The gist: Allianz-Income deal is off; new Bill to address abuse of court processes
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Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income in a deal that was valued at $2.2 billion.
PHOTO: ST FILE
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SINGAPORE - In a surprise move, the much-debated deal between German insurer Allianz and local firm Income Insurance has been called off, Parliament heard on Oct 14.
The House also discussed Section 165 of the Penal Code, under which former transport minister S. Iswaran was convicted, and saw the introduction of a Bill meant to deter individuals from abusing court processes.
Here are the key takeaways:
Allianz-Income deal off in its current form; Government open to new arrangement
The deal between Allianz and Income Insurance has been called off due to concerns over the structure of the deal and Income’s ability to continue its social mission.
The scrapping of the deal was announced in Parliament on Oct 14 by Minister for Culture, Community and Youth Edwin Tong.
As a result, the Government will be amending the Insurance Act on an urgent basis to allow the approval of the deal to be withheld.
This will allow the Monetary Authority of Singapore (MAS) to consider the views of the Ministry of Culture, Community and Youth (MCCY) in future applications related to insurers that are cooperatives or are linked to cooperatives.
A certificate of urgency signed by the President had been obtained, and the Bill was distributed on Oct 14 to the MPs in the House. This allows for the Bill to be debated in the same sitting, currently slated for Oct 16.
Why it matters:
This move comes three months after Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income, in a deal that was valued at $2.2 billion.
The move to block the deal was made after MAS provided MCCY with new information about the proposed transaction following a Parliament sitting on Aug 6 during which the issue was debated.
This included information that Allianz, Income and NTUC Enterprise had submitted to MAS about initiatives to optimise the capital of Income after the deal is completed. Mr Tong noted that MCCY had not seen this information earlier.
Mr Tong, who is also Second Minister for Law, said the Government is open to future new proposals, if its concerns are addressed.
High standards of conduct expected of all public servants: Chan Chun Sing on Section 165
High standards of conduct are expected of all public servants, said Minister-in-charge of the Public Service Chan Chun Sing on Oct 14.
In Singapore, it is not acceptable for a public servant to accept or obtain gifts from a person whom he or she has official dealings with. Otherwise, public confidence in the impartiality and integrity of the Government would be undermined, Mr Chan added.
He was responding in Parliament, on behalf of Prime Minister Lawrence Wong, to questions raised by several MPs on the application of Section 165 of the Penal Code and its impact on the wider public service.
Why it matters:
Earlier in October, former transport minister S. Iswaran was sentenced to 12 months’ jail after pleading guilty to five charges, including four under Section 165, for obtaining valuable items as a public servant.
MPs had asked if Section 165 would deter individuals and top talent from the private sector from joining or contributing to the public service.
Mr Chan, who is also Education Minister, said the rules would not deter good people from joining or contributing to the public service. “On the contrary, if we do not have an ethos or system that ensures clean, honest government, we would not be able to attract the right people from the private sector to join us,” he said.
New Bill will consider fictitious claims and other abuses of court processes as contempt of court
The Straits Times
The use of time-wasting tactics and fictitious claims to delay criminal proceedings will be considered contempt of court under a new Bill, with offenders facing a possible jail sentence and a fine.
The proposed laws come as the abuse of court processes becomes more common in Singapore, with parties filing unmeritorious claims to oppress others, or for ulterior purposes, said the Ministry of Law (MinLaw).
It will also be considered contempt of court if an individual commences a court proceeding despite knowing it is fictitious or “constitutes a mere sham”.
Why it matters:
MinLaw said litigants and lawyers who act with reasonable care and in good faith will not be penalised.
It added that the amendments are intended to proactively deter abuses of the court process, which could undermine the authority of the court and impede the administration of justice.
“This can impact the reputation of Singapore’s legal system and lead to an erosion of trust in our court system. Such cases also cause financial and psychological harm to the individuals who are forced to defend unmeritorious claims,” the ministry said.
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