Income-Allianz deal: NTUC central committee did not know about capital reduction plan, says Desmond Tan

CONCERNS FROM MPS

Mr Tan was responding to questions from two MPs on the NTUC leadership’s knowledge of the deal.

Nominated MP Raj Joshua Thomas pointed to an Aug 5 statement from NTUC president K Thanaletchimi and secretary-general Ng Chee Meng stating that Income would only be able to “continue to fulfil its social mission” if it has access to additional resources to scale up.

“So this begs the question – whether Income had briefed the NTUC leadership of the proposed initiative to reduce share capital,” Mr Thomas said.

“I think that Income has a bit of explaining to do,” he added.

Non-Constituency MP Leong Mun Wai presented similar questions during the close to four hours of debate, asking if NTUC’s leadership was briefed on the full details of the transaction, including the capital reduction plan.

Culture, Community and Youth Minister Edwin Tong told parliament in a ministerial statement on Monday that the deal had been blocked by the government.

Under the proposed transaction, which was announced on Jul 17, Allianz would have acquired a majority stake in Income. The announcement triggered a public outcry, with concerns over whether Income would continue its social mission.

Mr Tong said the government has decided that the deal in its current form would not be in the public interest.

While the government will not allow the proposed transaction to proceed, it is open to new arrangements if the concerns highlighted are fully addressed, said Mr Tong.