Singapore Formula One supremo Ong Beng Seng issued ‘notice of arrest’ in S. Iswaran corruption probe

Singapore’s anti-graft agency directed the billionaire, who partly owns the city state’s F1 race, to provide more information on his interactions with Iswaran
The transport minister has been instructed to take a leave of absence until the probe is completed

Singapore

Bhavan Jaipragas

Published: 8:24am, 14 Jul 2023

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Singapore billionaire hotelier Ong Beng Seng, who is the driving force behind the city state’s hosting of Formula One grand prix racing, has been served with a “notice of arrest” linked to the corruption probe involving Transport Minister S. Iswaran, his company said on Friday.

In a notice to the Singapore Exchange on Friday morning, Hotel Properties Limited (HPL) said it had been informed by Ong, 77, that he had been directed by Singapore’s Corrupt Practices Investigation Bureau (CPIB) to provide more information on his interactions with Iswaran.

The company’s shares fell sharply following the announcement, declining by 2.59 per cent at the close of trading on Friday.

“No charges have been filed against Mr Ong. He will be travelling from July 14 2023 and will be surrendering his passport to CPIB upon his return to Singapore. He has been given a notice of arrest and has posted bail of S$100,000 (US$75,675),” the company statement said.

It did not provide details of his current whereabouts. Local media reported that Ong was seen leaving the CPIB complex on Wednesday.

“Mr Ong is cooperating fully with CPIB and has provided the information requested. As this is an ongoing matter, he is unable to provide further details at this point. He has undertaken to provide updates to the Board if there are subsequent material developments.”

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Prime Minister Lee Hsien Loong on Wednesday directed Iswaran, a stalwart of the long-ruling People’s Action Party (PAP), to go on a leave of absence pending an investigation by the CPIB.

The CPIB said it could not reveal further details about its investigation into the minister – the highest profile anti-graft probe in the country for nearly 40 years.

Iswaran, a former top civil servant, is widely credited for playing an important role in helping Singapore secure the rights to host a leg of Formula One night racing starting from 2008. That deal was struck following intense negotiations that involved Iswaran – then a junior trade minister – Ong’s HPL, and the then global F1 boss Bernie Ecclestone.

Organisers have renewed the contract to host the Formula One Singapore Grand Prix night race in the city state until 2028. Photo: AFP

The franchise for the Singapore race is owned by Ong, whose HPL has interests in prestigious hospitality brands such as Four Seasons and Como Hotels.

Following a two-year Covid-induced interruption in 2020 and 2021, Singapore’s iconic Formula One night race returned last year to a record crowd and organisers have renewed the contract to host the race in the country until 2028.

Ong and HPL have previously been the cause of awkwardness for the PAP, when in 1995 it sold Prime Minister Lee and his father, the country’s revered independence leader Lee Kuan Yew, luxury properties at a discount.

The then Prime Minister Goh Chok Tong launched an investigation into the matter and cleared both leaders of wrongdoing, with the findings of the probe debated in parliament. The Lees donated sums equivalent to the discount to charity.