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Allianz to pay $6 bln in U.S. fraud case, fund managers charged​

By Tom Sims , Alexander Hübner and Jonathan Stempel
May 18, 20225:38 AM


The logo of insurer Allianz SE is seen on the company building in Puteaux at the financial and business district of La Defense near Paris




NEW YORK/MUNICH, May 17 (Reuters) - Germany's Allianz SE (ALVG.DE), opens new tab agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to criminal securities fraud over the collapse of a group of investment funds early in the COVID-19 pandemic.
Allianz's settlements with the U.S. Department of Justice and U.S. Securities and Exchange Commission are among the largest in corporate history, and dwarf earlier settlements obtained under President Joe Biden's administration.

Gregoire Tournant, the former chief investment officer who created and oversaw the now-defunct Structured Alpha funds, was also indicted for fraud, conspiracy and obstruction, while two other former portfolio managers entered related guilty pleas.
Once with more than $11 billion of assets under management, the Structured Alpha funds lost more than $7 billion as COVID-19 roiled markets in February and March 2020.

Allianz Global Investors US LLC was accused of misleading pension funds for teachers, bus drivers, engineers, religious groups and others by understating the funds' risks, and having "significant gaps" in its oversight. read more
Investors were told the funds employed options that included hedges to protect against market crashes, but prosecutors said the fund managers repeatedly failed to buy those hedges.

Prosecutors said the managers also inflated fund results to boost their pay through performance fees, with Tournant, 55, collecting $13 million in 2019 and becoming his unit's highest or second-highest-paid employee from 2015 to 2019.
Investigators said the misrepresentations began in 2014, and helped Allianz generate more than $400 million of net profit.
At a news conference, U.S. Attorney Damian Williams in Manhattan said more than 100,000 investors were harmed, and that while American prosecutors rarely bring criminal charges against companies it was "the right thing to do."

Investors "were promised a relatively safe investment with strict risk controls designed to weather a sudden storm, like a massive collapse in the stock market," he said. "Those promises were lies.... Today is the day for accountability."

BLAMING COVID​

Also known for its insurance operations, Allianz is among Germany's most recognizable brands and an Olympic sponsor.
Its namesake arena near its Munich headquarters, meanwhile, houses Bayern Munich, one of world's best-known soccer teams.

The settlement calls for Allianz to pay a $2.33 billion criminal fine, make $3.24 billion of restitution and forfeit $463 million, court papers show.
Williams said the fine was significantly reduced because of Allianz's compensation to investors.
Even so, the payout is close to twice the $3.3 billion in corporate penalties that the Justice Department collected for all of 2021.
An Allianz lawyer entered the guilty plea at a hearing before U.S. District Judge Loretta Preska in Manhattan.
Allianz also accepted a $675 million civil fine from by the SEC, one of that regulator's largest penalties since Enron Corp and WorldCom Inc imploded two decades ago.
Shares of Allianz closed up 1.7% in Germany, with the payout broadly matching reserves that the company previously set aside.
Tournant, of Basalt, Colorado, surrendered to authorities on Tuesday morning.
The U.S.-French citizen appeared briefly in Denver federal court, and was released after agreeing to post a $20 million bond. An arraignment was set for June 2 in New York.
Tournant's lawyers, Seth Levine and Daniel Alonso, said the investor losses were "regrettable" but did not result from a crime.
"Greg Tournant has been unfairly targeted [in a] meritless and ill-considered attempt by the government to criminalize the impact of the unprecedented, COVID-induced market dislocation," the lawyers said in a joint statement.
The other two portfolio managers - Stephen Bond-Nelson, 51, of Berkeley Heights, New Jersey; and Trevor Taylor, 49, of Miami - agreed to plead guilty to fraud and conspiracy, and cooperate with prosecutors. Their lawyers declined immediate comment.

VOYA PARTNERSHIP​

Allianz's guilty plea carries a 10-year ban on Allianz Global Investors' providing advisory services to U.S.-registered investment funds.
As a result, Allianz plans to move about $120 billion of investor assets to Voya Financial Inc (VOYA.N), opens new tab in exchange for a stake of up to 24% in Voya's investment management unit. It expects a final agreement in the coming weeks.
Regulators said the misconduct included when Tournant and Bond-Nelson altered more than 75 risk reports before sending them to investors.
The SEC said projected losses in one market crash scenario were changed to 4.15% from the actual 42.15%, simply by removing the "2."
Allianz's alleged oversight lapses included a failure to ensure Tournant was hedging, though prosecutors said only people in his group knew of the misconduct before March 2020.
"No compliance system is perfect, but the controls at AGI didn't even stand a chance," Williams said.
Bond-Nelson, at Tournant's direction, also lied to Allianz's in-house lawyers after the company learned about the altered reports and the SEC probe, prosecutors added.
"Unfortunately, we've seen a recent string of cases in which derivatives and complex products have harmed investors across market sectors," SEC Chair Gary Gensler said in a statement.
Investors have also filed more than two dozen lawsuits against Allianz over the Structured Alpha funds.
 

