MTI to review terms of F1 Singapore Grand Prix amid Iswaran's corruption allegations

To safeguard Singapore's interest, the Ministry of Trade and Industry (MTI) will review again the terms of the deal between the Singapore Tourism Board (STB) and Singapore GP to organise the Formula One (F1) night race here.

Responding to MPs' questions, Minister-in-charge of Trade Relations Grace Fu told Parliament on Monday (Feb 5) there is nothing that suggests the F1 contract, first signed in 2007 and subsequently renewed in 2012, 2017 and 2022, are structured to the government's disadvantage.

On Jan 18, former Transport Minister S. Iswaran, who was also the Minister-in-charge of Trade Relations, pleaded not guilty after he was charged in court with 27 offences. He also resigned as MP and PAP member.

Iswaran is accused of corruptly receiving over $166,000 worth of flights, hotel stays and tickets to events in exchange for advancing the business interests of property tycoon Ong Beng Seng, who was the man who brought F1 to Singapore.

He is also accused of obtaining about $218,000 worth of valuable items in his capacity as a minister who also dealt with Ong and his company in his role as chairman of the F1 Steering Committee.

MTI said in a statement on Jan 18 that the terms of all the agreements were considered "carefully" by the government, and there was an independent consultancy study.

Before today's Parliament sitting, MP Edward Chia (Holland-Bukit Timah GRC) asked if STB will conduct a full assessment of the relationship between Iswaran and Ong, while MP Gan Thiam Poh (Ang Mo Kio GRC) asked whether any audits have found areas of "non-compliance" in structuring the F1 contracts.

Responding to these questions, Fu said: "As Members will appreciate, given the allegations of corruption, we are reviewing the terms of deal again.

"We have also asked STB to conduct an audit of the most recent race, held in 2022, of which accounts are ready for audit."

MP Jamus Lim (Sengkang GRC) asked if the government will be reviewing any other contracts that it has with Ong's companies over and beyond the F1 race.

Fu replied that she was not aware that the government has contracts with Ong's companies that are of the same nature and relevance.

"While we will review any government contracts to safeguard Singapore's interest, we remain committed to the F1 Singapore Grand Prix," she said. "Preparations for the 2024 race have started."

chingshijie@asiaone.com