Singapore – Malaysian billionaire Ong Beng Seng has been charged over a corruption scandal the business tycoon stands accused of embezzling billions of dollars to fraudulently secure Formula One racing contracts. The 77 year old property tycoon was produced in court on wednesday to suf for charges that border on giving gratification to former transport minister S Iswaran.
This is after prosecutors revealed that Ong showered Iswaran with race tickets, hotel accommodation and other special privileges from 2015 to 2021 and expected the latter to promote Ong’s business involved in the event. The charges are filed only days after Iswaran was given 2 years’ imprisonment for corruption in accepting over S$160,000 in gratification from Ong.
The said case has aroused substantial concerns in the political and business circles in Singapore. Ong is such a heavyweight who successfully introduced Formula One racing into Singapore in 2008 and currently holds the license for Singapore Grand Prix via his company Singapore GP Pte Limited. He also has large staking in hotel and property in Asia.
The Singapore Prime Minister Lee Hsien Loong responded to the scandal by promising ‘unflinching’ crackdown on corruption. “The Government has taken appropriate action in this case legally” Lee said in a statement. ”In future, Singapore will persistently maintain high standards of integrity and incorruptibility.”
The acts of corruption that led to Ong’s prosecution include increasing tenders by S$ 150 million to favor contractors; awarding substandard contracts to companies linked to him; and participating in buying-up and influencing independent directors of directly bargained linked companies. He could be fined up to S$100,000 and jailed up to five years on each charge if convicted. Ong has been released on S$500,000 bail and the police have seized his passport with him.
People have also feared the uncertain future of Formula One race in Singapore due to the scandal. The Singapore Grand Prix became the part of the F1 World Championship since 2008 and the only one with the night race on the street circuit. Ong and his company have been instrumental in placing F1 in Singapore and managing the annual affair.
A spokesman for Formula One Management said they are “acutely aware of it [the case] but are constrained from commenting further due to the legal action.” Inside sources report that F1 officials are already looking for a backup in the event that the Formula cannot happen in Singapore again.
The case has provoked debates in Singapore about business governance relations and the risks of corruption in big international competitions. The contract is also used by the Ministry of Defence to support its equipment programmes, with opposition politicians demanding more information on how such a contract is let and operated.
In a statement of his lawyers, Ong “maintains his innocence and will defend himself vigorously against these charges.” They drew attention to its serious experience in the successful business and achievements in the field of Singapore’s tourism and hospitality industries.
Consequently, the case is bound to be significant in parasiting Singapore’s credentials of being a clean, corruption-free city for doing business. Undoubtedly, the city-state has for a long time boasted of a good governing system with little or no incidence of corruption. The manner in which authorities deal with this celebrity criminal cum business titan will attract alot of local and international attention.
For now, Ong’s concerns will be to build up his legal defense. But the scandal has also damaged his reputation and darkened the pageant that he contributed very much in developing into the Formula One event. While Singapore wakes up to one of the biggest corruption scandals in recent years, one of its most popular events remains uncertain of its future.