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Prime Minister Lee Hsien Loong said that Ministers K Shanmugam and Vivian Balakrishnan retain his full confidence and have done nothing wrong in the Ridout Road rental matter.

Speaking in Parliament on July 3, PM Lee discussed matters of independence, the Corrupt Practices Investigation Bureau (CPIB)'s authority and ethical standards for all his ministers.

CPIB investigation complemented by SM Teo's review

PM Lee directed the CPIB to investigate the matter on May 17, 2023 to determine if there was any corruption or wrongdoing.

He shared that upon his return from Kenya, he also tasked Senior Minister (SM) Teo Chee Hean to do a broader review of SLA's policies and processes to complement the CPIB investigation.

Why CPIB?

CPIB reports to the Prime Minister's Office, and does not report to Shanmugam as Minister for Home Affairs or Teo as Coordinating Minister for National Security.

PM Lee said CPIB is independent, has built up a strong reputation as an anti-corruption body, and has the necessary legal powers guaranteed in the Constitution to carry out a thorough investigation.

"Everybody in Singapore knows what it means when CPIB invites you to lim kopi (drink coffee). And they can invite anybody, ministers officials, businessmen, ordinary Singaporeans, whoever it is necessary for them to interview in order to establish the facts and the truth and whether there's culpability."

The investigation also went beyond the legal question of whether there was criminal conduct, and extended to broader issues of whether there was preferential treatment afforded to the ministers, if there was an abuse of position by the ministers during the rental processes, and if any privileged information was disclosed to them.

PM Lee wanted these broader questions examined more thoroughly, because as prime minister, his duty was not just to be satisfied that legally, there was no wrongdoing.

He also needed to be satisfied whether apart from the law, there was any kind of misconduct or impropriety.

Why SM Teo?

"SM Teo is my most senior minister in terms of years in Cabinet and experience, I appointed him to show that I had every intention to maintain the government and the PAP's long-standing, high and stringent standards of integrity and propriety. I wanted to put my most experienced, most qualified, for this purpose, most capable person on the job."

PM Lee did not consider SM Teo to have been involved in the transaction, even though he was the senior Cabinet colleague whom Shanmugam informed of the arrangements made to recuse himself, including that then-Senior Minister of State Indranee Rajah had been told to approach SM Teo if the matter had to go beyond her.

"Because no such issue arose, and nothing was ever raised to SM Teo. He was the backstop and nothing reached him," PM Lee said.

PM's responsibility to decide on matters of ethics and propriety

PM Lee addressed suggestions that Teo is not sufficiently independent enough to conduct the review just because he is a minister.

"I take a different view," PM Lee said. When it comes to potential corruption and wrongdoing, there is an independent process, including CPIB investigation and a referral to the Attorney-General's Chambers for an opinion.

While the courts are the arbiter of legality, matters of ethics and standards of propriety are the PM's responsibility.

"I have to set the standards of what is ethical, what is proper. I cannot outsource them, for example, to appoint an ethics advisor to tell me what is proper or not proper," PM Lee said.

The PM sets the standards in the Singapore context, setting the right example of proper conduct, and deciding whether a minister has acted improperly or not in accordance with the Code of Conduct and Rules of Prudence.

"If he thinks so, he should say so. If he thinks not, he must say not. He cannot say I have no view and I do not wish to influence my ministers and my MPs," PM Lee said, as ultimately, the PM is accountable.

The findings and the conclusions

PM Lee discussed the findings, including CPIB's highlight of an imprecision of how SLA defined the Guide Rent for No. 26 Ridout Road, but with no ill intent or male fide abuse of position in the valuation. SLA has acknowledged CPIB's point, and will review and improve their practices.

"The conclusions are quite clear," PM Lee said. CPIB found no corruption or wrongdoing, no preferential treatment, no disclosure of privileged information and no abuse of position for personal gain. The AGC also confirmed this after reviewing the Investigation Papers.

PM Lee added that Teo's review, relying on CPIB's findings confirmed the broader issues that there was no conflict of interest or unfair advantage enjoyed. These are not just personal opinions, but conclusions based on the facts.

PM Lee on asking the Deputy Secretary issue

In a follow-up question by Workers' Party chief Pritam Singh, he asked about Shanmugam asking a civil servant for information (the Deputy Secretary of the Ministry of Law, for a list of a few properties available for rent).

Singh said that Teo made the point there was nothing untoward about it because of the nature of the information, but it was "not apparent to the public."

"It is quite incongruous in the eyes of many, for a minister to be asking a civil servant details which pertain to information for his personal use," Singh said.

He asked if PM Lee agreed there is a "better way" to address a problem of a similar nature when it crops up.

In his response, PM Lee said this specific issue was not public knowledge until "we brought it up."

The Ridout Road issue has been out for a few months since April, during which PM Lee said there were "outrageous allegations" about improper benefits enjoyed by ministers.

But now that the report is out and the "grave suspicions" have been dispelled, PM Lee noted that the Leader of the Opposition is now focusing on this question.

"My view is he could have done it a different way. He could have done it this way. He has given the House the reasons why he did it this way. I think those are cogent reasons, which I accept," PM Lee said.

PAP upholding standards

"Minister Shanmugam and Minister Vivian Balakrishnan have done nothing wrong, and they retain my full confidence," PM Lee also stated at the end of his remarks. He said that it was important to have an accounting in Parliament, with MPs having the opportunity to ask questions.

Aside from the Ridout Road issue, however, PM Lee said it was important to demonstrate how the PAP will uphold its standards and not compromise on honesty, integrity and incorruptibility.

Top image from MCI YouTube and Mothership.