Loan offer to Indonesia 'breach of constitution'

TTHE Workers' Party has lashed out at statements made in Parliament on Wednesday by Finance Minister Richard Hu on Singapore's recent US$5-billion (S$7.9-billion) loan offer to Indonesia, saying that they were a "startling revelation" and a breach of the Constitution.

A two-page statement signed by WP chief J. B. Jeyaretnam said yesterday that the events surrounding the granting of the loan were unconstitutional. "It must have come as a startling revelation to Singaporeans that the decision to grant US$5 billion of their monies to Indonesia in such a casual way as described by the Finance Minister in Parliament," it said.

It noted that the decision was taken by Prime Minister Goh Chok Tong "in consultation" with Senior Minister Lee Kuan Yew, Deputy Prime Minister Lee Hsien Loong and Dr Hu, and was later approved by Cabinet.

But it pointed out that Dr Hu could not say where and when the decision was taken, but could only say that it was "several weeks ago".

Mr Jeyaretnam cited Article 144 of the Constitution which states: "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."

He took issue with the Government's explanation of why it was not necessary to seek the approval of Parliament or the President. Dr Hu had said that President Benjamin Sheares had already approved the purchase of Indonesian assets in 1980 and, later, President Wee Kim Wee in 1986, had approved purchases of Indonesian equities.

But, Mr Jeyaretnam pointed out, Article 144 was enacted into the Constitution in 1991. Hence, he argued, the 1980 and 1986 approvals were no longer applicable.

"The Finance Minister seemed unaware of the provisions of Article 144. He asked that it be read to him," said Mr Jeyaretnam, who is also a Non-Constituency MP.

Although Dr Hu's reply was that the Attorney-General had advised that there was "prior approval", the WP chief said Dr Hu's remarks raised a very important question.

He asked: "Can Singaporeans trust their monies with ministers who flout the requirements under the Constitution when dealing with the people's monies?"

"Only recently, Singaporeans learnt that they had lost $80 million of their monies through a bad investment," he added without elaboration, but in an apparent reference to Singapore Technologies' decision, earlier this month, to close disk-drive maker Micropolis, which it had acquired in April last year.

He said that in any other democratic country there would have been calls for the Cabinet's resignation, and called for "a full explanation from the Cabinet for the failure to obey the Constitution".

Published in the Straits Times. November 21, 1997