Update 16 Jul 2023: Pofma orders issued to Kenneth Jeyaretnam, FB user and online site over Ridout Road rentals
The Pofma correction orders were issued over false statements regarding the rentals of 26 Ridout Road (left) and 31 Ridout Road. PHOTOS: ST FILE
An opposition politician, a Facebook user and the website Jom have been asked to put up corrections under the law against fake news over articles and social media posts that contain false statements about the Ridout Road saga.
The Ministry of Law (MinLaw) on Sunday said Second Minister for Law Edwin Tong had issued the instructions to Reform Party leader Kenneth Jeyaretnam and Facebook user Thamil Selvan.
The orders are in relation to an article published by Mr Jeyaretnam titled “Will SLA issue a statement denying the rumours that they have awarded any contracts to Shanmugam’s son’s company?” on July 2 on his website The Ricebowl Singapore, as well as Mr Thamil’s Facebook post on July 1. Mr Tong also issued a correction direction to online publication Jom, said MinLaw and the Ministry of Communications and Information in a joint statement on Sunday.
Parliamentary debate on rental of 26 & 31 Ridout Road
July 3 Parliament sitting: 4 ministerial statements on Ridout Road bungalow rentals
The black and white bungalows on Ridout Road will take the spotlight at the next Parliament sitting on Monday (July 3), with several Members of Parliament (MPs) having filed questions and four ministers due to make speeches on the rentals.
Of 157 questions filed for written and oral responses, 29 are related to the state-owned colonial bungalows rented by Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan. Based on the parliamentary order paper released on Friday, four ministerial statements will be delivered on the topic as well. Mr Teo Chee Hean, Senior Minister and Coordinating Minister for National Security, is set to speak about the review of the two bungalows' rentals, while Second Minister for Law Edwin Tong will talk about the rental of state properties.
Dr Balakrishnan and Mr Shanmugam will also be delivering ministerial statements on the rental of their respective properties. On Wednesday, findings from a review by Mr Teo and a probe by the Corrupt Practices Investigation Bureau (CPIB) into the two ministers' rental of the Ridout Road bungalows were released. Mr Shanmugam and Dr Balakrishnan were cleared of all wrongdoing, with the CPIB probe finding no preferential treatment given to the duo and their spouses.
Investigations, including by CPIB, find no wrongdoing or preferential treatment for ministers
26 Ridout Rd (S$26,500 a month for rental) & 31 Ridout Rd (S$19,000 a month for rental)
Investigations, including by the Corrupt Practices Investigation Bureau (CPIB), found no evidence of criminal wrongdoing or preferential treatment given to two ministers who rented state properties for their personal use. It emerged in early May that Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan had rented two black-and-white colonial bungalows at 26 and 31 Ridout Road.
Interest in the matter arose after opposition politician and Reform Party chief Kenneth Jeyaretnam questioned if the ministers were "paying less than the fair market value". In the CPIB report released on Wednesday (Jun 28) following a month-long review, the agency said it found no preferential treatment given to the ministers and their spouses. There was also no disclosure of privileged information in the process of the rental transactions, and no evidence to suggest any abuse of position by the ministers for personal gain, said CPIB in the report.
On May 23, Mr Shanmugam and Dr Balakrishnan called for an independent review. Two reports, by Senior Minister Teo Chee Hean and the CPIB, were released on Wednesday, alongside a statement from the Prime Minister's Office. The CPIB report detailed that Mr Shanmugam pays S$26,500 a month for the rental of 26 Ridout Road, and Dr Balakrishnan paid S$19,000 a month for the rental of 31 Ridout Road. Dr Balakrishnan's rent was revised to S$20,000 in 2022 due to "prevailing market conditions".
related: Ministers 'conducted themselves properly', avoided conflicts of interest, says Teo Chee Hean
CPIB finds no corruption or wrongdoing by Shanmugam, Vivian
26 Ridout Rd (S$26,500 a monthly rental) & 31 Ridout Rd (S$19,000 a monthly rental)
A Corrupt Practices Investigation Bureau (CPIB) probe, ordered by Prime Minister Lee Hsien Loong, has found 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 on Wednesday afternoon by PM Lee, together with a report of a review he had asked Senior Minister Teo Chee Hean to conduct.
In its report to PM Lee, CPIB said it also found no preferential treatment given to the ministers and their spouses, and no disclosure of privileged information in the process of the rental transactions involving two black-and-white bungalows. “There was no evidence to suggest any abuse of position by the ministers for personal gain,” said the CPIB, whose involvement in the matter was publicly disclosed for the first time on Wednesday. The bureau had been directed by PM Lee to investigate the matter, as the CPIB reports directly to the prime minister and has the necessary powers to ascertain any corruption or criminal wrongdoing.
