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Parl Sec highlights importance of energy security while Temasek sells power assets to foreign entities

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6 years ago

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Speaking at the Energy Market Authority (EMA)’s Energy Innovation event yesterday (20 Sep), Senior Parliamentary Secretary for Trade and Industry and Foreign Affairs Dr Tan Wu Meng said that the blackout in Singapore this week has brought home the importance of energy security.

“Very recently, we felt the importance of energy security and energy resilience in a very real way when electricity supply was disrupted to many Singaporean homes in the early hours of Tuesday morning,” said Dr Tan.

“I was up late that night, after meeting some of my residents. I saw the social media updates coming in around 1.30am – that was a few minutes after the blackout occurred,” he said. “I also saw the many emails and WhatsApps from the EMA team, which were working very hard throughout the night, responding, looking into what happened.”

The authority is continuing its investigations into the incident.

Singapore key power assets sold to foreign entities

Since 2008, Temasek has been selling away Singapore power assets as part of Temasek’s “divestment” efforts.

For example, in 2008, Temasek sold away Tuas Power to China’s Huaneng Group for S$4.2 billion, the largest overseas purchase by a Chinese power firm.

Temasek got a very good deal out of the Chinese as Huaneng’s winning bid which worked out to about 24 times the S$177 million net profit Tuas earned in FY2007.

Tuas Power had been reported to have a generating capacity of 2,670MW at the time of sale.

Later in September that year, Temasek sold its Senoko Power generating company to Lion Power Holdings for S$3.65 billion. Lion Power Holdings is a consortium led by Japan’s Marubeni Corporation. Other members of the consortium are GDF Suez of France, The Kansai Electric Power Company, Kyūshū Electric Power Company and Japan Bank for International Cooperation.

At the point of sale, Senoko provides over 30 per cent of the nation’s electricity needs. Till today, it remains the largest power generation company in Singapore.

Finally, at the end of 2008, Temasek sold off Singapore’s PowerSeraya Ltd to Malaysia’s YTL Power International Bhd with the plant valued at S$3.8 billion.

The PowerSeraya plant was the second largest power generation company in Singapore in terms of installed capacity, with a total licensed capacity of 3,100MW, representing about 25% of Singapore’s total licensed generation capacity at the time of the sale.

DBS Bank even provided S$2.25 billion of credit facilities to YTL Power to fund their purchase.

Australia blocks foreign acquisitions of critical infrastructure over security concerns

Meanwhile, Australia has been increasingly restricting sale of the country’s critical infrastructure to foreign entities due to security concerns.

Two years ago, for example, it blocked the sale of Ausgrid, the country’s biggest energy grid, to two Chinese companies over security concerns. Then Australian Treasurer Scott Morrison officially rejected the bid by the two firms to buy a 50.4% stake in Ausgrid. He commented that selling the grid to foreign investors would be against the national interest.

“After due consideration of responses from bidders to my preliminary view of 11 August 2016, I have decided that the acquisition by foreign investors under the current proposed structure of the lease of 50.4% of Ausgrid, the New South Wales electricity distribution network, would be contrary to the national interest,” he told the media.

“This is consistent with the recommendation from the Foreign Investment Review Board.”

However, China Commerce Ministry hit back saying, “This kind of decision is protectionist and seriously impacts the willingness of Chinese companies to invest in Australia.”

PM Lee supports UN’s rule against China over South China Sea issue

Australia has been raising its concerns and objections over what it perceived as “China’s militarization” over the South China Sea islands and so has Singapore.

Two years ago at the National Day Rally, PM Lee said publicly that Singapore must have its own principled and consistent stand on the South China Sea issue despite pressure from other countries to side with them.

He said that Singapore must support and strive for a “rules-based international order” and depends on words and treaties. “They mean everything to us.”

He added that Singapore, as a small nation, cannot afford to have international relations work on the basis that might is right. “If rules do not matter, then small countries like Singapore have no chance of survival,” he said.

Earlier Philippines had launched a case against China under the United Nations Convention on the Law of the Sea (UNCLOS), after which a Tribunal ruled against China saying that its South China Sea’s claim was incompatible with UNCLOS. However, China has rejected the Tribunal’s jurisdiction.

Hence, PM Lee’s support of UN Tribunal’s ruling went against the interests of China in South China Sea and China has on a few occasions voiced its unhappiness over the issue. One such expression of its unhappiness is the detention of Singapore’s Terrax tanks at Hong Kong.

In view of the fact that some of Singapore’s critical infrastructure assets like power plants were sold off to the hand of Chinese and Malaysia entities where the countries may express their unhappiness in various ways, Dr Tan’s opinion about the importance of energy security and energy resilience is made somewhat contradictory.

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Hotel Properties Limited suspends trading ahead of Ong Beng Seng’s court hearing

Hotel Properties Limited (HPL), co-founded by Mr Ong Beng Seng, has halted trading ahead of his court appearance today (4 October). The announcement was made by HPL’s company secretary at about 7.45am, citing a pending release of an announcement. Mr Ong faces one charge of abetting a public servant in obtaining gifts and another charge of obstruction of justice. He is due in court at 2.30pm.

