Singapore's opposition tries to block big loan to IMF Slug: Singapore IMF loan Date: 19 July 2012 Reporter:

Girish Sawlani Radio Australia I !R" Singapore#s highest $ourt has agreed to hear a $ase ai%ed at stopping the go&ern%ent 'ro% handing a ( )illion *S dollars loan to the International Monetary Fund+ !he appli$ation to the ,igh -ourt has )een 'iled )y the leader o' the opposition re'or% party+ .enneth Jeyaretna% argues the %o&e is un$onstitutional )e$ause it wasn#t appro&ed )y parlia%ent and the president+ /ut the Singaporean authorities $lai% the $onstitutional 0uestion doesn#t apply )e$ause they say the IMF loan doesn#t $o%e under the )anner o' go&ern%ent lending+ Girish Sawlani 'ro% Radio Australia has the report+ !12! In April this year3 the Monetary Authority o' Singapore agreed to pro&ide the International Monetary Fund with a ( )illion *S dollars $ontingen$y loan+ !he pledge was part o' e''orts to )oost the IMF#s resour$es3 at the re0uest o' its $hie' -hristine 4agarde+ /ut one $riti$ says the loan )y Singaporean authorities in&ol&es the potential use o' the $ountry#s reser&es 5 'ro% sa&ings a$$u%ulated 'ro% ta6es on residents+ !he se$retary5general o' the opposition Re'or% 7arty .enneth Jeyaretna% says the loan is un$onstitutional+ J18AR1! AM -lip 1 9Male3 1nglish:: ;It starts with arti$le 1(( o' the $onstitution3 whi$h says no loans or guarantees shall )e gi&en or raised without parlia%entary or presidential appro&al+ In this $ase3 the parlia%entary re$ords show no parlia%entary appro&al has )een sought+ Sin$e Fe)ruary3 I#&e written two letters to the Finan$e Minister3 0uerying opa$ity in the )udget and the true state o' our reser&es+ And in April3 I wrote to the Finan$e Minister3 as<ing whether parlia%entary or presidential appro&al has )een o)tained+ I ha&en#t re$ei&ed a response+= ,e also wrote to Singapore#s 7resident !ony !an3 who re'erred hi% to the Monetary Authority o' Singapore or MAS whi$h is o&erseeing the loan+ !he authority has yet to respond to Radio Australia#s re0uest 'or an inter&iew+ /ut earlier this %onth3 it released a state%ent to lo$al %edia3 saying the ( )illion dollar pledge did not &iolate the $onstitution+

!he Authority argues arti$le 1(( does not apply to lending )y go&ern%ent 5 instead3 it pre&ents the go&ern%ent 'ro% )orrowing without appro&al 'ro% the parlia%ent and the president+ !he MAS says the loan will not lead to a redu$tion in reser&es )e$ause it#s part o' the $ountry#s "''i$ial Foreign Reser&es3 where)y the IMF would ha&e to i%%ediately repay the loan i' and when Singapore re0uires the 'unds+ !he $ase has now )een )rought to the ,igh -ourt )y the Re'or% 7arty#s .enneth Jeyaretna%3 in his $apa$ity as a pri&ate $iti>en 5 and re$ei&ed a hearing this wee<+ J18AR1! AM -lip 2 9Male3 1nglish:: ;?e will <now one o' two things+ 1ither the un$onstitutionality o' this is upheld and the loan is #ultra &ires#+ "r i' it#s not upheld3 then we <now 'irstly3 there are no $ontrols on how the go&ern%ent loans the reser&es+ And se$ondly we#ll also <now that the role o' the 16e$uti&e 7resident is $o%pletely redundant )e$ause the 16e$uti&e 7resident is supposed to a$t as the sa'eguard on the reser&es ++ )ut we already <now he has no powers in relation to !e%ase< and GI-#s in&est%ents+ "ur so&ereign wealth 'unds $ould 'ritter away our e''orts down to >ero3 and he $ould still sit in his o''i$e doing nothing+= ,e also argues that ( )illion *S dollars is a huge a%ount 'or a $ountry with a relati&ely s%all population+ J18AR1! AM -lip @ 9Male3 1nglish:: ;?e#&e got only @+2 %illion $iti>ens here+ ?hat we are proposing to lend to the IMF is %ore than the go&ern%ent allo$ated to health in 2012 5 %ore than twi$e the a%ount o' the health$are su)sidies+ And (0 ti%es what the go&ern%ent allo$ated to help needy 'a%ilies in Singapore+= 1ugene !an is an assistant pro'essor o' law at the Singapore Manage%ent *ni&ersity3 and a no%inated %e%)er o' parlia%ent+ ,e says Mr Jeyaretna%#s $ase is plausi)le+ !A -lip 1 9Male3 1nglish:: ;!he 'a$t that this %atter is )e'ore the $ourts3 and assu%ing that it would go to trial would ena)le )oth sides 5 the go&ern%ent and appli$ant3 Mr .enneth Jeyaretna% to arti$ulate their positions+ 8ou <now3 )ased on legal prin$iples and all poli$y $onsiderations+ And o' $ourse that would then also help to $lari'y the $onstitutional pro&isions+ So I thin< all said3 you <now3 that whate&er the intent o' the $ase is3 you <now I thin< it#s good 'or the &iews to )e put 'orward 5 'or the $ourts to deter%ine the a%)it o' the parti$ular $onstitutional pro&ision in 0uestion+= ,e says the $ase would also ser&e to rein'or$e the separation o' powers )etween the go&ern%ent and the $ountry#s Audi$iary+ !A -lip 2 9Male3 1nglish:: ;It would also ensure that Singaporeans who are $on$erned with $ertain de$isions on poli$y o' the go&ern%ent3 you <now3 ha&e an a&enue )y whi$h they $ould $hallenge it3 in a pro$ess that would )e seen as de%o$rati$ in way that would engender greater $on'iden$e and trust within the whole syste% o' go&ernan$e that we ha&e in Singapore+= !he $ase will )e heard again on the 21st o' August+ BBB