Mr Lee and the conflict of interest

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Monday, 16 February 2009

Singapore Democrats

Mr Lee Kuan Yew's appointments as an international advisor to corporations such as JP Morgan, Total, DaimlerChrysler (now defunct) and Citigroup have gone largely unnoticed by most in Singapore, until now that is. Especially noteworthy for obvious reasons is Mr Lee's role in Citigroup. On 5 Sep 06, the American banking giant purred:

Minister Mentor Lee is a modern-day visionary and a unique statesman who is respected world-wide, and it is a privilege for Citigroup to benefit from his understanding, insights and experience. I am honored that Minister Mentor Lee has chosen to be a special advisor to Citigroup and look forward to having the opportunity to work closely with him as we pursue our international growth strategy.” (emphasis added)

Few Singaporeans really cared when the announcement was made. How can anyone take issue with such an accolade especially one coming from the world's biggest bank? In fact, then DPM Lee Hsien Loong lauded his father's appointment in Parliament in 2000 when he pointed out that Lee Sr's roles in these corporations would help to promote Singapore globally.

Mr Lee holds the position of Minister Mentor now as he did in 2006 when he was appointed Citi's advisor. This much is clear. What is ambiguous is whether Mr Lee holds the Citi portfolio in his official capacity as Minister Mentor representing Singapore or whether he does so in his personal capacity as a citizen, albeit a prominent one.

There is no mention of Mr Lee's role in Citi in his profile shown in the Singapore Government's website which leads one to think that these extra-ministerial appointments are a private matter.

But Citi's 2006 press release (and JP Morgan's website) trumpets the fact that Mr Lee is the Minister Mentor of the Republic of Singapore and makes no qualifications that he is serving in a private capacity.

The ambiguity raises the following questions as naturally and necessarily as the day follows night:

Does Mr Lee receive remuneration or compensation monetarily or otherwise from these positions that he holds? If so, how much? Does Mr Lee get to keep the income?
In return, what is expected of Mr Lee in terms of the time he spends attending to the business of these corporations?
What kinds of information is expected from Mr Lee as an advisor and what sort is provided? Is the cabinet fully informed of the discussions that Mr Lee is involved in with these companies?
Do our ministers also hold such appointments in companies, foreign or domestic? If yes, which ones and in what capacities? If no, why not, since MM Lee does?

What is more disturbing, if that's actually possible, is that these questions have never been asked of the PAP Government in any meaningful manner. Ministers, MPs, state journalists, etc have this uncanny ability to not notice the hyperactive, rainbow-coloured gorilla jumping up and down, screaming and poking them in the eyes right in the middle of the living room.

Maybe the reticence is because it didn't cross anyone's mind that there is actually something called conflict of interest. Be that as it may, that was then and this is now. The now is when we learn that in January 2008 the GIC, chaired by Mr Lee, had poured into Citigroup S$10 billion of our funds.

It transpired that GIC made the investment after it received an “invitation” from Citi to invest in its equity. GIC dove in because, according to its deputy chairman Dr Tony Tan (who, by the way also controls all the Singaporean newspapers as chairman of the SPH), it was “well within the risk limits which we had prescribed for the finance sector.”

Not only were the risks reasonable, Dr Tan assessed, Citi was a "sound bank..temporarily facing significant problems. But their franchises are strong".

Nine months after Dr Tan made the endorsement Citigroup announced that it was on the verge of bankruptcy and needed bail-out money from the US Government. It received US$25 billion – the biggest bailout in history. In November, it came back for more and got another US$20 billion. The bank was staring into the abyss with a potential loss of US$306 billion in toxic assets.

If the US Government had not stepped in, and there is every possibility that the bailout could still fail, Citi would have collapsed and our $10 billion would be no more. (If it's any comfort, our money spread much good cheer among the many millionaire executives of the bank.)

How can a sound bank with strong franchises collapse in just nine months? Did everyone at GIC skip class the day the teacher went through the chapter on Citi's troubles?

More important, did Citi seek its special advisor's advice before it approached the GIC for funds? If it did, what was the advise given? When the GIC received the invitation from Citi, what went into the decision to go ahead with the investment? Did Mr Lee's position in one organisation affect the decision made in the other?