True Believer

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Loyal
There is no corruption in the S'pore Govt except for the S Iswaran case if he is found guilty. When our Ministers decide each other's salary instead of stealing public funds, it is above board. Why is there a need to be corrupt when obscene amounts of money are deposited into our leaders' bank accounts every month for performing public administrative jobs not involving rocket science?
 

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Quote:
"In this regard, he credited the Singapore Government for responding immediately after the release of his 2023 report that highlighted how Singapore-based entities were the third-largest source of weapons material for the Myanmar military.

Although Singapore does not authorise the transfer of dual-use items to Myanmar where there is serious risk that they may be used to inflict violence on unarmed civilians, his investigations had uncovered the flow of US$254 million worth of arms and related goods such as machines for metal work and raw metals between February 2021 and December 2022."

The ‘fall’ of Myawaddy: What it says of the state of Myanmar’s civil war​

The country is splintering further. As the junta loses ground, some ethnic armed groups are staking their claim to key borderlands in pursuit of their own interests, including online scams.​

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Tan Hui Yee
Indochina Bureau Chief
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Soldiers from the Karen National Liberation Army on patrol in the strategic border town of Myawaddy, Myanmar, on April 15. PHOTO: REUTERS

May 06, 2024

MYAWADDY, Myanmar – Myawaddy has fallen, but not quite. Over the past few weeks, the see-saw tussle between Myanmar junta and resistance forces over the strategic Myanmar border town of Myawaddy has involved air strikes and turncoat soldiers.
It is instructive about the nature of the country’s three-year-old political crisis: There are no neat narratives for this multi-fronted civil war involving not just the junta and a variety of armed groups, but also rivalry between ethnic armed groups fighting for no one’s interests but their own.
While Myawaddy, through its sheer proximity to Thailand, gave the world a rare front-row glimpse of the destruction caused by the conflict, it is by no means where conditions are most desperate.
More than 2.8 million out of Myanmar’s 55 million population have been forced to flee their homes. Nearly half of its people live below its poverty line of 1,590 kyats (S$1) a day. That is roughly 50 Singapore cents a day, if the kyat’s depreciation is taken into account.
The deprivation is deeper in Myanmar’s northern and western states of Chin, Rakhine and Kachin, according to a 2024 United Nations report. And the crisis is amplifying existing inequalities, with women losing jobs at a rate faster than men.
Yet, even as political solutions to the turmoil unleashed by the 2021 military coup remain elusive, there is an urgent need to sustain as well as reimagine what it takes to support the people of Myanmar.

Big money​

While Myanmar is not new to civil war, the current conflicts unleashed by the coup are becoming enmeshed in transnational crime in new ways.

Some armed groups in Myanmar have long been funded through the narcotics trade as well as provided sanctuary to transnational criminal networks. The United Wa State Army, which controls a part of Shan state bordering China, was labelled by the United States in 2008 as “the largest and most powerful drug trafficking organisation in South-east Asia”.
These days, the new money spinner is the online scam industry, and it likely played a role in the power tussle in Myawaddy.
Over US$1 billion (S$1.35 billion) worth of annual trade passes through the Kayin state border town, which sits in close proximity to a cyberscam hub known as Shwe Kokko.

Shwe Kokko is in turn controlled by the leaders of a roughly 8,000-strong armed group formerly called the Kayin state Border Guard Force (BGF). The force used to take orders from the Myanmar military. In January 2024, as the Chinese government cracked down on the cross-border scam hubs in collaboration with the regional authorities, the BGF declared its independence from the junta and rebranded itself the Karen National Army (KNA).
The KNA largely stood aside as the Karen National Union (KNU), another ethnic armed group operating in Kayin state, launched an assault with allied fighters on junta military bases around Myawaddy and overran them by April 11.
The alliance blocked junta reinforcements deployed from inland while trying to flush out the remaining soldiers who had taken refuge near a bridge linking Thailand and Myanmar. The military responded with air strikes which sent thousands of civilians surging across the Moei River to seek refuge in Thailand.

But the KNA helped the junta reclaim its Infantry Battalion 275 base just about one week after its fall. The KNU then withdrew its troops from Myawaddy.
Given the complex fault lines in Kayin state, the ejection of the junta from Myawaddy was always going to be difficult to achieve and a challenge to sustain. Hence, while pro-democracy groups celebrated the KNU’s initial triumph in Myawaddy, the townsfolk remained wary.
Civilians who could afford it rented rooms in the Thai town of Mae Sot just across the border in case fighting flared up in Myawaddy’s town centre. Long inured to the rivalry among the ethnic Karen armed groups operating in Kayin state, Myawaddy folk got ready to flee at the first sign of attack by the junta – or intra-ethnic tensions.
Many who spoke to The Straits Times immediately after the KNU’s triumph adopted the same mindset as online retailer Ma Mee Mee, who had left her elderly parents, two-year-old child, and valuables in a rented house in Mae Sot while shuttling between that and her Myawaddy home for her business.
“Who will govern? I don’t know for sure who has taken over Myawaddy,” she told ST, using a pseudonym for security reasons.
The resulting morass in Myawaddy has just left the KNA as the predominant force in town, much to the detriment of regional efforts to crack down on cyberscam operations. The United States Institute of Peace (USIP), in an April 22 report, noted how the vast majority of scam syndicates in Kayin state are operating in zones controlled by the KNA and its leader Saw Chit Thu, who was sanctioned by Britain in 2023 over allegations of human trafficking.
“He and his cohorts care little about the cause of Karen autonomy and democracy pursued by the KNU/KNLA but focus instead on maximising profits from criminal activity,” the USIP report said. The KNLA stands for the Karen National Liberation Army, an armed wing of the KNU.
Earnings from Shwe Kokko are said to amount to US$192 million annually.

