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Former minister found guilty in case that shocked Singapore

Former minister found guilty in case that shocked Singapore

Environmental Protection Agency

Iswaran, pictured arriving at court on Tuesday, is embroiled in one of Singapore’s biggest political scandals

A former Singapore transport minister has been found guilty of accepting gifts while in office, pleading guilty in a local court.

Subramanian Iswaran, 62, was initially charged with corruption but prosecutors changed the charges at the start of his trial, which was due to start on Tuesday.

A corruption case involving a public official is rare in Singapore, a financial centre that prides itself on its squeaky clean image, and Iswaran’s case swept the nation.

Iswaran now faces a fine or up to two years in prison for each count of accepting gifts or gratuities, while corruption is punishable by a fine of up to $100,000 or up to seven years in prison.

Iswaran is the first Singapore political official to face trial in 50 years.

He is best known for bringing the Formula One Grand Prix to the Southeast Asian island nation, with the last edition ending just days before his trial.

The indictment alleges he received gifts of airline, hotel, musical and Grand Prix tickets worth more than 403,000 Singapore dollars ($311,882; £234,586).

Shortly after he was charged in January, Iswaran pleaded not guilty to all charges and resigned from his government position, saying he intended to focus on clearing his name.

The charges mention real estate tycoon Ong Beng Seng, who has often been cited as a bidder for alleged bribes.

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Iswaran (left) played a key role in bringing Formula One night racing to Singapore

Mr Ong owns the rights to the Singapore Grand Prix, while Iswaran was an advisor to the race steering committee.

Ong’s company, Hotel Properties, also has 38 hotels and resorts operating under brands such as Four Seasons, Hard Rock Hotels and Concorde, according to Refinitiv Eikon.

Mr. Ong was arrested last year along with Iswaran but has not been charged with any crime. He was originally scheduled to testify as a prosecution witness in Iswaran’s trial.

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Ong Beng Seng’s company operates hotels and resorts in dozens of countries.

In March this year, Iswaran was charged with eight additional offences alleging that he obtained items including a Brompton bicycle, a set of golf clubs and whisky from another person: construction company boss Lum Kok Seng.

Mr. Lum’s company is involved in a number of Singapore government infrastructure projects that were awarded while Iswaran was transport minister. He has also not been charged.

While in government, Iswaran held various positions in the Prime Minister’s office: the Ministry of Interior, Communications and, most recently, the Ministry of Transport.

But it was during his long career at the Ministry of Trade and Industry that he rose to prominence, playing a significant role in Singapore’s tourism development in the late 2000s and 2010s.

It was a time when the government allocated huge resources and attracted billions of dollars in foreign investment to build casinos, hotels, tourist attractions and organize events such as the Formula 1 Grand Prix.

Iswaran was a familiar face on the podium, often presenting drivers with trophies amidst flows of champagne in celebration.

The case against Iswaran is one of a series of political scandals which shocked the ruling People’s Action Party (PAP), which has long emphasised its strong stance against corruption and immoral behaviour.

In 2023, the government faced a separate corruption investigation into the properties of two other ministers, who were ultimately cleared of charges, as well as the resignation of two lawmakers over an extramarital affair.

Singapore’s lawmakers are among the highest paid in the world, with some ministers earning more than S$1 million ($758,000). Leaders justify the high salaries by saying they are fighting corruption.

Before last year, the last time a politician faced a major corruption investigation was in 1986, when National Development Minister Teh Cheang Wan was investigated for accepting bribes. He took his own life before he could be charged.

Earlier in 1975, former Minister of State for the Environment Wee Toon Boon was sentenced to 18 months in prison in connection with a case involving more than $800,000.