Government’s Response to Academic Paper

The Government is undertaking a review, following the circulation of a National Bureau of Economic Research (NBER) working paper on property purchases by individuals whom the authors classified as civil servants working in agencies connected to rail planning. 

NBER Working Paper 

The paper reported a statistical association between these individuals and their home purchases near planned MRT stations before the station locations were publicly announced. The pattern was observed for MRT station announcements in or before 2011, and not after 2011. 

We take the assertions in the paper seriously. The statistical patterns reported in the paper are a concern. But statistical patterns do not by themselves establish whether any individual officer actually had access to non-public information on MRT station locations at the relevant time, or whether such information influenced a property purchase. For example, information or speculation about planned MRT lines and stations may already be in the public domain or used to market new property developments. An officer may have purchased a unit in such a development for reasons unrelated to any non-public information. These possibilities do not remove the need for scrutiny, but underscore why each transaction must be examined carefully before any conclusion is drawn. 

Government’s Review 

That is why the Government is undertaking a review to assess whether there was actual misconduct. We are identifying property purchases made between 2007 and 2011 — the period highlighted in the paper — by officers who were involved in rail planning at that time, and where the properties were close to locations subsequently announced as MRT stations. As these transactions took place some time ago, we will need time to retrieve the available records and examine the circumstances of each case. If we find evidence that an officer used non-public information to make a property purchase for personal benefit, the case will be referred to the Police for further investigation. 

Public Service Rules and Safeguards 

The Public Service has long had rules and safeguards to prevent officers from using non-public information for personal benefit. Public officers are required to declare their property purchases. There are also controls over access to sensitive information, as well as established channels for reporting suspected wrongdoing.  These rules and safeguards have been strengthened over time. Today, officers with non-public information that may be relevant to a proposed personal transaction – whether involving property, vehicles or financial instruments – must declare this and obtain approval before proceeding. 

The Government expects all public officers to uphold the highest standards of integrity. Where there are grounds to suspect that an officer has misused non-public information for personal benefit, the matter will be investigated and appropriate action taken. At the same time, conclusions of wrongdoing must be based on evidence and the facts of each case.