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In September 2018, when the real estate agency in charge of managing 31 Ridout Road found out their newest potential tenant was the wife of a Minister, they wrote to the landlord, Singapore Land Authority (SLA), to find out if there was a "policy for VVIPs".

SLA's then-Leasing Manager replied and emphasised in her email that "there was no policy for VVIPs, and all prospects and tenants were to be treated equally", the Corrupt Practices Investigation Bureau (CPIB) revealed in their latest report of their investigations of the renting of Ridout Road properties by Ministers K Shanmugam and Vivian Balakrishnan.

In the report, CPIB found no evidence of corruption or preferential treatment given to the ministers.

Lease signed by Mrs Balakrishnan

In response to questions raised by the public and allegations against Shanmugam and Vivian regarding their rental of state properties at Ridout Road, Senior Minister and Coordinating Minister for National Security Teo Chee Hean was tasked to conduct a review in conjunction with CPIB's investigation.

According to the reports, Mrs Balakrishnan came across a “For Lease” sign at 31 Ridout Road and contacted Singapore Land Authority's (SLA) appointed Managing Agent on Sept. 11, 2018, to negotiate the rental price.

31 Ridout Road has a land size of 9,157.36 square meters and has been vacant since Jul 2013.

The property had been vacant for five years before two unsuccessful bids were made below the prevailing "guide rent".

SLA explained that a guide rent is a key mechanism through which SLA ensures that State properties are rented out at a fair market rate.

The guide rent is intended to be the minimum rental to be achieved, and all offers to rent are measured against it.

The Managing Agent named an asking rent of S$19,000, and Mrs Balakrishnan offered S$19,000 with the request for essential repair works and toilet upgrading.

The Managing Agent rejected the toilet upgrade as it was considered improvement work. Subsequently, Mrs Balakrishnan agreed to bear the costs of the toilet upgrade.

Minister and wife unaware of guide rent

CPIB investigations reveal that the Managing Agent independently determined and valued the asking rent for 31 Ridout Road. Neither Vivian nor his wife was aware of the guide rent, which was S$18,800 at the time.

The SLA Leasing Department accepted the lease proposal as the final secured rent was S$19,000, not below the prevailing guide rent.

The tenancy agreement was for 3+2+2 years and was signed by Mrs Balakrishnan in October 2019.

After the first three-year term, Mrs Balakrishnan requested a renewal of another 3+2 year term instead of the previous 2+2 year term, and her request was granted.

The rental for the second term increased from S$19,000 to S$20,000 per month, considering the then prevailing market conditions in 2022.

SLA's total cost of essential repair work to restore 31 Ridout Road was S$570,000.

In his interview with CPIB, Vivian stated that he paid more than S$200,000 for additional improvement works to the property.

No preferential treatment given

In the course of investigations, CPIB found out that the Managing Agent had asked SLA if there was "a policy for VVIPs" on the renting of the property.

CPIB stated that SLA's then-Leasing Manager had "emphasised in her email reply that there was no policy for VVIPs and all prospects and tenants were to be treated equally".

CPIB noted that this meant no preferential treatment was given in the process of the rental transaction, and no issue of conflict of interest arose because Minister Balakrishnan’s official responsibilities did not include SLA.

Top photos via Vivian Balakrishnan/Facebook & Google Maps Streetview