ADVERTISEMENT

International

Singapore to Start Landmark Graft Trial of Ex-Minister Iswaran

S. Iswaran arrives at the High Court in Singapore on Sept. 24. Photographer: Hester Tan/Bloomberg (Hester Tan/Bloomberg)

(Bloomberg) -- The long-awaited corruption trial of Singapore’s former transport minister is set to begin on Tuesday as the city-state addresses its biggest political scandal in nearly four decades.

S. Iswaran has pleaded not guilty to 35 charges involving graft, including allegations he obtained more than S$403,000 ($312,000) in luxury goods including tickets to musicals and soccer matches in the UK. The 62-year-old, who resigned from his post back in January, has vowed to defend his innocence in court.

The trial comes at a politically sensitive time as Prime Minister Lawrence Wong prepares to lead the ruling People’s Action Party in a general election after he took over from Lee Hsien Loong in May. The case against Iswaran, a former party member, is a test for a party that has long relied on its reputation for clean governance to win all elections since Singapore’s independence in 1965.

The probe against Iswaran came to light last year when Lee ordered him to go on leave and he was later arrested together with property tycoon Ong Beng Seng. Iswaran was charged in January for allegedly taking favors from Ong, such as tickets to musicals on the West End. Ong hasn’t been charged.

Known for bringing Formula 1 racing to Singapore, Iswaran is the first minister to get embroiled in a graft probe since 1986 when then-Minister for National Development Teh Cheang Wan was investigated for accepting bribes.

For Iswaran, most of the court charges deal with his interactions with Ong, who owns the rights to the Singapore Grand Prix and is chairman of race promoter Singapore GP Pte Ltd. The allegations range from Iswaran obtaining tickets for UK soccer matches and taking a flight on Ong’s private jet to obtaining tickets to the F1 race in Singapore.

Singapore’s Ministry of Trade and Industry has said there was nothing to suggest that the F1 contracts were disadvantageous to the government and said it would review the terms. A ministry spokesman said the review is ongoing.

Another round of court charges in March had accused Iswaran of obtaining nearly S$19,000 of luxury items, including whisky bottles, a Brompton bicycle and golf clubs, from a managing director of a local firm in relation to a construction contract related to a train station. The managing director hasn’t been charged.

While the next general election must be held by November 2025, it could come sooner as observers say Wong is likely to seek an early mandate before brewing economic uncertainties have a greater impact on the trade-reliant nation. The PAP had its worst-ever showing in 2020 — despite winning 89% of the parliamentary seats — due in part to concerns about the economy.

When it comes to corruption, Wong said back in January when Iswaran was charged that the city-state’s stance on maintaining clean government was “non-negotiable.”

“This is part of our DNA,” he said. “There can be no compromise, no relaxation, no fudging of this, no matter the political price.”

--With assistance from Yihui Xie.

©2024 Bloomberg L.P.