SINGAPORE: The government had no prior knowledge of a proposed deal between Income Insurance and German insurer Allianz, said Minister for Law K Shanmugam on Wednesday (Nov 6).
Mr Shanmugam, who is also Minister for Home Affairs, said this in response to what he termed “misperceptions” that the government had at first “blessed” the deal, but reversed its decision following public feedback.
His comments on Facebook were also made in reply to former NTUC Income CEO Tan Suee Chieh, who a day earlier had credited the minister as having a “pivotal role” in the government’s blocking of the transaction, which would have seen Allianz acquiring a majority stake in Income.
Mr Tan “has perhaps overestimated my role and influence”, Mr Shanmugam wrote.
The minister went on to say that the Ministry of Culture, Community and Youth (MCCY) and most of the government did not know about the deal, until it was publicly announced in mid-July.
He added that since NTUC Enterprise (NE) – the parent company of NTUC Income – is a private company and that Allianz is a listed company, deals of such commercial sensitivities cannot be disclosed to third parties, except to regulatory bodies, as doing so would be illegal.
“In this case, both NE and Allianz respected and followed the law,” he said.
The deal, announced on Jul 17, triggered a public outcry, with concerns over how Allianz, a large multinational company, would not be fully aligned with the original mission of NTUC Income, which is to serve the needs of low-income workers.
Lawmakers discussed the deal in parliament in August, before Culture, Community and Youth Minister Edwin Tong announced in October’s sitting that the government was stopping the deal.
“At the time (in August), it was made clear, that the deal was still under consideration and subject to regulatory approval. That was repeated at the subsequent October sitting – that the deal has not been approved,” said Mr Shanmugam.
“There was no ‘reversal’ of any decision – no decision had been made in the first place,” he said.
Mr Shanmugam added that while relevant agencies had initially taken a positive view, it was before full facts were made known to them.
“When the facts were clear and had been shared, as part of the decision-making process, the decision was that the deal cannot go through,” he said.
“So, the assumption and comments that the government as a whole must have known and blessed the deal, before reversing its decision – these are all conjectures, based on a misunderstanding of what the law is and how a proper system functions, with confidentiality; and ignores the facts that have been set out in Parliament.”
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