But CPIB discovered a “lack of precision” in the Singapore Land Authority’s (SLA) use of the term “guide rent” with respect to 26 Ridout Road, which was rented by Mr Shanmugam, who is Minister for Law and Home Affairs. Thus, an earlier statement SLA made on May 12, saying that the offer by Mr Shanmugam was above the guide rent, was incorrect. “In fact, the rental Minister Shanmugam paid was equal to the correct guide rent on the property,” CPIB said in its report.
CPIB releases findings on Ridout Road bungalows' rental after PM Lee tasked bureau to investigate
An independent investigation into the rental of state properties by Cabinet ministers K Shanmugam and Vivian Balakrishnan has found no evidence of wrongdoing or corruption, said a report released on Wednesday (June 28). The review, led by Senior Minister Teo Chee Hean, also found that the process of renting out the black-and-white bungalows at 26 and 31 Ridout Road did not deviate from prevailing guidelines set by the Singapore Land Authority (SLA).
It was revealed that Prime Minister Lee Hsien Loong had separately tasked the Corrupt Practices Investigation Bureau (CPIB) on May 17 to look into whether there was any corruption or criminal wrongdoing by Shanmugam and Dr Balakrishnan for personal gain. Findings from the review relied on the bureau's "in-depth investigation", it said. "The ministers, public officers, as well as private sector intermediaries involved [had] conducted themselves properly in the two rental transactions," the report said.
"They were aware of their duty to declare and avoid any conflict of interest and took appropriate steps to prevent any potential or actual conflict of interest from arising." The review additionally asked for the Ministry of Law to provide a detailed briefing on the policies and processes regarding the rental of black-and-white bungalows for residential purposes. Here are five key findings from the report:
- No conflict of interest
- No policy for VVIPs: SLA
- Rental rates at 'fair market value'
- Did SLA pay for Shanmugam's car porch?
- 'Lack of precision' in SLA's use of 'guide rent': CPIB
How prudent is it for SLA to take 28.6 years to recover cost spent on Minister K Shanmugam’s 26 Ridout Road property?
Singapore’s political landscape was recently rocked by allegations and subsequent investigations into the rental of colonial houses on Ridout Road by Ministers K Shanmugam and Vivian Balakrishnan. Public outcry prompted Prime Minister Lee Hsien Loong to order comprehensive reviews by Senior Minister Teo Chee Hean and the Corrupt Practices Investigation Bureau (CPIB). Their findings, presented to Parliament on Wednesday (28 Jun), concluded there was no evidence of corruption, abuse of power, or conflicts of interest.
The drama unfolded when Mr Kenneth Jeyaretnam, Secretary General of the Reform Party, revealed that the two ministers had rented black-and-white colonial houses along Ridout Road. One issue that stood out the Ridoutsaga was the humongous property size of 26 Ridout Road. The report revealed that Mr Shanmugam had negotiated with the Singapore Land Authority (SLA) via his property agent to clear adjacent land before leasing the property. Expressing concerns about public health and safety risks due to overgrown vegetation on an adjacent slope, Mr Shanmugam offered to maintain this land at his own cost, which SLA estimated to be about S$25,000 a year.
This agreement effectively increased the size of the tenancy from 9,350 sqm to 23,164 sqm (249,294 sq ft). It also emerged that the SLA covered initial costs of clearance, greenery replanting, and fencing to the tune of S$172,000, with the intention of recovering these costs from future rent payments. As the house hadn’t been used since 2013, substantial repairs were required. The cost, a hefty S$515,400, was also borne by SLA. Consequently, the SLA had shelled out a total of S$687,400. In response to queries from the Straits Times, SLA said on Thursday that such works are necessary to make properties habitable before they are tenanted.
Riding out the storm
Are some people being unfair to Law and Home Affairs Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan? Yes and no. Opposition politician Kenneth Jeyaretnam has been asking how the two ministers could afford, on their pay, to rent their current good class bungalows (GCBs) at 26 Ridout Road (Shanmugam) and 31 Ridout Road (Balakishnan). Rents being advertised on some property websites for GCBs in Ridout Road and vicinity show a range of $60,000 to $150,000 and more per month. According to the Public Service Commission, as of 2023, the benchmark level of a minister’s monthly salary stands at S$55,000, working out to an annual salary of S$1.1 million.
You judge for yourself, bearing in mind ministers would have accumulated some savings of their own before entering politics or that their spouses may be quite wealthy. They are not without means. Also, what anyone wants to do with his money is his own business. How are other people shortchanged? To each, caveat emptor. Which would you prefer, as an objective citizen and observer? To allow foreigners with fewer roots and little loyalty or commitment to buy any of the 2,800 GCB land plots – or see Singaporeans stay in these properties which are what I would describe as a strategic resource for this land-scarce island? No-brainer answer. The bigger question, however, is: how regulated and transparent is the whole process of renting a GCB?
