Keynote Speech by Minister of State for Law and Transport, Mr Murali Pillai SC, at the International Bar Association Anti-Corruption Committee Asia Conference 2024
Introduction
1. Good morning, ladies and gentlemen. It is an honour for Singapore to host the IBA Anti-Corruption Asia Conference. Before I start, I want to make mention of the co-chairpersons of this conference and invite you to show our appreciation to them; Mr Wendell Wong, Mr Leopoldo Pagotto, Ms Jeena Kim and Mr Prashant Mara. I want to also make special mention of the presence of Justice Kevin Zervos. It is such a pleasure to see you here in Singapore. Thank you for making the time. A very warm welcome, Justice Zervos. Now, let me start my speech. I am privileged to speak on this very important topic. Mr Leopoldo Pagotto and Mr Wendell Wong have set the stage on the importance of this topic, of us discussing together how we can deal with this scourge of corruption, and building the networks to enable us to have the resources to deal with this effectively.
2. Now, this scourge has far-reaching implications. It concerns not only the giver and the recipient of a bribe, but also carries detrimental effects on individuals, communities, institutions, countries, and the world. In 2023, the United Nations Economic and Social Council reported that corruption drains more than 5% of the global GDP and of the approximately $13 trillion in global public spending, up to 25%, or at least $3 trillion, is lost to corruption. What is not reflected in the numbers is the impact on lives and livelihoods on the part of millions of individuals and their families.
3. Singapore has had some level of success in our fight against corruption:
a. Our clean and incorrupt system of governance has been an important factor in our nation’s progress. Today, this is one of our biggest competitive advantages, and has played a pivotal role in establishing Singapore as a global financial hub.
b. We have received validation of our national anti-corruption control efforts, both on the domestic and international front:
i. In a 2022 Public Perception Survey conducted in Singapore, 96% of respondents rated corruption control efforts in Singapore as Good, Very Good or Excellent. This was up from 94% in 2020, 92% in 2018, and 90% in 2016.
ii. The 2023 Transparency International Corruption Perceptions Index ranked Singapore as the 5th least corrupt country in the world. This index reflects the perceptions of experts and businesspeople of corruption in the public sector.
4. We do not profess to have found the perfect solution or suggest that we are immune from the threat of corruption, but we have come some way. Today, I would like to share with you the Singapore experience and our journey. How we evolved from our post-war days, where corruption was rife, to becoming one of the least corrupt countries in the world today; our approach; and what we foresee for the future.
Singapore’s journey to becoming one of the least corrupt countries in the world
5. Let me begin by tracing back to Singapore’s post-war years, around the late 1940s. During that time, people struggled to get by in a time of hyperinflation. There were persistent shortages of food and basic necessities, and widespread poverty. Corruption was rampant – people bribed police officers or government officials to obtain an unfair advantage, in the form of ration cards, permits or licences, to get on with their livelihood. Because enforcement was ineffective, such acts of bribery were seen as “low risk and high reward”.
6. This changed in the 1960s. Our founding generation of leaders were determined to eradicate corruption and build a clean and incorrupt system of governance. They had the foresight to recognise the importance of building trust in our public institutions, to strengthen and facilitate the rule of law, Singapore’s inclusive growth as a country, and that benefits her people.
7. Our founding leaders instituted a series of changes progressively, building up legislative measures and enforcement, and continually enhancing them to ensure that they safeguard integrity in both the public and private sectors. Beyond these measures, they and the leaders who came after them also saw the importance of building a community that is sensitised to the ill effects of corruption and believes in a zero-tolerance approach towards corruption.
8. There are four important facets of Singapore’s ongoing journey that have been essential in our fight against corruption:
a. First, our legislative framework to ensure corruption remains a “high risk and no reward” activity.
b. Second, the robust enforcement of our anti-corruption laws, led by the Corrupt Practices Investigation Bureau, or CPIB for short.
c. Third, ensuring high standards of incorruptibility in the public service and engaging in strategic partnerships with the private sector.
d. Fourth, public education – to build a culture of incorruptibility in present and future generations of Singaporeans.
