Government will do what is right, regardless of political costs, says PM Wong on Iswaran’s case

SINGAPORE: The government will do what is right, even if a political cost is exacted, said Prime Minister Lawrence Wong on Thursday (Oct 3), the day former minister S Iswaran was handed a one-year prison sentence. 

Iswaran, 62, was sentenced to 12 months’ jail for obtaining gifts worth about S$403,300 (US$313,200) over seven years. The gifts were from two businessmen he considered his friends.

“We will do what is right by Singapore and Singaporeans, regardless of the political costs or the personal pain we feel when a colleague and friend has been jailed,” said Mr Wong in a statement issued on Thursday evening.

He expressed disappointment and sadness at the way Iswaran’s political career ended. The prime minister noted Iswaran’s contributions: As a Member of Parliament for 25 years, as well as his Cabinet appointments, leading three ministries – communications and information, transport, and trade and industry

“But his past contributions do not right this wrong,” said Mr Wong.

“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.”

He added that those entrusted with public service “must uphold the highest standards of integrity and their conduct must be beyond reproach”.

“This is absolutely vital and non-negotiable,” said Mr Wong.

He noted that no political system is immune from “human frailties” and that from time to time, “some individuals will be tempted and will go astray”. 

But their actions will eventually come to light, said Mr Wong, and they will be held to account.

ISWARAN’S SENTENCE

The bulk of Iswaran’s convictions were for offences under Section 165 of the Penal Code, which Mr Wong pointed out “deals specifically with bribery and other forms of corrupt practices involving public servants”.

“The Court said that the essence of the offence under Section 165 is the damage to the trust in, and integrity of, public institutions stemming from the perception that public servants may be cultivated by offers of valuable items from interested persons,” he said.

“The more senior the public servant, the higher would be the culpability and the greater the impact on the public interest.”

The 12 months meted out to Iswaran was significantly more than what the prosecution had sought.

After considering submissions on sentence from both prosecution and defence, Justice Vincent Hoong said he was “ultimately unable to agree with both the positions taken”.

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

“I’m of the view it is appropriate to impose a sentence in excess of both parties’ positions,” said Justice Hoong. He added that taking the submission of either prosecution or defence would result in a “manifestly inadequate sentence”.

Iswaran had pleaded guilty last Tuesday on what was expected to be the first day of his criminal trial, despite maintaining for months that he would be contesting the case.

The guilty plea came after the prosecution replaced two counts of corruption with charges under Section 165, which makes it an offence for public servants to accept or obtain valuable things from someone involved with them in an official capacity.

Of the five counts he was convicted of, four were for obtaining gifts as a public servant under Section 165. The most serious of the five charges was for obstructing justice.

Thursday’s sentencing came more than a year after details of the probe by the Corrupt Practices Investigation Bureau (CPIB) first emerged, and 10 months after Iswaran was first charged in court.

Iswaran resigned from office in January. He made a voluntary disgorgement of S$380,305.95 to the state a day before his intended trial on Sep 24. This refers to giving up illegally obtained gains and differs from restitution.

Among the things seized from him include bottles of whisky and wine, golf clubs and a Brompton bicycle.

THE CASE

Between November 2015 and December 2022, Iswaran obtained valuables like musical, football and Formula 1 tickets from Singapore GP majority shareholder Ong Beng Seng, as well as bottles of whisky and wine from construction boss Lum Kok Seng.

This was while Iswaran held portfolios that had official dealings with the two men, said the prosecution.

Mr Lum’s company, Lum Chang Building Contractors, entered into a contract worth S$325 million with the Land Transport Authority in 2016 for works on Tanah Merah MRT station and its viaducts. Iswaran became transport minister in May 2021.

Mr Ong was linked to two facilitation agreements between Singapore GP and the Singapore Tourism Board (STB) to handle the annual Singapore Formula 1 race.

Iswaran was chairman of the F1 Steering Committee, established by the government to oversee F1 as a national project.

He was also minister for industry in the Ministry of Trade and Industry from October 2015 to April 2018, with STB under him. He was also minister-in-charge of trade relations from May 2018 until January 2024 when he resigned from office.

However, the prosecution accepted that Iswaran did not intervene in any decisions relating to Mr Lum’s company contract, and that there was “nothing to suggest that the F1 contracts were structured to the disadvantage of the government”.

The case came to light in May 2023 when CPIB was investigating a separate matter linked to Mr Ong’s associates and came across a flight manifest for an outbound flight on Mr Ong’s private jet.

Iswaran was on that flight, which was worth S$10,410, from Singapore to Doha on Dec 10, 2022. His trip there, his one-night stay at the Four Seasons Hotel Doha and his business class flight back was at the expense of Singapore GP, on Mr Ong’s instructions.

Following Mr Ong’s offer to join him as his guest, Iswaran applied for urgent personal leave to go on the trip. He did not declare the trip to the government. 

When Mr Ong caught wind of CPIB’s seizure of the flight manifest, he called Iswaran and told him about this. Iswaran later asked Ong to have Singapore GP bill him for the trip’s expenses, and later paid S$5,700 for the return flight.

This forms the charge of obstructing justice.