Is there a Singapore Land Authority website that periodically announces each round of invitation for rent quotes? This process should be fair and well-publicised, so that there is full participation instead of it being confined to a select group of interested people. Or do we have a system where these GCBs are not exactly considered as normal state property but more as a reserved pool to be dispensed any way the government sees fit? I would regard such a system as the rather perverse opposite of the HDB pool of rented property which is useful as temporary housing for the lower-income earners or unemployed. A portion of the 2,800 GCBs would be useful as an incentive accommodation for the establishment elite, including SAF officers and top-end foreign visitors. What is that we have here, that 26 and 31 Ridout Road might force out of the closet?
Singapore PM orders probe into ministers' homes amid public anger
Singapore's Prime Minister Lee Hsien Loong attends the 22nd ASEAN Plus Three Summit in Bangkok, Thailand, November 4, 2019. REUTERS/Chalinee Thirasupa/File Photo
Singapore Prime Minister Lee Hsien Loong has ordered an investigation into the circumstances around the rental of state-owned homes in an exclusive location to two cabinet ministers following questions from the opposition.
The matter has prompted comment in the wealthy city-state, which has long prided itself on a government free from corruption, with the annual salaries of many cabinet ministers exceeding S$1 million ($755,000) to discourage graft. Lee said the review by a senior minister, whose results will be made public before lawmakers take up the issue in July, would establish whether "proper process" was followed in the rental of the colonial-era bungalows and if there was wrongdoing. "This must be done to ensure that this government maintains the highest standards of integrity," Lee said in a statement.
This month, opposition politician Kenneth Jeyaretnam questioned how the law and home affairs minister, K Shanmugam, and the foreign minister, Vivian Balakrishnan, could afford the market rate for such "pricey" properties. Shanmugam said accusations of impropriety were "outrageous" and he had nothing to hide. Balakrishnan said he was "very glad" a review was taking place. Social media posts in Singapore mocked the ministers or expressed outrage over the size of the properties, while others questioned why the government needed time until July to explain the issue.
Singapore Orders Review After Outcry Over Ministers’ Rents
Vivian BalakrishnanPhotographer: Andressa Anholete/Bloomberg
Singapore Prime Minister Lee Hsien Loong ordered a review after questions were raised in parliament and on social media about colonial homes rented by two of his cabinet ministers. Lee said Tuesday that he’s asked Senior Minister Teo Chee Hean to lead a inquiry into the issue of the residences rented by Foreign Minister Vivian Balakrishnan and Law Minister K Shanmugam.
The review will determine “whether proper processes have been followed, and if there has been any wrongdoing,” Lee said in a statement. “This must be done to ensure that this government maintains the highest standards of integrity.” The reports should be completed and ready for presentation at the next sitting of parliament in July, Lee said, adding that the ministers supported an “independent” review.
The rentals were in “full compliance” of the Singapore Land Authority’s procedures, the agency which manages the two sprawling homes said May 12. Opposition politician Kenneth Jeyaretnam had questioned whether the ministers were “paying less than the fair market value” for the bungalows along Ridout Road, near a high-end entertainment and lifestyle hub. Shanmugam rejected any insinuation of wrong-doing and said he has “nothing to hide,” according to a report by Channel NewsAsia. Balakrishnan said he was glad Lee called for the review ahead of a “full debate in parliament.”
PM Lee asks SM Teo to lead independent review of Ridout Road bungalows' rental after Shanmugam, Vivian call for it
Prime Minister Lee Hsien Loong said he asked for reports from relevant agencies last week regarding the properties at Ridout Road that are rented out to Cabinet Ministers K Shanmugam and Vivian Balakrishnan.
In a statement on Tuesday (May 23), PM Lee said that the pair had spoken to him and requested for a review that is "independent of the ministries and agencies they supervise". PM Lee also asked Senior Minister and Coordinating Minister for National Security Teo Chee Hean to review the matter and "establish whether proper processes have been followed, and if there has been any wrongdoing". "This must be done to ensure that this government maintains the highest standards of integrity," said PM Lee.
"I have asked SM Teo to carry out the review expeditiously and to make the findings public in time for the Parliamentary sitting." This comes in the wake of the Singapore Land Authority's (SLA) statement on May 12 regarding two residential state properties rented separately by Shanmugam and Dr Balakrishnan.
Teo Chee Hean To Review Ridout Road Property Rentals By Ministers K Shanmugam & Vivian Balakrishnan
Senior Minister Teo Chee Hean will chair a review looking into the rental of state property along Ridout Road by Ministers K Shanmugam and Vivian Balakrishnan. This came after the two Cabinet Ministers asked for a review that’s independent of the ministries and agencies they oversee.
