Income-Allianz deal: NTUC central committee did not know about capital reduction plan, says Desmond Tan

SINGAPORE: The central committee of the National Trades Union Congress (NTUC) only knew about the capital reduction plan in the proposed deal between Income Insurance and Allianz when it was announced in parliament, said deputy secretary-general Desmond Tan on Wednesday (Oct 16).

Responding to questions from MPs during the debate on the Insurance (Amendment) Bill, Mr Tan, who is also senior minister of state in the Prime Minister’s Office, said that NTUC is a major shareholder of NTUC Enterprise, but does not get involved in the day-to-day running of operations.

He said that the NTUC’s central committee was briefed by NTUC Enterprise and Income Insurance on the “strategic imperatives” for the deal, but the capital reduction plan was not highlighted to the central committee.

“In fact, the central committee and myself only knew of this on Monday at the ministerial statement,” said Mr Tan.

The proposed Income-Allianz deal had sought to decrease the capital held by Income, returning some S$1.85 billion to shareholders within three years.