NTUC Enterprise chair Lim Boon Heng needs to explain Income saga
Government action against the proposed Income merger deal with a foreign investor has shed light on a post-Lee Kuan Yew Government that exposes issues of full disclosure, trust, governance, respect and, most important of all, culture.
Issues that were sacrosanct to Singapore’s reputation and success.
The Prime Minister and his team have their work cut out for them — and how they will deal with it will test their declared ambition to continue to make Singapore a vibrant city for its citizens and investors.
But all is not lost.
Signs are sprouting in a society that will speak up when it wants to right a wrong in high places and is prepared to act without any fear of a possible tough throwback.
Many questions that remain unanswered
Concerns began to surface in August after Parliament discussed the proposed deal that gave Allianz a majority stake in a company that many treasured for its commitment to the ordinary man.
The Monetary Authority of Singapore (MAS) dug deeper and saw holes in the proposed deal in which S$1.85 billion could be returned to shareholders.
That will improve the return on investment to shareholders, especially Allianz and NTUC Enterprise. Not to forget that Allianz wanted a double-digit return.
The bottom line is that the Government was not shown the full picture. That is, full transparency was missing.
Although couched in vague language, the message was clear. The people sitting in the board room showed little respect to the people above — the Government — and those below – policyholders and shareholders.
How did this happen? Perhaps the oversight was not strong enough and the scrutiny of the beneficiaries was lax because Income was doing well as a company?
Even during the Parliament sitting in August, ministers Chee Hong Tat, who’s the deputy chairman of the MAS, and Alvin Tan, did not raise red flags.
Source: CNA on YouTube
So you have a situation where the political leadership, the board, and the stakeholders did not adequately provide the scrutiny that could have exposed the flaws in the terms of the deal.
Another example of the “ownself check ownself” mantra that went awry.
What has been pushed into the background with the startling disclosures by Minister of Culture, Community Development and Sports Edwin Tong in Parliament is how this deal ended up in such a mess.
The ball is now squarely in the court of the chairman of NTUC Enterprise, Lim Boon Heng, who should explain to the public how this happened.
Accountability and leadership in question
When the public outcry over the proposal broke out, the general concern was whether it would erode the social good of Income and whether the policyholders would be shortchanged.
‘Should never be sold’: Tommy Koh speaks up against Income Insurance-Allianz deal
Mr Lim tried to defend the merger decision. Many were not convinced.
Now, Mr Lim has a serious issue to confront: be transparent or continue with the diplomatic speak he is known for.
As for the Government, it has to decide what to do with Mr Lim and the board members of Income. Should they be given a slap on the wrist or told to ship out?
Source: Google Maps
As it mulls over the decision, lurking in the background is how the affair is affecting its reputation among foreign investors, who have looked at Singapore as a safe haven for their money.
The ground-up initiative to hold Income and NTUC Enterprise accountable for the mess they have created could not have been successful without the involvement of people such as Mr Tan Suee Chieh.
The former CEO of Income was like a one-man war machine for using Facebook to put up regular posts explaining why the deal was bad for the common man who had put his faith and trust in Income that was born to take care of the insurance needs of the ordinary Singaporean.
Mr Tan was knowledgeable, rational, and responsible. And candid.
In one of his posts, he made his stand clear on why the justification for the sale was weak. He responded point by point to the explanations that were given to justify the deal.
In taking such a principled stand, Mr Tan has opened a path for others to walk on.
Also read: Commentary: Income affair shows a S’pore that is out of touch
Commentary: Income affair shows a S’pore that is out of touch
PN Balji is a veteran journalist and former editor at TODAY and The New Paper, with more than 40 years of experience in the newsroom.
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