9. I will go through these in turn.
A. Prevention of Corruption Act (PCA) and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA)
10. First, our legislative framework. The Prevention of Corruption Act, or PCA for short, is the cornerstone of our anti-corruption legislative framework. Let me highlight three of its key features:
a. First, the PCA targets both the giver as well as the receiver of the bribe. Corruption is a two-way affair – in order for us to weed out such practices, parties from both sides of the transaction must be deterred.
b. Second, the legislation has extra-territorial effect and criminalises corruption committed by Singapore citizens overseas. This is important, and ever more so with the increasingly global nature of businesses and corruption. Our brand of incorruptibility should not only be upheld domestically, but also steadfastly practised internationally.
c. Third, the PCA criminalises all kinds of corruption, whether they occur in the public or private sector. PCA also sets a high standard of incorruptibility for those working in the public sector through the use of presumptions. For example, where a person employed by the Government or public body receives gratification from someone who had dealings with the Government or public body, both the giver and receiver are deemed to have given or received the gratification corruptly as an inducement or reward, unless it is proven otherwise. So, it is a rebuttable evidential presumption. This ensures that Singapore has a clean government, and also maintains a reputation as a reliable place to do business, invest and work in.
11. Apart from the PCA, the Penal Code also has offences specifically targeting bribery and other forms of corrupt practices involving public servants. For example, section 165 of the Penal Code makes it an offence for a public servant to accept a valuable thing, for free or with inadequate payment, from a person whom the public servant knows to have been, or to be, or likely to be concerned in any business transaction connected to the public servant’s official functions. There is no need to prove a corrupt intent, that is, that the public servant was induced to show favour as a result of the gratification.
12. In addition to criminalising acts of corruption, we also recognise that it is important, in our efforts to eradicate corruption, to remove any monetary motivation to be corrupt, and to stifle the laundering of corruption proceeds. As they say, proceeds are the oxygen for this kind of transactions. So if you deprive them of the proceeds, you take that oxygen out of them.
13. The PCA empowers the Court to order a corrupt offender to pay a penalty equivalent to the amount of bribes he received. This is in addition to any imprisonment term or fine that is imposed as punishment for the offence.
14. The Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act, or CDSA, provides heavy penalties for the laundering of criminal benefits. It also empowers the court to make confiscation, restraint or charging orders to disgorge the criminal gains of corruption and enable asset recovery.
15. Our laws together make committing corruption a “high risk and no reward” crime. Nonetheless, laws, however strong, must be enforced robustly to be effective. Let me now turn to how our anti-corruption laws are enforced in Singapore.
B. Corrupt Practices Investigation Bureau (CPIB)
16. In Singapore, the CPIB, oversees the investigation of corruption offences.
17. CPIB was established in pre-independence Singapore, in 1952. They started with a lean force – with just 13 officers in October 1952 and I gather from the director of CPIB, it is now the oldest anti-corruption agency in the world. These officers were generally on short secondments from other investigation branches, and they were soon overwhelmed by the mounting number of corruption cases. Our founding leaders recognised the importance of effective enforcement. CPIB was thus revamped and built up into a specialised agency dedicated to investigating corruption cases.
18. Today, CPIB plays a pivotal role in combating corruption, and has a formidable reputation for its thorough and fearless investigations. Those practising law in Singapore would second that point. Several factors have contributed to this. First is the structural safeguards that are enshrined in the Singapore Constitution, which set the building blocks for CPIB to carry out its functions independently. Under our Constitution:
a. The Director of CPIB reports only to the Prime Minister, and not any other Minister.
b. If the Prime Minister refuses to give consent for CPIB to investigate a case, the Director can go directly to the President of Singapore for his concurrence to proceed with the investigation.
19. Second, CPIB’s effectiveness flows from its uncompromising commitment to eradicate corruption in both the public and private sectors, underpinned by an unwavering political will to fight corruption on the part of the Government.
20. Many of you would be aware of the recently concluded case involving former Minister Mr S Iswaran, which illustrates this point. In 2023, CPIB conducted investigations into then-Minister, Mr S Iswaran. CPIB was not tipped off or driven by a public scandal to investigate. They came across information that warranted further investigations. CPIB alerted Senior Minister Lee Hsien Loong who was then-Prime Minister. He immediately gave his concurrence for CPIB to commence formal investigations, which CPIB pursued thoroughly and proactively.
21. This was a reflection of the government’s firm belief in maintaining an honest political system. In the words of Senior Minister Lee as then-Prime Minister, I quote - “when anyone, including Ministers or MPs, are involved in corruption or illegal behaviour, there is zero tolerance, and we will investigate fully”. Indeed, the investigations ran its course and Mr Iswaran was prosecuted. He pleaded guilty to graft and obstruction of justice charges in the Penal Code, and is now serving his sentence.
22. Some may say that the receipt of valuable gifts by public servants, without more, is acceptable. This can be seen in some other countries where politicians have been reported to have received gifts of significant value from donors. However, such practices are unacceptable in Singapore, where we adopt a strict approach and hold our politicians and other public servants to a higher standard. This is a reflection of our commitment to ensuring public confidence in the impartiality and integrity of government.
