SINGAPORE AIRLINES LTD

Mr J. B. Jeyaretnam asked the Minister for Finance whether the Singapore Airlines Ltd had offered any inducement or gratification to any official of the Middle East Airlines for the leasing of SIA planes to the airlines.

Dr Richard Hu Tsu Tau: Mr Speaker, Sir, I am not aware that SIA has offered any inducement or gratification to any official of the Middle East Airlines (MEA) for leasing SIA planes to the airline.

If Mr Jeyaretnam has any information that SIA has done anything wrong, he should report the matter to the police or the CPIB so that the complaint can be properly investigated.

Mr Jeyaretnam: Is the Minister not aware that there is a judicial investigation in Lebanon over this whole contract between the Middle East Airlines and Singapore Airlines and there is the possibility that officers there may be charged with corruption? Secondly, would the Minister explain how is it that the original contract was revised so substantially to bring down the prices and charges made by Singapore Airlines in the original contract? Was Singapore Airlines overpricing itself in the first contract?

Dr Richard Hu Tsu Tau: I may or may not know anything about what happens in Lebanon. But as far as I know, no charges have been levied against SIA, and that is the important issue. Nor am I privy to SIA's pricing practices.

Mr Jeyaretnam: May I ask whether the Minister is really not aware of the reports that had appeared of the judicial investigation in Lebanon against officers of the Middle East Airlines?

Dr Richard Hu Tsu Tau: I have no special interest in this area unless some Singapore entity is charged.

Mr Jeyaretnam: May I ask whether Singapore Airlines had been asked to give the Government, because it is a Government company, an explanation as to how this revision of the first contract came about?

Dr Richard Hu Tsu Tau: As I said, I do not run Singapore Airlines. You should ask them directly if you are interested.