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[h=2]IMF Loan Case: KJ rebuts Attorney-General[/h]
August 20th, 2012 |
Author: Editorial
Kenneth Jeyaretnam
Mr Kenneth Jeyaretnam who is also the Secretary-General of the Reform Party filed an application in High Court last month (6 Jul) to stop the Singapore Government from giving a US$4 billion loan commitment to the International Monetary Fund (IMF) [Link].
The objection stems from the fact that the Singapore Government has not gone through Parliamentary as well as the President’s approval under the provisions of Article 144 of the Singapore’s Constitution. Mr Jeyaretnam is challenging the government for committing US$4 billion loan to IMF without going through proper constitutional process of getting approvals from the Parliament and the President first.
The Government, however, has argued the IMF loan does not violate the constitution because it doesn’t apply to government lending.
On 1 Aug, the Attorney-General filed its affidavit stating that the US$4 billion is in the form of a ‘contingent line of credit’ extended by the MAS to the IMF. In the event that loan commitment is called upon by IMF, the money will not come from the Government Budget but from the Singapore’s Official Foreign Reserves of MAS.
Hence, the Attorney-General rests his argument on the proposition that:
In any case, the Pre-Trial Conference has been scheduled to take place on Tue (21 Aug) at 9am in the High Court Chamber.
.
[Submissions]
AG’s Affidavit filed on 1 Aug 2012
KJ’s Affidavit filed on 15 Aug 2012
Related: Update: Pre-Trial Conference for IMF loan case on 21 Aug
.
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Mr Kenneth Jeyaretnam who is also the Secretary-General of the Reform Party filed an application in High Court last month (6 Jul) to stop the Singapore Government from giving a US$4 billion loan commitment to the International Monetary Fund (IMF) [Link].
The objection stems from the fact that the Singapore Government has not gone through Parliamentary as well as the President’s approval under the provisions of Article 144 of the Singapore’s Constitution. Mr Jeyaretnam is challenging the government for committing US$4 billion loan to IMF without going through proper constitutional process of getting approvals from the Parliament and the President first.
The Government, however, has argued the IMF loan does not violate the constitution because it doesn’t apply to government lending.
On 1 Aug, the Attorney-General filed its affidavit stating that the US$4 billion is in the form of a ‘contingent line of credit’ extended by the MAS to the IMF. In the event that loan commitment is called upon by IMF, the money will not come from the Government Budget but from the Singapore’s Official Foreign Reserves of MAS.
Hence, the Attorney-General rests his argument on the proposition that:
- Monies held by MAS do not belong to the Government;
- MAS is not directed by the Government on how such monies are/should be utilised; and,
- Neither the Government nor MAS is accountable to Parliament, the President and/or any parliamentary due process before such monies are administered.
a) Who the recipient of the Loan Commitment – Whether the IMF or anyone else – Or the amount involved is irrelevant; only that due parliamentary process is followed.
b) The question of Whether the IMF, in the circumstances, was a worthy recipient of the Loan Commitment or whether it is of good credit (neither of which is disputed) is also irrelevant.
c) Under rudimentary law of trusts, any and all funds at the disposal of MAS are obtained, retained and managed by MAS as trustee (and custodian) of the Government, in which situation, the Government always remains the cestui que trust or beneficiary and, therefore, the true owner of such funds at all times.
In fact, TR Emeritus (TRE) noted that even for India when it wanted to extend a $10 billion loan to IMF to help the ailing Eurozone countries grappling with debt crisis, it went to get parliamentary approval first (‘India offers $10 billion loan to IMF after parliament approval‘).b) The question of Whether the IMF, in the circumstances, was a worthy recipient of the Loan Commitment or whether it is of good credit (neither of which is disputed) is also irrelevant.
c) Under rudimentary law of trusts, any and all funds at the disposal of MAS are obtained, retained and managed by MAS as trustee (and custodian) of the Government, in which situation, the Government always remains the cestui que trust or beneficiary and, therefore, the true owner of such funds at all times.
In any case, the Pre-Trial Conference has been scheduled to take place on Tue (21 Aug) at 9am in the High Court Chamber.
.
[Submissions]
AG’s Affidavit filed on 1 Aug 2012
KJ’s Affidavit filed on 15 Aug 2012
Related: Update: Pre-Trial Conference for IMF loan case on 21 Aug
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
