SINGAPORE: A programme manager with the Defence Science and Technology Agency (DSTA) regularly attended dinners with employees of a vendor and gave one of them information on a S$3 million (US$2.3 million) project.
Hsu Yee Chern, 52, was jailed for four weeks on Wednesday (Jul 2). The Singaporean pleaded guilty to two charges under the Official Secrets Act, with another two charges taken into consideration.
DSTA said he has resigned after an initial suspension.
The court heard that Hsu was involved in evaluating bids or tenders from vendors seeking projects with DSTA, a statutory board under the Ministry of Defence (MINDEF).
DSTA handles the design, development and maintenance of defence buildings and infrastructure for MINDEF, including construction and renovation works for Singapore Armed Forces camps.
DSTA is responsible for the procurement process, including looking for vendors and evaluating bids when there is a need for construction or renovation of infrastructure such as Stagmont, Clementi or Sungei Gedong Camps.
Hsu had joined DSTA in 2005 as an electrical engineer and was later promoted to programme manager.
In 2014, Hsu came to know his co-accused, 46-year-old Singaporean Tan Kian Meng and project manager at John Holland Electrical & Service (JHES).
At the time, JHES worked on a construction project for DSTA at Pulau Tekong. After the project was completed, the pair continued to meet at Tan's invitation for meals and drinks, as Tan wanted to maintain "a good working relationship" with Hsu.
They met at JHES' office, bars and restaurants, and were sometimes joined by other JHES staff.
Hsu attended at least five dinners on Tan's invite to bars and seafood restaurants between 2020 and 2022, with bills between S$300 and S$1,405.
He did not know that Tan claimed the expenses for these dinners from JHES.
Hsu knew that he had to avoid being in a position where there could be a potential conflict of interest, and that he should not be overly friendly with vendors outside of work.
He claimed that he did not declare the dinners to DSTA as he attended them in his personal capacity as Tan's friend, either to celebrate staff birthdays or "simply to catch up".
In November 2022, a whistleblower informed DSTA that Hsu had a close relationship with JHES staff, including Tan. They had frequent drinking sessions and Hsu was treated to dinner by JHES, and had assisted JHES to secure projects with DSTA, particularly army camp projects.
DSTA referred the complaint to the Corrupt Practices Investigation Bureau (CPIB) for investigation a month later.
Investigations revealed that Hsu was involved in the Stagmont Project, a construction project managed by DSTA for electrical power upgrading and renovations for an office building at Stagmont Camp sometime before March 2019.
Around Mar 12, 2019, Tan initiated a discussion with Hsu over text about project requirements. Hsu had obtained confidential information that DSTA's budget for the project was S$3 million.
Tan sought advice from Hsu on the specifics of the tender requirements and how to quote, so he could cater to the project's requirements.
In reply, Hsu advised Tan not to quote more than S$3 million. In so doing, he had "communicated directly" the budget information to Tan, said the prosecution.
As a result, JHES was able to decide if it should bid for the project based on the estimated profit margin.
JHES eventually tendered for the Stagmont Project, submitting a quotation of S$2,615,000.
Around April 2019, Tan asked Hsu for updates on DSTA's evaluation of project tenders.
Hsu was part of the tender evaluation team and had confidential information that JHES' tender price was too low and that the tendered cable size was smaller than normally used by other contractors.
He conveyed this to Tan, but did not tell him that JHES would have a chance to advance to the tender interview stage. The company ultimately did not advance to this stage and the project was not awarded to JHES.
The prosecution sought four to six weeks' jail for Hsu. The drinking sessions and undeclared free meals were "inappropriate and part of the quid pro quo (whether spoken or unspoken), cultivating the relationship" between the pair, he said.
In a statement after the sentencing, a spokesperson for DSTA said Hsu was suspended after DSTA referred the case to CPIB for investigation.
"He has since resigned and is no longer an employee," said DSTA, adding that it expects "all officers to maintain high standards of integrity and professionalism" and "does not tolerate any misconduct that could undermine the integrity of the procurement system".
