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2023 Ridout Road rentals parliamentary review: Difference between revisions
2023 Ridout Road rentals parliamentary review (view source)
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SGPolitico (talk | contribs) (Created page with "On 3 July 2023, Singapore’s Parliament convened to discuss the rental of black-and-white bungalows at 26 and 31 Ridout Road by Minister for Law and Home Affairs K Shanmugam and Minister for Foreign Affairs Vivian Balakrishnan. Senior Minister Teo Chee Hean and Minister for Culture, Community and Youth and Second Minister for Law Edwin Tong delivered detailed ministerial statements addressing queries surrounding the transactions. These properties, managed by the Sin...") |
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'''Context and Mandate of the Investigation''' | '''Context and Mandate of the Investigation''' | ||
Senior Minister Teo | In his speech, Senior Minister Teo underscored the government’s commitment to maintaining public trust and addressing concerns promptly<ref>https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=ministerial-statement-2197</ref>. | ||
He explained that Prime Minister Lee Hsien Loong had directed the CPIB to investigate the leases to determine if there was any corruption, abuse of power, or conflict of interest.<blockquote>“The Prime Minister's decision to involve the CPIB, Singapore's premier anti-corruption agency, underscores our zero-tolerance approach to corruption. The CPIB is empowered by the Prevention of Corruption Act and operates independently, ensuring its findings are authoritative and free of influence.”</blockquote>Teo also conducted a concurrent review to assess whether proper processes were followed by the SLA and whether the existing policies governing black-and-white bungalows were adequate. | He explained that Prime Minister Lee Hsien Loong had directed the CPIB to investigate the leases to determine if there was any corruption, abuse of power, or conflict of interest.<blockquote>“The Prime Minister's decision to involve the CPIB, Singapore's premier anti-corruption agency, underscores our zero-tolerance approach to corruption. The CPIB is empowered by the Prevention of Corruption Act and operates independently, ensuring its findings are authoritative and free of influence.”</blockquote>Teo also conducted a concurrent review to assess whether proper processes were followed by the SLA and whether the existing policies governing black-and-white bungalows were adequate. | ||
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'''CPIB’s Methodology''' | '''CPIB’s Methodology''' | ||
The CPIB interviewed key stakeholders, including the ministers and their spouses, SLA officials, and third-party property agents. It also examined documents, electronic communications, and historical data on the properties. Teo elaborated on the thoroughness of the process:<blockquote>“The CPIB's investigations included scrutinising phone records, WhatsApp messages, and financial transactions. This rigorous approach ensured that all aspects of the transactions were reviewed independently.”</blockquote> | The CPIB interviewed key stakeholders, including the ministers and their spouses, SLA officials, and third-party property agents. It also examined documents, electronic communications, and historical data on the properties. | ||
Teo elaborated on the thoroughness of the process:<blockquote>“The CPIB's investigations included scrutinising phone records, WhatsApp messages, and financial transactions. This rigorous approach ensured that all aspects of the transactions were reviewed independently.”</blockquote> | |||
==== '''Key Findings''' ==== | ==== '''Key Findings''' ==== | ||
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Senior Minister Teo described the history and leasing process for 26 Ridout Road. Vacant since 2013, the property was challenging to rent due to its large size and maintenance requirements. | Senior Minister Teo described the history and leasing process for 26 Ridout Road. Vacant since 2013, the property was challenging to rent due to its large size and maintenance requirements. | ||
In 2018, Minister Shanmugam appointed a property agent to negotiate the lease. During a site visit, he noted safety concerns due to an overgrown adjacent plot.<blockquote>“Minister Shanmugam raised concerns about the adjacent plot, citing risks from overgrown vegetation, snakes, and mosquitoes. He offered to maintain the land at his own cost if SLA included it in the tenancy.”</blockquote>The SLA agreed, incorporating the adjacent land and increasing the property size to 23,164 square metres. Essential repairs costing $515,400 were undertaken by SLA to make the property habitable, and the rent was set at $26,500 per month. Shanmugam personally financed $400,000 worth of additional improvements. | In 2018, Minister Shanmugam appointed a property agent to negotiate the lease. During a site visit, he noted safety concerns due to an overgrown adjacent plot.<blockquote>“Minister Shanmugam raised concerns about the adjacent plot, citing risks from overgrown vegetation, snakes, and mosquitoes. He offered to maintain the land at his own cost if SLA included it in the tenancy.”</blockquote>The SLA agreed, incorporating the adjacent land and increasing the property size to 23,164 square metres. Essential repairs costing S$515,400 were undertaken by SLA to make the property habitable, and the rent was set at $26,500 per month. Shanmugam personally financed $400,000 worth of additional improvements. | ||
