PSD advises board members of statutory boards on gifts, says they can be deemed public servants

Board members of statutory boards have been sent a letter by the Public Service Division (PSD) to make clear the circumstances under which they could be considered public servants under the law.

For the purposes of Section 165 of the Penal Code, such board members would be considered public servants when “carrying out a function of the statutory board”, said PSD on Oct 9 in response to queries from The Straits Times.

The letter, issued on Oct 7, was also sent to chairpersons of government statutory boards.

The PSD’s letter comes after former transport minister S. Iswaran was convicted of five charges on Oct 3. Iswaran started his one-year jail term on Oct 7 after pleading guilty to four charges under Section 165, which prohibits public officers from obtaining gifts from parties with whom they have official business dealings.

He also pleaded guilty to one charge of obstructing justice.

In delivering his judgment, Justice Vincent Hoong said Iswaran had abused his position by obtaining gifts from Singapore GP chairman Ong Beng Seng, despite knowing that he had close connection to his official duties.

The PSD letter also reminded board members of “prevailing guidelines” on how to treat gifts.

These include declining gifts offered on account of their official position or official work in the statutory board, or where a conflict of interest related to their statutory board duties may arise.

“In the note, PSD also expressed our appreciation to the members for their contribution to building a better Singapore,” a spokesman said.

The Business Times first highlighted the issue on Oct 2, in a report laying out how Iswaran’s case could deter private sector individuals from sitting on public sector boards.

There are 64 statutory boards, according to the Singapore Government Directory. Private sector representatives frequently outnumber the number of government employees on these boards.

These private sector individuals could be businessmen, lawyers or practitioners familiar with the subject matter that the statutory board usually deals with.

Iswaran’s four charges of obtaining valuable items as a public servant related to items he obtained from Ong, as well as Mr David Lum Kok Seng, managing director of construction company Lum Chang Holdings.

In sentencing Iswaran, Justice Hoong said Iswaran, as a minister and chairman of the Formula One steering committee, wielded influence in matters of great public interest, even if there was no evidence the gifts had influenced decisions over Formula One or its contracts.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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