Malaysian hotel tycoon Ong Beng Seng arrives at the State Court in Singapore on October 4, 2024. Ong Beng Seng was charged on two counts on October 4 related to the obstruction of justice and abetment linked to Singapore's former transport minister S. Iswaran, who was sentenced October 3 to 12 months in prison for obstruction of justice and accepting illegal gifts. - AFP
SINGAPORE (Bloomberg): Singapore’s most serious ministerial wrongdoing probe since the 1980s has led to charges levied against a billionaire best known for bringing Formula One racing to the city, and who has political ties that go back decades.
Property tycoon and hotelier Ong Beng Seng, 78, was charged with abetting a public servant in obtaining gifts, and separately with obstructing justice. The two charges came more than a year after he was arrested in July 2023 and subsequently released on bail. He did not enter a plea and the case will next be heard on Nov. 15.
A spokesperson for Ong said on Oct. 4 that he is "seeking legal advice on the charges,” adding the businessman is unable to provide further details on an ongoing matter.
Who is Ong Beng Seng? What’s his net worth?
He’s the managing director of Hotel Properties Ltd. and is known for bringing the Formula One night race to Singapore in 2008. Ong is worth about US$1.15 billion, according to the Bloomberg Billionaires Index.
What is Ong’s involvement in the case?
Ong’s charges are linked to his dealings with former Transport Minister S. Iswaran, who was sentenced to 12 months in prison for obtaining gifts from the businessman. The case is the most serious linked to a senior politician since 1986.
Most of the court charges leveled against Iswaran dealt with his interactions with Ong. They ranged from Iswaran obtaining tickets for UK soccer matches and flying on Ong’s private jet, to obtaining tickets to the F1 race in Singapore and to musicals in London. Iswaran’s lawyers argued in court that the valuable items were gifts from his friend Ong.
What is Ong’s connection with the F1?
Singapore’s F1 contract was first signed in 2007 and renewed in 2012, 2017 and 2022. The current deal between Ong’s Singapore GP Pte and the country’s tourism agency will end in 2028.
Singapore said earlier this year that it will review the terms of the contract because of the probe, though there was nothing to immediately suggest the deal was structured at a disadvantage to the government.
Iswaran is widely credited for playing a key role in the city’s bid to host the night race. The government says that F1 has generated more than S$2 billion ($1.5 billion) in incremental tourism receipts since 2008.
What are Ong’s business interests?
Hotel Properties’ interests include Four Seasons Hotels & Resorts in the Maldives, Seychelles and Singapore. Hotel Properties also develops luxury condominiums, such as Burlington Gate in Mayfair, London, and Nassim Jade in Singapore. Last year, it won government approval to redevelop three of its properties in Singapore’s main shopping strip.
Ong will stay in his current role as managing director of Hotel Properties as he "continues to be suitable to carry out his duties and responsibilities,” the Singapore-listed company said in a filing on Oct. 4. The developer said it hasn’t been charged and will continue to assess Ong’s suitability for the position.
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.
In 2022, a consortium led by Ong and units of state investor Temasek Holdings Pte won a bidding war to buy the property assets of the city’s main publisher. In 2003, Ong and tycoon Oei Hong Leong were engaged in a tussle over steel-miller NatSteel Ltd.
In 1999, Ong together with Saudi Prince Alwaleed Bin Talal and others helped finance the restructuring of Planet Hollywood International Inc. The chain operated about 80 movie-themed restaurants promoted and partly owned by Bruce Willis, Arnold Schwarzenegger and other stars.
What else do we know about Ong?
Ong was born in Malaysia and moved to Singapore when he was four. He was educated at the Anglo-Chinese School and was a long jumper in school.
In 2002, Ong was part of a government-led group set up to recommend ways to restructure Singapore’s economy after the city-state suffered its worst recession in 37 years in 2001.
--With assistance from Pui Gwen Yeung, Faris Mokhtar and Chanyaporn Chanjaroen. -- ©2024 Bloomberg L.P.