Teo Chee Hean to make findings of Ridout Road review public by next Parliamentary session
On Tuesday (23 May), Prime Minster (PM) Lee Hsien Loong issued a statement saying that he had asked Mr Teo to conduct a review of the matter. The review will examine whether the proper processes have been adhered to and if there were any wrongdoings.Mr Teo had also been asked to conduct the review “expeditiously” and make the findings public for the next Parliamentary session in July. “This must be done to ensure that this government maintains the highest standards of integrity.”
In addition to the review, PM Lee said he had also asked for reports from the relevant agencies to straighten out the facts. Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan had reportedly requested a review “independent of the ministries and agencies they supervise”. PM Lee also acknowledged questions filed by MPs and said they would be answered during the next Parliamentary session.
“Much commendable” if Supreme Court judges to lead the Ridout Road saga’s review
Senior Counsel Harpreet Singh Nehal weighs in on the recent Ridout Road saga, emphasizing that the ultimate credibility and effectiveness of the government’s review hinge two factors, which is full disclosure of all material facts and the perceived independence of the review. He advocates for the appointment of esteemed current or retired Supreme Court judges to lead the independent review of the Ridout Road saga, as a commendable step towards ensuring impartiality and credibility. In a recent opinion piece published in JOM on Friday (26 May), the Senior Counsel shared his observations on the saga and acknowledged that the optics of a minister engaging in a transaction with an agency under their oversight are less than favourable.
Regarding the Ridout Road saga, Harpreet Singh noted that there are differing opinions suggesting that if the opportunity is open to the public, there might be no serious objection to cabinet ministers and their family members participating as private citizens. He emphasized the need for a nuanced approach to the matter, taking into account the existing Ministerial Code of Conduct, which aims to prevent actual or apparent conflicts of interest. He pointed out that without an independent agency or formal mechanism through which any potential conflict of interest by a minister has to be cleared, there is a good argument to be made that there must be scrupulous observance of the Code. “It’s not even a matter of actual wrongdoing—as long as a transaction involving a minister can create the perception of special treatment, it must be avoided.”
In cases where government transactions involve ministers or their family members, Mr Singh emphasizes the need for important caveats to ensure transparency and fairness. These include robust processes to address conflicts of interest, full disclosure of the minister’s involvement, prevention of confidential information misuse, absence of favourable treatment, independent decision-making by government agencies, and objective verification of fair commercial terms. “The safeguard cannot merely involve notification to a senior cabinet colleague. It needs to be much more robust and transparent.” Thirdly, Mr Singh reminded us that given the extensive involvement of the government and government-linked entities in Singaporean life, there will likely be more instances of dealings between ministers, MPs, and their families with government agencies and regulators.
Netizens suggested that COI should be conducted instead of independent review
Some individuals have commented on Singapore’s mainstream media, suggesting that, given the seriousness and public interest surrounding the saga, instead of an independent review, the President of Singapore should order a Committee of Inquiry (COI) to investigate the matter. When commenting on The Straits Times’ Facebook post, one netizen astutely observed that relying on “Ownself check ownself” could potentially lead to finding excuses instead of genuine accountability. “We have enough of that. This matter has involved the conduct of the two ministers and is only right for PM or President to call for COI. The report of the COI should then be able to convince the public.”
Under Singapore’s Inquiries Act 2007, the President has the authority to issue a commission appointing one or more commissioners to inquire into various matters, including the conduct of public officers, the management of public institutions, and any matter deemed to be in the public interest or welfare. Some netizens are urging the government to conduct the investigation through an independent party rather than involving another pap minister in the review. In a comment on CNA’s Facebook post, a netizen questioned why an independent party was not chosen to review the Ridout Road properties saga. “There is nothing to hide then should have external party to view the documents, not by some one you choose.”
Ministers renting Ridout Road bungalows: What analysts say about the pros and cons of Govt's handling of the matter so far
Along Ridout Road, off Holland Road, a bungalow (unit 26, top) is rented by Law and Home Affairs Minister K Shanmugam in June 2018 and he renewed the tenancy for another three years in June 2021 and one (unit 31, bottom) by Foreign Affairs Minister Vivian Balakrishnan from October 2019 and the tenancy was renewed three years later
The scrutiny over the Ridout Road state properties rented by two Cabinet ministers is not a crisis that needs an immediate response, political and communications analysts said. And the Government's announcement earlier this week that it is doing a review — at the request of the two ministers — will go some way towards quelling speculation that arose in part due to the lack of information from its initial response, which underestimated the public interest over the matter, the analysts added.
