Singapore minister charged in rare graft case: Why city-state takes corruption seriously

A Singapore minister has been charged with more than two dozen crimes in a high-profile corruption case. Transport minister S Iswaran, who resigned after being charged with 27 offences , has rejected the accusations and vowed to clear his name. But what happened? And why does Singapore take corruption so seriously? Let’s take a closer look: Who is he? What happened? Iswaran, who is of Indian-origin, was arrested in July. He has been Minister for Transport since May 2021.

His political career spans more than 26 years since he was first elected in 1997 as a Member of Parliament.

Before he was appointed to the Cabinet in 2006, he served on several government parliamentary committees and was the Deputy Speaker of Parliament from September 2004 to June 2006. Iswaran faces a total of 27 charges – two of corruption under the Prevention of Corruption Act, one of obstructing justice and 24 of receiving gratification as a public servant under the Penal Code. The Corrupt Practices Investigation Bureau (CPIB) said Iswaran, who was arrested in July, was alleged to have obtained kickbacks worth $286,181 from property tycoon Ong Beng Seng, in part to advance Ong’s business interests. Charge sheets show the favours include tickets to football matches, musicals, a flight on Ong’s private plane and tickets to the Singapore Formula 1 Grand Prix. According to CNN, the CPIB reports directly to Prime Minister Lee Hsien Loong. As per CNBC, between 2016 and 2022 Iswaran received 116 tickets to the Singapore Grand Prix worth $258,388.78 from Ong. Iswaran was advisor to the Grand Prix’s steering committee, while Ong owns the rights to the race. If convicted of corruption, he could be fined up to $75,786 or be sentenced to seven years in prison. In September 2022, Iswaran had allegedly corruptly obtained from Ong gratification with a total value of about $108,251 as inducement for advancing his business interests in matters relating to a contract between Singapore GP and the Singapore Tourism Board (STB), according to The Straits Times report on Thursday. He also allegedly obtained from Ong gratification valued at $15517in December 2022 for advancing his business interests in matters relating to a contract between Singapore GP and the STB and a proposal for a contract with the STB. In a resignation letter dated Tuesday but published by the prime minister’s office on Thursday, Iswaran said he rejected the charges and “will now focus on clearing my name”. [caption id=“attachment_13352572” align=“alignnone” width=“640”] Singapore’s prime minister Lee Hsien Loong accepted Iswaran’s resignation. AP[/caption] “I resigned as (a) Cabinet Minister, Member of Parliament and as a member of the People’s Action Party because I believe it was the right thing to do,” the statement read as per CNN.  “These past months have been most difficult for my family and me,” Iswaran. CNBC also quoted the letter from Iswaran as saying that he would give back the salary and allowances he received from the government since the probe began in July. “I am doing this even though I reject the charges and am innocent,” he wrote. “So that there is no doubt, I will not be seeking the return of these monies if, as I strongly believe, I am acquitted.”

Iswaran, who has pleaded not guilty, is out on bail, as per CNN.

Prime Minister Lee Hsien Loong had placed Iswaran on a leave of absence due to the CPIB investigation. Lee later revealed in parliament that Iswaran had cut his pay to $6,390 a month until further notice. It prompted the Opposition Progress Singapore Party (PSP) to file a motion requesting that Iswaran be suspended as an MP. The PSP motion was rejected in parliament last September, with MPs voting instead to consider the matter when investigations against Iswaran conclude. On  9 January, education minister Chan Chun Sing said in a written parliamentary response that CPIB had completed its probe into Iswaran. There was no immediate response to emails seeking comment from Ong’s office. The property tycoon was also arrested in July as part of the corruption probe. He has not been charged. Why does Singapore take corruption so seriously? Because of its squeaky-clean image and reputation. As per CNN, Iswaran is the first sitting minister to be charged with a criminal offence. The major Asian financial hub is rarely affected by graft and scandals involving political leaders. Civil servants are highly paid to discourage corruption.

The annual salary of many cabinet ministers exceeds $7,43,990.

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In 2022, Transparency International ranked the city-state the fifth least corrupt country in its International Corruption Perceptions Index of 180 nations. Iswaran, 61, joined Prime Minister Lee Hsien Loong’s cabinet as a junior minister in 2006 and held trade and communications portfolios before becoming transport minister in May 2021. He was also minister-in-charge of trade relations at the Ministry of Trade and Industry (MTI) since May 2018. The last corruption case involving a minister was in 1986 when the national development minister was investigated for allegedly accepting bribes. The then minister for national development Teh Cheang Wan gained fame for proposing to ban chewing gum sales in Singapore, as per CNN. Wan, who insisted he was innocent, took his own life before charges could be brought, as per BBC. CNBC quoted the Singapore’s Attorney General’s Chambers as saying the agency also looked into the role of other individuals including Ong. The AGC said it will “take a decision in respect of the investigations against Mr Ong and others, after the case against Mr S Iswaran has been completed, including the presentation of evidence in court.” Why does this matter? Because Singapore is set to hold elections by 2025. “The government has dealt with this case rigorously in accordance with the law, and will continue to do so. I am determined to uphold the integrity of the party and the government, and our reputation for honesty and incorruptibility,” Lee was quoted as saying in a statement by CNN. At the People’s Action Party’s (PAP) conference in November, Lee spoke about the need to keep Singapore’s system clean. He also pledged that PAP’s commitment to honesty and incorruptibility was “absolutely non-negotiable”. Without referencing Iswaran, he told party members, “If you wear white, you must be white (a traditional all-white worn by PAP members). Whether in your party responsibilities or private dealings, never bring yourself or the party into disrepute.

“Do not abuse your position. Do not accept any favours, still less ask for them. It is shameful, it is wrong,” Lee was quoted as saying.

Lee, who is the party’s secretary-general, added that the PAP must prove itself especially when it is tested, by putting principles into action “regardless of any embarrassment or political cost” and dealing with the issues “without fear or favour” while getting to the bottom of the matter. In August, Lee admitted his ruling People’s Action Party (PAP) had taken a hit over the graft probe and the resignations of two senior PAP lawmakers on account of an “inappropriate relationship”. The party is also due for a leadership transition with Lee promising to hand the baton to his successor Deputy Prime Minister Lawrence Wong by November. Eugene Tan, a former nominated member of Singapore’s parliament and an associate law professor at Singapore Management University, told CNN, “The case has already hurt the PAP government (which) will have to redouble its efforts to rebuild the trust and confidence of Singaporeans.” “What is in its favour is the government acting resolutely and taking the hit for one of its own allegedly falling far short of the public life standards expected of him.” Addressing local media on Thursday, Wong acknowledged the graft case’s negative impact on the PAP but said it would not affect leadership transition plans. “We are disappointed by what has happened. We are saddened. We are disappointed that Iswaran had to leave politics under these circumstances. But the PAP stance on corruption is non-negotiable,” said Wong. “We have announced that the leadership transition will take place before the next general election and before the party conference this year. This plan remains on track.” Referring to Iswaran’s case at a PAP event last November, Lee said the party must “show Singaporeans and the world that after half a century in government, the PAP’s standards remain as high as ever.” With inputs from agencies