Kenneth Jeyaretnam issued 6th POFMA direction over Ridout Road saga

According to SLA's website, 41 Malcolm Road, which has an estimated gross floor area of 5,279 sq ft, drew four monthly rental bids in February of between S$10,500 (US$7,780) and S$22,242.

The Factually article stated that SLA had rented out 26 and 31 Ridout Road in 2018 and 2019, respectively, at fair market value and not below market valuation.

The monthly rent for 26 Ridout Road, which was revised from 9,350 square meters (100,600 sq ft) to 23,164 square meters (249,340 sq ft), was S$26,500, while the monthly rent for 31 Ridout Road at 9,157.36 square meters (98,569.0 sq ft) was S$19,000.

"At the time, 26 and 31 Ridout Road had been vacant for years. The market conditions were weak and generally on a downward trajectory," it added.

When the properties were renewed three years later, they were also at market rent. A revaluation of the rentals was carried out by professional valuers to peg the rentals to the prevailing market rate.

The monthly rent for 26 Ridout Road was maintained at S$26,500, while the monthly rent for 31 Ridout Road was increased to S$20,000.

Regarding 26 Ridout Road, Mr Shanmugam who heads SLA as the Law Minister, is said to have recused himself from the rental transaction, and no matter had been raised by SLA to the Ministry of Law during the entire rental process.

The professional valuer also did not know the identity of the prospective tenant at the time, according to the Factually article.

Mr Jeyaretnam "makes an inappropriate and erroneous comparison" for the rentals of 26 and 31 Ridout Road with the recent rental bids for 41 Malcolm Road, said the article.

"It is misleading for Mr Jeyaretnam to suggest that the properties are directly comparable, without making any attempt to refer to the established facts relating to the rentals of 26 and 31 Ridout Road, or to account for the fact that property market conditions do not remain static," according to the article.

"Market conditions today are stronger than they were when the Ridout Road properties were initially rented out and subsequently renewed."

The tenancies for the Ridout Road properties were also kept within the 3+3+3 tenancy period.

"The ministers had incurred substantial costs to improve the state properties, the benefit of which will accrue to the State when the tenancies eventually come to an end."

The Factually website said that Mr Jeyaretnam's article and posts "glaringly omit" facts and that he has a "track record of publishing false statements" regarding the rentals of the Ridout Road properties by the ministers.

From July to November last year, he was issued five correction directions for comments about the Ridout Road rentals.

"His latest article shows that he chooses to persist in making false statements on the matter, even though he clearly knows the true facts," said the Factually article.

"The government takes a serious view of Mr Jeyaretnam’s conduct and will consider if any further action should be taken against him."

It added that the rentals have been "independently and extensively investigated" by the Corrupt Practices Investigation Bureau (CPIB) and Senior Minister Teo Chee Hean.

The Factually article, however, did not delve into other details, such as how the bid for 26 Ridout Road was won by Mr Shanmugam, who was the sole bidder and placed a bid above the Guide Rent (which was not disclosed to him). He had also previously requested a list of public properties available for rent from his ministry's deputy secretary.

CPIB said it found no evidence that the ministers were given favourable rental rates due to their positions, and the issue was covered in parliament on 3 July 2023, where the matter was bulldozed through with the People's Action Party majority parliament.