Singapore to Charge Billionaire Ong for Scandal Over Ex-Minister

(Bloomberg) -- Singapore is set to charge property billionaire Ong Beng Seng over the case of an ex-government minister who was sentenced to 12 months in prison for obtaining gifts from the businessman.

Most Read from Bloomberg

Ong is expected to face two counts, including one related to abetment and another linked to obstruction of justice, according to court records for the Friday hearing. This comes after S. Iswaran, who served as transport minister until his resignation in January, was handed a 12-month prison term for bribery and obstruction of justice.

It’s the latest response to a scandal that has rocked a city-state known for its zeal for clean governance, with Iswaran having become the first former minister to be sentenced to prison for the first time in almost half a century.

The shift in focus to Ong comes as Prime Minister Lawrence Wong, who came to power in May, prepares to lead the ruling party into a general election that must be held by November 2025. The case against Iswaran has tested the party that has ruled Singapore uninterrupted since independence in 1965. He has since left the party.

Ong was arrested in July 2023 and released on bail of S$800,000 ($617,000).

A spokesperson for Ong declined to comment. A spokesperson for Singapore’s Attorney-General’s Chambers didn’t immediately reply to a request for comment.

The 78-year-old tycoon Ong, widely credited for bringing Formula One to the city, was seen at the night race which ran Sept. 20-22. He owns the rights to the Singapore Grand Prix, as the night event is known, and is chairman of race promoter Singapore GP Pte.

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

Read: Singapore Ex-Minister Gets Jail for Bribery in Historic Case

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 requested for a trading halt on Friday. The company 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.

Read: Singapore Ex-Minister’s Graft Charges: Whiskey, Golf, Brompton

--With assistance from Philip J. Heijmans, Aradhana Aravindan, Michael Sin, Niluksi Koswanage and Andrea Tan.

(Updates with expected court charges in second paragraph.)

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.