23. Our system is such that no one is above the law. We are thankful that our anti-corruption efforts have reaped results. However, we are aware that there is no room for complacency as we respond to new challenges in fighting corruption.
24. One major challenge that has arisen is due to technology advancements, which have made corruption easier to execute and harder to detect. For example, online platforms have enabled anonymity, engendered sophisticated methods of committing cybercrime, and helped criminals conceal and launder the proceeds of corruption. Hence, our enforcement efforts must stay ahead of the curve, just as corruption and its perpetrators evolve.
25. To this end, CPIB also constantly enhances its investigative capabilities to keep pace with and tackle the evolving nature of corruption. For example:
a. CPIB has leveraged digital technologies such as data science and digital forensics. For instance, CPIB has invested in state-of-the-art digital infrastructure, including setting up a new Command Centre that enhances situational awareness and the upgrading of digital forensic analytics capabilities.
b. To enhance effectiveness in asset recovery, CPIB and other enforcement agencies use intelligence analytical tools to analyse complex fund flows, as well as third-party solutions to conduct corporate, person and risks screenings. These tools complement the existing statutory regime, which requires suspicious transaction reports, or STRs, to be filed when a person, in their professional or business dealings, reasonably suspects that any property is linked to crime. Together, these technological tools and the STR regime allow for early detection of offences and effective asset tracing to facilitate asset recovery.
26. Incidentally, the first session of this conference, after my speech, is on the use of technology in anti-corruption enforcement. I am sure that this will be an interesting session for those who wish to follow the innovative measures adopted in both the private and public sectors across the globe.
C. Ensuring high standards of incorruptibility in the public service and strategic partnerships with the private sector
27. Strong laws and robust enforcement ensure that those who engage in corrupt acts are sufficiently punished and deterred. But it is also important for our efforts to tackle corruption at its source, or even before it happens.
28. To this end, Singapore has a firm anti-corruption stance in both our public and private sectors. This is reflected in our efforts to build up a strong culture of anti-corruptibility, as well as concrete steps to uphold the values of integrity and incorruptibility.
29. In the public service, we have strict rules and ethos against corruption, so our public officers are not tempted by corrupt practices.
a. The Singapore Public Service is guided by a Code of Conduct, which sets out high standards of behaviour expected of public officers based on the principles of integrity, incorruptibility and transparency.
b. In the course of its investigations involving government agencies, CPIB will conduct procedural reviews to point out work areas or procedures that can be exploited for corrupt practices.
30. The Government also has ongoing partnerships with the private sector to encourage good governance and a strong willingness to report instances of corruption. In fact, we regularly leverage our partnerships with the private sector and wider community to get new ideas, tap on their expertise and co-create initiatives to better combat corruption.
31. Examples of these partnerships are:
a. The Anti-Corruption Partnership Network, or ACPN. This network was established in 2018 to encourage private sector companies to adopt anti-corruption measures and share best practices. Companies in the ACPN are also encouraged to obtain the ISO 37001 standard, also known as the Anti-Bribery Management Systems certification, which requires them to implement measures to build a strong anti-bribery management system. As of July 2024, the network has a total of 88 private sector entities based in Singapore, including financial institutions and associations.
b. CPIB also signed a Memorandum of Understanding in 2021 with the Institute of Singapore Chartered Accountants, or ISCA, which has enabled CPIB to develop anti-corruption programmes with the accountancy profession and the wider business community. One example is the e-learning core module for ISCA members, co-created by CPIB and ISCA, which highlighted the important role accounting and finance professionals played in detecting and deterring corruption.
32. Beyond setting the right tone and culture for companies, such anti-corruption guidelines and practices also have force and serve an important practical function when it comes to enforcement. For example, if there are allegations of corruption, the deliberate breach of such guidelines and practices can constitute evidence of corrupt intent.
33. These are just a few examples of how the Government collaborates with the private sector to formulate solutions. I am optimistic that new partnerships will continue to form and our existing partnerships will deepen, which will better equip us in this fight against corruption.
D. Educating our young on the dangers of corruption
34. The last, but not least, component in our anti-corruption efforts, is public education, especially amongst our young. Unlike the older generations of Singaporeans, the young Singaporeans do not have memories of the past when corruption plagued our nation. Without understanding the harms of corruption, corrupt practices can easily take root. Therefore, it is important to foster a deep-rooted culture in our community that prizes incorruptibility, not just in the present generation, but also future generations of Singaporeans and leaders.