The conflict of interest is too jarring to even contemplate.

Now consider this: When former Senator Hillary Clinton's name was put up for the post of US Secretary of State, there were concerns that she could be influenced by big donors who gave to her husband's presidential foundation. As a result former president Bill Clinton suspended day-to-day responsibilities at the foundation, revealed the identities of all his donors and the amounts they gave, and promised to clear future donations with the White House. And he's not even the one holding office.

But, of course, this is Singapore. Conflict of interest is defined a little different here.

Incredible as it may seem the GIC still refuses to explain its decisions or open up its books for scrutiny or even tell Singaporeans how much it has lost in its investments. Obviously, the Government is a little shy about revealing such information. The question is: Should the people be shy about demanding it?

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Comments (11)

Tue 17 Feb 2009 8:47 AM | | seebeng - "Modern-day visionary." My foot....

And yet Lee Kuan Yew keeps trumpeting about honesty and integrity. This is clearly a conflict of interest. No wonder, Lau Lee and his daughter-in-law Ho Ching were pouring our reserves into foreign banks and financial institutions managed by crooks and criminals.

[b]"Minister Mentor Lee is a modern-day visionary and a unique statesman." My foot...[/b]

Tue 17 Feb 2009 5:57 PM | 2brokenankles - time to come clean

This is an issue that has bothered me for some time. I used to wonder in what capacity MM is holding these extra appointments. How did things get to be this way with no one asking these hard questions? Not a single stupid PAP MP has raised this issue in Parliament.

MM should step down before he screws things up further for Singaporeans. I would like him to stand before Parliament and give answers to the questions raised in this article. I would also like him to explain in Parliament the losses incurred by GIC. If he is an honest man, as is fond of reminding us all the time, he should have no qualms about making an honest statement to the people of Singapore.

Tue 17 Feb 2009 7:14 PM | Seelan Palay

Yup, he's a "unique" statesman alright. Just like we are "uniquely" Singapore.

Tue 17 Feb 2009 7:28 PM | exSINgaPOORean - US Senates going after Lee Kuan Yew!

I just finished cutting hair (glooming) for my dog. While my 12 year-old son was helping me he remarked that the dog was so obedient to me.

I love Lee Kuan Yew at that moment ... bec. he again served a classic eg for me to cite to my son. I told him:"That's how Lee Kuan Yew rules Singapore, treating Singaporeans like dogs and demands absolute obedience by using fear...I shout at my dog if it moves".

Dr. Chee forget about Singaporeans for the moment, bec. they still fear like my dog, submit this article to ALL the Senates, and I am sure a few will follow up.

Put this article in the FACEBOOK and submit in most of the political blogs in the USA, to the CNN, BBC, FOX TV etc. ...in the "Conflict of Interest with Citigroup by Singapore Minister?"

The Americians are now red hot mad about all this damn lies and corruptions of the financial co-operations, so use them to fire. This is Tse Tou Warfare..."If you do not have the fire power, then borrow them to fire at your energy". It will also save you time and energy.

Let the old fox defend himself and face the Senate inquiry. Just imagine in a few months, you can see Lee Kuan Yew testify in front of a group of fierce Senates who have no fear of Lee Kuan Yew. And he cannot hide behind his lawyers anymore and his kangaroo courts cannot protect him. Wow!

You know what, sissy Loong and the Hole Jinx (bes. Hole is the CEO of Temasek and sissy PM Lee is the husband who shares the same bed) can be called for the Senate Committee inquiry. This can take few days. Yea the whole world watches on CNN and FOX...cannot hide behind any of their lawyers.

When one applies to open a traqding account one is bombared with such questions:

# Are you the director or senior officer of any company whose shares are traded on ANY exchange or in the OTC (over the counter) market?

# Do you, as an individual or as part of a group, own or control more than 10% of the voting rights of any company whose shares are traded on ANY exchange or in the OTC markets?

# Is your spouse or common-law-partner an INSIDER or control person of an issuer or employer of a Member firm?

Is the ans is yes to any of the above questions, a LETTER OF COMPLIANCE is required along with the application.

