Ridout Road rentals

The Ridout Road rental investigation was an inquiry conducted in Singapore in 2023 into the leases of state-owned bungalows by two senior ministers, K. Shanmugam and Vivian Balakrishnan, members of the People's Action Party (PAP).

The properties, located at 26 and 31 Ridout Road, were rented following processes managed by the Singapore Land Authority (SLA), which oversees government-owned properties.

The investigation, launched by the Corrupt Practices Investigation Bureau (CPIB) under the direction of Prime Minister Lee Hsien Loong, aimed to determine if there was any abuse of power or conflict of interest.

An independent review, led by Senior Minister Teo Chee Hean, was also conducted.

Both the CPIB and Teo concluded that there was no evidence of wrongdoing or undue benefit.

Ministers Vivian Balakrishnan and K Shanmugam in Parliament on 3 July 2023 to make their ministerial statement on their leasing of State-owned bungalows.

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Background

Ridout Road is part of the affluent Bukit Timah area and is designated by the Urban Redevelopment Authority (URA) as a "Good Class Bungalow Area," one of Singapore's most exclusive residential zones.

The bungalows at 26 and 31 Ridout Road had been vacant for extended periods before being rented by Shanmugam and Balakrishnan, respectively.

Locations of No. 26 and No. 31 Ridout Road

Allegations and Initial Responses

On 6 May 2023, Kenneth Jeyaretnam, secretary-general of the Reform Party, published a blog post questioning how the ministers could afford the high rents associated with the Ridout Road properties.

He also called for greater transparency in the SLA's leasing process, particularly given that Shanmugam oversaw the SLA as Minister for Law.

The SLA issued a statement on 12 May 2023, affirming that the rental of both properties adhered to established procedures.

Jeyaretnam also raised concerns about alleged links between the transactions and Livspace, an interior design firm led by Shanmugam’s son.

Both Livspace and Shanmugam strongly denied these claims, labelling them baseless and defamatory.

Investigation Initiation

On 23 May 2023, Prime Minister Lee announced that he had requested reports from relevant agencies and tasked Senior Minister Teo Chee Hean with conducting an independent review. Additionally, the CPIB initiated an investigation to examine the allegations.

Investigation Findings

Property Details

The bungalows at 26 and 31 Ridout Road were state-owned properties managed by the SLA. Both had been vacant for several years before the ministers’ leases.

26 Ridout Road (Shanmugam):

Google Map capture of 26 Ridout Road in August 2021

• Vacant since December 2013.
• Prevailing Guide Rent is at S$26,500.
• Tenancy agreement signed by Mrs Shanmugam.
• The property was rented in June 2018 for S$26,500 per month, with the lease renewed in 2021 at the same rate. The lease was renewed again in 2024, but the revised rental amount is unknown.
• Shanmugam paid over S$400,000 for renovations, including S$61,400 for a car porch.
• The SLA incurred S$515,400 for essential repairs.
• Concerns about overgrown land adjacent to the property led Shanmugam to offer to clear and maintain the area at his own cost, citing public health risks. The SLA assessed that the land could only be maintained if it was included in the tenancy, resulting in an increase of the property’s size from 9,350 sqm to 23,164 square metres (249,340 sq ft).

• The clearance cost of S$172,000 was initially paid by the SLA but recovered through Shanmugam’s rent. Shanmugam also allegedly said to borne the maintenance of the adjacent land at the cost of approximately S$25,000.

Satellite of 26 Ridout Road in 2018 before Shanmugam rented the place

Construction of a large swimming pool and car porch, as well as the cutting down of large swathes of trees. (Google Earth satellite in September 2019)

31 Ridout Road (Balakrishnan):

Google Map capture of 31 Ridout Road in August 2024

• Vacant since July 2013.
• Two unsuccessful bids were made below the prevailing Guide Rent, i.e., $12,000 in July 2018 and $5,000 in August 2018.
• Prevailing Guide Rent, which was $18,800
• The SLA incurred S$570,500 for essential repairs.
• Tenancy agreement signed by Mrs Balakrishnan.
• Rented in October 2019 for S$19,000 per month, revised to S$20,000 in 2022 upon lease renewal.
• Balakrishnan spent over S$200,000 on renovations.

