MM Lee & Me

Here is another news article, from the Singaporean Business Times, on my little "conversation" with MM Lee...

Business Times - 04 Nov 2006
Shin Deal 'Above Board': MM Lee
By Conrad Tan

TEMASEK Holdings' purchase of a controlling stake in Thailand's Shin Corp earlier this year was 'completely above board' and 'can withstand any investigation', Minister Mentor Lee Kuan Yew said yesterday.He was speaking at a dialogue session on issues of governance with students and faculty members of the Lee Kuan Yew School of Public Policy.

Jonathan Fox, a US exchange student from Columbia University, had asked Mr Lee for his views on what form of political or institutional changes were appropriate so Singapore could maintain its leading role in the region.Mr Fox said there was 'real concern' about 'institutional barriers that prevent real accountability and transparency of the public sector . . . and prevent the people of Singapore from expressing their concerns,' citing the controversy over the Shin Corp deal as an example.In reply, Mr Lee said: 'I do not see any grave danger of this system becoming corrupt. To the outside world, curious to know the inner workings of Temasek or the Government Investment Corporation of Singapore, it's unnecessary secrecy. But we have reasons for that. Some we're prepared to disclose, some we're not.'But there are very strict internal rules that make sure that there is absolutely nothing that is underhand. Otherwise this system would have collapsed long ago,' he said.

'This system exists on the basis of integrity. Starting from the top right through, there are checks and balances - not from the media, but as part of the system.' The Shin Corp investment involved 'a vast sum of money' but the deal was 'completely above board', he added.'It can withstand any investigation. Nobody doubts that, nobody within the system doubts that. The people who man the system are all absolutely above board.'Yes, the press, the media, Moody's etc are curious to know. We disclose what we think they need to know. This is our money, we are trustees, we know what we have to do and we're going to do this. We took this country from zero to here, and we're not out to bring it back to zero. So I say, please put your mind at ease - Singaporeans do not worry, you need not worry for them.'

Temasek and associates bought a 49.6 per cent stake in Shin from the family of the then Thai prime minister, Thaksin Shinawatra, in January for US$1.9 billion, and under Thai takeover rules then bought a further tranche through a tender offer. Thai authorities are now examining the deal to see if Temasek fell foul of laws limiting foreign ownership of certain Thai companies to 49 per cent. The investigation is part of a wider probe into corruption allegations against Dr Thaksin, who remains in exile after he was deposed by the Thai military. Temasek insists all of its actions with regard to Shin complied fully with Thai law.

Prime Minister Lee Hsien Loong has also publicly defended the deal, saying it was a commercial decision that was made professionally.At yesterday's session, the elder Mr Lee was also asked by a Singaporean if the country would ever consider hiring foreigners to fill senior positions in government, if it became too hard to attract new blood from within.'No,' he said. 'It is not possible to hire a foreign talent to run this country. You must have the passion, you must have the commitment, you must share the dreams of your people, you must sense them. I do not believe it is impossible to find successors in a different generation. What will be difficult will be to expect them to serve long terms in office.'

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.