They also noted that the move was better than leaving the matter until the next Parliament sitting in July as originally indicated. While it is not good for politicians to keep quiet too long in this information age, there are advantages for the public to wait for the debate to play out fully in Parliament, they said. The analysts were speaking to TODAY after being asked to weigh the pros and cons of the Government's handling of the matter so far, which centres around two colonial bungalows leased to Law and Home Affairs Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan.
On Tuesday (May 23), Prime Minister Lee Hsien Loong announced that an independent review, headed by Senior Minister Teo Chee Hean, will be carried out to look into whether due processes were followed for the rentals and if there was any wrongdoing. The analysts saw this move as likely aimed at reducing speculation and to give an assurance that the matter is being examined. It was opposition Reform Party's chief Kenneth Jeyaretnam who first wrote a series of articles earlier this month questioning whether the ministers were "paying less than the fair market value" for the properties, among other allegations.
Just how much are the Ministers paying for their black-and-white colonial bungalows?
The unfolding controversy sparked by Reform Party Secretary-General Kenneth Jeyaretnam’s social media posts has put a spotlight on the residences of the Minister for Home Affairs and Law, K Shanmugam, and the Minister for Foreign Affairs, Vivian Balakrishnan. Residing in the grand colonial bungalows situated along Ridout Road, these ministers’ homes are not without public scrutiny, particularly as they come under the jurisdiction of the Singapore Land Authority (SLA) – a body overseen by Minister Shanmugam himself. In response to the brewing controversy, the SLA assured that the rental agreements for the properties were processed in accordance with their established procedures.
However, questions regarding the transparency of the auction process and whether the ministers are paying below market value for these properties continue to stir public debate, spurred on by Mr Jeyaretnam’s call for clarity from the SLA. The uproar has provoked parliament members across the political spectrum to table questions set to be discussed in the upcoming parliamentary session in July. Meanwhile, the Workers’ Party is pushing for SLA to disclose all relevant information, including the guide rent for the properties, in the interest of fostering an informed and balanced parliamentary debate. Despite these appeals, the SLA indicated in its 12 May press release that they will only reveal further details during the parliamentary sitting in July. While the undisclosed Guide Rent has added to the suspense, data from the Urban Development Authority (URA) reveals that the land occupied by the properties is quite substantial.
No. 26 Ridout Road sprawls over 306,930.38 square feet (28,497.67 square meters) with approximately 9,202 square feet of floor space, while No. 31 Ridout Road possesses a land area of 136,101 sq ft (12,664 sq m) with a similar floor space. The magnitude of these properties has fueled speculation about the guide rent. For comparison, we can refer to Good-Class-Bungalows, a short walk away from Ridout Road, currently on the market, which provides some perspective:
- One property has 9,000 sqft of floor space and occupies 15,000 sqft of land, and the asking price is S$69,999/month. This comes at about S$4.67 per sqft.
- Another has 8,500 sqft of floor space and occupies 15,000 sqft of land, and the asking price is S$80,000/month. This comes at about S$ 5.33 per sqft.
- The third has 9,000 sqft of floor space and occupies 18,000 sqft of land, and the asking price is S$60,000/month. This comes at about S$ 3.33 per sqft.
Shanmugam says he has ‘nothing to hide’ on Ridout Road property, calls allegations ‘outrageous’
Law and Home Affairs Minister K Shanmugam said on Tuesday (May 23) that he has “nothing to hide” about his tenancy for a colonial bungalow along Ridout Road and called the allegations that have emerged on the matter “outrageous”.
Prime Minister Lee Hsien Loong said on Tuesday afternoon that a review would be conducted relating to the rental of two state properties along Ridout Road by Mr Shanmugam and Foreign Minister Vivian Balakrishnan. “This must be done to ensure that this government maintains the highest standards of integrity,” he said in a statement issued by the Prime Minister’s Office. Speaking to the media on Tuesday evening, Mr Shanmugam said: “These are public properties. People are entitled to ask questions. I know what I did. I kept to the rules. “But when questions arise, you know how it works. The government will look into the matter.”
Mr Shanmugam said he had contacted the Prime Minister last week while away on a work trip to suggest an independent review. This approach is needed “to make sure the system operates with integrity”, he said, adding that doubts about the integrity of ministers cannot be left to fester and be unaddressed. “I have nothing to hide. We should set out the facts, lay them before parliament and the people. That's the only way to retain trust,” said the minister. “And when Parliament next meets in July, the questions will be dealt with.”
Ridout Road Controversy: Kenneth Jeyaretnam's response
Kenneth Jeyaretnam has published a new blog post in response to SLA's friday evening press statement. his post is very long rant, and most of what he says has been discussed in previous threads already, so I won't repost it here. but he also made some spicy new claims citing sources close to the property, one of which directly contradicts SLA's claims:
- "Sources close to the properties have reported that new kitchens, tennis courts and swimming pools were built before the Ministers moved in. For Shanmugam new guard houses were built across the perimeter that are clearly visible form the road. Again did this cost come out of the public purse, were they factored into the rent?"
