Singapore Tycoon Ong Beng Seng issued notice of arrest, asked by Corrupt Practices Investigation Bureau to give info on interactions with Transport Minister Iswaran

^{Mr S. Iswaran (left) with Mr Ong Beng Seng (right) and Mr Stefano Domenicali, the chief executive of Formula One, in October 2022. PHOTO: S ISWARAN/FACEBOOK}

SINGAPORE -- Hotelier Ong Beng Seng has been issued a notice of arrest by the Corrupt Practices Investigation Bureau (CPIB) and is cooperating with the anti-graft body to provide information in relation to his interactions with Transport Minister S. Iswaran.

Hotel Properties Limited (HPL) said in a statement to the Singapore Exchange at 7.30am on Friday that no charges have been filed against Mr Ong, 77, who is the founder and managing director of the company.

"He will be travelling from July 14 and will be surrendering his passport to CPIB upon his return to Singapore. He has been given a notice of arrest and has posted bail of $100,000," the statement read.

Chinese daily Lianhe Zaobao photographed the tycoon leaving CPIB's headquarters on Wednesday after CPIB announced that Mr Iswaran, who is also Minister-in-charge of Trade Relations, is assisting with investigations into a case it uncovered. It did not give details on the nature of the investigation.

HPL said Mr Ong is cooperating with the CPIB and has provided the information requested.

"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," the company said.

HPL added that Mr Ong will continue his duties and responsibilities as managing director in the meantime after the nominating committee determined that he is suitable to do so.

"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 Mr Ong," the company said.

Mr Ong is also known as the man who brought Formula One to Singapore. He is chairman of Singapore GP, which organises the F1 night race at the Marina Bay Street Circuit annually.

In response to queries from The Straits Times, a Singapore GP spokesman said the race promoter continues with the planning and preparations for this year's race, which will take place on Sept 17.

Mr Iswaran, 61, has been instructed by Prime Minister Lee Hsien Loong to take a leave of absence until the investigation is completed, the Prime Minister's Office said on Wednesday. He will remain in Singapore during this period and will have no access to any official resources and government buildings.

He has been involved in government engagements involving Formula One from as early as 2008.

The Ministry of Trade and Industry and Singapore Tourism Board fund 60 per cent of the cost of staging the $135 million night race. The balance is footed by Singapore GP.

The contract for Singapore to continue hosting Formula One for another seven years was signed in 2022. This is the fourth renewal and the longest extension so far.

Professor Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore, said the CPIB investigation should not have a significant impact on whether the Singapore Formula One race will go on.

"The organising of the event involves institutional entities, it is not tied to individuals," he said.

Prof Loh added, however, that it is possible that Singapore's reputation as a Formula One host could take a hit.

"Mr Ong Beng Seng is the person behind Singapore GP and he is credited with bringing Formula One to Singapore. Mr Iswaran is also a key figure. To what extent the impact of this will be on Singapore's reputation, we will have to wait for the findings of the investigation," he said.

HPL owns the Four Seasons Hotels and Resorts in Singapore, among other properties in Canada, Australia, Britain and the United States. It was also part of a consortium -- along with state-owned investment firm Temasek -- that in May 2022 bought the real estate assets of Singapore Press Holdings.

Shares of HPL tumbled 5.4 per cent to $3.65 when trading opened on the Singapore Exchange on Friday.

This story is developing.