Seizing momentum​

Myawaddy aside, there is broad agreement among analysts that the Myanmar junta is on the back foot. While it struggles to move hundreds of soldiers into position to retake Myawaddy, it is replenishing its depleted ranks with conscripts, at a targeted rate of 5,000 a month. The regime has also ordered even veterans under 67 years old to serve as reservists, The Irrawaddy news outlet reported.
In borderlands as diverse as Chin state next to Bangladesh and India, as well Kachin state next to China, local ethnic armed groups are seizing the momentum to dislodge the junta and expand their territories.
The shadow National Unity Government (NUG) coordinates the deployments of its People’s Defence Forces with those of allied ethnic armed organisations. In an April 30 statement, it said that the “revolutionary forces” and the NUG have gained control of over 60 per cent of the country, including five border towns”. This cannot be verified.
Over in the western Rakhine state, the ethnic Rakhine Arakan Army says it has seized control of at least nine out of the 17 townships, triggering junta blockades that have led to shortages of medicine and other essentials.
Conditions there are particularly wretched for the Rohingya Muslims. Denied citizenship under Myanmar law, the Rohingya cannot move across state and township boundaries freely. Sectarian tensions tracing back to colonial British rule and subsequently exploited by the Myanmar military and inflamed by Buddhist nationalists caused the Rohingya to be driven out of their Rakhine state homes into shabby camps from 2012.
In 2017, 700,000 Rohingya fled to Bangladesh after a brutal military crackdown, leaving about 600,000 of them in Rakhine state. The same military is now forcibly conscripting Rohingya to pit them against ethnic Rakhine fighters from the Arakan Army, in what appears to be another attempt to exploit the ethnic cleavages. This, even as conditions in Rohingya camps are so dire that some 80 of them died from dysentery in the Rakhine state capital of Sittwe in April.
Tensions are mounting. In a statement on April 26, the Arakan Army’s political wing, the United League of Arakan, imposed a curfew in the northern regions of Buthidaung and Maungdaw, accusing the junta of training “Muslim extremists to stoke communal tensions and arming terrorist groups within the Muslim community, all aimed at furthering their agenda during the ongoing conflict”.
Rohingya civilians are now being pressured by the junta into taking up arms but risk being labelled by the Arakan Army as extremists.

Meaningful aid​

Given the complex dynamics in the country – and the concurrent conflicts in Ukraine and Gaza – the Myanmar crisis risks slipping away from global consciousness. But meaningful interventions are both possible and necessary, even though the future of Myanmar needs to be determined by its own people.
Mr Tom Andrews, the UN special rapporteur on the situation of human rights in Myanmar, told ST: “I think we have a responsibility, as an international community, to the fundamental principles that are embedded in the United Nations charter, embedded in the Declaration of Human Rights.”
Myanmar’s people, he said, need action. “They need the world to stand for principle.”
In this regard, he credited the Singapore Government for responding immediately after the release of his 2023 report that highlighted how Singapore-based entities were the third-largest source of weapons material for the Myanmar military.
Although Singapore does not authorise the transfer of dual-use items to Myanmar where there is serious risk that they may be used to inflict violence on unarmed civilians, his investigations had uncovered the flow of US$254 million worth of arms and related goods such as machines for metal work and raw metals between February 2021 and December 2022.
The Singapore Government’s subsequent crackdown reduced the export of such material from Singapore to Myanmar by 83 per cent, he said.
Indonesia-based independent analyst Adelina Kamal, meanwhile, argues that humanitarian agencies need to adapt to the fast-changing circumstances in Myanmar to avoid inadvertently prolonging the crisis.
She is critical of the reliance on a “state-centric” model, where aid agencies lean on channels provided by a “de facto government” even though its legitimacy may be contested. This is problematic in Myanmar because the junta requires all non-profit organisations to register with it and then prohibits them from contacting groups that are unlawful or declared to be terrorists – in effect weaponising aid against the regime’s adversaries.
Faced with these onerous conditions, many local civil society groups have chosen not to register, and instead work quietly through decentralised networks to access hard-to-reach areas.
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Ms Adelina argues that international aid agencies should support local humanitarian groups bypassing the junta’s system.
“Myanmar today is a very different landscape than the decades past. As the Myanmar military junta loses ground on an unprecedented scale throughout the country, it is crucial that Myanmar be understood as an interim state with the people actively building a nation in the midst of the ongoing war,” said the former executive director of Asean Coordinating Centre for Humanitarian Assistance on Disaster Management.
“Any engagement and approach including humanitarian assistance that is state-centric ultimately fails to capture the complexities on the ground and undermines the work of diverse humanitarian and democracy actors on the ground who are saving lives,” she said.
Such reassessment will increasingly be necessary as war sweeps up more communities across Myanmar. Thailand, for example, sent its first tranche of aid to Myanmar through a bridge linking Mae Sot and Myawaddy in March 2024, under a wider programme to establish a humanitarian safe zone and hopefully open up spaces for dialogue.
Although the plan was criticised for involving the junta and the junta-linked Myanmar Red Cross, some of the aid was eventually disbursed to internally displaced people in an area controlled by the Karen National Union.
If and when junta reinforcements reach Myawaddy and trigger fierce clashes right on the Thai-Myanmar border, it is not clear whether the same aid formula will work.
Months from now, the balance of power in currently contested territories across Myanmar could look very different. Bangkok – and the rest of the region – would need to adapt fast to these shifting sands.
 