Published

2 days ago

on

4 October 2024

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SINGAPORE: Hotel Properties Limited (HPL), the property and hotel developer co-founded by Mr Ong Beng Seng, has requested a trading halt ahead of the Singapore tycoon’s scheduled court appearance today (4 October) afternoon.

This announcement was made by HPL’s company secretary at approximately 7.45am, stating that the halt was due to a pending release of an announcement.

Mr Ong, who serves as HPL’s managing director and controlling shareholder, faces one charge under Section 165, accused of abetting a public servant in obtaining gifts, as well as one charge of obstruction of justice.

He is set to appear in court at 2.30pm on 4 October.

Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly 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 allegedly 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 amended them to lesser charges under Section 165.

Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong.

The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea.

The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed 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.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight.

Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

Mr Ong is recognised as the figure who brought Formula One to Singapore in 2008, marking the first night race in the sport’s history.

He holds the rights to the Singapore Grand Prix. Iswaran was the chairman of the F1 steering committee and acted as the chief negotiator with Singapore GP on business matters concerning the race.

 

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Current Affairs

Chee Soon Juan questions Shanmugam’s $88 million property sale amid silence from Mainstream Media

Dr Chee Soon Juan of the SDP raised concerns about the S$88 million sale of Mr K Shanmugam’s Good Class Bungalow at Astrid Hill, questioning transparency and the lack of mainstream media coverage. He called for clarity on the buyer, valuation, and potential conflicts of interest.

Published

2 weeks ago

on

23 September 2024

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On Sunday (22 Sep), Dr Chee Soon Juan, Secretary General of the Singapore Democratic Party (SDP), issued a public statement on Facebook, expressing concerns regarding the sale of Minister for Home Affairs and Law, Mr K Shanmugam’s Good Class Bungalow (GCB) at Astrid Hill.

Dr Chee questioned the transparency of the S$88 million transaction and the absence of mainstream media coverage despite widespread discussion online.

According to multiple reports cited by Dr Chee, Mr Shanmugam’s property was transferred in August 2023 to UBS Trustees (Singapore) Pte Ltd, which holds the property in trust under the Jasmine Villa Settlement.

Dr Chee’s statement focused on two primary concerns: the lack of response from Mr Shanmugam regarding the transaction and the silence of major media outlets, including Singapore Press Holdings and Mediacorp.

He argued that, given the ongoing public discourse and the relevance of property prices in Singapore, the sale of a high-value asset by a public official warranted further scrutiny.

In his Facebook post, Dr Chee posed several questions directed at Mr Shanmugam and the government:

  1. Who purchased the property, and is the buyer a Singaporean citizen?
  2. Who owns Jasmine Villa Settlement?
  3. Were former Prime Minister Lee Hsien Loong and current Prime Minister Lawrence Wong informed of the transaction, and what were their responses?
  4. How was it ensured that the funds were not linked to money laundering?
  5. How was the property’s valuation determined, and by whom?

The Astrid Hill property, originally purchased by Mr Shanmugam in 2003 for S$7.95 million, saw a significant increase in value, aligning with the high-end status of District 10, where it is located. The 3,170.7 square-meter property was sold for S$88 million in August 2023.

Dr Chee highlighted that, despite Mr Shanmugam’s detailed responses regarding the Ridout Road property, no such transparency had been offered in relation to the Astrid Hill sale.

He argued that the lack of mainstream media coverage was particularly concerning, as public interest in the sale is high. Dr Chee emphasized that property prices and housing affordability are critical issues in Singapore, and transparency from public officials is essential to maintain trust.

Dr Chee emphasized that the Ministerial Code of Conduct unambiguously states: “A Minister must scrupulously avoid any actual or apparent conflict of interest between his office and his private financial interests.”

He concluded his statement by reiterating the need for Mr Shanmugam to address the questions raised, as the matter involves not only the Minister himself but also the integrity of the government and its responsibility to the public.

The supposed sale of Mr Shamugam’s Astrid Hill property took place just a month after Mr Shanmugam spoke in Parliament over his rental of a state-owned bungalow at Ridout Road via a ministerial statement addressing potential conflicts of interest.

At that time, Mr Shanmugam explained that his decision to sell his home was due to concerns about over-investment in a single asset, noting that his financial planning prompted him to sell the property and move into rental accommodation.

The Ridout Road saga last year centred on concerns about Mr Shanmugam’s rental of a sprawling black-and-white colonial bungalow, occupying a massive plot of land, managed by the Singapore Land Authority (SLA), which he oversees in his capacity as Minister for Law. Minister for Foreign Affairs, Dr Vivian Balakrishnan, also rented a similarly expansive property nearby.

Mr Shanmugam is said to have recused himself from the decision-making process, and a subsequent investigation by the Corrupt Practices Investigation Bureau (CPIB) found no wrongdoing while Senior Minister Teo Chee Hean confirmed in Parliament that Mr Shanmugam had removed himself from any decisions involving the property.

As of now, Mr Shanmugam has not commented publicly on the sale of his Astrid Hill property.

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