28-6-2023 (SINGAPORE) A probe conducted by the Corrupt Practices Investigation Bureau (CPIB), ordered by Prime Minister Lee Hsien Loong, has concluded that there is no evidence of corruption or criminal wrongdoing in the rentals of Ridout Road state properties by Ministers K Shanmugam and Vivian Balakrishnan. The CPIB’s findings were submitted to Parliament along with a report by Senior Minister Teo Chee Hean, who was tasked with conducting a review.
According to the CPIB’s report, there was no preferential treatment given to the ministers or their spouses, and no disclosure of privileged information during the rental transactions of the two black and white bungalows. The bureau stated that there was no evidence to suggest any abuse of position by the ministers for personal gain. This marks the first public disclosure of the CPIB’s involvement in the matter.
The CPIB was directed by PM Lee to investigate the issue, as it reports directly to the prime minister and has the authority to uncover any corruption or criminal wrongdoing. However, the bureau did find a “lack of precision” in the Singapore Land Authority’s (SLA) use of the term “guide rent” in relation to 26 Ridout Road, which was rented by Minister Shanmugam, who serves as Minister for Law and Home Affairs. The initial statement made by SLA on May 12, stating that Minister Shanmugam’s offer was above the guide rent, was found to be incorrect. The CPIB clarified that the rental paid by Minister Shanmugam was equal to the correct guide rent for the property.
The investigation revealed that the issue stemmed from a lack of ill intent on the part of any SLA officers involved, and there was no intentional abuse of position in the valuation process. A separate report by Senior Minister Teo concluded that both ministers, as well as public officers and private sector intermediaries involved, had conducted themselves properly in the transactions. The report stated that there was no abuse of power or conflict of interest resulting in the ministers gaining any unfair advantage or privilege. It also noted that the process of renting out the properties adhered to the prevailing SLA guidelines for residential purposes.
The Attorney-General’s Chambers (AGC) has agreed with the findings and recommendations of the CPIB and directed that no further action be taken, as no offense was disclosed by the facts. Prime Minister Lee has accepted the two reports and ordered their publication and tabling in Parliament as a miscellaneous paper. The reports will be debated when Parliament convenes on Monday, July 3.
The reports highlighted that the property at 26 Ridout Road, with an original land size of 9,350 sqm, had been vacant since December 2013. Minister Shanmugam had requested a list of available properties from the Ministry of Law in January 2017, and after visiting several properties, he appointed a property agent in January 2018 for the rental transaction. The investigation also revealed that Minister Shanmugam paid for additional improvement works not covered by SLA’s restoration works.
In the case of 31 Ridout Road, the property had been vacant for five years before two unsuccessful bids were made below the prevailing guide rent. Mrs. Balakrishnan came across a “For Lease” sign at the property and contacted the SLA’s managing agent in September 2018. The final secured rent of $19,000 was not below the prevailing guide rent of $18,800, and the lease proposal was accepted by the SLA leasing department.
Senior Minister Teo’s report addressed wider potential process or policy issues beyond the scope of the CPIB’s investigation. It noted that state properties with low demand, such as the ones on Ridout Road, were leased out through direct tenancy when there was no bidding below the guide rent. The report emphasized that Minister Shanmugam had removed himself from the chain of command and decision-making process to avoid a conflict of interest, and he had declared his potential conflict to Senior Minister Teo.
The CPIB confirmed that no preferential treatment was given during the rental process, and the availability of both properties was made known to the general public. The rental rates for the properties were comparable to those of other Ridout estate properties, and the rental of the two properties adhered to the prevailing SLA guidelines.
The review concluded by emphasizing the importance of political office holders and public service officers upholding integrity at all times, as well as the need for continuous efforts to maintain high standards of integrity and accountability in the government. The reports will contribute to the ongoing commitment to serving with integrity and excellence in Singapore’s system of government.