==== '''31 Ridout Road''' ==== | ==== '''31 Ridout Road''' ==== | ||
This property, also vacant since 2013, faced similar challenges in attracting tenants. In 2018, Mrs Balakrishnan contacted the SLA after noticing a "For Lease" sign. Negotiations concluded at a monthly rent of $19,000, later adjusted to $20,000 upon lease renewal in 2022. | This property, also vacant since 2013, faced similar challenges in attracting tenants. In 2018, Mrs Balakrishnan contacted the SLA after noticing a "For Lease" sign. Negotiations concluded at a monthly rent of S$19,000, later adjusted to S$20,000 upon lease renewal in 2022. | ||
Teo highlighted:<blockquote>“The valuation for 31 Ridout Road reflected the property’s condition and market trends at the time. Minister Balakrishnan’s improvements, exceeding $200,000, further enhanced the property.”</blockquote>Both cases demonstrated that the tenants bore significant personal costs for additional works beyond SLA’s mandatory repairs. | Teo highlighted:<blockquote>“The valuation for 31 Ridout Road reflected the property’s condition and market trends at the time. Minister Balakrishnan’s improvements, exceeding $200,000, further enhanced the property.”</blockquote>Both cases demonstrated that the tenants bore significant personal costs for additional works beyond SLA’s mandatory repairs. | ||
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==== '''The extent of CPIB's investigation''' ==== | ==== '''The extent of CPIB's investigation''' ==== | ||
Pritam Singh raised concerns about whether the CPIB’s investigation extended to the Ministerial Code of Conduct. PM Lee clarified:<blockquote>“CPIB's instructions from me were to establish whether any corruption or criminal offence had been committed. You cannot do that without going into all the facts of the case, and in the process...they came to conclusions on preferential treatment, disclosure of privileged information, and abuse of position. They put it in their report that they found none of this.</blockquote> | Pritam Singh raised concerns about whether the CPIB’s investigation extended to the Ministerial Code of Conduct. PM Lee clarified:<blockquote>“CPIB's instructions from me were to establish whether any corruption or criminal offence had been committed. You cannot do that without going into all the facts of the case, and in the process...they came to conclusions on preferential treatment, disclosure of privileged information, and abuse of position. They put it in their report that they found none of this.</blockquote>Teo’s review complemented CPIB’s investigation Ministers g broader procand governance issues. | ||
==== '''Phones of ministers not seized''' ==== | |||
Pritam Singh asked if CPIB had seized the phones of Ministers K Shanmugam and Vivian Balakrishnan as part of their investigation into the Ridout Road properties. Minister Shanmugam clarified:<blockquote>"My phones did not have any relevant messages because they automatically delete. CPIB looked through it, and there was no need to seize them because that is a setting on my phone. They asked for and looked at my emails."</blockquote>Minister Balakrishnan added:<blockquote>"I have had absolutely no communication with the property agent or with SLA, so there was no need for my phone to be surrendered. However, every single message between my wife and the managing agent, and subsequently with SLA staff, was in the hands of CPIB. Because you might remember, when you send a message, it is two ways. So, they had sight of every single message."</blockquote>Minister Shanmugam elaborated further, noting:<blockquote>"While there were no messages on my phone, all the messages that I exchanged they had, and, in fact, I was asked questions on some of them. Some people keep messages for five years, and those messages were taken by CPIB from others who had sent me messages."</blockquote>The Deputy Speaker summarised the matter by confirming:<blockquote>"It would be correct for the record to say the phones were not seized."</blockquote>Minister Shanmugam affirmed:<blockquote>"I think what is right to confirm is that phones were looked through, and since there was no relevant material, they were given back to us in the course of that interview."</blockquote>Minister Balakrishnan concluded:<blockquote>"My phone was not seized.".</blockquote> | |||
==== | ==== '''Whether the Ministers rented out their properties while leasing Ridout Road bungalows''' ==== | ||
Poh Li San raised a question about whether the two Ministers—K Shanmugam and Vivian Balakrishnan—had rented out their private properties while leasing the Ridout Road bungalows. She queried whether this could result in monetary gains from arbitrage, stating:<blockquote>“In the interest of transparency, will the two Ministers declare if these properties have been rented out anytime during the lease of 26 and 31 Ridout Road to assure the public that there is no monetary gain from lease arbitration?”</blockquote>Senior Minister Teo Chee Hean responded to this query, pointing out that the current Ministerial Code of Conduct does not mandate declarations of this nature:<blockquote>“There is no requirement today under the Code of Conduct for the type of declarations which she is talking about. The Code of Conduct sets out principles and illustrative examples but does not require disclosures about personal property transactions beyond what is directly relevant to conflicts of interest.”</blockquote> | |||
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