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Ho Ching: A reluctant CEO? Goodyear’s exit and 17 years at Temasek’s helm challenge the narrative

In By Generations, For Generations, Ho Ching reflects on her time as Temasek’s CEO, portraying herself as a reluctant leader. However, Chip Goodyear’s abrupt resignation in 2009 and her continued leadership for 12 more years cast doubt on her claim of reluctance to hold the position.

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In the prologue of By Generations, For Generations, a commemorative book marking Temasek’s 50th anniversary, Ho Ching reflected on her journey as the CEO of Singapore’s sovereign wealth fund.

Her narrative frames her as a reluctant leader, initially coaxed into the role after being approached by then-chairman S Dhanabalan.

Business Times, published her prologue, entitled, “The reluctant CEO: Ho Ching on why she accepted the top job at Temasek” and Mothership reported, “Ho Ching didn’t want to be Temasek CEO when 1st asked to do so”.

Many members of the public voiced strong scepticism in various comment threads, and this scepticism is not without basis, especially considering the abrupt resignation of her designated successor, Chip Goodyear, in 2009, which casts serious doubt on whether Ho Ching ever truly intended to step down.

Temasek’s board had announced Goodyear’s appointment on 6 February 2009 with much fanfare, positioning him as the leader to take Temasek into its next phase of global growth.

S Dhanabalan praised Goodyear’s “rare and unusual combination of investment and operational experience” and emphasized that Ho Ching had been instrumental in recruiting him.

Goodyear, former CEO of BHP Billiton, was poised to take over in October, signaling a shift toward greater internationalization for Temasek. His appointment came in the wake of Temasek’s significant losses during the Global Financial Crisis in 2008, which had placed pressure on the company to adopt a new direction.

However, just five months later, in July 2009, Goodyear resigned abruptly, citing “differences regarding certain strategic issues.”

His departure raised significant concerns about what had gone wrong in a transition that had reportedly been in the works for over a year.

Insiders suggested that Goodyear’s proposed changes to senior management and his critical assessment of past investment decisions met resistance from within Temasek.

Leaked U.S. embassy cables, published by WikiLeaks, provided further insight into the failed leadership handover.

According to the cables, “Madam Ho had continued to micro-manage Temasek despite her planned departure, interfering with Goodyear’s transition to the top spot.”

This raised significant doubts about whether Ho Ching ever truly intended to relinquish control, despite the narrative of her planned retirement.

The cables highlighted deeper governance issues within Temasek, where Goodyear’s vision clashed with the board’s—and Ho Ching’s—approach, leading to tensions that ultimately culminated in his abrupt exit.

This was further complicated by the fact that Ho Ching had been named by Time and Forbes as one of the world’s most powerful women, underscoring her influence not only within Temasek but also globally.

Her tenure as CEO, coinciding with her husband Lee Hsien Loong’s premiership from 2004 to 2024, added to concerns about the concentration of power in Singapore’s political and economic institutions.

Temasek’s handling of Goodyear’s resignation also highlighted issues with its succession planning.

Despite Goodyear’s departure, there was no further visible effort to find an external replacement. Instead, Ho Ching remained in the CEO role for another 12 years, which suggested a reluctance to genuinely embrace leadership changes or internationalization.

The failure to continue the search for a successor after Goodyear’s exit raised significant questions about Temasek’s commitment to finding new leadership and whether it was ever serious about handing over control to an external figure.

This lack of follow-up directly contradicted Dhanabalan’s earlier claim that Goodyear’s appointment was part of a broader plan to “strengthen Temasek’s board and management.”

Further complicating the narrative is the ongoing secrecy around Ho Ching’s compensation.

Allegations from Taiwanese media claimed she earned S$99 million annually, though Temasek denied these claims and the Finance Minister even issued POFMA correction directions on her behalf. However, no specific figures were ever provided, fueling public skepticism. Given Temasek’s status as a sovereign wealth fund managing public money, this lack of transparency continues to be a source of controversy.

The continued presence of Ho Ching at the helm, combined with the lack of visible efforts to find a new successor at that time, raised uncomfortable questions about Temasek’s governance and the influence of political ties in determining the leadership of one of the world’s largest sovereign wealth funds.

Was it reasonable to believe that there was no one else more qualified to lead Temasek than the wife of Singapore’s prime minister?

After Goodyear’s resignation, Ho Ching remained in charge for another 12 years, a tenure that casts doubt on her initial narrative of hesitation.

Even after stepping down as CEO in 2021, she became the chairman of Temasek Trust in 2022, further suggesting a continued desire to hold influential leadership positions. This decision to take on yet another prominent role contrasts sharply with her claim in her of wanting to “take life easy” and retire.

Ultimately, the failed leadership transition during her 17 years at the helm of Temasek raises an important question: Can Ho Ching still claim to be a “reluctant” CEO after holding the position for such a long period?

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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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