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Straits Times
2 days ago
- Business
- Straits Times
Corrupt company director relieved to be arrested as he wouldn't need to pay any more bribes: CPIB investigator
Corrupt company director relieved to be arrested as he wouldn't need to pay any more bribes: CPIB investigator Samuel Devaraj The Straits Times June 28, 2025 In 2012, an anonymous letter landed in the mailbox outside the Corrupt Practices Investigation Bureau (CPIB) headquarters in Lengkok Bahru. The writer claimed there was an established practice of corruption in a company in the waterproofing and general works industry. Another letter arrived several months later with more information. CPIB officers investigated the claims and unravelled a web involving 89 people, including managing agents, contractors and property agents, who took money from the company documented in financial records as "referral fees". This is one of the highest number of bribe recipients in a corruption case in Singapore, said CPIB. At the centre was the company's director, who adopted this practice so that the recipients would be motivated to recommend his company for future work orders. Between January 2011 and February 2014, he offered bribes of about $461,600 to the 89 people. The individual amounts ranged between $100 and $19,000. In 2016, the then 43-year-old Singaporean director was sentenced to 30 months' jail after pleading guilty to 20 counts of corruption, with 517 other charges taken into consideration. CPIB's deputy director at the enterprise projects office, Mr Phua Meng Geh, was then heading the investigation unit assigned to the case. Speaking to The Straits Times on June 25 at the CPIB headquarters, he said this case highlighted Singapore's intolerance against corruption, no matter the value of the bribe. Mr Phua, who has been with the CPIB for 27 years, added: "I think there is this thinking with many people that a lot of these (business) practices are a way of life. "We are not saying you cannot give tokens of appreciation. What we are saying is if there is a corrupt favour attached to it, then that is where we need to take a very strong stance against it." PHOTO: THE STRAITS TIMES Of the 89, 21 were charged, while the rest were given stern warnings. Eight of the 21 were given jail sentences of between four and 20 weeks. All 21 were fined between $9,000 and $40,000, and were ordered to pay penalties amounting to the gratification they received. Apart from the company director, six of the company's staff received jail terms of between four weeks and 13 months. Six others were handed fines of between $4,000 and $16,000. During court proceedings, it was revealed that some employees were paid fixed salaries, while others received commissions. For those on fixed salaries, the director would pass the "referral fees" to them, and they would hand these to the clients. For those on commission, they had to contribute towards the clients' fees to motivate these sales staff to secure the highest possible contract value. Mr Phua said that after they were called up for investigations, some said the giving of the "referral fees" was a business practice. He added that while the full implications of their actions might not have dawned on them at the time, ignorance is no excuse under the law, especially for an act like corruption. He noted that the company director had said when the firm was small that the sums of money were given as a token of appreciation. Mr Phua said: "When he first started out, his business wasn't that fantastic. He realised that by giving small tokens of appreciation, it helped his business a lot." As his business grew to become one of the more established players in the waterproofing industry here, those receiving bribes demanded more money. When the director was arrested, Mr Phua said the man was relieved he would not need to continue paying the bribes. Following the case, Mr Phua said CPIB stepped up its anti-corruption educational efforts within the building and maintenance industry, and engaged the Association of Property and Facility Managers, and the Association of Strata Managers. Mr Phua reminded managing agents to have transparent dealings with contractors. For the business community, he said that if they start offering such payments, then they will end up paying more and more until their business does not become viable. Highlighting the consequences of such practices, he added that the victims are home owners who may have to pay more after the inflated fees are paid by the Management Corporation Strata Title. Mr Phua said: "If left unchecked, the managing agent who receives money would eventually become beholden to the contractors and could be forced to return the favour by bending rules or closing an eye here or there. "Some of this may amount to safety breaches." He cited the example of managing agents who need to ensure safety measures are in place for workers and residents when carrying out works involving the use of scaffolding. "When they start deviating on some of these things in return for 'referral fees', the consequences can be severe," said Mr Phua. The number of workplace deaths in Singapore rose from 36 in 2023 to 43 in 2024. One of the top causes was the collapse or breakdown of structures and equipment, said the Ministry of Manpower. Highlighting Singapore's zero-tolerance stance against corruption, Mr Vincent Lim, deputy director at CPIB, said it will take action against anyone for offering or receiving bribes. He added: "Those who resort to corrupt means to get ahead in businesses will face the consequences under the law." Click here to contribute a story or submit it to our WhatsApp Get more of Stomp's latest updates by following us on:
