Court allows Ong Beng Seng to leave Singapore with extra S$800,000 bail amid corruption charges

SINGAPORE:  Property tycoon and hotelier Ong Beng Seng was granted permission by a court on Wednesday (30 October) to leave Singapore for over a week, with additional bail conditions that include an S$800,000 (US$603,600) cash bail. This brings his total bail to S$1.6 million. The 78-year-old Malaysian appeared briefly in court around noon, dressed in a white shirt and accompanied by friends and his lawyer, Mr Aaron Lee from Allen & Gledhill. Mr Lee expressed his gratitude for the urgent hearing, explaining that the defence had made the application last Friday, which faced no objections from the prosecution, provided certain additional bail conditions were imposed. Ong plans to travel to London for medical treatment, followed by Boston in the United States, before heading to Gibraltar and Spain for business. He is expected to return to Singapore on 9 November. The prosecution had sought additional bail conditions, which state that Ong cannot travel with his bailor. He must provide his travel itinerary and addresses of residence abroad to the investigating officer. Ong must remain contactable at all times and is required to surrender his passport within 24 hours of his return.

Ong faces two charges linked with Iswaran’s offences

Ong was charged on 4 October, a day after former transport minister S Iswaran was sentenced to 12 months' imprisonment. Ong, who serves as managing director of Hotel Properties Limited (HPL), faces charges under Sections 165 and 204A of Singapore’s Penal Code for abetment. Section 165 pertains to a public servant obtaining valuables from individuals with whom they have an official relationship, while Section 204A deals with obstructing justice. If found guilty under Section 165, offenders face up to two years in prison, a fine, or both. The same penalties apply for abetting such offences. Ong’s charges arise from his involvement in a high-profile corruption case linked to Iswaran. Earlier this year, Ong was named in Iswaran’s initial graft charges, which alleged that Iswaran had received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha. These gifts were purportedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert. Although Iswaran no longer faces the original corruption charges, the prosecution has amended them to lesser charges under Section 165. He pleaded guilty on 24 September to four counts under this section, covering over S$400,000 worth of gifts, including flight tickets, access to sporting events, and luxury items like whisky and wines. Additionally, he faces a charge of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

Ong was arrested by CPIB in July 2023

Ong was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement intensified following Iswaran’s guilty plea. The Attorney-General’s Chambers (AGC) indicated it would soon make a decision regarding Ong’s legal standing, which has led to the current charges. According to the statement of facts read during Iswaran’s conviction, Ong’s case emerged from a broader investigation into his associates, revealing Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022. CPIB investigators uncovered the flight manifest and seized the document, leading Ong to advise Iswaran to arrange for the Singapore GP to bill him for the flight. Iswaran subsequently paid S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge. In addition to Ong, construction tycoon Lum Kok Seng has also been linked to additional charges filed against Iswaran in March this year. Iswaran admitted to accepting valuable items worth approximately S$19,000 from Lum, including a Brompton bicycle, luxury wines, and golf equipment; however, no charges have been publicly announced against Lum.

Controversies surrounding Ong

This is not the first time Ong has found himself embroiled in controversy. The 1990s saw questions over luxury condominium units sold by his company to Senior Minister Lee Kuan Yew and his son. The units, part of the Nassim Jade and Scotts 28 condominiums, were allegedly sold at special discounts. This raised eyebrows due to Ong’s familial links with the Lees – his uncle, Lee Suan Yew, was a director at HPL. Although then Prime Minister Goh Chok Tong cleared the Lees of any wrongdoing in 1996, the incident has remained a notable mark on Ong’s business record. Furthermore, an investigative report by the Organized Crime and Corruption Reporting Project in 2018 revealed allegations of corruption involving Ong in the leasing of two islands in the Maldives. The report suggested that HPL had sidestepped Maldivian laws requiring public tender for island leases, instead conducting direct negotiations with Maldivian officials. It was also alleged that a US$5 million payment made for the lease of Fohtheyo island had been siphoned off through a company associated with friends of the then Maldivian Vice President Ahmed Adeeb. Ong did not respond to these allegations. Ong, who is the founder of the Singapore-based organization Hotel Properties and a shareholder in many businesses, has a net worth of S$1.7 billion. Together with his wife Christina, they ranked No. 25 on Forbes’ Singapore’s 50 Richest list, which was published in August 2022.