Convicted Billionaire Ong Spared Jail in Singapore Scandal

Mint

3 days ago

(Bloomberg) -- Convicted billionaire Ong Beng Seng will avoid jail in Singapore despite his involvement in a gifting scandal that stunned a city-state known for being one of the world's least corrupt nations.
The Malaysian tycoon, who gained international fame for bringing Formula One racing to Singapore, was granted the reprieve by a district judge at a sentencing hearing on Friday afternoon. He will be fined S$30,000 ($23,374), the judge said, citing his poor health and 'judicial mercy,' which allows sentences to be reduced in exceptional cases on humanitarian grounds.
Ong, who came to Singapore at the age of four, will also have his permanent residence status reviewed, a spokesperson from the Immigration and Checkpoints Authority told The Straits Times on Friday. The ICA typically reviews the status of Singapore permanent residents who have been convicted of an offense.
The 79-year-old last week pleaded guilty to one charge of abetting former Singapore transport minister S. Iswaran to obstruct the course of justice. Prosecutors said Ong in 2023 helped to bill Iswaran for a S$5,700 business class ticket while authorities were investigating the matter.
The ex-politician was jailed last year after obtaining gifts that included tickets to Singapore's Grand Prix, a luxury hotel stay and other valuable items while in public office. Ong's charge related to a 2022 trip to the FIFA World Cup quarterfinals in Doha, which he had invited Iswaran to.
Under Singapore's Penal Code, Ong could have been imprisoned for as many as seven years in addition to being fined. Prosecutors had earlier sought eight weeks' jail for him, but his defense had asked for a fine instead based on his medical conditions, which include advanced multiple myeloma, an incurable cancer that has compromised his immune system.
Ong has also been suffering from 'intractable and relentless' diarrhea due to medication, sudden cramps that have severely weakened his limbs, and a chronic wound on his foot, the defense said last week.
The long list of conditions earlier drew scrutiny from the judge, who last week asked questions about two trips across the US and Europe that Ong took after he was charged in late 2024. In response, lawyer Cavinder Bull said they didn't expose Ong to excessive risks because he traveled in his private jet with dedicated staff.
'The accused is a successful and well-known businessman,' District Judge Lee Lit Cheng said on Friday when delivering the sentence. After reading out the fine, she said: 'The undisputed medical evidence shows that a sentence of imprisonment would carry a high risk of endangering the accused's life.'
The judge said the risks to Ong would be significantly enhanced in prison, even if he is housed in a medical facility. She added that the circumstances in this case are exceptional and meet the threshold for granting judicial mercy.
The case has raised new questions about the future of the tycoon's sprawling business empire, whose cornerstone is Hotel Properties Ltd. The Singapore-listed group holds over S$4.5 billion ($3.5 billion) in assets, largely via interests in premier hotels across the globe, including the Concorde New York and Four Seasons in Singapore.
Ong, who founded the firm, stepped away as its managing director earlier this year citing health reasons. He and his wife control about 60% of the company's shares.
The couple also have a majority stake in British luxury handbag maker Mulberry Group Plc, and Ong still controls the Singapore organizer of the annual Grand Prix night race — which is contracted to continue until 2028.
--With assistance from Karoline Kan.
(Updates with PR status in third paragraph.)
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