These questions are to find out any form of controlling interest or in other words "conflict of interest" of the trading parties...even if one is to trade just a few thousand dollars. Now why then it is not applied to those who trade a few $billions like Lee Kuan Yew using the GIC monies and Ho Chin with the Temasek Holding. It is a common "rumours" that Lee Kuan Yew has "final" say in all major decisions in Singapore...including Temasek

Dr. Chee they make you and your sister bankrupt and John Tan to lose his job, this is the time. Get the US Senate to involve. Use your connections in the NGO and US universities etc to push the US Senate to have multiple enquiries on this matter and MORE.

In Tse Tou warfare, "if your energy is angry, make them more angry", "if your energy is down, give them no mercy or else they will get up to kill you."

LKY did not show any mercy to you, now you cannot show them any mercy.

Once when the Singaporeans see on CNN and Youtube that LKY, sissy Loong and Hole Jinx being drilled by the Senates and lost for words and shaking, then Singaporeans will know they are just humans. Singaporeans will then turn from obedient dogs to humans with dignity and courage. They will follow suite to press for inquiry like the US Senate..live on TV

This is beyong your master piece. You must be right again this time bec. old fox has not sue you.

"Seek the TRUTH and not one can sue you for just seeking the TRUTH". Americians hate politicians and CEO for hiding material facts...they have a strong "Christian" culture of seeking the TRUTH bec as the Bible states: "The TRUTH shall set you FREE."

The westerners, especially the Americans, hate this type of "Conflicts of Interest" very much as you cite the Clinton case.

Go for old foxs bllod by SEEKING the TRUTH.

Find ALL means to get the US Senate to have a FULL inquiry on this issue of "Conflict of Interest".

Tue 17 Feb 2009 8:13 PM | exSINgaPOORean - Ang Mo survey

I am sitting next to the Starbucks Coffee stall inside the Safeway Supermarket in Edmonton, Alberta Canada.

I just finished showing this article to 5 different white westerners and a black Canadian who immigrated here 10 years ago from the US.

All of them read with disbelief of such practice by the old fox. All of them agreed that the US Senate MUST inquire about the conflict of interest.

So De. Chee please blow the horns to sound up all your US connections to push for a FULL US Senate inquiry...telling them that it could lead to the recovery of $billions of lost tax sheltered in the Singapore tax haven.

Thers must be something wrong with Lee Kuan Yew/s practice.

He must not only be held accountable for the loses but all the way back to the Japanese occupation.

If youwatch the latest film, Ip Man, you can see how he scolded the Chinese interpreter for the Japanese army..."Japanese running dogs" for causing the deaths of some many own Chinese people.

We must dig out how many Singaporeans had been tortured or killed by the Japanese as a result of the interpretation of Lee Kuan Yew and the current President of Singapore. Well to be fair they might have saved many Singaporeans. But we must dig out to punish Lee Kuan Yew and the Presdient or reward them for saving lives.

They claim to be interpreters for the Japanese but has anyone hear them speaing Japanese. When LKY was in Japan he needed Japanese interpreter!

Also why both Presidents can be so at odds with LKY...Nair and Ong Ting Cheong, whose funeral was held on the first day of the Chinese New Year. Even Toh Chin Chye was somewhat against LKY after he stepped down as Chair of the PAP. Why?

Remember Nov 30, 2008 immediately after LKY's surgery to implant a cardiac pacemaker, the next day ...without any rest and needs a group of doctors to follow him ...he flew to Hong Kong. Bill Clinton was supposed to in Hong Kong in early Dec 2008. Why must he need to meet Bill Clinton so urgently?

Bill Clinton is no more the President. But wait a minute, Hillary Clinton was nominated to be Secretary of States. Smell something here?

The Senate MUST inquire why Mr Lee needed to meet Bill Clinton and were there any donations made to Bill's charitable org.? Is yes then how would this donation influnce Hillary Clinton's push for inquiry of the Citigroup conflict of interest with Lee Kuan Yew as the Special Advisor and he the Chairman of the GIC which invested near to $10 billions in Citigroup..insider trading?

Also what influence would this meeting with Bill Clinton affect the USA pressurizing Singapore to open up its the Singapore Tax Heaven for the USA and ECU?

Seek the truth.

Tue 17 Feb 2009 8:23 PM | exSINgaPOORean - Don't ask the obvious!