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SNEF president Robert Yap resigns after routine review finds governance procedural lapse​

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Dr Robert Yap said it has been an honour to serve the Singapore National Employers Federation over the past decade. PHOTO: ST FILE
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Tay Hong Yi

Jun 11, 2024

SINGAPORE – Dr Robert Yap, president of the Singapore National Employers Federation (SNEF), will step down from his position after 10 years of service.
In a statement on June 11, the federation said its council was informed of a governance procedural lapse during a routine internal review.
“The council promptly engaged an external consultant to conduct a thorough review of our internal processes,” SNEF said. It added that the independent review is currently under way, and that SNEF’s council holds itself and the employer body’s management to the highest standards of governance.
SNEF said: “At this point, the council is not aware of any financial implications arising from this lapse. The council takes seriously the federation’s responsibility in upholding governance ideals expected by all our stakeholders and will be directly overseeing this independent review.”
Dr Yap, who is also an SNEF council member and executive chairman of logistics provider YCH Group, said it had been an honour to serve the federation over the past decade.
“I have worked hard to advance the interests of my members and tripartism in Singapore. It is never easy, but I have done what I can. It is also time to hand over the reins of leadership.”
He added: “I understand the council’s decision to engage an external consultant to pursue an independent review. It is always good to review governance procedures so that organisations can continue to improve and learn from any organisational weaknesses.”

SNEF also said its council will continue building on the strengths of the federation, working closely with all employers, members and partners to advance tripartism and enhance labour market flexibility for employers to implement responsible employment practices in Singapore.
The Ministry of Manpower (MOM) said: “While there is no indication of any financial implications arising from this lapse thus far, MOM has requested SNEF to provide us with an update on the outcome of their review and to share key documentation with MOM as soon as it is completed.
“MOM will assess our next course of action thereafter.”

The ministry added that there will be no change to the tripartite process, referring to the three-way partnership between the Government, employers and the labour movement.
“MOM will continue to work with SNEF as our tripartite partner to advance our economic and social goals for Singapore.”
Responding to queries from The Straits Times, SNEF said its council does not believe that a police report is warranted at this point.
It also said Dr Yap’s resignation was effective immediately, as agreed upon between him and the council.
“In the interim, the president’s duties will be undertaken by council members until (the annual general meeting) where the new council will be elected by members, and where, subsequently, the council members will vote for the office-bearers including the president.”
This is scheduled for later in the year, the federation added. SNEF’s last annual general meeting was held in September 2022, during which the council elections were held.
It said: “Beyond this, we are not able to comment further as the independent review is currently under way.
“The council will discuss and make further decisions on actions to be taken after going through results of the independent review.”
Meanwhile, the National Trades Union Congress expressed appreciation to Dr Yap and SNEF for their contributions to workers and the labour movement.
The labour movement noted that under Dr Yap’s leadership, SNEF contributed to numerous tripartite councils and work groups by advocating businesses’ interest in improving the lives and livelihoods of workers, including lower-wage workers and older workers as well as professionals, managers and executives.
“NTUC will continue to uphold tripartism with SNEF and the Ministry of Manpower. Tripartism has been and continues to be one of the cornerstones of Singapore’s success.”
 

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MAS, CAD probing Seatrium over potential offences relating to Brazil corruption case​

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The offences were potentially committed by the company and/or its officers when it was then Sembcorp Marine, before its renaming in 2023 after the merger with Keppel Offshore & Marine. PHOTO: SEATRIUM
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Ovais Subhani
Senior Business Correspondent

Jun 17, 2024

SINGAPORE - The Singapore authorities are conducting a joint investigation into offences potentially committed by Seatrium, formerly Sembcorp Marine, relating to a massive and long-running corruption case in Brazil, dubbed Operation Car Wash.
The Monetary Authority of Singapore and the Singapore police’s Commercial Affairs Department have requested further information from the company for the purpose of the investigations, Seatrium said in a filing with the Singapore Exchange (SGX) on June 15.
The offences were potentially committed by the company and/or its officers when it was Sembcorp Marine, before its renaming in 2023 after the merger with Keppel Offshore & Marine.
They fall under the Securities and Futures Act 2001, the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, and all previous versions of those laws.
Seatrium said it continues to provide its full cooperation to the Singapore authorities.
The company will continue to monitor the situation and make appropriate announcements in the event of any material developments. In the meantime, shareholders and potential investors are advised to exercise caution when dealing in its shares.
Seatrium shares closed down 1.77 per cent at $1.67 on June 14.