New Paper
2 days ago
- Business
- New Paper
How letter to CPIB exposed bribery case with 89 people linked to waterproofing firm
In 2012, an anonymous letter landed in the mailbox outside the Corrupt Practices Investigation Bureau (CPIB) headquarters in Lengkok Bahru. The writer claimed there was an established practice of corruption in a company in the waterproofing and general works industry. Another letter arrived several months later with more information. CPIB officers investigated the claims and unravelled a web involving 89 people, including managing agents, contractors and property agents, who took money from the company documented in financial records as "referral fees". This is one of the highest number of bribe recipients in a corruption case in Singapore, said CPIB. At the centre was the company's director, who adopted this practice so that the recipients would be motivated to recommend his company for future work orders. Between January 2011 and February 2014, he offered bribes of about $461,600 to the 89 people. The individual amounts ranged between $100 and $19,000. In 2016, the then 43-year-old Singaporean director was sentenced to 30 months' jail after pleading guilty to 20 counts of corruption, with 517 other charges taken into consideration. CPIB's deputy director at the enterprise projects office, Mr Phua Meng Geh, was then heading the investigation unit assigned to the case. Speaking to The Straits Times on June 25 at the CPIB headquarters, he said this case highlighted Singapore's intolerance against corruption, no matter the value of the bribe. Mr Phua, who has been with the CPIB for 27 years, added: "I think there is this thinking with many people that a lot of these (business) practices are a way of life. "We are not saying you cannot give tokens of appreciation. What we are saying is if there is a corrupt favour attached to it, then that is where we need to take a very strong stance against it." Of the 89, 21 were charged, while the rest were given stern warnings. Eight of the 21 were given jail sentences of between four and 20 weeks. All 21 were fined between $9,000 and $40,000, and were ordered to pay penalties amounting to the gratification they received. Apart from the company director, six of the company's staff received jail terms of between four weeks and 13 months. Six others were handed fines of between $4,000 and $16,000. During court proceedings, it was revealed that some employees were paid fixed salaries, while others received commissions. For those on fixed salaries, the director would pass the "referral fees" to them, and they would hand these to the clients. For those on commission, they had to contribute towards the clients' fees to motivate these sales staff to secure the highest possible contract value. Mr Phua said that after they were called up for investigations, some said the giving of the "referral fees" was a business practice. He added that while the full implications of their actions might not have dawned on them at the time, ignorance is no excuse under the law, especially for an act like corruption. He noted that the company director had said when the firm was small that the sums of money were given as a token of appreciation. Mr Phua said: "When he first started out, his business wasn't that fantastic. He realised that by giving small tokens of appreciation, it helped his business a lot." As his business grew to become one of the more established players in the waterproofing industry here, those receiving bribes demanded more money. When the director was arrested, Mr Phua said the man was relieved he would not need to continue paying the bribes. Following the case, Mr Phua said CPIB stepped up its anti-corruption educational efforts within the building and maintenance industry, and engaged the Association of Property and Facility Managers, and the Association of Strata Managers. Mr Phua reminded managing agents to have transparent dealings with contractors. For the business community, he said that if they start offering such payments, then they will end up paying more and more until their business does not become viable. Highlighting the consequences of such practices, he added that the victims are home owners who may have to pay more after the inflated fees are paid by the Management Corporation Strata Title. Mr Phua said: "If left unchecked, the managing agent who receives money would eventually become beholden to the contractors and could be forced to return the favour by bending rules or closing an eye here or there. "Some of this may amount to safety breaches." He cited the example of managing agents who need to ensure safety measures are in place for workers and residents when carrying out works involving the use of scaffolding. "When they start deviating on some of these things in return for 'referral fees', the consequences can be severe," said Mr Phua. The number of workplace deaths in Singapore rose from 36 in 2023 to 43 in 2024. One of the top causes was the collapse or breakdown of structures and equipment, said the Ministry of Manpower. Highlighting Singapore's zero-tolerance stance against corruption, Mr Vincent Lim, deputy director at CPIB, said it will take action against anyone for offering or receiving bribes. He added: "Those who resort to corrupt means to get ahead in businesses will face the consequences under the law."
