SINGAPORE: Reform Party Secretary-General Kenneth
Jeyaretnam is proceeding with his legal bid to stop Singapore's
US$4-billion pledge to the International Monetary
Fund.
His case was heard in the High Court chambers in a
pre-trial conference on Tuesday morning.
In April, Singapore made the pledge to bolster the
International Monetary Fund's war chest, as emerging economies
responded to a request by IMF chief Christine Lagarde for at least
US$400 billion in new money to draw a line under the euro zone debt
crisis.
The loan will be part of the Official Foreign Reserves (OFR) held
by the MAS.
Mr Jeyaretnam said he filed an application, in his private capacity
as a citizen, for a quashing order on 6 July.
He contends that the loan violates the Constitution of Singapore
under Article 144, as no prior approval for the pledge was sought
in Parliament or from the president.
Among other things, Article 144 states that "no guarantee or loan
shall be given or raised by the Government except under the
authority of any resolution of Parliament with which the President
concurs".
The Monetary Authority of Singapore had previously responded to the
issue, stating that Article 144 "does not apply to lending by
Government" but "prevents the Government from borrowing without the
authority of Parliament and the President's concurrence".
Article 144 was enacted "to prevent a profligate Government from
borrowing" to fund its spending and putting past reserves at
risk.
State Counsel Aedit Abdullah has until August 1 to submit his
responses, following which, Mr Jeyaretnam's counsels -- Louis
Joseph and M Ravi -- have two weeks to respond.
The case will be heard again in chambers on August 21.
Following the Tuesday's hearing, lawyer M Ravi said he has
instructed lawyers in New York to take out an injunction in the US
courts to "freeze the IMF account in relation to the Singapore
pledge".
- CNA/wm