The company announced in March that Singapore’s Attorney-General’s Chambers (AGC) was agreeable to entering a deferred prosecution agreement with Seatrium following the alleged corruption offences in Brazil.
Seatrium said the agreement is not definitive yet and is subject to the AGC’s agreement and the approval of Singapore’s High Court.
In March, Seatrium was fined US$110 million (S$149 million) in connection with the alleged corruption offences in Brazil dating back some 15 years.
However, the AGC took into consideration what the group would have to pay the Brazilian authorities as part of that total amount. Seatrium, hence, only paid the remaining US$57 million to the Singapore authorities.
Additionally, two former executives of the group were charged with corruption offences on March 28 for allegedly paying bribes of more than $20 million to further the company’s business interests in Brazil.
The offshore and marine energy engineering company in February posted a $1.68 billion net loss for the second half of its 2023 financial year, a more than tenfold increase from the $118.3 million loss for financial year 2022.
 

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Seatrium says asset-holding company to pay $77 million in settlement to Awilco unit​

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Seatrium said the settlement is not expected to have any material impact on its net tangible assets or earnings per share in the current financial year. PHOTO: SEATRIUM
Chong Xin Wei

Jun 20, 2024

SINGAPORE – Seatrium’s wholly owned subsidiary, Seatrium New Energy, along with RigCo Holding, has entered into a settlement agreement with Awilco Drilling and two of its units.
On June 20, Seatrium said one of the units, Awilco Rig 2 (AR2), will receive a US$57 million (S$77 million) settlement sum related to an arbitration with Seatrium New Energy, formerly known as Keppel Fels.
AR2 received the arbitration award in November 2023 for a contract executed in March 2019 to construct a repeat mid-water semi-submersible drilling rig.
The settlement sum, along with other legal fees and costs, will come from RigCo, which has held the rig assets since the combination of Sembcorp Marine and Keppel Offshore & Marine.
This means RigCo is liable for all and any monies payable by Seatrium New Energy for the settlement.
Seatrium noted that the settlement is not expected to have any material impact on its net tangible assets or earnings per share in the current financial year.
Previously, Seatrium New Energy was granted an arbitration award against another Awilco unit – Awilco Rig 1 (AR1) – on April 24, 2023.

The company issued a notice of termination in June 2022 to AR1 after it defaulted on an instalment payment for the construction of a mid-water semi-submersible drilling rig for harsh environmental use.
The parties had entered into a contract worth US$425 million in March 2019 for the construction of the rig.
But Seatrium New Energy assessed that AR1 was unable to make its second instalment payment that was due in March 2021.
Seatrium shares closed up five cents on June 20 at $1.55.
 

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For decades, the PAP government had been closing one eye to Myanmar generals laundering money through Singapore banks.

Myanmar military favouring Thai banks over Singapore banks for arms transactions: UN report​

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Myanmar's Chief Senior General Min Aung Hlaing stands in a vehicle as he attends a ceremony to mark the country's 78th Armed Forces Day. PHOTO: AFP
Varun Karthik
Updated

Jun 28, 2024

SINGAPORE – Myanmar’s junta is increasingly using banks in Thailand instead of Singapore for its purchases of military supplies, including arms used against groups opposing its 2021 power grab, according to a United Nations report.
The report, released by UN special rapporteur Tom Andrews on June 26, said banks located in Singapore were previously “the most important financial facilitators for Myanmar’s military procurement”, processing more thanUS$260 million (S$353 million) of arms payments between April 2022 and March 2023 (financial year 2022), which amounted to more than 70 per cent of the junta’s arms payments.
But the amount fell sharply to just over US$40 million between April 2023 and March 2024 (financial year 2023).
The report added that most of the US$40 million processed in financial year 2023 was done in the first quarter of that financial year.
Banks in Thailand went from facilitating over US$60 million worth of military procurement in financial year 2022 to processing more than double that – US$120 million – in financial year 2023.
However, the report noted that the financial institutions might not be helping facilitate military purchases wilfully.
“Nothing in the evidence reviewed by the Special Rapporteur suggests that banks named in this paper were directly aware of the nature of specific transactions they facilitated,” the report said.

It added that the junta was using “a variety of techniques to evade sanctions, undermine risk management processes and avoid transaction monitoring activities” to overcome the due diligence processes that banks had in place.
Thailand’s Ministry of Foreign Affairs said in a statement on June 27 that it had seen the report and was looking into it.
“We will have to first establish the facts before considering any further steps,” it said.

