PSD advises board members of stat boards on their roles as public servants in wake of Iswaran case

SINGAPORE: The Public Service Division (PSD) sent a letter to the chairs and board members of statutory boards on Monday (Oct 7) – the day former transport minister S Iswaran began his jail term – making clear what to do with gifts.

The letter indicated that, for the purposes of Section 165 of the Penal Code, a board member of a government statutory board is considered a public servant when they are “carrying out a function” of the statutory board, PSD said on Tuesday in response to queries from CNA.

The letter also pointed out that statutory boards have “prevailing guidelines” on how to handle gifts, said PSD. 

“In the note, PSD also expressed our appreciation to the members for their contribution to building a better Singapore,” it added. 

Statutory boards like the Singapore Tourism Board (STB) and the Central Provident Fund Board are part of the government. They perform operational functions and are responsible for providing essential services and regulating key industries.

Iswaran’s trial cast light on Section 165 of the Penal Code, which prohibits public officers from obtaining gifts from parties with whom they have official business dealings.

In the wake of his trial, private-sector individuals may be deterred from sitting on public-sector boards because they would be subject to laws that apply to public servants, lawyers and legal observers told the Business Times last week. 

Iswaran began his 12-month jail term on Monday after surrendering at the State Courts ahead of a 4pm deadline. 

The 62-year-old was handed the sentence for obtaining gifts worth about S$403,300 (US$313,200) over seven years from two businessmen he considered his friends.

He pleaded guilty on the first day of proceedings for his trial, cutting short what was set to be a protracted legal battle with 56 prosecution witnesses.