- "Sources close to the location on Ridout Road have informed me that at least one of the properties was not empty but inhabited by an Ex Pat hedge fund manager who was then squeezed out by unreasonable terms imposed by SLA... I can’t verify the neighbourhood source but the UK government website Companies House publicly lists two corporate officers with a business correspondence address registered as 26 Ridout road."
He also calls it "Ridoutgate" which I found rather amusing.
Can Anyone Shed Any Light on What Rents Shanmugam and Vivian Balakrishnan Are Paying for 26 and 31 Ridout Road?
I have received information from a number of sources that Vivian Balakrishnan and Shanmugam are occupying two of Singapore’s most prime residential properties in Ridout Road. These are former colonial mansions which are now owned by the Government and should be rented by open tender every two years. That means everyone gets a chance to bid for them. One house that I know of was rented out for $30,000 a month. But that was several years ago and market rents will have increased considerably since then. If the hypothetical (because they are not for sale) price of one of these properties is conservatively around $1100 per sq foot then, assuming it has a land area of 50,000 square feet (I am told one of the Ridout Road properties is over 70,000 square feet) it could be worth $55 million. A rental yield of 3% would imply a rent of at least $1.65 million a year.
Even on our Ministers’ outrageous salaries of around $2 million a year it is difficult to see how Vivian or Shanmugam could afford to pay the market rent for such a pricey property. Perhaps they have inherited wealth or are living off previous earnings before entering politics. LHL himself said that Shanmugam earned many times his Ministerial salary when he was in private practice and that it was a huge step down for him to enter politics, even as an OBN (Order of the Brown Nosers) to LHL. I hope that SLA can shed some light on the auction process for these properties and what bids were received or that maybe Shanmugam or Vivian Balakrishnan will put me right and tell me either they are not staying there or that they are paying a market rental reached in an open bidding process. Until then it will have to remain just another Uniquely Singaporean mystery like PM Lee’s use of Temasek’s business jets or his wife’s total compensation while she was CEO of Temasek and now as head of the Temasek Foundation. Come to think of it, was there an open application process for both posts?
Perhaps SLA will issue a Protection from Online Falsehood and Manipulation (POFMA) order against me but like the POFMAs issued to those who repeated the Taiwanese news channel’s assertion that Ho Ching was paid $100 million a year, omit to provide any facts. If SLA or the Ministers do not answer, we will have further confirmation that in Singapore’s Animal Farm, animals wearing a fascist lightning symbol are more equal than others. For the envious and undeserving peasants who are not genetically suited to be natural aristocrats like our PM and his Ministers and cronies, here are some photos of a recently converted Good Class Bungalow in Ridout Road to salivate over.
The Workers' Party 18 May Questions on 26 and 31 Ridout Road
Many members of the public have expressed concern over the circumstances surrounding Cabinet Ministers tenanting the exceptionally large state black and white bungalow properties at 26 and 31 Ridout Road. The Leader of the Opposition, Mr Pritam Singh, has filed the following questions for the expected Parliamentary debate on this matter at the July sitting. To ask the Prime Minister what are the Government’s reasons for not calling a press conference in May 2023 to address the public allegations in regard to the lease of 26 and 31 Ridout Road to the Minister for Law and the Minister for Foreign Affairs respectively.
To ask the Prime Minister (a) how will the Government assure the public that the Minister for Law and the Minister for Foreign Affairs were not in receipt of any privileged information pertaining to the lease of 26 and 31 Ridout Road respectively; and (b) whether there are any rules, conventions or policies to ensure that Cabinet Ministers do not take advantage of privileged information received in the course of their official or non-official duties in regard to the lease of Government properties.
The Workers' Party (WP) continues to study this matter, and other WP MPs may also file questions related to it as more information emerges. As questions continue to be asked in the public domain about the circumstances behind the leasing of both properties to Cabinet Ministers, we call on the Singapore Land Authority to release all relevant and material facts in advance, such as the guide rent for both properties, so as to make for a fuller and more meaningful debate in Parliament.
Singapore Land Authority confirms cabinet ministers’ occupation of colonial bungalows amid rental controversy
This official announcement from the SLA follows a series of social media posts and media inquiries over the past week regarding the properties, instigated by opposition politician and Secretary-General of the Reform Party, Kenneth Jeyaretnam. Mr Jeyaretnam has expressed concern over the affordability of these prime residential properties for the ministers, questioning how they could pay market rent for such high-value homes. In a blog post dated 6 May, Mr Jeyaretnam estimated the worth of such a property to be around $55 million, considering an average price of $1100 per square foot and a property size of 50,000 square feet. Based on a 3% rental yield, Mr Jeyaretnam estimated that the annual rent for such a property would be about $1.65 million, a substantial amount compared to the ministers’ annual salaries, which are reportedly around $2 million.