The drastic decrease in the purchase of weapons and related equipment processed in Singapore came after a government investigation prompted by an earlier report Mr Andrews released in May 2023.
That report alleged that Singapore-based companies were a source of substantial amounts of supplies for the junta, while banks were helping facilitate a significant amount of their procurement.
Mr Andrews said in an interview with The Straits Times on June 27: “(The Singapore Government) made a very focused effort to understand what was happening and to investigate these developments, and I was very happy to provide whatever support I could.”
Calling the progress Singapore made both “dramatic” and “very significant”, he said: “This is what can happen when a government makes this a priority (and) focuses on the facts”, adding that Singapore’s example serves as a “ray of light… for the region and the world”.
Much of Singapore’s decline in military-related procurement was attributed to UOB, which went from facilitating more than US$180 million in military procurement in financial year 2022 to none in financial year 2023.
“UOB is in full compliance with applicable sanction laws and regulations. We do not knowingly support or process any transaction in relation to weapons or military equipment involving the Myanmar military,” a UOB spokesperson said in a statement on June 28 in response to queries from ST.
“The bank’s policy prohibits processing of transactions involving arms and dual-use goods to entities known to be acting on behalf of the Myanmar military,” the spokesperson said, adding that the bank applied enhanced due diligence measures to mitigate the risks associated with higher-risk customers, and “(scrutinised) transactions to differentiate legitimate trade from those that result in the subjugation of the Myanmar people”.
The bank added that it had sought more information from the United Nations Special Rapporteur in December 2023 “when first alerted to the alleged transactions that occurred in 2022.
“Once we receive details of the alleged transactions, we will review them and take any necessary action as appropriate.”
Much of Thailand’s increase, on the other hand, was attributed to Siam Commercial Bank, which processed over US$100 million in arms transactions in financial year 2023, up from just over US$5 million in the year prior, the report said.
It noted that military procurements facilitated by financial institutions in Malaysia, Russia and South Korea had also decreased in financial year 2023, compared with 2022.

On top of the sharp drop in the amount of arms that the Myanmar military purchased through transactions facilitated by Singapore-based financial institutions, the report noted that there was a steep decline in the amount of arms and weapons materials exported to the junta from Singapore-registered entities.
Exports from Singapore-based entities in financial year 2023 were just over US$10 million, a mere fraction of the more than US$110 million exported in the year prior. Only six Singapore-based companies transferred weapons and related materials to the Myanmar military in financial year 2023, compared to 81 in 2022.
Military exports from Thailand, however, doubled to over US$120 million in financial year 2023.
Despite the increased amounts of military procurement flowing from Thailand, overall, the volume of weapons and military supplies that the Myanmar military could procure through the international financial system decreased by a third, aided by Singapore’s crackdown, according to the report.
It went from $377 million in financial year 2022 to $253 million in 2023.
In the interview, Mr Andrews said: “We have some important momentum now, that Singapore has played a key role in creating. And now is the time to build on that momentum”.
“We are moving in the right direction, but we have to do it in a more aggressive way, in a more strategic way, in a more coordinated way,” he added.
The Myanmar military seized power in a February 2021 coup, and the country has since been plunged into political turmoil and violence as the junta battled anti-coup forces.
To crush the armed uprising, the junta stands accused of perpetrating human rights abuses against its own population, including the rampant use of air strikes that are said to have taken an enormous toll on civilians.
While there are no UN sanctions against Myanmar, some individual states – most notably the US – have imposed their own.
Among the entities the US has sanctioned include the Myanma Foreign Trade Bank, a state-owned bank that the report says “served as the primary bank facilitating foreign transactions involving Myanmar state-owned entities”.
In response, the junta has increasingly used Myanma Economic Bank, another state-owned bank that is, however, unsanctioned, to carry out key functions, according to the report.
Positing that there were “inherent and severe risks of doing business with Myanmar state-owned banks” even with due diligence checks in place, the report called for financial institutions to stop transacting with these banks entirely.
Other gaps in the sanctions mean that the country remains able to purchase aviation fuel, it added.
Independent analyst David Scott Mathieson said: “The (number of) air strikes is going up, but the ability of the international sanctions to stop them through (blocking) jet fuel sales, or other means, it is still not up there to make a real impact.”
He said the measures the report was advocating for, while important and welcomed, might not have a serious impact on the ability of the military to wage war, given that Myanmar has a domestic arms industry.
“As long as they are able to access raw materials and they are able to make bullets, weapons, landmines and lots of other things that can kill people, including artillery, (the junta) can keep fighting for quite some time,” he said.
A spokesperson for the non-profit Justice for Myanmar called on both Singapore and Thailand to do more.
“Singapore still needs to do more to resolve the crisis in Myanmar by ensuring no Myanmar arms brokers can operate in its territory and by imposing sanctions on Myanmar banks, as Singapore did in response to Russia’s invasion of Ukraine. Thailand must also do more to stop the transfer of weapons and related materials from companies registered in its territory,” said its spokesperson Yadanar Maung.
 

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Without international pressure, will the PAP government voluntarily clamp down on arms transfers made through SG?

