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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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Opinion

CNA overlooks trend: Courts impose harsher sentences for establishment figures

Channel News Asia (CNA) recently published an article citing lawyers who framed the 12-month sentence for former Transport Minister S Iswaran as “unusual” for exceeding both prosecution and defence recommendations. However, CNA overlooked a broader trend of courts imposing harsher sentences in high-profile cases involving establishment figures.

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Karl Liew, S Iswaran, Gilbert Oh

Channel News Asia (CNA) recently published an article citing legal experts who framed the 12-month sentence handed to former Transport Minister S Iswaran as “unusual,” highlighting how rare it is for judges to impose sentences exceeding the recommendations of both the prosecution and defence.

While CNA accurately reflected the legal principle that judges have the discretion to apply their own sentencing decisions, the report downplays a clear emerging trend: harsher-than-requested sentences are becoming increasingly common in high-profile cases involving establishment figures.

In fact, two significant cases not mentioned by CNA—those of Gilbert Oh Hin Kwan and Karl Liew—further illustrate that this phenomenon is not an anomaly but part of a broader judicial pattern.

These rulings suggest that the courts are increasingly sending a strong message to public servants and influential figures, reinforcing the need for accountability and deterrence.

Justice Vincent Hoong, who presided over Iswaran’s case, underscored this point by noting the broader harm caused by breaches of trust in high-level public office.

The rationale behind the sentencing in Iswaran’s case was centred on general deterrence and the need to maintain public trust.

Justice Hoong pointed out that public servants, especially those in high office, must uphold integrity due to the potential damage their actions can cause to the reputation of public institutions. By imposing a sentence that exceeded the prosecution’s recommendation, the court sent a clear message that any breach of trust in public office will be met with firm consequences.

A Pattern Hidden in Plain Sight

CNA’s emphasis on the “unusual” nature of Iswaran’s sentence draws attention to the exceptional use of judicial discretion.

Mr Chooi Jing Yen, a lawyer quoted in the article, acknowledged that while it’s uncommon for judges to go beyond what the prosecution requests, they have the legal right to do so when they deem it necessary based on the facts of the case. He also noted that judges are not bound by the recommendations presented in court and can choose a higher sentence if they believe it better serves justice.

However, what CNA and its quoted lawyers failed to consider are two additional cases involving establishment figures: Gilbert Oh and Karl Liew.

Both received sentences that exceeded prosecution and defence recommendations, showing that while such judicial decisions may be rare in the general sense, they are increasingly common in cases where the prosecution’s recommendations seem mild in comparison to the alleged offences.

In Gilbert Oh’s case, the court imposed a one-week jail term despite both the prosecution and defence agreeing on a fine. Oh, a former Director-General in the Ministry of Foreign Affairs (MFA), had misused his official position to illegally transport luxury items and lied about it.

District Judge Sharmila Sripathy-Shanaz noted that his role as a high-ranking public servant exacerbated the potential harm to public trust in the MFA, particularly since his actions could have disrupted the ministry’s internal investigations.

Similarly, Karl Liew, the son of former Changi Airport Group chairman Liew Mun Leong, received a custodial sentence of two weeks for providing false testimony during the infamous Parti Liyani case, despite both sides calling for a fine of S$5,000—essentially a slap on the wrist for an individual living in a mansion worth tens of millions.

Furthermore, just like Iswaran, Karl’s charge of s193 for intentionally giving false evidence was amended to a lesser charge of s182 during the hearing. No explanation was given for why the prosecution changed its charge against Karl.

District Judge Eugene Teo said he could not agree that Karl’s actions should be met with only a fine and pointed out that the prosecution’s submissions read like mitigation, which the Defence repeated wholesale in their own submissions.

These examples, not highlighted by CNA, clearly show a judicial pattern of imposing harsher sentences in cases where the prosecution has recommended relatively lenient penalties. The fact that these cases were not discussed in CNA’s article weakens its argument that such sentencing decisions are rare anomalies.

Justice Hoong’s Position in Iswaran’s Sentencing

It is also important to examine the stance taken by Justice Vincent Hoong in his sentencing of Iswaran.

Justice Hoong, in determining the appropriate punishment, carefully considered the positions presented by both the prosecution and the defence. However, he ultimately decided to deviate from their recommendations, citing the need for a more appropriate sentence given the circumstances of the case.

In his judgment, Justice Hoong referenced the High Court decision in Janardana Jayasankarr v Public Prosecutor [2016] 4 SLR 1288, which emphasised that sentencing is ultimately the responsibility of the court.

As noted in Janardana, while the prosecution and defence are expected to assist the court with their submissions, neither side’s recommendation should be viewed as binding.

Justice Hoong highlighted that “the Prosecution’s submissions on sentence is not, and should not be regarded as, the upper limit of the sentence that may be meted out.” Similarly, the defence’s proposal should not be seen as the minimum sentence.

Applying this principle to the case at hand, Justice Hoong determined that a sentence exceeding the proposals from both sides was necessary.

He argued that adopting either the prosecution’s or the defence’s recommendations would result in “a manifestly inadequate sentence.” By citing the gravity of the offence and its impact on public trust, he concluded that the 12-month jail term was more appropriate in ensuring justice was served.

What CNA’s Framing Misses

By presenting these harsher sentences as rare occurrences, CNA’s report misses an important point: when it comes to cases involving the establishment or public servants, the courts seem increasingly inclined to reject both the defence’s and prosecution’s recommendations in favour of harsher penalties. This approach may reflect a heightened awareness of public perception and a broader goal of protecting institutional integrity.

CNA’s article also fails to address why the prosecution in such cases tends to propose comparatively lenient sentences.

In Iswaran’s case, for instance, the prosecution sought a jail term of six to seven months, which, given the nature of the offence, some might argue was on the lower end of the sentencing spectrum.

The same can be said for the prosecution’s stance in the cases of Oh and Karl, where they initially recommended a fine.

This raises questions about whether the prosecution’s recommendations are, at times, shaped by the status of the accused, thereby creating an environment where the court feels compelled to impose a harsher sentence to correct for perceived leniency.

To be clear, this is not to allege prosecutorial bias or intent to shield establishment figures. However, the pattern of harsher sentences in these cases cannot be ignored, especially when viewed alongside the relatively modest proposals from both the defence and prosecution.

Growing Scrutiny on Sentencing Practices

The emergence of this trend also aligns with a broader public demand for transparency and fairness in sentencing, especially for individuals in positions of power.

Cases involving public officials are closely watched by the public, and any leniency shown in sentencing could be perceived as a double standard for those in high office compared to ordinary citizens. This is particularly important in a society like Singapore, where trust in public institutions is a cornerstone of governance.

By consistently imposing sentences beyond what is recommended, the courts appear to be responding to this societal demand for accountability. The message is clear: breaches of public trust, especially by those in the highest echelons, will not be tolerated.

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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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