There was also a single charge of obstructing justice.

Loading

Iswaran’s resignation as a minister and MP, and as a member of the ruling People’s Action Party was promptly announced. He pleaded not guilty, vowing to contest the allegations, and was released on $S800,000 bail.

“I reject the allegations in the charges and will now focus on clearing my name,” he said in a letter to Prime Minister Lee Hsien Loong.

Iswaran faces a penalty of up to seven years in prison, a fine of up to $S100,000 or both if found guilty of a corruption offence.

Ong was also arrested last year, but the Attorney-General’s Chambers said it would wait until Iswaran’s matter concluded before determining whether to proceed in a case against him.

Loading

The abuse of power scandal is a blow to the carefully protected reputation of the South-East Asian finance hub.

Singapore is surrounded by neighbouring countries where corruption has long been a stain on governance, but it had not had a minister caught up in such alleged conduct since 1986. That case never went to court because the cabinet member died without being charged.

The People’s Action Party’s stated commitment to being squeaky clean is such that its uniform, donned regularly by members and leaders, is white, which “signifies purity and integrity”, according to the party’s website.

To further discourage politicians from wrongdoing, they are among the best compensated in the world, with the prime minister pocketing an annual income of $S2.2 million ($2.5 million) and junior ministers picking up a salary of $S1.1 million.

Lee, the son of the party’s co-founder and nation’s first prime minister, Lee Kuan Yew, reiterated the government’s objective in a statement issued by his office on Thursday.

“The government has dealt with this case rigorously in accordance with the law, and will continue to do so,” said Lee, who has announced plans to hand over the party and country leadership to Deputy Prime Minister Lawrence Wong, next year in advance of an election in 2025.

“I am determined to uphold the integrity of the party and the government, and our reputation for honesty and incorruptibility. Singaporeans expect no less.”

With Bloomberg and Reuters