Singapore Charges Billionaire in Landmark Corruption Case, After Ex-Minister Sentenced

By Low De Wei and Bernadette Toh / Bloomberg
Updated: October 4, 2024 4:15 AM EDT | Originally published: October 4, 2024 3:15 AM EDT

Singapore charged property tycoon Ong Beng Seng on Friday over the case of an ex-government minister who was sentenced to jail for obtaining gifts from the billionaire.

The 78-year-old Ong didn’t immediately enter a plea in response to the charges of abetment and obstruction of justice, and didn’t respond to questions when he left court. The charges come a day after former transport minister S. Iswaran was handed a 12-month prison term for obtaining valuable items as a public servant and obstruction of justice.

The scandal has rocked the city-state, known for its zeal for clean governance, with Iswaran having become the first former minister to be sentenced to prison in almost half a century. It has also tested the People’s Action Party, which has ruled Singapore uninterrupted since independence in 1965, with Prime Minister Lawrence Wong preparing for a general election that must be held by November 2025.

Read More: A Wave of Scandals Is Testing the Singaporean Government’s Ability to Take Criticism

“No one is beyond scrutiny or above the law,” Wong said in a statement after Iswaran was sentenced on Thursday. “My team and I will continue to uphold the highest standards of integrity and propriety.”

Ong, who had bail set at S$800,000 ($617,000), allegedly abetted Iswaran over two flights and a night’s stay at the Four Seasons hotel in Doha, with a total value of S$20,848.03. He was also accused of abetting the ex-minister in obstructing the course of justice. That corresponds with two of the five charges to which Iswaran pleaded guilty to on Sept. 24.

The prosecution said it won’t tender charges against Ong for his involvement in any of the other accusations faced by Iswaran. It is also not going to charge Lum Kok Seng, the Managing Director of local construction firm Lum Chang Holdings Ltd., in connection with the Iswaran case, the Attorney-General’s Chambers said in a statement.

The case has been adjourned until Nov. 15.

Ong, who was arrested in July 2023, has a $1.15 billion fortune, according to Bloomberg estimates. He’s a flamboyant figure in Singapore business circles, and is widely credited for bringing Formula One to the city. The tycoon owns the rights to the Singapore Grand Prix, which he attended in September, and is chairman of race promoter Singapore GP Pte.

But Ong’s business practices were placed under the microscope after his ties with Iswaran led to the worst graft scandal in the financial hub for decades.

Most of the court charges leveled against Iswaran dealt with his interactions with Ong. The allegations ranged from Iswaran obtaining tickets for UK soccer matches and taking a flight on Ong’s private jet to obtaining tickets to the F1 race in Singapore and tickets to musicals in London. Iswaran’s lawyers argued in court that the valuable items were gifts from his friend Ong.

Ong is also the managing director of Hotel Properties Ltd. The Singapore-listed hospitality firm, which requested a trading halt on Friday, has interests in hotels under the Four Seasons chain and develops luxury condos in cities like London and Singapore. 

The Ong family also has a controlling stake in British luxury handbag maker Mulberry Group Plc, and recently rebuffed a takeover approach from Mike Ashley’s Frasers Group Plc.