Billionaire property tycoon Ong Beng Seng arrested over CPIB probe involving Iswaran

SINGAPORE: Property tycoon Ong Beng Seng, the managing director of Hotel Properties Limited (HPL) has been arrested and asked by the Corrupt Practices Investigation Bureau (CPIB) to provide information in relation to his interactions with Transport Minister S Iswaran.

“No charges have been filed against Mr Ong. He will be travelling from Jul 14 and will be surrendering his passport to CPIB upon his return to Singapore," HPL said in a company announcement on Friday (Jul 14), adding that he has posted bail of S$100,000 (US$75,700) after being issued with a notice of arrest. 

HPL said Mr Ong is fully cooperating with the anti-corruption agency 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," the company said.

On Friday evening, CPIB said in response to queries from CNA that Mr Ong and Mr Iswaran were both arrested on Tuesday.

Lawyer Adrian Wee, who focuses on white-collar offences such as fraud and corruption, said that a notice of arrest is issued by law enforcement agencies to inform a person that he or she is under arrest.

This differs from a warrant of arrest, which is issued by the courts to accused persons - typically when they have breached the conditions of bail, such as by failing to show up in court for a scheduled hearing, added the managing partner of Lighthouse Law LLC.

Mr Ong was seen entering and leaving CPIB's headquarters on Wednesday after the agency announced that Mr Iswaran is assisting with a case it uncovered, although it did not reveal the nature of the investigation.

Shares in HPL were down more than 6 per cent from the previous close of S$3.86 when trading opened on Friday.

The 77-year-old billionaire businessman is often credited with playing a key role in a deal struck in 2007 between the Singapore Tourism Board and then-Formula 1 boss Bernie Ecclestone, to bring the first-ever night race to the country. 

The Malaysian, who is based in Singapore, owns the rights to the Singapore Grand Prix and is chairman of race promoter Singapore GP.

The contract for Singapore to host the Formula 1 Grand Prix for another seven years was signed last year - the fourth renewal and longest extension - bringing the event back to Marina Bay after a two-year absence due to the COVID-19 pandemic. 

Mr Iswaran has been actively involved in the government's engagements with F1, including making appearances at press conferences where announcements about the event's future have been made.

The Transport Minister, who is also minister-in-charge of trade relations, said at that time that the renewal would help “sustain Singapore’s reputation as a global city with a vibrant lifestyle, attracting international visitors as travel rebounds, and generating business revenue and jobs for Singaporeans”.

The event extends beyond the Grand Prix, with concerts by international music stars such as the Red Hot Chili Peppers, Jay Chou and Queen. In 2022, Westlife and the Black Eyed Peas were among those who performed.

Mr Ong's HPL, the company he co-founded, has a portfolio of hotels under brands like Four Seasons, spread across 15 countries. It also has a mix of residential and commercial properties in Singapore, Thailand and the United Kingdom.

HPL was also part of a consortium - along with state-owned investment firm Temasek - which in May 2022 bought the real estate assets of media firm Singapore Press Holdings.

In its company announcement on Friday, HPL said that its nominating committee has assessed the current situation and determined that Mr Ong “continues to be suitable to carry out his duties and responsibilities as managing director”. 

“The board and the nominating committee will continue to monitor the progress of the matter and the nominating committee will continue to reassess the suitability of the continued appointment of Mr Ong," it said.

Mr Iswaran had been instructed by Prime Minister Lee Hsien Loong to take a leave of absence until the investigation is completed.

The Prime Minister’s Office (PMO) said on Thursday that he will remain in Singapore during this period and will have "no access to any official resources and government buildings".

Mr Iswaran’s political career spans more than 26 years since he was first elected in 1997 as a Member of Parliament for West Coast GRC.

Before he was appointed to the Cabinet in 2006, he was on several government parliamentary committees and was the Deputy Speaker of Parliament from September 2004 to June 2006.

He has been Minister for Transport since May 2021 and has been concurrently Minister-in-charge of Trade Relations at the Ministry of Trade and Industry (MTI) since May 2018.

Before his career in politics, Mr Iswaran worked in both the public and private sectors, including at MTI as well as Temasek Holdings. According to a Reuters report in 2007, Mr Iswaran previously had business ties with Mr Ong, when the former was at Temasek.