SINGAPORE: Property tycoon and hotelier Ong Beng Seng charged in court on Friday (4 October) with two offences linked to former Transport Minister S Iswaran’s case.

Mr Ong, who serves as Hotel Properties Limited (HPL)’s managing director, faces one count each 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 jail, a fine, or both. Abetting such offences carries the same penalties if the crime is committed due to the abetment.

Ong’s charges stem from his involvement in a high-profile corruption case linked to Iswaran.

The defence has requested a six-week adjournment for further instructions from Ong, a motion the prosecution, led by Deputy Chief Prosecutor Christopher Ong, did not oppose.

The case has been rescheduled for a pre-trial conference on 15 November at 9 am.

Ong is currently out on S$800,000 bail and is represented by Aaron Lee from Allen & Gledhill.

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, 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 was arrested by CPIB in July 2023

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.

In addition to Ong, construction tycoon Lum Kok Seng was also linked to the additional charges filed against Iswaran in March this year.

Iswaran, who became transport minister in 2021, 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.

Prime Minister Lawrence Wong reaffirmed on Thursday (3 Oct) that the government will prioritise doing what is right for Singapore, even at the potential cost of political fallout.

His statement was issued on the same day former minister S Iswaran was sentenced to one year in prison for accepting gifts worth over S$400,000 over seven years from two businessmen.

PM Wong acknowledged the gravity of Iswaran’s actions and reiterated that public servants must always uphold the highest standards of integrity.

He expressed sadness over Iswaran’s downfall, highlighting his 25-year parliamentary career and contributions as a minister in several key portfolios.

However, PM Wong stressed that these past achievements could not absolve Iswaran of his wrongdoing, stating, “As painful as it is to act against a colleague and friend, it is our duty to do so when necessary.”

Government’s Stand Against Corruption

PM Wong emphasised the government’s uncompromising stance on corruption, noting that public servants’ conduct must be “beyond reproach” to maintain public trust.

He asserted, “Our system of government and politics must always stay clean and free from corruption.” While acknowledging that no political system is immune to human failings, he emphasised that individuals who stray from the path of integrity will be held accountable once their actions come to light.

The Prime Minister made it clear that the political cost of addressing misconduct would not deter the government from taking the necessary action.

His statement reaffirmed the government’s commitment to integrity in public service, even when it involves personal and political pain.

Iswaran’s Conviction and Sentencing

Iswaran, 62, was convicted under Section 165 of the Penal Code, which addresses corrupt practices involving public servants, after pleading guilty to five amended charges, with 30 other charges taken into consideration.

Most of the charges related to his acceptance of valuable gifts while holding various ministerial positions, including Minister for Transport and Minister for Trade and Industry.

The gifts Iswaran received included tickets to musical and sporting events, bottles of whisky and wine, and a Brompton bicycle. Notably, he received Formula 1 race tickets from Ong Beng Seng, majority shareholder of Singapore GP, and gifts from construction boss Lum Kok Seng. Both businessmen had dealings with the ministries Iswaran was overseeing at the time.

For example, Lum’s company, Lum Chang Building Contractors, secured a S$325 million contract with the Land Transport Authority in 2016, a period during which Iswaran held senior governmental roles. Ong’s company was involved in contracts related to the Singapore Grand Prix, an event overseen by a steering committee chaired by Iswaran.

However, the prosecution accepted that Iswaran did not directly interfere in the awarding of these contracts.

In addition to the Section 165 charges, Iswaran was also charged with obstructing justice under Section 204A(a) of the Penal Code.

After learning that the Corrupt Practices Investigation Bureau (CPIB) was investigating a flight he had taken on Ong’s private jet, Iswaran requested that Singapore GP bill him for part of the flight’s cost. He eventually paid S$5,700 for the return flight, but the court viewed this as an attempt to cover up the improper nature of the trip.

Corruption Charges Dropped

In a case that garnered significant public attention, Justice Vincent Hoong sentenced Iswaran to 12 months imprisonment, a longer term than what both the prosecution and defence had recommended.

Deputy Attorney-General Tai Wei Shyong had called for a sentence of six to seven months, while Iswaran’s lawyer, Davinder Singh, argued for a jail term of no more than eight weeks.

Justice Hoong found that both proposed sentences were inadequate, noting that the offence’s impact on public trust and the integrity of public institutions warranted a more severe punishment.

He emphasised that the higher the public servant’s position, the greater the damage to public trust when corruption is involved.

Iswaran had pleaded guilty to the charges on the day of the hearing despite earlier indications that he would contest them.

His guilty plea followed the prosecution’s decision to amend some of the charges, dropping two counts of corruption in favour of the less severe charges under Section 165, citing evidential challenges despite the presumption clauses in Section 8 of the Prevention of Corruption Act.