PRESS RELEASE

Strong Leadership and Effective Laws Essential in Fight Against Corruption

1. Senior Minister of State for Law and Finance, Ms Indranee Rajah S.C, represented Singapore at the inaugural Anti-Corruption Summit 2016 in London yesterday. The Summit was hosted by the Prime Minister of the United Kingdom, Mr David Cameron.

2. Senior Minister of State Indranee Rajah spoke at the Summit session on “Driving Out Corruption” on Singapore’s holistic approach to combat corruption and outlined Singapore’s four key success factors: a strong political leadership and will in creating a culture of zero-tolerance to corruption; effective anti-corruption laws and framework; effective enforcement by an independent anti-corruption authority; and a professional public administration with strong public service ethos.

3. At the end of the Summit, a declaration setting out high-level goals to combat corruption was signed by the countries in attendance. The declaration was accompanied by a communique which outlined the specific steps that will be taken. Singapore has submitted a statement (Annex A) to be annexed to the communique, detailing what the country has done and will do in relation to the key issues identified in the communique.

4. Senior Minister of State Indranee Rajah said: “Corruption is a scourge and a root cause of many of the world’s problems. Singapore takes a holistic approach to combat corruption. Most importantly, our strong political leadership and will in creating a culture of zero-tolerance to corruption is key. While Singapore has had some measure of success, we will continue to work with partners from various sectors of society to eradicate corruption, and learn from the best practices of other countries.”

5. An anthology of essays on Anti-Corruption was also launched at the Summit by UK Prime Minister David Cameron. Prime Minister Lee Hsien Loong contributed to the collection an essay on Singapore’s experience in combating corruption. (Annex B)

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6. Senior Minister of State Indranee Rajah also met with the Minister of State of for Civil Justice, Lord Edward Faulks, and exchanged views on civil justice in their respective countries.

Background of Summit

7. The first of its kind, the Anti-Corruption Summit 2016 brings together world leaders, business leaders, and civil society to agree on a package of practical steps to expose corruption, punish the perpetrators and support those affected by corruption, and drive out the culture of corruption wherever it exists.

MINISTRY OF LAW 12 May 2016

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Annex A

Anti-Corruption Summit 2016

Singapore Country Statement

1. Expose corruption

Beneficial Ownership

 We commit to ensuring that law enforcement agencies have timely access to beneficial ownership information for companies and other legal entities registered within their jurisdiction.

 We commit to rapidly provide international cooperation that will ensure law enforcement in one partner country has timely access to the beneficial ownership information of companies incorporated in the other partner country to facilitate investigations.

Preventing the Facilitation of Corruption

 We commit to deploying public-private information sharing partnerships to bring together governments, law enforcement, regulators and the financial sector to detect, prevent and disrupt money laundering linked to corruption.

 We will work to share information obtained through public-private partnerships with relevant countries via established channels to ensure the most effective response to international money laundering.

Tax

 We will commence exchanges under Common Reporting Standard in 2018.

 We commit to reviewing penalties and other action against professional enablers of tax evasion.

2. Punish the corrupt and support those who have suffered from corruption

International Cooperation

 We agree with the intent to establish an International Anti-Corruption Coordination Centre (IACCC). We are prepared to work with other interested parties to establish such a centre, beginning with working towards a mutually agreeable Terms of Reference (TOR). Subject to the final TOR, Singapore will participate in the IACCC as member.

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Asset Recovery and Return

 We commit to strengthen our asset recovery collaborations with our international partners, by engaging them regularly to improve and streamline existing communication channels.

 We commit to developing publicly available resources, such as mutual legal assistance and asset recovery guides, to assist our international partners with their crafting of mutual legal assistance requests on asset recovery.

 We commit to work closely with our international partners to tackle corruption, and to ensure that all efforts are made to return illicit assets to the victims.

3. Drive out the culture of corruption, wherever it exists

 We commit to continue promoting the culture of zero-tolerance against corruption in our society through prevention and concerted enforcement efforts.

 We will continue anti-corruption education and outreach programmes which include engaging organisations in the public and private sectors in talks and dialogues on preventive measures.

 We will continue to seek to inform and educate the public through efforts such as exhibitions, road shows, and through the mass media by releasing annual statistics on corruption and in highlighting corruption cases of learning and deterrent value.

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Annex B

Prime Minister Lee Hsien Loong’s Contribution to the Anthology of Essays on Anti-Corruption

Success in combating corruption – views on the Singaporean experience

Corruption is a scourge that can never be tolerated. Countries have tried all ways to combat it. They create anti-corruption agencies. They pass strong laws. They promulgate codes of conduct for public officials. Companies pledge to conduct business cleanly. Yet often corruption remains endemic, a cancer in the society. How then has Singapore achieved some measure of success in eradicating corruption? I put it down to four factors.

First, we inherited a clean and working system from the British colonial government. We had many compelling reasons to want to end colonial rule and to be masters of our own destiny. But to their credit, the British left Singapore with a working system and sound institutions – English laws, a working Civil Service, and an efficient and honest judiciary. Importantly, the Colonial Service officers upheld high standards. People like Sir William Goode, our last Governor and first Head of State, had a sense of duty and stewardship. After Singapore, Goode served as Governor of North Borneo, now the state of Sabah in Malaysia. He left an impression in North Borneo, as in Singapore. Even a generation later, the people of Sabah still remembered him fondly.

Second, when the British left, our pioneer leaders were determined to keep the system clean. The People’s Action Party (PAP) first came to power in 1959, when Singapore attained self-government. However, it was by no means a no-brainer for the PAP to fight to win the 1959 General Election.

