Singapore ex-minister given tougher-than-expected jail sentence

By: Toh Han Shih

The sentence by a Singapore High Court of former Transport Minister S Iswaran to 12 months in prison occurs in a country that has its own harsh metrics, rated the world’s second-most incorruptible after Denmark. Iswaran was one of three key players to bring Formula One racing to Singapore along with the diminutive 92-year-old international racing mogul Bernie Ecclestone.

Formula 1 since its arrival has put Singapore on the global map along with the allure of high-roller gaming in the Sentosa development, becoming one of the world’s glamor racing destinations thanks to the arrival of the super-fast cars, which generate millions in tourists revenue.

“As painful as it is to act against a colleague and friend, it is our duty to do so when necessary. Our system of government and politics must always stay clean and free from corruption,” said Singapore Prime Minister Lawrence Wong in a statements on October 3.

In a separate case that raises questions about Singapore’s strict ethos of incorruptibility, the son of former Prime Minister Goh Chok Tong, who succeeded Lee Kuan Yew as the country’s second premier, also faces the possibility of jail. Lee Kuan Yew laid down a strict prohibition against corruption in government. The last time a Singapore former minister was sentenced to jail was in September 1975.

The two cases have generated considerable controversy in the island republic, with their non-nonsense moralism. In an indication of how authorities view breaches of justice, High Court Judge Vincent Hoong’s sentence for the once-prominent former executive and political figure Iswaran is harsher than the maximum seven months sought by the prosecution and much longer than the maximum of eight weeks’ jail asked for by the defense.

Some Singaporeans said the October 2 sentence of Iswaran was harsh, while others complained he got off lightly because 30 charges against him including corruption charges were dropped. However, it is common in Singapore in criminal cases, with its draconian approach to justice, that the judge imposes a sentence which is more severe than what the prosecution asked, a Singaporean lawyer, who declined to be named, told Asia Sentinel.

Iswaran was a stalwart member of the ruling People’s Action Party (PAP). Born in 1962 in Chennai, India, he occupied a high-flying, integral role in the famed Singapore, Inc. Prior to entering politics, he was senior vice president and managing director at Temasek Holdingsthe government sovereign wealth fund, as well as director for International Trade at the Ministry of Trade and Industry along with other top executive positions.

Justice Hoong was quoted in local media saying, “I’m of the view it is appropriate to impose a sentence in excess of both parties’ positions.” The justice noted aggravating factors such as the total duration of Iswaran’s offending behavior over years, the high office he occupied and the overall harm to public interest as well as trust in public institutions.

“In a letter to the Prime Minister, Iswaran said he rejected the charges and was innocent, and believed he would be acquitted. Thus, I have difficulty believing that he was remorseful,” he added. “The higher the office held by the offender as a public servant, the higher his level of culpability.”

Singapore ministers are among the best paid in the world and their annual salaries are estimated to exceed US$1 million, several times that of the US President, to remove the temptation for bribery. A Singapore woman who declined to be named told Asia Sentinel, “Hope this enlightens all who think the ministers deserve their high pay and bought into the ludicrous idea that they wouldn’t be tempted since they are making astronomical salaries.”

Former Prime Minister’s are

In Singapore, if a minister is accused of corruption, he is expected to sue for defamation to clear his name, as then Prime Minister Goh Chok Tong explained in August 1997 to George Carman, Queen’s Counsel, who was cross-examining Goh in a Singapore court. In August 1997, Goh told Carman, “In Singapore, we believe that leaders must be honorable men, gentlemen or junzi(upright gentleman in Mandarin) and if our integrity is attacked, we defend it.”

Carman was defending the late Singapore opposition politician JB Jeyaretnam who was sued for libel by Goh. The British barrister had asked Goh if he was too “sensitive” to statements by political opponents. In 2015, Goh, who was no longer prime minister, said, “We are our own checks, the integrity of our leaders and our MPs (Members of Parliament)… not this seductive lie of check and balance.”

Now the integrity of Goh Chok Tong’s son Jin Hian is in question, as he faces a criminal trial at an unspecified future date. Jin Hian, a former Chief Executive Officer of New Silkroutes Group Ltd (NSG), a Singapore-listed firm, former NSG Chief Corporate Officer Oo Cheong Kwan Kelvyn, and former NSG Finance Director William Teo were charged on September 20, 2023 with false trading offenses, according to a Singapore Police press release on the same day. They allegedly placed orders and executed trades in NSG securities for the purpose of pushing up the price of NSG securities on 31 trading days between 26 February 2018 and 27 August 2018.

Goh Jin Hian faces a further eight charges for allegedly placing orders and executing trades in NSG securities through his personal trading account for the purpose of pushing up the price of NSG securities between August 31, 2018 and December 4, 2018, said Singapore Police. If convicted, the suspects may receive a prison term of up to seven years, or a fine of up to S$250,000 (US$192,690), or both.

On his Facebook page on September 21, Goh junior wrote, “On 20th September 2023, my life changed in a way I would never have imagined. I was charged with 39 counts in the district court for being part of a conspiracy to ‘create a misleading appearance in the share price of New Silkroutes Group, and for pushing the price up’. I was the CEO of NSG from mid-2015 to mid-2020. Over the next few days, a lot of people made me cry. They sent me messages expressing their unconditional love and support for me.”

The recent jail sentence for William Teo raises the possibility that Teo’s former NSG boss Goh may suffer a similar fate. Teo was sentenced to 12 weeks in prison in a Singapore court on September 16 after pleading guilty to manipulating its share prices to allow its shares to be used as consideration for corporate deals. According to sentencing documents, Teo played a “critical” role in the market-rigging scheme, which the prosecution alleged was masterminded by Goh Jin Hian.

On his Facebook page on October 3, Goh wrote, “These days, I play weekend golf with my parents.” Goh junior’s Facebook post on that day featured a photograph of him playing golf with his father.

Besides the possibility of prison, Goh faces the possibility of bankruptcy. In a Singapore court in February, he was found liable for breach of director’s duties, statutory duties, and losses suffered by Inter-Pacific Petroleum (IPP), an insolvent Singapore marine fuel supplier, amounting to US$146 million plus interest. As a former director of IPP, Goh had not taken “reasonable steps” such as making necessary inquiries when various red flags surrounding the company arose, said High Court Justice Aedit Abdullah in his grounds of decision released on July 11.

Toh Han Shih is chief analyst of Headland Intelligence, a Hong Kong risk consultancy