Straits Times
3 days ago
- Business
- Straits Times
How letter in CPIB mailbox exposed case with 89 bribe recipients linked to waterproofing firm
Mr Phua Meng Geh, deputy director at the enterprise projects office at CPIB, said this case highlighted Singapore's intolerance against corruption. ST PHOTO: TARYN NG How letter in CPIB mailbox exposed case with 89 bribe recipients linked to waterproofing firm An anonymous tip-off in 2012 revealed a systemic practice of corruption embedded within a Singapore firm and the large number of people involved. Samuel Devaraj finds out how the Corrupt Practices Investigation Bureau cracked a case involving a company in the building and maintenance industry. SINGAPORE – In 2012, an anonymous letter landed in the mailbox outside the Corrupt Practices Investigation Bureau (CPIB) headquarters in Lengkok Bahru. The writer claimed there was an established practice of corruption in a company in the waterproofing and general works industry. Another letter arrived several months later with more information. CPIB officers investigated the claims and unravelled a web involving 89 people, including managing agents, contractors and property agents, who took money from the company documented in financial records as 'referral fees'. This is one of the highest numbers of bribe recipients in a corruption case in Singapore, said CPIB. At the centre was the company's director who adopted this practice so the recipients would be motivated to recommend his company for future work orders. Between January 2011 and February 2014, he offered bribes of about $461,600 to the 89 people. The individual amounts ranged between $100 and $19,000. In 2016, the then 43-year-old Singaporean director was sentenced to 30 months' jail after pleading guilty to 20 counts of corruption, with 517 other charges taken into consideration. CPIB's deputy director at the enterprise projects office, Mr Phua Meng Geh, was then heading the investigation unit assigned to the case. Speaking to The Straits Times on June 25 at CPIB headquarters, he said this case highlighted Singapore's intolerance against corruption, no matter the value of the bribe. Mr Phua, who has been with CPIB for 27 years, added: 'I think there is this thinking with many people that a lot of these (business) practices are a way of life. 'We are not saying you cannot give tokens of appreciation. What we are saying is if there is a corrupt favour attached to it, then that is where we need to take a very strong stance against it.' Of the 89, 21 were charged while the rest were given stern warnings. Eight of the 21 were given jail sentences of between four and 20 weeks. All 21 were fined between $9,000 and $40,000 and were ordered to pay penalties amounting to the gratification they received. Apart from the company director, six of the company's staff received jail terms of between four weeks and 13 months. Six others were handed fines of between $4,000 and $16,000. During court proceedings, it was revealed some employees were paid fixed salaries while others received commissions. For those on fixed salaries, the director would pass the 'referral fees' to them, and they would hand these to the clients. For those on commission, they had to contribute towards the clients' fees, to motivate these sales staff to secure the highest possible contract value. Mr Phua said after they were called up for investigations, some said the giving of the 'referral fees' was a business practice. He added while the full implications of their actions might not have dawned on them at the time, ignorance is no excuse under the law, especially for an act like corruption. He noted that the company director had said when the firm was small that the sums of money were given as a token of appreciation. Mr Phua said: 'When he first started out, his business wasn't that fantastic. He realised that by giving small tokens of appreciation, it helped his business a lot.' As his business grew to become one of the more established players in the waterproofing industry here, those receiving bribes demanded more money. When the director was arrested, Mr Phua said the man was relieved he would not need to continue paying the bribes. Following the case, Mr Phua said CPIB stepped up its anti-corruption educational efforts within the building and maintenance industry, and engaged the Association of Property and Facility Managers and Association of Strata Managers. Mr Phua reminded managing agents to have transparent dealings with contractors. For the business community, he said if they start offering such payments, then they will end up paying more and more until their business does not become viable. Highlighting the consequences of such practices, he added that the victims are home owners who may have to pay more after the inflated fees are paid by the Management Corporation Strata Titles. Added Mr Phua: 'If left unchecked, the managing agent who receives money would eventually become beholden to the contractors and could be forced to return the favour by bending rules or closing an eye here or there. 'Some of this may amount to safety breaches.' He cited the example of managing agents who need to ensure safety measures are in place for workers and residents when carrying out works involving the use of scaffolding. 'When they start deviating on some of these things in return for 'referral fees', the consequences can be severe,' said Mr Phua. The number of workplace deaths in Singapore rose from 36 in 2023 to 43 in 2024. One of the top causes was the collapse or breakdown of structures and equipment, said the Ministry of Manpower. Highlighting Singapore's zero-tolerance stance against corruption, Mr Vincent Lim, deputy director at CPIB, said it will take action against anyone for offering or receiving bribes. He added: 'Those who resort to corrupt means to get ahead in businesses will face the consequences under the law.' Join ST's WhatsApp Channel and get the latest news and must-reads.
