COMMISSION OF INQUIRY TO INQUIRE INTO MISMANAGEMENT OF UNION FUNDS BY PRO-COMMUNIST LEADERS OF THREE UNIONS

2.32 p.m.

Mr Jek Yeun Thong: Mr Speaker, Sir, honourable Members will recollect that seven trade unions had their registration cancelled by the Registrar of Trade Unions on 30th October, 1963. The ground for cancellation was that these unions were being used for purposes inconsistent with their objects and rules and had taken part in Communist united front activity prejudicial to the good order and security of the State. Before cancellation, these seven unions were given two months' notice on 28th August, 1963, to show cause why their registration should not be cancelled. Shortly after serving notice, official information was received by the Registrar of Trade Unions that leaders of three of the seven unions, namely, the Singapore General Employees' Union, the Singapore Business Houses Employees' Union and the Singapore Bus Workers' Union, in furtherance of their plan to stir up political unrest and to further the Communist united front campaign against merger and Malaysia, had met on the 1st and 3rd of September and decided to withdraw large sums of money from the bank accounts of the unions they controlled to implement their illegal plan.

Honourable Members will recall that on the 3rd of September, His Excellency the Yang di-Pertuan Negara proclaimed the dissolution of the previous Assembly and everybody was aware that general elections would take place soon. In order to protect the funds of the unions, which rightly belong to the workers, from being misused, the Registrar immediately advised the banks to withhold withdrawal of any funds from the accounts of these unions. Despite this action by the Registrar, two unions, namely, the Singapore General Employees' Union and the Singapore Business Houses Employees' Union, however, managed to withdraw from the Bank of China $30,000 from their accounts between the period of 5th and 12th of October, 1963. In one instance, the Singapore General Employees' Union withdrew a sum of $13,500 on 12th October, 1963. When this information came to the knowledge of the Registrar, he sent an urgent memorandum requesting the acting President, the Secretary-General and the Treasurer of the union to see him on 14th October to explain why the withdrawals were made.

On 14th of October, the three union officials accompanied by their legal adviser, Mr T. T. Rajah, called at the Registrar's Office. They admitted they had withdrawn three sums of $4,500 from the union's bank account with the Bank of China on 12th October, 1963. They explained that the money was handed over to Mr T. T. Rajah to pay Messrs. S. T. Bani, Fong Swee Suan and Sandra Woodhull, the so-called champions of the workers, as a form of ex-gratia reward for services rendered to the unions in the past few years. According to them, the payments were authorised by the union's Executive Committee at a meeting held on 10th October. An official note was then sent on 16th October by the Registrar to the three union officials and to Mr T. T. Rajah warning them not to make the payments as they would be acting contrary to the objects and rules of the union and that such payments are illegal under the law. In his reply to the Registrar, on 17th October, Mr T. T. Rajah stated that as Messrs. Fong Swee Suan, S. T. Bani and S. Woodhull had never asked for a cent from the union and as they were not consulted on the payment of an ex-gratia allowance, he had advised the union to set aside the sum held by him for disbursement for other purposes. In the same reply, however, Mr T. T. Rajah did mention that Messrs. Fong Swee Suan, S. T. Bani and S. Woodhull were given an allowance of $200 per month for pocket expenses. They said they fought for the workers and in the end we found that they were given $200 a month plus $4,500 bonus for making the life of the workers miserable and unhappy and for making more than 1,000 workers unemployed. Say what you like about Devan Nair - workers' thief or aristocrat of the workers but - he has not taken a single cent from any union.

On the 4th of November, the Registrar again wrote to Mr Rajah directing him to pay the sum of $13,500 into the union's bank account. In his reply on the 5th of November, Mr T. T. Rajah informed the Registrar that he had handed the full sum of $13,500 to the union between the period of 18th and 22nd of October. The Registrar then wrote on the 8th of November directing the three union officials to put back the sum of $13,500 into the union's bank account. The three officials informed the Registrar on the 13th of November, through Mr T. T. Rajah, that they had acted on his advice and had distributed the $13,500 to those members of the union who were unemployed. To satisfy himself that the money was properly and legally utilised, the Registrar wrote to the three union officials again on the 27th of November asking them to call at his office on 29th of November so that he could ascertain exactly how the money was used. The three union officials failed to turn up on the appointed day. The Registrar again wrote to them on 30th of November fixing a further meeting on 3rd December to give them another opportunity to explain their action. The three union officials again failed to turn up and the Registrar had, therefore, no alternative but to report the matter to the Police on the 4th of December, 1963. The police immediately commenced their investigations and discovered that the General Secretary of the S.G.E.U. had absconded. Why? Is it because he has got something to hide?

Honourable Members will see from what I have recounted that here is a clear example of how unions under the control of a group of unscrupulous, anti-national, pro-Communist elements can sabotage genuine attempts by the Government to protect trade union funds in the interests of the workers. From the various complaints received from members of this union, Government has ample evidence which indicates that unions controlled by pro-Communist elements had utilised their funds to support the Communist united front campaign against merger and Malaysia.

In view of the concern over the misuse of union funds and the disappearance of the union official connected therewith, the workers and the public in general would naturally like to know the actual state of the financial affairs in these unions. The Government therefore consider it essential to set up a Commission of Inquiry to inquire into the mismanagement of union funds by the pro-Communist leaders of these three unions. It is proposed to appoint Mr Tann Wee Kian of the Legal Service to be the Commissioner with the following terms of reference:

To inquire into and examine the financial transactions of the deregistered Singapore General Employees' Union, the Singapore Business Houses Employees' Union and the Singapore Bus Workers' Union from 1st of April, 1962, to date and to report thereon with particular reference to:

(a) Every payment which appears to be unauthorised by the rules of the trade union or contrary to the provision of the Trade Unions Ordinance, Chapter 154;

(b) The amount of any deficiency or loss which appears to have been incurred by the negligence or misconduct of any person; and

(c) The amount of any sum which ought to have been, but is not brought to account by any person.

To further safeguard the interests of the workers from being exploited by the anti-national pro-Communist elements in the trade unions, and in view of the urgency of the matter, the Government proposes to introduce a Bill to amend the existing trade union legislation. This amending Bill will be introduced and taken through all stages on a Certificate of Urgency on the 18th of December, 1963. The reason for bringing in the Bill on a Certificate of Urgency is obvious. The Assembly will be adjourning shortly and unless the Bill is brought in and passed on this basis, there will be no effective legislation to prevent trade union funds from being dissipated illegally and dishonestly. However, to give Members an opportunity to study and comment on the Bill, I propose, with your permission, Mr Speaker, Sir, to circulate it to Members today. I will deal with the provisions of the proposed Bill when it comes up for consideration by the House.

Copies of the Bill handed in to the Clerk and distributed to hon. Members.

Mr Speaker: Members can now ask questions provided the questions are phrased in the form of questions and are relevant to the subject matter of the Ministerial statement.

If there are no questions, the Clerk will now proceed to read the Orders of the Day.