35. To achieve this, CPIB has collaborated with educational institutions to co-create public education resources aimed at inculcating the values of integrity and incorruptibility in our youths.
36. Several innovative digital initiatives have been developed as a result. For example, CPIB and the lecturers and students from a local Polytechnic jointly developed a web game that allows youths to learn about corruption in an engaging way. They also produced an animated series targeted at inculcating in lower primary and pre-school children the important values of honesty, fairness and integrity.
37. Most recently, CPIB partnered students from another Polytechnic, a local journalist, and the Attorney-General’s Chambers, to publish an e-book that educates teenagers on corruption. This is an illustrative publication that features art-style depictions of actual CPIB cases.
38. These initiatives are created for youths, by youths. They are small but important steps to ensure that the DNA of every Singaporean, young or old, is ingrained with values of integrity, honesty and incorruptibility.
Staying ahead of challenges as corruption becomes increasingly borderless
39. I have shared with you what Singapore has done domestically. But corruption is not confined within a country’s borders. In a world driven by globalisation, where transnational business operations and transactions are commonplace, combatting corruption is no longer just a domestic concern.
40. This is why international cooperation is an indispensable part of the fight against corruption, and an important pillar in Singapore’s anti-corruption strategy. That is why I am very pleased to join IBA in speaking at this conference too. We are committed to contributing to this global effort through active participation in various international fora and by strengthening our international criminal cooperation regime.
a. First, Singapore is a party to the United Nations Convention against Corruption, which provides an international framework for international cooperation and mutual legal assistance. We also have a wide network of partners, established through regional and bilateral treaties, as well as through other mechanisms, such as the South East Asia Justice Network known as SEAJust.
b. On the enforcement front, CPIB is an active member of various international fora, such as the International Association of Anti-Corruption Authorities, the International Anti-Corruption Coordination Centre and the APEC Network of Anti-Corruption Authorities and Law Enforcement Agencies or ACT-NET for short. These fora facilitate the sharing of information and best practices among member economies, and enhance our collective ability to combat corruption.
c. Singapore also routinely assists other countries in investigating and prosecuting corruption offences. Such assistance includes asset recovery, retrieval of documents and financial records, as well as the confiscation and freezing of assets. For example, in the 1MDB case, Singapore played a key role in the prosecution in Malaysia by providing the assistance that Malaysia requested.
d. Finally, we continually review our legislation to enhance our international cooperation regime. Just last month, we introduced a bill in Parliament, to amend our Mutual Assistance in Criminal Matters Act, or MACMA for short, and I will be moving the second reading later today. A new feature we have introduced is the empowerment of domestic law enforcement authorities to take statements from persons in Singapore, for the purposes of assisting in foreign criminal investigations, instead of going to court.
41. Singapore has come a long way in our journey to battle corruption. We have had to navigate challenges, and adapt our strategies according to our specific circumstances and context. Despite what we have done and where we are, we are not immune to corruption, or human frailties. We will continue to remain vigilant, adapt and improve, and act decisively, where needed.
Conclusion
42. In closing, it is undisputable that corruption exacts a heavy toll on individual, institutions and nations. Sometimes, these can even lead to fatal and tragic consequences. One such example is the recent case in Uzbekistan, where the deaths of over 60 children were linked to toxic cough syrups produced by a pharmaceutical company. This case involved extensive illegal and corrupt practices, perpetrated by both individuals and organisations in the manufacturing and supply chain, as well as local Government officials. For example, distributors of the cough syrup paid bribes to local officials to skip mandatory testing of the cough syrup, in order to keep the drug in the market. Eventually, over 20 individuals were sentenced to prison for offences such as bribery, abuse of office sale of sub-standard or counterfeit medicines, with the longest imprisonment term being 20 years. However, no punishment can reverse or make up for the fatal harm and loss of these young lives, and the devastating impact on their families.
43. Despite our efforts in combatting corruption, whether as individual countries or an international community, corruption is still thriving across the world. The global average index of the 2023 Corruption Perceptions Index by Transparency International was 43 on a scale from 0 to 100. In 2020, 74% of 20,000 survey participants from Asia who participated in Transparency International’s Global Corruption Barometer believed that government corruption is a big problem in their country; 1 out of 5 who used public services in the previous 12 months had paid a bribe.
44. This underscores the importance of conferences such as this. It is a valuable opportunity for practitioners, regulators and experts to come together to share ideas, to learn from one another, and to keep the momentum going in our fight against corruption globally and within our home countries.
45. I once again congratulate IBA for organising this conference and allow me to wish everyone of you a fruitful conference and a good day.
Last updated on 11 November 2024