Mr Jeyaretnam has urged for transparency in the auction process of these state-owned properties, which are supposed to be rented out via an open tender every two years. He has requested the SLA to reveal information about the received bids and the auction process. According to the SLA, the total size of the lots 24,26,31 Ridout Road is 48,790 square metres or approximately 525,171.19 square feet. Meanwhile, The Online Citizen Asia (TOC), also reported previously that it wrote to the SLA and the ministers’ assistants in a separate inquiry, seeking clarification on this issue twice last month, but did not receive any response.
Lee Hsien Yang 4d Ridout Gate
26 and 31 Ridout Road look like breaches of the Code of Conduct for Ministers and need to be investigated. Minister Shanmugam claims that he notified a senior Cabinet colleague before proceeding with the rental. Did he notify the prime minister? Did the prime minister tacitly approve?
Regardless of approval or SLA procedures, there are serious conflicts of interest. A senior minister has for years been able to rent an immense property from an agency under him. The minister appoints the chief executive of the SLA, and the SLA is his landlord. Someone cut down many old trees and made extensive renovations. Who authorized these actions, and who paid for them?
The Elected President was responsible for releasing the Ministerial Code of Conduct; so it is the President’s duty to intervene and scrutinize this matter. This is precisely the kind of situation that the Code of Conduct prohibited.
Lee Hsien Yang suggests possible breach of ministerial code over bungalow rentals
Mr Lee Hsien Yang, son of late founding Prime Minister Lee Kuan Yew and brother to current Prime Minister Lee Hsien Loong, chimed in on the issue via his Facebook account, alleging possible breaches of the Ministerial Code of Conduct that was issued to the Parliament in 2005.
The allegations centre around potential conflicts of interest. Mr Lee Hsien Yang stated in his Monday Facebook post, “Regardless of approval or SLA procedures, there are serious conflicts of interest.” He pointed out that a senior minister had been able to rent a vast property from an agency under his control, suggesting a possible breach of Section 3.1 of the Code, which states that a minister must avoid “any actual or apparent conflict of interest between his office and his private financial interests.”
Mr Lee Hsien Yang’s comments underscored concerns over potential conflicts of interest, given that the minister appoints the chief executive of the Singapore Land Authority (SLA), who is also his landlord. Mr Lee Hsien Yang also questioned who authorized the cutting down of several old trees and the extensive renovations carried out on the properties, as well as who bore the costs. According to Urban Redevelopment Authority records, the SLA was named the developer for restoration work at 26 Ridout Road, where the Minister for Law resides.
PAP, opposition MPs file questions on Ridout Road state properties; WP urges SLA to release more info in advance
A view of the entrance to 26 &31 Ridout Road taken on May 13, 2023
Workers' Party (WP) chief Pritam Singh has filed parliamentary questions regarding the large bungalows at Ridout Road occupied by Cabinet ministers, with the party on Thursday (May 18) urging authorities to "release all relevant and material facts in advance" to facilitate a meaningful debate in Parliament.
This includes more information about the guide rent for both colonial bungalows at 26 Ridout Road and 31 Ridout Road that were leased to Law and Home Affairs Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan respectively, the party said in a Facebook post. Separately, three parliamentarians from the ruling People's Action Party (PAP) have stated on their respective social media accounts that they have filed parliamentary questions on the matter as well. The Singapore Land Authority (SLA) confirmed earlier this month that two colonial bungalows on Ridout Road were rented by both Cabinet ministers. It said on May 13 that the ministers have bidded above the "guide rent".
SLA, which is a statutory board under the Ministry of Law, said that the rentals were "performed in full compliance with the relevant SLA procedures". The SLA statement was issued in response to a series of online articles published by opposition Reform Party's chief Kenneth Jeyaretnam, where he called on the statutory board to "shed some light" on the auction process for the properties and questioned if the ministers were "paying less than the fair market value". Referring to the prime location of the area and the assumed size of the properties, he said: "It is difficult to see how (Dr Balakrishnan or Mr Shanmugam) could afford to pay the market rent for such a pricey property."
Summary & updates on rental of Ridout Road properties by 2 ministers
This is a summary of the news related to the rental of Ridout Road properties by K Shanmugam, Minister for Home Affairs and Law, and Vivian Balakrishnan, Minister for Foreign Affairs:
- May 23, 2023, 5pm - Prime Minister (PM) Lee Hsien Loong announced that Senior Minister (SM) and Coordinating Minister for National Security Teo Chee Hean will conduct a review expeditiously and make the findings public in time for the parliamentary sitting in July.
