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Senior Minister Teo Chee Hean clarified that the public bungalows that are under the management of the Singapore Land Authority (SLA) are not going at a "relatively cheap rate", in response to Progress Singapore Party (PSP)'s secretary general Leong Mun Wai's questions about the review and reports regarding Ministers K Shanmugam and Vivian Balakrishnan's rental of 26 and 31 Ridout Road.
Teo said that this perception is "not true", and added that the bungalows are "rented out at market rates".
Earlier on Jul. 3, Teo presented these findings to Parliament, where no conflict of interest was found in the Ridout Road case.
Leong also posed questions to Second Minister of Law Edwin Tong for clarification.
Questions put forth to SM Teo Chee Hean
Leong asked SM Teo regarding the code of conduct for public officers, pointing out that the government expects to be a government of integrity and if Shanmugam and Vivian should have considered the possibility of negative public perception.
Leong claimed that Singaporeans are saying the ministers are paid "million dollars of salaries" and that the minister has private bungalows of their own, and "they still go and rent a relatively cheaper public bungalow, which are the three most prestigious bungalows in Singapore and having the government to fork out over S$1 million dollars to reinstate the bungalows before they move in".
"Don't you think that that scenario conjures up a very bad picture?" Leong asked.
Teo first thanked Leong for believing in the integrity of the government, before clarifying that public bungalows under the SLA management are not going at a "relatively cheap rate".
"I think we should dispel this idea completely, which I think Mr Leong must have inadvertently sort of contributed to this question that these bungalows are going at a relatively cheap rate," said Teo.
"It's a complete loss to SLA if it doesn't put the property in a condition which is rentable."
Leong also sought clarification about any conflict of interest. He asked are there "conflicted situations that we should avoid going forward"?
"And then from this, if we agree that there are some conflicted situations, whether the outcome of the terms and conditions of the contract reflects... a conflicted situation?" Leong asked.
Teo shared that Parliament spent a lot of time explaining what is required for there to be a conflict of interest.
While Vivian was not in a conflict of interest situation, Shanmugam was in a position of potential conflict of interest, Teo said.
Still, he removed himself from that potential conflict of interest so no conflict of interest could arise, Teo explained.
"There is no potential conflict of interest, then that should be sufficient to dispel the idea of a perceived concept of interest in any fair-minded person", Teo said.
Questions put to Edwin Tong
Leong asked Tong if examples could be provided for tenants who have preparatory work done to the black and white bungalow before they move in, which cost hundreds of thousands of dollars.
He pointed out that the cost SLA spent for the works done on 26 and 31 Ridout Road amounted to 2.2 years of rent each.
Leong also asked if SLA allow tenants to construct a swimming pool "all the time" and if they cut down trees with girths of more than a metre.
In addition, he questioned Tong on why the rent for 31 Ridout Road, rented out to Vivian, was 22 per cent below the average rent shown in a handout provided in the House.
He said that the average rent is S$29,600, but 31 Ridout Road is S$23,500, which is about 22 per cent difference in price.
Tong clarified that 26 and 31 Ridout Road are conservation properties, so it is necessary to upkeep and maintain them based on conservation guidelines.
He also stressed that the obligations to maintain the properties under the conversation guidelines are on SLA, so these expenditures must be incurred to maintain the property.
Regarding the addition of the swimming pool on the property, Tong explained that these enhancements are encouraged by SLA so the properties can be maintained and enhanced for subsequent purposes.
When the lease expires, the pool becomes the property of SLA, and it goes towards enhancing the property's value for subsequent tenancies.
Trees that are found to be a safety concern, then SLA will work with arborists and NParks to get the approval to remove the tree, said Tong.
Top photos via MCI/YouTube