"Do our ministers also hold such appointments in commpanies, foreign or domestic?"

Alamat, Dr. Chee why ask the obvious?

I am suprised that a man like you with a PH.D. (Permanent Head Demage or what?) ca ask such an question with obvious answer. No wonder at times old fox can just put you in his pocket.

What does Minister "MENTOR" means to you?

Tue 17 Feb 2009 9:21 PM | Low Fuk Loong - Alternative parties should unite now!

Why do we use always use the words- Oppo parties.

people say oppo parties oppose for the sake of opposing---this is no gospel truth.
Oppo parties give good alternative views like SDP.
Dont believe? Just read the SDP website yourself !

After reading the conflict- of- interest message, are singaporeans not concerned???!!!!
I dont know but many cyberboys said the local mass- media makes viewers obese and stupid.
Well , no big deal, they can come to SDP website to clean up the brain and be themselves once again.

Alternative parties now should unite and call for the singapore reserves to be audited before the next GE, better still, auditors should be from Hongkong or Taiwan.

We have to know whether the three "Nos" are complied with.

Being a true-blue singaporean, i have no confidence to loudly say to my family that our current Govt is clean and honest unless the reserves are thoroughly audited.

Tue 17 Feb 2009 9:34 PM | AnnA - People Wasn't Shy

They were shy away and brushed off.

Tue 17 Feb 2009 11:28 PM | jbeji

old news..no surprise any at all and who is the CEO of Citibank? anyway, u can know but u cannot do anything about save just blah blah in the net..any real actions,any real SE people brave enugh to do something, inquire or 'impeachment' besides just blah blah, really,somehow is interesting reading pleasure to see e drama of the SE people NATO... NO ACTION TALK ONLY.

Wed 18 Feb 2009 8:57 PM | exSINgaPOORean - Strike NOW!

Dr Chee Soon Juan you must strike NOW...sum up all your US connections to push for a Senate Inquiry now. The US public is red hot angry over the banks..even though now the Citigorup tries to play good guy by only accepting a $1 paycheck per year.

In Tse Tou warfare: " Hit the enemy's weakness point with the maximum force".

Now Dr Chee you can use the Senate FORCE to hit Lee Kuan Yew.

PM Lee and Hole Jinx could be implicated and stand to answer the US Senate board of inquiry.

Another weapon is large institutions can press for a class action suite for "perceived" conflict of interest in Lee Kuan Yew's dealings and they are prepared to sue him for any indirectly loses or unfair trading.

Immediately sum up the BBC, CNN and Fox TV. If any of the amjor TV station or NEWSPAPER reports on this "PERCEIVED conflict of interest", you have created a beach head to land your troops.

And these troops are other people's troop fighting for their quest for the TRUTH.

The troops are the people of America and the big investing institutions like Fidiltiy which invests US $2.2 Trillion. It's not fair for these institutions and those trusted them to invest that they are NOT at the same footing as Lee Kuan Yew when coming to gain access of information to invest.

"CONFLICT OF INTEREST" is the most dirty word now in the Wall Street...it is almost walking in the Church of England on a Sunday Worship and shout out:"I worship Satan!"

Tell the Wall Street people and the Main Street people. Emailing all your contacts in the States, and BBC and foreign would not take you more than a day or night's work.

But the nightmare you created for old fox, cancer Loong and Hole Jinx are too big to imagine. They literally shit in their pants and beg you to stop...pays you back all your money they sue you with triple the interest.

If you don't do it by next week then let John Tan do it.

Nikkie: "JUST DO IT"!

Thu 12 May 2011 11:00 PM | Mr Jones - Temasek Tower

Just informed by my taxi driver that Temasek Tower is now called AIA tower. Were things so bad that we had to sell the building off.

On another note, it is obvious George Yeo is so happy to be bundled out of parliment, and does not have to put up with the bullshit of the Lee family. The NEW PAPER front page read. PAP needs to change or be changed. In his interview he also said he had very little say in making changes. Well done George! Your statements are clearly the final nail in the coffin for the Pathethic And Pitiful. Nice to note too that you were the one who encouraged PM Lee to apologise at the Boat Quay rally.

The opposition should start making moves to recruit George Yeo.