Singapore will stop arms transfers without blocking legitimate trade with Myanmar: MFA​

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Singapore will continue with efforts to prevent the Myanmar junta from accessing military supplies through the Republic. PHOTO: REUTERS
Varun Karthik

Jun 29, 2024

SINGAPORE – Singapore will continue with efforts to prevent the Myanmar junta from accessing military supplies through the Republic while being mindful about not blocking legitimate trade and transactions with Myanmar as that will hurt civilians there, the Ministry of Foreign Affairs (MFA) said on June 28.
“Legitimate trade and financial links between Singapore and Myanmar are necessary to support the livelihoods of the Myanmar people,” MFA said in a statement.
“We have been very careful to avoid inadvertently causing greater hardship for the Myanmar people.”
The statement came in response to media queries following the release of a report by UN Special Rapporteur Tom Andrews on June 26.
The report, which lauded the city-state for its decisive action in clamping down on both the export of military materials from Singapore and the facilitation of arms transactions by banks here, called for financial institutions to “terminate or freeze all financial relationships with Myanmar’s state-owned banks” while “(undertaking) enhanced due diligence on all business relationships and transactions related to Myanmar”.
MFA said: “Singapore’s policy is to prohibit the transfer of arms to Myanmar and to not authorise the transfer to Myanmar of dual-use items, which have been assessed to have potential military application and where there is a serious risk they may be used to inflict violence against unarmed civilians.”
It added: “At the same time, it is not the intention of the Singapore Government to block legitimate trade with Myanmar. Special Rapporteur Andrews’ findings underscore the effectiveness of Singapore’s policy, especially through the measures imposed by Singapore financial institutions (FIs).”

The ministry said FIs based here “will not facilitate any transactions that involve the sale and transfer of arms to Myanmar”, and that banks here have been applying enhanced due diligence on transactions involving Myanmar entities and individuals.
It noted that the Monetary Authority of Singapore had published a circular in August 2023 providing banks with additional guidance on the measures they should incorporate to better detect and manage sanctions-related risks.
“Singapore FIs also had success in the deployment of data analytics to better identify risks and apply appropriate risk-mitigation measures, in particular around the detection of front and shell companies being used to potentially evade sanctions,” MFA said.
“We await specific and actionable information from the Special Rapporteur’s Office so that we are able to conduct the necessary checks on the leads provided in his latest report, and ensure that our FIs and companies are taking the necessary measures to address the risks posed.”
 

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Forum: Look into fairness of selection process for student athletes​


Jul 03, 2024

The allure of securing a spot in a prestigious secondary school via the Direct School Admission (DSA) scheme drives many parents to seek specialised coaching for their children.
While supporting one’s children is understandable, the influx of money into talent development programmes has given rise to conflicts of interest and moral hazards.
Many school team coaches are gatekeepers, deciding who gets into the school team and who goes for competitions. They often run external classes for the same activity, which are offered to aspiring school representatives for a fee.
This creates a financial incentive to favour students from their own courses, giving them an unfair advantage and undermining the integrity of the selection process.
The situation is exacerbated in certain DSA subjects by the dominance of a few coaches.
To ensure sufficient rotation and to prevent the entrenchment of interests, schools should set tenure limits for external coaches. The school team should be selected by an independent panel of teachers who have no pecuniary interest in the relevant activity.
These measures can ensure a more equitable and sustainable system for direct school admissions. Our young talent deserve nothing less.

Peter Heng Teck Wee
 

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High Court rejects Iswaran’s bid for prosecution to provide statements of witnesses; trial set for Aug 13​

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S. Iswaran leaving the High Court on July 5, 2024. ST PHOTO: MARK CHEONG
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Selina Lum
Senior Law Correspondent

Jul 19, 2024

SINGAPORE - A High Court judge has rejected a bid by former transport minister S. Iswaran to compel the prosecution to provide conditioned statements of all 56 witnesses it has lined up for his upcoming trial on 35 charges.
A conditioned statement is a mode of giving evidence in a written statement, rather than oral testimony, often to expedite court proceedings.
The prosecution has said that since it does not intend to rely on conditioned statements for Iswaran’s trial, none were recorded from the witnesses, and, thus, none were provided to the defence.
In other words, all the prosecution witnesses will be put on the stand to give oral testimony through questioning, first by the prosecution and then the defence.
On July 19, in dismissing Iswaran’s application, Justice Vincent Hoong found that the law requires the prosecution to provide conditioned statements of witnesses only when it intends to admit such statements at the trial.
The judge said the words of the relevant provision under the Criminal Procedure Code are “clear and unambiguous” – that the prosecution need only disclose the statements of witnesses that it intends to admit at the trial.
“Conversely, if the prosecution does not intend to admit any such statements at the trial, it is not required to file those statements,” he said.

Justice Hoong noted that the purpose of the disclosure in criminal proceedings is to provide a regime for early and reciprocal disclosure of the parties’ respective cases, with the prosecution first putting its cards on the table, followed by the defence.
“One of the criminal case disclosure regime’s imperatives is also to prevent the accused from shaping his defence to meet the prosecution’s case. Thus, the parties’ disclosure obligations were sequential,” said the judge.
Justice Hoong added that he was unable to accept defence arguments that there was an abuse of process or serious injustice caused to Iswaran in this case.

The judge noted that the prosecution had disclosed various material to the defence.
These include 66 statements recorded from Iswaran, which totalled 1,156 pages, and numerous exhibits such as e-mails, messages, Formula One complimentary request forms and other relevant documents.
The judge said: “The applicant has received sufficient information that discloses the factual premise of the charges against him, and it is not the law that the prosecution must detail its intended case at the trial to the point of informing the applicant of exactly what each witness will testify, which exhibit each witness will give evidence on, and what the evidence on each exhibit will entail.”
Iswaran declined comment when approached outside the courtroom after the verdict.
His trial is scheduled to start on Aug 13.

