attorney-General’s Chambers (AGC) recently withdrew corruption charges against former Singaporean transport minister S Iswaran, citing challenges in prosecution.

The AGC explained that proving corruption under the Prevention of Corruption Act (PCA) would be difficult, particularly as both Iswaran and property tycoon Ong Beng Seng (OBS) would likely avoid implicating themselves.

This explanation is perplexing, particularly when considering the legal framework provided under Section 8 of the PCA, which mirrors the presumption of guilt often applied in drug trafficking cases.

Under the PCA, once a public official accepts any form of gratification, corruption is presumed unless the official can prove otherwise.

This presumption shifts the burden of proof to the accused, much like in drug trafficking cases, where possession of a certain quantity of drugs triggers a presumption of trafficking, as detailed in Singapore’s Misuse of Drugs Act (MDA)​.

Former Prime Minister Lee Hsien Loong reaffirmed Singapore’s zero-tolerance approach to corruption in Parliament in August last year, saying, “We firmly believe that to maintain an honest political system and for the people to continue to trust the PAP, we must deal with issues transparently.”

“Therefore, when anyone, including Ministers or MPs, are involved in corruption or illegal behaviour, there is zero tolerance, and we will investigate fully. If the investigation finds that there was no wrongdoing or conflict of interest, the matter would be closed and those involved exonerated. If the investigation shows that there is misconduct, they would be dealt with the full force of the law.”

The PCA’s Section 8 is a cornerstone of this zero-tolerance policy. It ensures that public officials who receive any form of gratification must rebut the presumption of corruption, placing the burden of proof on them.

This provision is highlighted on the Corrupt Practices Investigation Bureau (CPIB) website under the heading “Ensuring Incorruptibility of the Public Service”, where it states: “The PCA also provides for a presumption where any gratification given or received by a person in the employment of the Government or of a public body is deemed corrupt.”

“The burden of proof to rebut the presumption lies with the person. In addition, public officers are expected to report any case where gratification is offered, accepted or demanded.” This demonstrates how integral Section 8 is to safeguarding the integrity of Singapore’s public service, underscoring its role as a key pillar in the country’s zero-tolerance approach to corruption.”

Yet, the AGC did not appear to place much, if any, emphasis on Section 8 when dealing with Iswaran’s case, despite this provision being a powerful legal tool designed to combat corruption.

This omission becomes more striking when experienced lawyers highlight that it is very difficult to rebut a presumption at law, especially in cases involving the PCA.

It is rare for the defense to successfully challenge such presumptions, making it puzzling why Section 8 was not given more importance in this prosecution.

Corruption vs. Drug Trafficking: Legal Parallels

Section 8 of the PCA operates in a similar fashion to drug trafficking cases under the MDA. In both instances, the law presumes guilt once certain thresholds are met—gratification in corruption cases, and possession in drug trafficking cases.

In Iswaran’s case, the AGC initially charged him under Section 6(a) of the PCA, which should have triggered the presumption of corruption under Section 8. However, the charges were later downgraded to Section 165 of the Penal Code, which deals with public officials accepting gifts without requiring proof of corrupt intent, and carries significantly lighter penalties.

The AGC’s reasoning for withdrawing the PCA charges—that both Iswaran and Ong might deny allegations of corruption—is juvenile and preposterous.

When the AGC decided to prosecute Iswaran, it must have been fully aware that both parties would deny the charges.

In fact, this denial is precisely why the PCA’s Section 8 exists: to shift the burden of proof onto the accused, making it their responsibility to disprove the presumption of corruption.

By claiming that a denial of guilt from both parties would complicate prosecution, the AGC’s justification becomes nonsensical. It is inconceivable that this was not anticipated at the start, making the decision to drop the charges difficult to justify.

To illustrate how the presumption of guilt is applied in drug trafficking cases, we can look at the 2018 Court of Appeal ruling in Zainal bin Hamad v Public Prosecutor.

The court noted that once possession of a certain quantity of drugs is established, the presumption of trafficking applies, shifting the burden to the accused to prove otherwise.

The judgment emphasized that “it was incumbent on [Zainal] to adduce evidence to raise a reasonable doubt” and that mere denials or weak explanations are insufficient to discharge this presumption​​.

Without credible evidence to counter the presumption, the court ruled that the accused was rightly convicted.

This demonstrates that once the presumption of guilt is triggered, the defense must provide substantial evidence to rebut it—something seldom successfully achieved.

The Decision to Downgrade to Section 165: A Simpler but Less Severe Offence

Downgrading the charges to Section 165 of the Penal Code, a provision used for the first time in Singapore’s 153-year legal history since the Penal Code was introduced in 1871, further complicates public understanding of this case.

Section 165 focuses on the act of a public servant accepting valuable items from individuals connected to their official duties without needing to prove corrupt intent.

Although the charges against Iswaran under this section are easier to prove than corruption under the PCA, the offence carries significantly lighter penalties. The law targets improper acceptance of gifts, but without the severity or focus on corrupt intent seen in the PCA.

This shift towards a lesser charge under Section 165 is seen as lenient, especially given the nature of the allegations.

While the AGC cited “litigation risks” in pursuing the PCA charges, the downgrade effectively softens the seriousness of the offence. Iswaran now faces a maximum sentence of two years’ imprisonment under Section 165, compared to the seven years possible under the PCA.

However, the prosecution has indicated that they will be seeking a sentence of 6-7 months for the four amended charges under Section 165, and one charge under Section 204A for obstruction of justice, which carries a maximum penalty of seven years’ imprisonment, a fine, or both.

This raises further questions about whether public trust and justice are being adequately served. This approach contrasts sharply with Singapore’s zero-tolerance stance, especially considering the case of Wee Toon Boon, who was handed a six-month sentence simply for accepting roofing worth S$3,500.

In Iswaran’s case, the gifts allegedly received were far more extravagant—S$384,000 in gifts from Ong Beng Seng, and S$18,920.94 from David Lum.

The comparatively lenient sentence being sought, despite the substantial value of the gifts and the scope of the allegations, underscores a disconnect between the rhetoric of zero tolerance and the actions taken in this case.

This discrepancy is all the more striking when placed beside Wee’s case, where a much smaller gift led to a sentence of six months.

Public’s expectation on transparency and accountability

At its core, the public expects transparency and accountability, especially in cases involving senior public officials like Iswaran.

The decision to withdraw stronger corruption charges, particularly when Section 8 of the PCA could have been invoked, risks eroding public confidence in Singapore’s administration of justice.

When a senior public official is implicated in a corruption case, the public expects rigorous legal standards to apply, particularly given the strong anti-corruption stance that Singapore is known for.

The zero-tolerance approach to corruption in Singapore is founded on clear and consistent application of the law.

The AGC’s decision to downgrade corruption charges against S Iswaran, despite the legal mechanisms available under Section 8 of the PCA, contrasts starkly with how the law handles drug trafficking cases under the MDA.

Both legal frameworks share the goal of combating severe societal issues, and both rely on presumptions that shift the burden of proof to the accused when possession or gratification is established.

By downgrading the charges to a simpler offence under Section 165, the AGC risks undermining the consistency and integrity of Singapore’s legal system, raising questions about whether justice was truly served in this case.

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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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