CPIB and Independent Review

The CPIB report found "no evidence to suggest any abuse of position by the ministers for personal gain."

The independent review by Teo concluded that:

• Shanmugam’s identity as the prospective tenant of 26 Ridout Road was not disclosed to the SLA during negotiations.
• Balakrishnan’s rental amount was comparable to other properties of similar condition.
• Both leases complied with SLA procedures, and there was no abuse of power or conflict of interest.

Parliamentary Debate

The debate in Singapore’s Parliament on 3 July 2023 centred on the rental of government-owned black-and-white bungalows at 26 and 31 Ridout Road.

Law and Home Affairs Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan delivered ministerial statements addressing concerns about fairness, transparency, and potential conflicts of interest.

Senior Minister Teo Chee Hean presented findings from investigations into the matter, while Minister for Culture, Community and Youth Edwin Tong, who is also Second Minister for Law, contributed legal clarifications during the session.

K Shanmugam’s Decision to Rent 26 Ridout Road

Reason for Rental:

• Mr Shanmugam explained that he rented the bungalow because he was preparing to sell his family home, which constituted a significant portion of his savings.
• The sale was not prompted by financial need, but he had been advised to diversify his assets after becoming a minister.

Finances:

• The rental for 26 Ridout Road, alongside taxes on his family home, creates a net deficit, which Mr Shanmugam said he covers with his past income as a lawyer.
• He clarified that he is not profiting from the arrangement, stating, “I top up the deficit.”

Additional Land and Costs:

• He accepted an additional 150,000 square feet of land under his lease at the Singapore Land Authority’s (SLA) insistence, citing safety and health issues.
• He spent over S$400,000 on improving the dilapidated property, acknowledging that the investments would revert to the State after his lease ends.

Conflict of Interest:

• Mr Shanmugam emphasised that he had recused himself from any decisions related to the property to avoid actual or perceived conflicts of interest.

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Vivian Balakrishnan’s Rental of 31 Ridout Road

Reason for Rental:

• Dr Balakrishnan cited a desire to bring together his extended family, including children and grandchildren, as the motivation for moving into 31 Ridout Road in 2018.

Property Condition and Improvements:

• The bungalow was in poor condition, with a leaking roof, holes in the flooring, and termite infestations.
• He and his wife spent over S$200,000 on renovations.

Rental Process:

• The property was spotted by his wife during a casual visit, and they initiated the rental without knowing prior bid amounts or the guide rent.
• Dr Balakrishnan emphasised that his family dealt with SLA staff and agents “scrupulously” to ensure all dealings were above board.

Government's response

At the 3 July parliamentary sitting, Prime Minister Lee Hsien Loong said that both Shanmugam and Balakrishnan "retain my full confidence" and added, "This government has not, and will never, tolerate any compromise or departure from the stringent standards of honesty, integrity, and incorruptibility that Singaporeans expect of us."

Senior Minister Teo Chee Hean remarked, "That the Prime Minister did not hesitate to call the CPIB in to investigate two senior ministers is a signal of how seriously we take such matters of incorruptibility and its absolute value in our system."

Opposition Concerns

During the parliamentary debate, Members of Parliament (MPs) raised questions about the rental of government-owned black-and-white bungalows at 26 and 31 Ridout Road by Ministers K Shanmugam and Vivian Balakrishnan. These questions were based on allegations first highlighted by opposition figures and subsequent public discourse.

