LONDON — Mulberry’s owner, the Malaysian billionaire Ong Beng Seng, has become entangled in a gifting scandal in Singapore and was charged on Friday with obstruction of justice and abetment in the country’s State Court.
He is alleged to have showered Singapore’s former transport minister, Subramaniam Iswaran, with gifts, trips and free tickets to sports events, according to the Singapore Attorney General.
Earlier this week, Iswaran was sentenced to a one-year jail term for obstructing justice and accepting gifts valued at more than $300,000. He is the first senior government official in the past five decades to face imprisonment.
The minister was accused of taking gifts from Ong when the two had official dealings with Formula 1 racing. Ong has owned the rights to the Singapore Grand Prix since 2008.
Court documents allege Ong arranged for Iswaran to take a private jet from Singapore to Doha in December 2022 in a trip valued at $7,700.
Ong is also alleged to have arranged a one-night stay for Iswaran at the Four Seasons Hotel in Doha valued at $4,737.63. Other gifts included a business class flight from Doha to Singapore, valued at $5,700. The latter was allegedly billed to Iswaran, but paid for by the Singapore Grand Prix, court documents said.
Ong was first arrested in July 2023 and later released on bail of $100,000. His bail has been extended, and the case has been adjourned until next month. Ong has not yet entered a plea, according to local media.
If convicted of abetting a public servant, Ong could be jailed for up to two years, fined, or both. He could be jailed for up to seven years, fined, or both, if convicted of abetting and obstruction of justice.
Singapore regards itself as one of the cleanest governments in the world, and its ministers are well-paid. The nation’s last cabinet minister charged with graft was Wee Toon Boon, who was found guilty in 1975 and jailed for accepting gifts.
In a statement this week, Singapore Prime Minister Lawrence Wong said, “Those entrusted with public service must uphold the highest standards of integrity and their conduct must be beyond reproach. This is absolutely vital and nonnegotiable.”
Ong Beng Seng, Jeff Koons, Christina Ong and Michel Bernardaud in New York City.
Patrick McMullan via Getty Image
Ong and his family run one of the most prominent business conglomerates in Southeast Asia. Their interests span hospitality, with 38 hotels across 15 countries. They operate brands including Four Seasons, Hard Rock, InterContinental, Marriott and Six Senses.
They also own real estate, and luxury retail, and control Formula 1 in Singapore.
Ong’s wife, Christina Ong, sits at the helm of the luxury retail group Como, which is the parent of Club 21.
Club 21 is the local retail partner of a slew of luxury brands including Calvin Klein, Giorgio Armani, Balenciaga, Dries Van Noten, as well as Dover Street Market Singapore.
The Ongs also own Mulberry via their investment vehicle Challice Ltd., which holds a 56 percent stake in the company. Mike Ashley’s Frasers Group has a substantial minority holding in Mulberry, while the remaining shares are quoted on the London Stock Exchange.
Ong’s charge came at a time when Mulberry became Mike Ashley’s latest target for acquisition. The controversial businessman behind Frasers Group, which holds a 37 percent stake in Mulberry, on Monday, made a cash offer of 83 million pounds for the loss-making company, promising to restore it to profitability.
The Mulberry board on Tuesday rebuffed the offer and gave its full backing to Andrea Baldo, Mulberry’s new chief executive officer, and reiterated its plan to raise 10.75 million pounds in fresh capital. It said both moves will restore Mulberry’s fortunes and deliver value to shareholders.
Mulberry declined to comment on Ong’s charges.
As reported, in the 12 months to March 30, Mulberry group revenue fell 4 percent to 152.8 million pounds due to a challenging second half, “with ongoing macro-economic uncertainty impacting consumer spending in the luxury retail sector.”
The underlying loss before tax was 22.6 million pounds, compared with a profit of 2.5 million pounds in the previous period. The reported loss before tax was 34.1 million pounds compared with a profit of 13.2 million pounds in the previous year.
