Volkswacht Bodensee - Singapore ex-minister pleads guilty in rare graft trial

Ex-transport minister S. Iswaran, known for helping bring Formula 1 to the financial hub, was earlier this year hit with 35 charges mostly related to graft in a nation often cited as one of the world's least corrupt.

But proceedings at the Supreme Court were adjourned and prosecutors moved forward with five lesser charges -- one for obstruction of justice and four related to accepting gifts while in office from two businessmen, including a billionaire property tycoon.

Iswaran, 62, pleaded guilty to all five charges and the remaining 30 will be taken into consideration for sentencing at a later date, Singaporean broadcaster CNA and news site The Straits Times reported.

"I plead guilty," he reportedly said after the more severe corruption charges were set aside on the first day of the ongoing trial.

Prosecutors were seeking six to seven months in prison combined for the charges while the defence was seeking no more than eight weeks, The Straits Times reported.

The former minister is standing in a trial deemed by observers to be one of the most politically significant in the city-state's history.

It also risks damaging the reputation of the ruling People's Action Party (PAP) before general elections expected to be held by November next year.

Iswaran arrived at the court in a white SUV, declining to answer questions and only saying "good morning" to reporters gathered outside.

Iswaran resigned in January after being formally notified of the charges that include accepting gifts worth more than $300,000.

In a resignation letter at the time, he said he would clear his name in court.

Iswaran has paid back around $295,000 in financial gain to the government and gifts including a Brompton bicycle were also seized from him, local media said.

The charges include obstruction of justice relating to an attempt to block Singaporean authorities from investigating a business class flight at the expense of Malaysian hotel tycoon Ong Beng Seng, one of Singapore's richest people.

The other four charges relate to his receipt of gifts from Ong, the managing director of Hotel Properties Limited, and a top director at a construction company, including tickets to bottles of whiskey and golf clubs.

Both businessmen have not faced punishment.

If Iswaran is found guilty, the charge of obstructing justice carries a maximum sentence of seven years and a fine, while the charge of accepting gifts of value has a maximum sentence of two years and a fine.

- Salary payback -

Most of the charges against Iswaran have been levelled with a rarely used criminal law that states it is an offence for public servants to accept objects of value from figures they officially work with.

Iswaran's lawyers claim the businessmen are his close friends and he could accept the gifts in a personal capacity.

Singapore's former prime minister Lee Hsien Loong said at the time of Iswaran's resignation that he had pledged to return money received as part of his salary and allowances since his arrest.

Cabinet ministers are paid salaries comparable to the top earners in the private sector to deter corruption.

Lee has previously admitted that his long-ruling PAP had "taken a hit" after a spate of political scandals.

Last year two PAP legislators resigned because of an affair.

Before that, two heavyweight cabinet members were investigated for allegedly getting favours in their rental of sprawling colonial-era bungalows, but were subsequently cleared.

Prime Minister Lawrence Wong, who succeeded Lee, has said the PAP's anti-corruption stance is "non-negotiable".

The government said it would review the terms of its Formula One Grand Prix deal after Iswaran's resignation. This year's race in Singapore concluded last weekend.

Singapore's last political office holder on trial for corruption and charged was then minister of state for environment Wee Toon Boon in 1975, accused of taking bribes worth more than $600,000, according to local media.

T.Ziegler--VB