- May 23, 2023, 5:54pm - At a doorstop in the Ministry of Communications and Information’s building, Vivian said, “I’m very glad PM Lee agreed to have a review”.
- May 23, 2023, 7pm - Shanmugam told the media at Chong Pang that he has “nothing to hide”, calling the allegations "outrageous". He spoke with PM Lee and suggested an independent review as "serious allegations have been made".
- Early May 2023 - Opposition politician Kenneth Jeyaretnam published social media posts about the Ridout Road properties.
- May 12, 2023 - Singapore Land Authority (SLA) issued a statement providing the timeline and the circumstances of how Shanmugam and Vivian rented the properties.
- May 18, 2023 - Workers' Party's Pritam Singh, also the Leader of Opposition, and a few People's Action Party's MPs filed parliamentary questions on Ridout Road for the next parliament sitting, expected in July 2023.
- May 23, 2023, 5pm - PM Lee has asked Teo to conduct a review expeditiously. PM Lee also shared that Shanmugam and Vivian had spoken to him to request for a review independent of the ministries and agencies they supervise.
- May 23, 2023, 5:54pm - At a doorstop in the Ministry of Communications and Information’s building, Vivian said, “I’m very glad PM Lee agreed to have a review”.
- May 23, 2023, 7pm - Shanmugam told the media at Chong Pang that he has “nothing to hide”, calling the allegations "outrageous". He spoke with PM Lee and suggested an independent review as "serious allegations have been made".
CNA Explains: Renting a black-and-white house in Singapore
A black-and-white house at 14 Stevens Road. (Photo: State Property Information Online)
Black-and-white houses have been in the spotlight, with two such properties along Ridout Road being rented to ministers. The rentals of 26 and 31 Ridout Road by Home Affairs and Law Minister K Shanmugam and Foreign Affairs Minister Vivian Balakrishnan respectively have sparked interest in such houses.
Last month, Prime Minister Lee Hsien Loong said that an independent review of the rentals will be conducted, after both ministers called for it. The topic will also be addressed during the parliament sitting next week. There are about 500 black-and-white houses in Singapore. They can be found across Singapore, in neighbourhoods such as Sembawang, Seletar, Tanglin, and Changi.
“These houses were once home to colonial mandarins, magistrates, magnates and towkays (local businessmen) in the early days of Singapore’s development,” wrote former Singapore Land Authority (SLA) chairman Lim Sim Seng in a publication in 2017. “And within these corridors of power, through periods of triumph and turmoil, history was shaped and made.” How much does it cost to rent black-and-white houses, and how do you rent them? Since the start of the year, two black-and-white bungalows in Singapore have been rented for more than S$30,000 per month.
What happened in Parliament on Shanmugam & Vivian renting Ridout Road properties
They submitted their reports to Prime Minister Lee, who accepted the two reports and ordered that both be published and tabled in Parliament as a Miscellaneous Paper.
If you don't want to trawl through the 44-page paper, here's a tl;dr (too long; didn't read).
Colonial Mansions Are A Waste Of Land: We Can Build HDBs There Instead!
In a city-state like Singapore, where land is scarce and every square inch matters, the preservation of colonial mansions is questionable. Recent news about ministers renting Colonial Mansions at Ridout Rd has highlighted to us how much space such relics of the past take.
Colonial mansions, remnants of a bygone era, stand as a symbol of Singapore’s history under foreign rule. While some argue that these buildings hold cultural and heritage value, the continued preservation of these estates, often with limited public access, is a waste of public resources. The vast amounts of land they occupy could be utilized for more pressing needs that directly benefit Singaporeans, such as affordable housing.
It is disheartening to see these huge estates sitting empty while numerous families struggle to find suitable accommodations.
Has the Men-in-White turn Black
Transport Minister S Iswaran was arrested on Tuesday as part of a probe by the Corrupt Practices Investigation Bureau.
The anti-graft agency said the minister is out on bail currently and his passport has been impounded. As part of the same probe, property tycoon Ong Beng Seng was also arrested on the same day in relation to his interactions with Mr Iswaran.
Hotel Properties Limited -- founded by Mr Ong -- said no charges have been filed. The Singapore-based businessman is out on bail of S$100,000 and is travelling today. He will surrender his passport to the CPIB when he returns.
related: How did CPIB come about and what powers does it have in investigating corruption in Singapore?
First prize for President hopeful Ng Kok Song
Mr Ng Kok Song aged 75 accompanied by his fiancee Sybil Lau aged 45 at the Elections Department on July 19, 2023. ST PHOTO: JASON QUAH
The combined ages of Mr Ng Kok Song aged 75 and his fiancee Sybil Lau aged 45, won the First Price drawn by Singapore Pools on 2 Aug 2023.