Iswaran’s lawyers, led by Senior Counsel Davinder Singh, had argued before Justice Hoong on July 5 that the prosecution should provide the conditioned statements of all its witnesses as part of its pre-trial disclosure obligation under the law.
The prosecution, led by Deputy Attorney-General Tai Wei Shyong, argued that the law only requires the prosecution to provide conditioned statements that are intended to be used during the trial.
The prosecution added that it had disclosed “more than enough” to the defence.
The material it had disclosed includes 37 statements recorded from seven witnesses during investigations by the Corrupt Practices Investigation Bureau.
Among these prosecution witnesses are Iswaran’s wife Kay Mary Taylor; hotel and property tycoon Ong Beng Seng; and managing director of mainboard-listed Lum Chang Holdings David Lum.
Of the 35 charges Iswaran faces, two are for corruption involving about $166,000.
Another 32 counts are for obtaining items worth more than $237,000 as a public servant, while one is for obstructing the course of justice.
The charges relate to his dealings with Mr Ong and Mr Lum.
The application before Justice Hoong was the second time the defence team sought a court order for the prosecution to provide conditioned statements.
The first attempt was dismissed on June 11 by an assistant registrar, who concluded that the law did not require conditioned statements to be recorded for every witness that the prosecution intended to call at the trial.
The defence then filed an application, known as a criminal revision, for a High Court judge to review the assistant registrar’s decision.
 

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Jail for ex-SMU Academy associate director who accepted $472k in bribes​

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Christopher Tan Toh Nghee, who no longer works for SMU, accepted bribes from three men to advance their business interests with the university. PHOTO: ST FILE
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Shaffiq Alkhatib
Court Correspondent

Jul 22, 2024

SINGAPORE – A former associate director of business development at Singapore Management University (SMU) Academy who accepted bribes totalling more than $472,000 was sentenced to three years and six months in jail on July 22.
Christopher Tan Toh Nghee, 46, was also ordered to pay a penalty of $90,552 and will have to spend an additional three months behind bars if he fails to pay the amount.
On July 1, Tan, who had worked in the training arm of the university, pleaded guilty to 16 charges, including multiple counts of graft. Thirty-six other charges were considered during sentencing.
He had accepted the bribes from three men – Kenneth Lum Hsien Loong, Jeffery Long Chee Kin and Cher Kheng Than – who were then directors of different firms.
At the time of the offences, Cher was the sole shareholder and director of marketing services firm CJ Synergy (CJS). Long was the managing director of a similar company called Assetualize (AST).
Cher, then 46, was sentenced to a year in jail on Feb 20 and Long, then 45, was sentenced to 13 months in jail in September 2023.
Lum, 47, was then the director of International Alliance Marketing (IAM), which dealt in electronic products. His case is pending.
corporations and affiliates as well as their agents and authorised service providers.
marketing and promotions.
At the time of the offences, Tan was a business development associate director at SMU Academy’s service operations and business improvement sub-department. His job scope included overseeing revenue, sales and programme management for the sub-department. The sub-department also engaged partners to assist in marketing its courses.
In or around late 2018, Tan asked Long if he was interested in becoming a marketing partner to promote courses for SMU Academy. Long agreed, and a service agreement was executed between SMU and AST on Jan 1, 2019. Long later successfully referred two applicants for enrolment in SMU Academy.
In earlier proceedings, Deputy Public Prosecutor Eugene Phua said some time in or around February 2019, Tan informed Long that he wanted $600 for each enrolment.

The DPP added: “(Tan) wanted a cut of the commissions AST received from SMU Academy. (Long) understood that he had to give Tan a portion of AST’s earnings in order to advance the business interests of AST with SMU Academy.”
In total, Tan corruptly accepted gratification totalling $71,300 from Long.
Separately, in December 2018, Tan suggested that Cher help him at SMU to develop a course called Advanced Certificate in Entrepreneurship. Tan added that Cher could work for SMU Academy as a marketing partner under a commission-based structure.
In January 2019, Cher set up CJS for the sole purpose of working with SMU to provide marketing services. Before starting work for SMU, Cher had a discussion with people including Tan and Long.
The prosecutor said Cher found out that Tan was receiving a one-third cut of the commissions of another SMU Academy marketing partner. Cher then decided to give the bribes to secure the opportunity to be a marketing partner.
Tan corruptly accepted gratification totalling $62,800 from Cher.
The court heard that Tan got to know Lum through a mutual friend in 2016. Lum later contacted Tan to try to market IAM’s services to him, asking if SMU needed items such as audiovisual equipment to be built or installed.
In November 2016, Tan engaged IAM on behalf of the university to build a board that could be used for video production.
Over multiple occasions in 2018 and 2019, Tan accepted cash from Lum in exchange for favouring IAM and ensuring it could continue doing business with SMU. He accepted bribes totalling nearly $338,000 from Lum.
The court heard on July 22 that Tan has made $381,000 in restitution.
 
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