Singapore magnate involved in Venice corruption scandal

VENICE: Ching Chiat Kwong, a Singapore magnate, is among the suspects in a major corruption investigation that has shaken the administration of the capital of Veneto.

As reported by Ansa, the Italian news agency, the Prosecutor accuses the businessman of transferring €73,000 to the accounts of councillor Renato Boraso, who is now in jail, for the purchase of Palazzo Papadopoli, a municipal property.

The investigation into the corruption scandal has seen extensive searches conducted at the Venice City Hall, the offices of the lagoon mobility group Avm/Actv, and Boraso’s residence.

The Guardia di Finanza executed two arrest warrants and seven house arrest orders.

Alongside Boraso, construction entrepreneur Fabrizio Ormenese has been taken into custody. Those under house arrest include municipal officials and employees of public companies, such as the municipal transport company Actv.

Additionally, six individuals have been banned from holding public office for 12 months. In total, 18 people are under investigation, including Giovanni Seno, the general manager of Actv, and Fabio Cacco, the head of Avm’s procurement department.

The investigation began with the Pili land deal. Mayor Luigi Brugnaro, Chief of Staff Morris Ceron, and Deputy Chief of Staff Derek Donadini allegedly agreed with Ching to approve the doubling of the building index on the land and adopt all necessary urban planning changes in exchange for €150 million.

They also allegedly agreed to sell 41 hectares of land for €85 million to Ching’s company in exchange for facilitating the approval of the building project.

Allegations of Corruption

The investigating judge, Alberto Scaramuzza, described Boraso’s actions as “systematically commodifying his public office for private interests.”

The judge highlighted the continuous nature of these activities over the past four years, characterized by “exceptionally high social danger” and “intense risk of recurrence.”

The alleged “criminal system” involved pressuring municipal offices to serve private interests and tampering with evidence, including the elimination of documents with the help of Boraso’s private secretary.

Boraso faces charges of extortion by inducement, corruption for exercising his function, corruption for carrying out improper acts, creating false accounting documentation through his companies, and self-laundering.

Palazzo Poerio Papadopoli Sale

The sale of Palazzo Poerio Papadopoli,  a palace located in the Santa Croce district, by the city also came under scrutiny.

According to the investigation, Brugnaro, Ceron, and Donadini agreed to sell the building to Ching for over €10 million in 2017, below its €14 million valuation, by using their administrative powers to reduce its estimated value, thereby facilitating the sale.

The building was initially awarded to Ching’s company, Fortune Oxley srl, for €10.8 million and then finalized through a sales contract.

Mayor Brugnaro’s Response

Mayor Luigi Brugnaro expressed shock at the notice of investigation. “I am stunned! I have always served the community and prioritized public interests,” he stated.

Brugnaro defended his actions regarding the blind trust established in 2017 to avoid conflicts of interest, insisting that the Pili area was already buildable before his administration and that the sale of Palazzo Papadopoli was transparent.

Opposition Calls for Resignation

Opposition councillor Giovanni Andrea Martini called for clarity and demanded Brugnaro’s resignation. “The gravity of the charges requires immediate clarification. The only honorable way out is for the mayor and the administration to step down,” he said, highlighting the need for accountability in light of the significant allegations.

Who is Ching Chiat Kwong?

Ching Chiat Kwong, 58, is a prominent figure in Singapore’s real estate sector. Currently leading Oxley Holdings, one of the wealthiest companies in the country, Ching started his career as a police officer.

In 2010, Ching Chiat Kwong founded Oxley Holdings, specializing in building small apartments in Singapore.

Under his leadership, Oxley Holdings undertook a series of land acquisitions in 2017, becoming one of the largest residential landowners in Singapore. The company’s ambitions extended beyond the local market, with significant projects launched in the United Kingdom, Ireland, Cambodia, and Malaysia. By 2023, Ching was ranked as the 49th richest individual in Singapore by Forbes.