New Paper
11-06-2025
- Business
- New Paper
Ong Beng Seng to plead guilty on July 3 in case involving S. Iswaran
Billionaire Ong Beng Seng, who is facing two charges in a case linked to former transport minister S. Iswaran, will be pleading guilty on July 3. The date was set after his pre-trial conference on June 10. The 79-year-old was previously scheduled to plead guilty on April 2, but the case was adjourned after his lawyers asked for more time to obtain his medical reports. The property tycoon was charged on Oct 4, 2024, with abetting a public servant in obtaining gifts and with abetting the obstruction of justice. Under Section 165, it is an offence for a public servant to accept anything of value from any person with whom he is involved in an official capacity without payment or with inadequate payment. According to court documents, the businessman had in December 2022 allegedly arranged for Mr Iswaran to fly on Ong's private plane from Singapore to Doha. The flight was valued at US$7,700 (S$10,400). Ong is also said to have arranged for Mr Iswaran a one-night stay at Four Seasons Hotel Doha, valued at $4,737.63, and a business-class flight from Doha to Singapore, valued at $5,700. Court documents showed it was allegedly Ong who alerted Mr Iswaran that the Corrupt Practices Investigation Bureau had seized the flight manifest for the December 2022 trip. It prompted Mr Iswaran to ask the tycoon to bill him for the flight to avoid investigations. For this alleged offence, Ong was charged with the abetment of obstruction of justice. The businessman is known as the man who brought Formula One (F1) to Singapore in 2008 - the first night race in the sport's history. Mr Iswaran was chairman of the F1 steering committee and the Government's chief negotiator with Singapore GP on business matters related to the race. The two men had worked in the mid-2000s to convince then Formula One Group chief executive Bernie Ecclestone to make Singapore the venue for the sport's first night race. On Oct 3, 2024, Mr Iswaran was handed a 12-month jail term after he pleaded guilty to five charges, including obtaining valuable items as a public servant from Ong and Mr David Lum Kok Seng, managing director of construction company Lum Chang Holdings. Mr Iswaran was placed on the Home Detention Scheme on Feb 7, 2025. On June 6, the Singapore Prison Service said he completed his emplacement on the Home Detention Scheme and that he was no longer under prison custody.
The Star
11-06-2025
- Business
- The Star
Billionaire to plead guilty
Billionaire Ong Beng Seng, who is facing two charges in a case linked to former transport minister S Iswaran, will be pleading guilty on July 3. The date was set after his pre-trial conference on June 10. The 79-year-old was previously scheduled to plead guilty on April 2, but the case was adjourned after his lawyers asked for more time to obtain his medical reports. The property tycoon was charged on Oct 4, 2024, with abetting a public servant in obtaining gifts and with abetting the obstruction of justice. Under Section 165, it is an offence for a public servant to accept anything of value from any person with whom he is involved in an official capacity without payment or with inadequate payment. According to court documents, the businessman had in December 2022 allegedly arranged for Iswaran to fly on Ong's private plane from Singapore to Doha. The flight was valued at US$7,700. Ong is also said to have arranged a one-night stay at Four Seasons Hotel Doha, valued at US$4,737.63, and a business-class flight from Doha to Singapore, valued at US$5,700, for Iswaran. Court documents showed it was allegedly Ong who alerted Iswaran that the Corrupt Practices Investigation Bureau had seized the flight manifest for the December 2022 trip. It prompted Iswaran to ask the tycoon to bill him for the flight to avoid investigations. For this alleged offence, Ong was charged with the abetment of obstruction of justice. The businessman is known as the man who brought Formula One (F1) to Singapore in 2008 – the first night race in the sport's history. Iswaran was chairman of the F1 steering committee and the Government's chief negotiator with Singapore GP on business matters related to the race. The two men had worked in the mid-2000s to convince then Formula One Group chief executive Bernie Ecclestone to make Singapore the venue for the sport's first night race. On Oct 3, 2024, Iswaran was handed a 12-month jail term after he pleaded guilty to five charges, including obtaining valuable items as a public servant from Ong and David Lum Kok Seng, managing director of construction company Lum Chang Holdings. Iswaran was placed on the Home Detention Scheme on Feb 7, 2025. — The Straits Times/ANN
