Former transport minister S Iswaran's acts have had a "significant impact" on the government's reputation, said the prosecution during a Supreme Court hearing on Sep. 24.

However, Iswaran's defence lawyer said there was no harm, or at worst, minimal harm, caused by Iswaran accepting the gifts, and that there was no suggestion that any third party suffered losses.

Pleaded guilty to five charges

Iswaran had received gifts worth more than S$400,000 from property tycoon Ong Beng Seng and construction firm director Lum Kok Seng, including tickets to musicals and F1 events, flight tickets and hotel stays, bottles of whisky and golf clubs.

He is the first political office holder in Singapore to be tried in court in nearly five decades.

Iswaran, 62, pleaded guilty to five charges — four under Section 165 of the Penal Code regarding the acceptance of gifts by public servants, and one charge of obstruction of justice.

30 other charges will be taken into consideration for his sentencing.

Iswaran had previously been charged with two counts of corruption under the Prevention of Corruption Act, but those charges were amended to charges under Section 165 of the Penal Code on Sep. 24.

Significant impact on govt reputation: Prosecution

Deputy Attorney-General Tai Wei Shyong asked for a six- to seven-month jail term for Iswaran.

In the prosecution's submissions on sentencing, Tai highlighted that Iswaran was a minister of the Singapore government when he obtained the gifts from Ong and Lum worth S$403,300, which Tai noted was "a significant amount".

"The accused is a minister. The more senior the position, the more serious the offence. The accused’s acts have had a significant impact on the government’s reputation."

Tai added that Iswaran was holding portfolios by virtue of which he had official dealings with Ong and Lum.

"If public servants accept gifts in such a situation, public confidence in impartiality of public servants will be undermined. Not punishing such acts will send a signal that such acts are tolerated," Tai said.

Knew gift-givers had business connected with him: Prosecution

Tai asserted that the facts showed that Iswaran was "more than a passive acceptor of the gifts".

He pointed out that Iswaran was aware Lum and Ong were directly involved in ongoing official business connected with Iswaran's official functions.

At the time of the offences, Lum was a director of Lum Chang Building Contractors Pte Ltd, which had a contract with the Land Transport Authority (LTA).

"The accused was the Minister for Transport and was responsible for the LTA", Tai said.

Regarding Ong, Tai added that he and Iswaran had a "closer and more intertwined relationship" over a period of 16 years.

Ong was a major shareholder of Singapore Grand Prix (SGP), which had a partnership with the Singapore government to organise and promote the F1 Grand Prix between 2008 and 2023.

When he received the gifts from Ong, Iswaran was the minister responsible for overseeing the F1 project in Singapore, chairman of the F1 steering committee, and was also negotiating with SGP on F1-related business matters.

"The accused significantly compromised his position as chief negotiator for the government," Tai asserted.

On Iswaran's obstruction of justice charge, Tai said Iswaran asked Ong to bill him for a Qatar Airways business class flight from Doha to Singapore, after it was initially paid for by SGP.

Tai asserted that Iswaran did so to avoid investigation by the Corrupt Practices Investigation Board (CPIB).

"When he knew the CPIB was looking into the circumstances of his flight with Ong, he instructed Ong to bill him for the flight, knowing that it would make him less likely to be investigated," Tai said.

Fact that he paid back S$380,000 should not carry much weight: Prosecution

Tai acknowledged that Iswaran has paid the state S$380,305.95 and forfeited the items he received, but opined that this should carry limited mitigating weight.

He pointed out that Iswaran "disgorged his gain only late in the day" after the commencement of criminal proceedings. Tai said:

"Where the sole motive for restitution is the hope or expectation of obtaining a lighter punishment, then the fact of restitution must be of little mitigating value."

In conclusion, the prosecution sought a sentence of "no more than six to seven months in prison".

Complexion of the case no longer about corruption: Defence

Senior Counsel Davinder Singh, Iswaran's defence lawyer, asked for no more than eight weeks' prison for Iswaran.

In his mitigation plea, Singh said that when the prosecution chose not to proceed on the corruption charges for Iswaran, it changed the complexion of the case into one involving “other offences" and "lesser charges”, citing media reports from the morning of Sep. 24.

Singh said that Iswaran had previously been prepared to contest the corruption charges against him.

However, after the charges were amended, Iswaran agreed to plead guilty as there would have been "no issues" with him disgorging the money to the state, Singh said.

Singh noted that by doing so, Iswaran saved the court "time and resources", as his hearing was initially scheduled for 70 days, with 56 witnesses.

Act of paying bill not 'premeditated' obstruction of justice: Defence

Singh reiterated that Iswaran had accepted the items from Ong and Lum "in context of their friendship with him" as he knew them before they were involved in F1 and with LTA respectively.

"Iswaran did not actively seek out the items that were given to him," Singh said.

On whether there was harm caused by Iswaran's accepting of the gifts, Singh said there was no harm, or at worst, minimal harm, and that there was no suggestion that any third party suffered losses.

Singh pointed out that while Iswaran was the transport minister, LTA did not award any contract to Lum’s companies.

And for Ong, Singh noted that the prosecution has accepted a Jan. 18 statement from the Ministry of Trade and Industry (MTI), which confirms "there is nothing to suggest that the contract with F1 was structured to the disadvantage of the government needs".

"I thank the prosecution for that fairness," Singh said.

Obstruction of justice charge

Singh also addressed Iswaran's charge for obstruction of justice.

The court heard that Iswaran and Ong spoke on the phone sometime between May 18 and 23, 2023, and that Ong told Iswaran that CPIB had seized the flight manifest for the Doha trip.

The next day, the two spoke on the phone again, and Iswaran asked Ong to have SGP bill him for the Doha trip expenses , including for the flight. Ong agreed and made arrangements for this.

A SGP director emailed Iswaran's personal assistant on May 24 and Iswaran issued a cheque to SGP on or about May 25.

Singh said that following the call with Ong, Iswaran simply paid the bill when it was issued to him, and disagreed with the prosecution's submission that this act was "premeditated".

Singh added that the bill was not backdated to create the impression that Iswaran had paid it earlier.

Govt upholding integrity by charging a minister: Defence

In response to the prosecution's assertion that Iswaran's acts eroded public trust in the government, Singh said the Singapore government has sent the signal that such actions are unacceptable by pressing charges against him.

"The fact that there is a prosecution against my client under Section 165 is the most powerful signal that can be sent... that the Singapore government is upholding its long-standing commitment to integrity and honest government."

Singh also highlighted Iswaran's past public contributions, including as chief executive officer (CEO) of self-help group SINDA and as Member of Parliament (MP) for West Coast GRC.

Singh said Iswaran's contributions "should be given weight".

Additionally, Singh noted that Iswaran has voluntarily returned all his minister's salary from the day investigations commenced against him to the day he resigned.

"Although my client pleads guilty to the five charges, he has not compromised the government’s position and the government’s standing and reputation has not been undermined. As I said, the charges speak for themselves," he concluded.

The case was adjourned at around 3:40pm on Sep. 24 and Iswaran's bail was extended.

He is expected to be sentenced on Oct. 3, 10am at the Supreme Court.

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Top image via Andrew Koay/Mothership and NUS Law website