Singaporean who helped foreigner buy restricted properties worth over S$6 million gets jail

SINGAPORE: A Singaporean man who helped a foreigner buy more than S$6 million (US$4.5 million) worth of restricted property was sentenced to jail on Tuesday (Mar 5).

Tan Hui Meng, a 57-year-old undischarged bankrupt, was sentenced to jail for two years, three months and three weeks and fined S$3,000.

He intends to appeal against his conviction and sentence.

He contested his charges but was convicted of eight charges comprising offences under the Residential Property Act, Oaths and Declarations Act, Land Titles Act and Housing and Development Act.

The charges revolve around buying or abetting the purchase of three landed homes along East Coast Road and subsequently making false statements or declarations to various authorities over the ownership of the houses.

Tan had bought two of the houses in his own capacity or as director of Hwampoa, a locally incorporated company. However, he bought the properties not for himself but with the intention of holding them in trust for his associate, Chinese businessman Zhan Guotuan.

Tan also instructed Guan Aimei, another Singaporean who is a co-accused in the case, to buy the third house for Zhan.

The three houses are restricted residential properties that foreign nationals must seek permission to own under the Residential Property Act.

Zhan intended to buy all the houses along the stretch of East Coast Road where the three properties are located and build a condominium in their place. This is similar to what was done in previous projects by his companies, the prosecution said.

According to prosecutors, Zhan was an experienced and wealthy businessman with shareholdings in about 100 organisations in China and businesses in the steel industry in Indonesia, Laos and Thailand.

At the time of the offences in around 2007 and 2008, his annual income was about S$7 million.

Zhan applied for permanent residency in Singapore through the Economic Development Board's global investor programme, committing to invest about S$1.5 million in Singapore along with his two brothers.

He obtained Singapore permanent residency in 2003 or 2004 and met Tan in Singapore in around 2003.

At the time, Tan was a professional auditor, accountant and corporate secretary. Zhan was unfamiliar with Singapore's laws and got Tan to help with his investments.

Tan later helped Zhan set up some companies and was left to manage the financial aspects of the firms, as Zhan was largely based outside Singapore.

Zhan dabbled in property development. He would use his companies to buy landed properties in Singapore, demolish the houses, build small-scale condominiums on the land and sell the units at the new developments.

Tan helped him set up the property development firm Alphaland and Xin An, the main contractor for the developments.

This business plan was successfully carried out in three redevelopment projects: Rosyth Residence, Tembeling Court and Ceylon Residence. The units were sold for a profit.

At trial, Tan argued that he had purchased the three East Coast Road properties for himself.

He claimed that the plan to buy seven units at East Coast Road was his own.

PERSISTENT LIAR: PROSECUTION

Deputy Public Prosecutors Foo Shi Hao and Louis Ngia asked for a jail term of between three years and four months and four years and six months for Tan, with a fine quantum left to the court.

They said Tan had persistently been dishonest in concealing the true identity of the purchaser of the three houses, and even in judicial proceedings.

Tan repeatedly infringed Singapore's land policy, and his motive was for "considerable profit", said the prosecutors.

He was Zhan's associate in the redevelopment business, and the estimated profit from the land redevelopment at East Coast Road was over S$50 million, and he was to get 20 per cent of Alphaland's and Xin An's profits.

"The accused knew that Zhan's foreign speculation on the land in Singapore was highly profitable, and it was for this reason that the accused had went out of his way to commit the offences," said the prosecutors.

They called Tan the prime mover in the offences, instigating Guan, whom they called a "simpleton", to sign off on the relevant documents.

Tan also later launched a civil suit against Guan over one of the houses, claiming S$2.3 million against her.

The prosecution said this was particularly egregious, since it was under Tan's instructions that Guan bought the house as a nominee for Zhan.

Guan was previously fined S$5,000 for her role in the case.

In a hearing in February last year, the prosecution said Zhan had absconded in 2017 and remained at large.

CNA has contacted the prosecution for more information on Zhan's status.