S'pore's $4b IMF loan case to be heard in chambers

[streetcry]

SINGAPORE: Reform Party Secretary-General Kenneth Jeyaretnam's legal bid to stop Singapore's US$4 billion pledge to the International Monetary Fund (IMF), will be heard by a judge on 12 September.

The date has been set for a leave hearing in chambers, where the judge will decide if the case should proceed to open court.

In April, Singapore made the pledge to bolster the IMF's war chest, to tackle the ongoing euro zone debt crisis.

Mr Jeyaretnam filed an application for a quashing order against the loan on 6 July.

He contends that the loan violates the constitution under Article 144, as no prior approval for the pledge was sought in Parliament or from the President.

Among other things, Article 144 states that "no guarantee or loan shall be given or raised by the Government except under the authority of any resolution of Parliament with which the President concurs".

The Monetary Authority of Singapore (MAS) had previously responded to the issue, stating that Article 144 "does not apply to lending by Government" but "prevents the Government from borrowing without the authority of Parliament and the President's concurrence".

An affidavit filed by the Attorney-General states that the loan will be part of Singapore's Official Foreign Reserves (OFR), which is managed by the MAS.

It added that should the loan be drawn, there will be no change to Singapore's OFR as it will be a conversion from one asset form to another, and will be repaid by the IMF.

It reiterated that the government did not extend the loan commitment, neither will it come from the government's budget.

- CNA/ck

 

[steffychun]

I'll say it one more time: Other proper democracies did not have their parliamentarians to vote on their commitments (NOT loans) to the IMF and if KJ wants to say he is anti-IMF, say it explicitly.

Why not start targeting Singapore's replenishments to the World Bank's IDA?