Timeline

Date	Event
January 2017	Minister Shanmugam asks from the- Deputy Secretary of Ministry of Law for list of a few properties available to the public to rent. Minister Shanmugam visited some of these properties including No. 26 Ridout Road.
January 2018	Minister Shanmugam appointed a property agent to represent him for the rental transaction of No.26 Ridout Road State property.
29 March 2018	Chief Executive of Singapore Land Authority makes declaration to Permanent Secretary of MinLaw and reported that the processing of rental transaction was properly done with no conflict of interest.
June 2018	Mrs Shanmugam signed a tenancy agreement for a 3+3+3-year term. The rental was set at S$26,500 for the property measuring 23,164 sqm (original size at 9,350 sqm).
11 September 2018	Mrs Balakrishnan contacted SLA's Managing Agent and negotiated on rental price.
October 2019	Mrs Balakrishnan signs tenancy agreement for 3+2+2 with SLA at a monthly rental of S$19,000 for the property at 31 Ridout Road measuring 9,157.36 sqm.
June 2021	Lease extended at S$26,500 a month for the same property size.
October 2022	Mrs Balakrishnan requested and obtained a renewal of another 3+2 instead of the original 2+2. Monthly rental is increased to S$20,000.
6 May 2023	Kenneth Jeyaretnam published a blog post about the Ministers renting the Ridout Road properties.
12 May 2023	SLA issues statement to confirm No. 26 and No. 31 Ridout Road were rented to Minister Shanmugam and Minister Balakrishnan.
17 May 2023	Prime Minister Lee Hsien Loong directed the Corrupt Practices Investigation Bureau (CPIB) to investigate.
22 May 2023	PM Lee Hsien Loong instructed Senior Minister Teo Chee Hean to conduct a separate review in order to address wider potential process or policy issues, which go beyond the scope of CPIB’s investigation.
28 June 2023	Reports are accepted by PM Lee Hsien Loong and have them published.
3 July 2023	Ministerial statements issued by Ministers Shanmugam, Balakrishnan, Edwin Tong and Teo Chee Hean in Parliament. Questions filed by Members of Parliament.

POFMA directions issued over Ridout Road rentals

The Protection from Online Falsehoods and Manipulation Act (POFMA) Office issued directions to address falsehoods circulating about the Ridout Road rentals.

The government clarified that the rental arrangements involving Ministers K Shanmugam and Vivian Balakrishnan adhered to proper processes and were consistent with market valuations.

Date	Ministry	Minister	Entity	Date of post
25-Jul-2023	Ministry of Law	Edwin Tong	Lee Hsien Yang	23-Jul-2023
2-Aug-2023	Ministry of Law	Edwin Tong	Kenneth Jeyaretnam	27-Jul-2023
22-Aug-2023	Ministry of Law	Edwin Tong	Kenneth Jeyaretnam	18-Aug-2023
13-Sep-2023	Prime Minister Office	Indranee Rajah	East Asia Forum	18-Aug-2023
2-Nov-2023	Ministry of Finance	Lawrence Wong	Kenneth Jeyaretnam	22-Oct-2023
18-Feb-2024	Ministry of Law	Edwin Tong	Kenneth Jeyaretnam, Gutzy Asia, The Online Citizen	16-Feb-2024

Defamation suit against Lee Hsien Yang over Ridout Road

Main article: Defamation suit by K Shanmugam and Vivian Balakrishnan against Lee Hsien Yang

Ministers K Shanmugam and Vivian Balakrishnan accused Lee Hsien Yang of making defamatory statements in a Facebook post in July 2023 regarding their rental of Ridout Road properties. The Facebook post had previously been issued a POFMA correction direction.

They alleged that Lee Hsien Yang’s post suggested they received preferential treatment from the Singapore Land Authority (SLA) and implied corrupt practices.

When Lee Hsien Yang refused to retract his statements, apologise, or make a donation to charity as demanded by the ministers, they filed a defamation suit against him. Lee Hsien Yang declined to enter an appearance or defend the suit, leading to a default judgment in November 2022.

Justice Goh Yihan later ruled that the statements were false and defamatory, targeting the ministers’ integrity, professional reputation, and honour. The court found that Lee Hsien Yang acted with malice, displaying a reckless disregard for the truth.

On 2 May 2023, the court awarded S$400,000 in damages—S$200,000 to each minister, including S$50,000 in aggravated damages due to malice. The court also issued injunctions preventing Lee Hsien Yang from repeating the defamatory statements.

Justice Goh highlighted the severity of the allegations, the prominence of the claimants, and the defendant’s conduct as factors justifying the substantial damages. Additionally, the ministers sought costs and disbursements exceeding S$219,000 from Lee Hsien Yang, who resides in the UK.

In September 2024, Lee Hsien Yang paid S$619,335.53 to the ministers after losing the defamation suit. He stated that making the payment was necessary to protect his family home at 38 Oxley Road.

Despite the judgment, Lee Hsien Yang continues to deny wrongdoing and maintains his criticism of the ministers’ actions.