The country faced a myriad of problems: poverty, poor public health, an acute housing shortage, a stagnant economy and an exploding population. Did the PAP want to inherit these overwhelming problems? Why not become a strong opposition party, and let another party govern and fail?

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In the end, what decided the issue for Mr Lee Kuan Yew, our founding Prime Minister, and his team, was the overriding need to prevent the public service from going corrupt. One term of an incompetent, corrupt government and Humpty Dumpty could never be put together again. So the PAP fought to win and formed the Government. When they took their oath of office, Mr Lee and his PAP colleagues wore white shirts and white trousers. It symbolised their determination to keep the Government clean and incorruptible. That set the tone for Singapore ever since.

Third, with strong political will, we institutionalised a robust, comprehensive anti- corruption framework that spans laws, enforcement, the public service and public outreach. We enacted the Prevention of Corruption Act (PCA), which puts the burden of proof on the accused to show that he or she acquired their wealth legally. Any unexplained wealth disproportionate to known sources of income is presumed to be from graft and can be confiscated.

The PCA provides for extra-territorial jurisdiction, so that the actions of Singaporean citizens overseas are treated the same as actions committed in Singapore, regardless of whether such corrupt acts have consequences for Singapore (Corrupt Practices Investigation Bureau 2016a).

Our anti-corruption agency, the Corrupt Practices Investigation Bureau (CPIB), is well resourced and independent. It is empowered to investigate any person, even police officers and ministers, and conducts public outreach to raise public awareness and shape social norms (CPIB, 2016b). We pay public servants fair and realistic wages benchmarked to private sector earnings and, in return, demand the highest standards of integrity and performance.

Fourth, we have over time developed a society and culture that eschews corruption. Singaporeans expect and demand a clean system. They do not condone giving or accepting ‘social lubricants’ to get things done. They readily report corrupt practices when they encounter them. Singaporeans trust that the law applies to all and that the Government will enforce the laws without fear or favour, even when it may be awkward or embarrassing. Businesses have confidence that, in Singapore, rules are transparent and fairly applied. The story is told of a businessman who visited Singapore from an Asian country used to different operating norms. He left puzzled and disturbed that he could not discover the going rate for bribes to officers at different levels of government. He concluded wrongly that the prices must be very high!

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Singapore has achieved some success eradicating corruption, but we are under no illusions that we have permanently and completely solved the problem. Corruption is driven by human nature and greed. However strict the rules and tight the system, some individuals will sometimes still be tempted to transgress. When they do, we make sure they are caught and severely dealt with. Two years ago, we charged an Assistant Director from the CPIB itself with misappropriating S$1.7 million.

We keep our system clean not just for ourselves, but also to uphold our international reputation. Thus we deal strictly also with those who use financial institutions in Singapore to launder money or transact ill-gotten gains from corruption. We are zealous in protecting the integrity of our financial centre and business hub.

There is a Chinese proverb: ‘If the top beam is askew, the bottom beams will be crooked.’ Keeping a system clean must start at the very top. A Singapore armed forces officer, on a course overseas, was once asked by his classmate how Singapore kept its system clean. He explained our arrangements and the central role of the CPIB. His classmate asked a follow-up question: but to whom does the CPIB report? The Singaporean ingenuously replied that the CPIB reported directly to the prime minister. This elicited further puzzlement. Much later the Singaporean understood why. The real question he was being asked was, who guards the guardian?

There is no formula to solve this ancient riddle, but we are determined to uphold the highest standards of integrity from the top level of the Government down. In 1996, rumours spread that Mr Lee Kuan Yew and I had received improper discounts on property purchases. The Prime Minister, then Mr Goh Chok Tong, ordered a full investigation, which found that there had been nothing improper. He brought the issue to Parliament, which held a full debate lasting three days (Parliament of Singapore 1996).

Both Mr Lee and I spoke. In his statement Mr Lee Kuan Yew said, “I take pride and satisfaction that the question of my two purchases and those of the Deputy Prime Minister, my son, has been subjected to, and not exempted from, scrutiny … It is most important that Singapore remain a place where no one is above scrutiny, that any question of integrity of a minister, however senior, that he has gained benefits either through influence or corrupt practices, be investigated” (National Archives of Singapore 1996).

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Trust is slow to build, but fast to lose. We have spent more than 50 years building up confidence in Singapore. The integrity of the Government, the system and the men and women in charge has been key to Singapore’s success. We are determined that that integrity and reputation must never be undermined and will long remain a competitive edge and a source of pride for Singapore.

References

Corrupt Practices Investigation Bureau (CPIB). 2016a. Prevention of Corruption Act, Singapore. [online]. Available from: https://www.cpib.gov.sg/about-corruption/prevention-of-corruption-act

Corrupt Practices Investigation Bureau (CPIB). 2016b. About CPIB. [online]. Available from: https://www.cpib.gov.sg/about-cpib/roles-and-functions

National Archives of Singapore. 21 May 1996. Statement by Senior Minister Lee Kuan Yew Nassim Jade and Scotts 28. [online]. Available from: http://www.nas.gov.sg/archivesonline/data/pdfdoc/066-1996-05-21.pdf

Parliament of Singapore. 21–23 May 1996. Purchase of Properties by Senior Minister and Deputy Prime Minister BG Lee Hsien Loong (Statement by the Prime Minister). [online]. Available from: http://sprs.parl.gov.sg/search/report.jsp?currentPubID=00069763-ZZ

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