Malaysian hotel tycoon Ong Beng Seng arrives at the State Courts in Singapore on Friday. - Photo: AFP
SINGAPORE (Agencies): At the centre of Singapore’s most talked-about political scandal centred on former minister S Iswaran, one other name stands out – Ong Beng Seng, among the richest tycoons in the city state and widely credited for bringing Formula One racing to its shores.
The co-founder of Hotel Properties Limited (HPL) has found himself embroiled in controversy – for a second time – and is charged with abetting Iswaran’s offences and obstructing justice.
Earlier this week, the former transport minister was sentenced to 12 months in prison after admitting he had accepted more than S$400,000 in gifts from Ong and fellow businessman Lum Kok Seng, resulting in a fallout that has reverberated through Singapore’s network of politics and business, raising eyebrows over the intertwining lives of its elite.
A former associate of Ong, as reported by SCMP, called him “everything of a shrewd businessman; flamboyant and a risk taker to win deals”.
“A super networker, he can smell great business opportunities from miles away,” said the source who spoke on condition of anonymity.
Another former business associate from the region expressed sympathy for Ong and told This Week in Asia: “He really loves Singapore so much. And he did so much for the place. He injected the city state with style and pizazz.”
Call his shrewd or even suave, Ong is certainly a flamboyant businessman who has been successful in his many business ventures. And by far the Singapore F1 race and also after-race party is one of the most talked about event not only in Asia but also throughout the sporting fraternity in the world.
Billionaire Ong Beng Seng (left) and Singapore minister S Iswaran in 2007. - Photo: EPA-EFE via SCMP
Add to that Ong will will continue to serve as the managing director of Hotel Properties Limited (HPL), the company said, after he was charged in court on Friday (Oct 4) over his involvement in the case of former transport minister S Iswaran.
The hotelier and head of Singapore GP was handed one charge each under Section 165 and Section 204A of the Penal Code. Section 165 relates to a public servant obtaining valuables while Section 204A pertains to obstructing justice.
Ong is currently out on a S$800,000 (US$617,000) bail. In a regulatory filing, HPL, which is owned by the 78-year-old, said that Ong had informed the company on the two charges and that he is seeking legal advice.
"As this is an ongoing matter, he is unable to provide further details at this point. He has undertaken to provide updates to the board if there are subsequent material developments," it added.
HPL's nominating committee said it had "assessed the above and determined that Ong continues to be suitable to carry out his duties and responsibilities as managing director".
"The board and the nominating committee will continue to monitor the progress of the matter, and the nominating committee will continue to re-assess the suitability of the continued appointment of Ong."
Neither the company nor any other companies in the group have been charged, noted HPL.
The real estate company had requested a trading halt on Friday morning ahead of the billionaire’s scheduled court appearance.
The reason given for the trading halt was the pending release of an announcement, according to a Singapore Exchange notice submitted at about 7.45am.
Ong Beng Seng, managing director and controlling shareholder of Singapore-listed Hotel Properties Ltd, faces charges of allegedly abetting a public servant in obtaining gifts. - PHOTO: BT FILE via Straits Time/ANN
Ong, a Malaysian who is based in Singapore, was arrested in July 2023 and released on bail. No charges were previously filed against him.
He was named in Iswaran's initial graft charges, which alleged that the then-transport minister had corruptly obtained from Ong tickets to the 2022 Singapore Formula 1 Grand Prix, as well as flights and a hotel stay in Doha.
The charges under the Prevention of Corruption Act alleged that these gifts were obtained as inducement for advancing Ong's business interests in contracts with the Singapore Tourism Board for Singapore GP and the ABBA Voyage virtual concert.
These charges were amended by the prosecution to lesser charges under Section 165 of the Penal Code, for obtaining valuables from someone linked to him in an official capacity.
Iswaran pleaded guilty on Sep 24 to four charges under Section 165 and one count of obstruction of justice.
The former minister was sentenced to a year's jail on Oct 3.
Ong has a US$1.15 billion fortune, according to Bloomberg estimates. He’s a flamboyant figure in Singapore business circles, and is widely credited for bringing Formula One to the city. The tycoon owns the rights to the Singapore Grand Prix, which he attended in September, and is chairman of race promoter Singapore GP Pte.
Ong Beng Seng, chairman of F1 race promoter Singapore GP, was among a number of individuals called up by CPIB over the S. Iswaran probe. - ST PHOTO: JASON QUAH
But Ong’s business practices were placed under the microscope after his ties with Iswaran led to the worst graft scandal in the financial hub for decades.
Most of the court charges leveled against Iswaran dealt with his interactions with Ong. The allegations ranged from Iswaran obtaining tickets for UK soccer matches and taking a flight on Ong’s private jet to obtaining tickets to the F1 race in Singapore and tickets to musicals in London. Iswaran’s lawyers argued in court that the valuable items were gifts from his friend Ong.
Hotel Properties has interests in hotels under the Four Seasons chain and develops luxury condos in cities like London and Singapore. It requested a trading halt on Friday and asked in the evening for it to be lifted.
The Ong family also has a controlling stake in British luxury handbag maker Mulberry Group Plc, and recently rebuffed a takeover approach from Mike Ashley’s Frasers Group Plc.
By far, the Malaysian-born tycoon is also known among the Singapore and regional elite for his colourful persona and aggressive dealmaking skills.
The 78-year-old Ong, popularly known as OBS, is one of the richest tycoons in Singapore, a big shot in the Formula One franchise owners’ club, and has been a power player in South-East Asia for more than four decades.
He has avoided the spotlight through the years, though details about Ong’s colourful and at times brash persona – and especially his skills as an aggressive dealmaker – are well known thanks to a regional moneyed class that is tight-knit but with loose lips.
In the 1990s, descriptions of Ong in the national media and in glossy business magazines ranged from “Sheikh of the Far East” to “Prince of a Thousand Deals”.
There is at least one reference to Ong and his wife Christina Ong – a highly successful businesswoman in her own regard – as the “Posh and Becks” of Singapore’s property and hotel scene.
A spokesperson for Ong also confirmed again late Friday, he is seeking legal advice on the charges.
"But as this is an ongoing matter, he is unable to provide further details at this point," the spokesperson added.
Lawyers told The Business Times that under Section 154(1) of the Companies Act, an individual can be disqualified from serving as a director of a company if convicted of any offence in any country that, firstly, involves fraud or dishonesty, and secondly, is punishable with imprisonment lasting three months or more.
This disqualification also applies to any offence related to market conduct and enforcement of a civil penalty under the Securities and Futures Act.
For the record, The Malaysian founded HPL in 1980 to buy the Hilton Singapore hotel for S$72 million.
This marked his foray into the property, hotel and retail sectors. The company swiftly went on to acquire more hotels and properties, notably those located in the prime Orchard Road belt. Today, it is a conglomerate with interests in hotel ownership, management and operations, property development and investment holdings; it owns brands such as the Four Seasons Hotels and Resorts, Hard Rock Hotels and Marriott International. - Agencies
