January 30, 2003
`Inexpensive' may prove costly in litigious
Singapore.
Eric Ellis, Singapore
THE sensitive little petals of Singapore are
feeling it again.
The leading state-owned bank in a country whose political and business elite
have the world's most impressive record at winning libel actions - albeit ones
fought in their own courts - is taking on US magazine BusinessWeek.
It's the city state's latest foreign press libel stoush and this time the case
centres on the use of the word "inexpensive". That's how BusinessWeek
described, in passing, a loan offer made by the Singapore government-controlled
DBS Group to a planned management buyout of the government-owned steelmaker,
NatSteel.
The apparently offensive word was contained in an otherwise favourable article
last September for Ho Ching, the eldest daughter-in-law of political strongman
Lee Kuan Yew, about how she's reforming Singapore's raft of companies controlled
by the state company, Temasek Holdings.
At the time of the perceived libel, Ho's Temasek ultimately controlled both DBS
and NatSteel. Temasek and DBS have a common chairman, Suppiah Dhanabalan, a
long-time political ally of Lee.
The DBS suit, fought by prominent libel lawyer and an MP in Lee's ruling
People's Action Party, K. Shanmugam, alleges the magazine "injured [the
plaintiffs'] credit and reputation" and brought DBS Group and DBS Bank into
"public scandal, odium and contempt".
Singapore's elite, about whom it's said see defamation in a harsh light, have
fought, and beaten, The Asian Wall Street Journal, Time, Asiaweek and Bloomberg,
among other international names respected for their accuracy and authority. A
common link among these mastheads is that each has operations in Singapore and
are thus subject to Singaporean penalties.
But a libel action is new ground for BusinessWeek, the magazine selected by
Singapore's leadership to portray its supposed reform of its state sector. Its
correspondent was given preferred access to Singapore's leaders, who promoted a
shake-up at Temasek, and defended the suggestions of nepotism that followed Ho's
appointment as the most senior executive in Singapore Inc.
The powers-that-be seemed pleased enough with BusinessWeek's June articles,
which were subsequently reproduced in the state-controlled media. The September
article, essentially a follow-up to June's favourable coverage, earned a libel
suit, however.
Unlike Bloomberg, which last year quickly settled a $500,000 action brought by
Ho's husband and father-in-law, as well as Singapore Prime Minister Goh Chok
Tong, BusinessWeek said it will "deny each and every allegation made in the
statement of claim" by DBS Group and DBS Bank.