Tan's case is pending.
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Hsu Yee Chern, 52, was jailed for four weeks on Wednesday (Jul 2). The Singaporean pleaded guilty to two charges under the Official Secrets Act, with another two charges taken into consideration.
DSTA said he has resigned after an initial suspension.
The court heard that Hsu was involved in evaluating bids or tenders from vendors seeking projects with DSTA, a statutory board under the Ministry of Defence (MINDEF).
DSTA handles the design, development and maintenance of defence buildings and infrastructure for MINDEF, including construction and renovation works for Singapore Armed Forces camps.
DSTA is responsible for the procurement process, including looking for vendors and evaluating bids when there is a need for construction or renovation of infrastructure such as Stagmont, Clementi or Sungei Gedong Camps.
Hsu had joined DSTA in 2005 as an electrical engineer and was later promoted to programme manager.
In 2014, Hsu came to know his co-accused, 46-year-old Singaporean Tan Kian Meng and project manager at John Holland Electrical & Service (JHES).
At the time, JHES worked on a construction project for DSTA at Pulau Tekong. After the project was completed, the pair continued to meet at Tan's invitation for meals and drinks, as Tan wanted to maintain "a good working relationship" with Hsu.
They met at JHES' office, bars and restaurants, and were sometimes joined by other JHES staff.
Hsu attended at least five dinners on Tan's invite to bars and seafood restaurants between 2020 and 2022, with bills between S$300 and S$1,405.
He did not know that Tan claimed the expenses for these dinners from JHES.
Hsu knew that he had to avoid being in a position where there could be a potential conflict of interest, and that he should not be overly friendly with vendors outside of work.
He claimed that he did not declare the dinners to DSTA as he attended them in his personal capacity as Tan's friend, either to celebrate staff birthdays or "simply to catch up".
In November 2022, a whistleblower informed DSTA that Hsu had a close relationship with JHES staff, including Tan. They had frequent drinking sessions and Hsu was treated to dinner by JHES, and had assisted JHES to secure projects with DSTA, particularly army camp projects.
DSTA referred the complaint to the Corrupt Practices Investigation Bureau (CPIB) for investigation a month later.
THE S$3 MILLION STAGMONT PROJECT
Investigations revealed that Hsu was involved in the Stagmont Project, a construction project managed by DSTA for electrical power upgrading and renovations for an office building at Stagmont Camp sometime before March 2019.
Around Mar 12, 2019, Tan initiated a discussion with Hsu over text about project requirements. Hsu had obtained confidential information that DSTA's budget for the project was S$3 million.
Tan sought advice from Hsu on the specifics of the tender requirements and how to quote, so he could cater to the project's requirements.
In reply, Hsu advised Tan not to quote more than S$3 million. In so doing, he had "communicated directly" the budget information to Tan, said the prosecution.
As a result, JHES was able to decide if it should bid for the project based on the estimated profit margin.
JHES eventually tendered for the Stagmont Project, submitting a quotation of S$2,615,000.
Around April 2019, Tan asked Hsu for updates on DSTA's evaluation of project tenders.
Hsu was part of the tender evaluation team and had confidential information that JHES' tender price was too low and that the tendered cable size was smaller than normally used by other contractors.
He conveyed this to Tan, but did not tell him that JHES would have a chance to advance to the tender interview stage. The company ultimately did not advance to this stage and the project was not awarded to JHES.
The prosecution sought four to six weeks' jail for Hsu. The drinking sessions and undeclared free meals were "inappropriate and part of the quid pro quo (whether spoken or unspoken), cultivating the relationship" between the pair, he said.
In a statement after the sentencing, a spokesperson for DSTA said Hsu was suspended after DSTA referred the case to CPIB for investigation.
"He has since resigned and is no longer an employee," said DSTA, adding that it expects "all officers to maintain high standards of integrity and professionalism" and "does not tolerate any misconduct that could undermine the integrity of the procurement system".
Tan's case is pending.
Continue reading...