SINGAPORE – Foreign Affairs Minister Vivian Balakrishnan and his wife rented the black-and-white bungalow at 31 Ridout Road so that their children and grandchildren will be under one roof.

Addressing Parliament on Monday, Dr Balakrishnan said that the bungalow, which has a gross floor area of 824.3sq m, was able to accommodate his extended family.

In 2018, two of his four children were already married and he had two grandchildren, with more expected, said Dr Balakrishnan.

“We decided to try to bring the entire extended family together under one roof while the grandchildren were still young,” he told the House.

His comments came after the release of the Ridout Road report on June 28. It detailed the Corrupt Practices Investigation Bureau’s (CPIB) investigation into his as well as Law and Home Affairs Minister K. Shanmugam’s rental of state properties from the Singapore Land Authority (SLA).

The CPIB found no preferential treatment given to both ministers and their spouses, and no disclosure of privileged information in the process of the rental transactions. There was also no evidence to suggest any abuse of position by the ministers for personal gain, the report said.

Senior Minister and Coordinating Minister for National Security Teo Chee Hean, who was asked by Prime Minister Lee Hsien Loong to do a separate review, said in his report that no conflict arose in Dr Balakrishnan’s case because his official responsibilities did not include overseeing SLA.

Dr Balakrishnan’s wife had come across 31 Ridout Road in September 2018 when she visited a friend and saw the “for lease” sign prominently displayed, he said on Monday. She called the number displayed and reached a property agent from Colliers International Consultancy and Valuation.

Before this, they had also done their “due diligence” by going through the State Property Information Online website, he added.

At that time, the property had been vacant for five years before two unsuccessful bids were made below the prevailing guide rent in 2018. 

Dr Balakrishnan said the property was in an “advanced state of disrepair” and extensive repairs were necessary to make the house liveable.

For example, the bungalow had a leaky roof and holes in the wooden floors “so you could see downstairs from upstairs”.

It also had a termite infestation, including termite mounds in the garden, and there were snakes in the garden as well as inside the house, he added.

He also noted that there were three adjacent properties that were undergoing comprehensive rebuilding works.

Dr Balakrishnan said that his family “went into this with our eyes open”.

The rental was initially $19,000 a month, more than the guide rent for the property. In 2022, his wife requested and was granted a renewal for three years’ lease, with a revised rental of $20,000 a month.

They undertook improvement works that included installing air-conditioning and upgrading the toilets. A pavilion was also built, with approval from the Urban Redevelopment Authority, as the work may have resulted in a change to the facade of the conserved building.

Dr Balakrishnan told the House that he had spent more than $200,000 on these improvement works. “We also know that all this money that has been spent cannot be recovered when the tenancy expires.”

He said the rental process was “not a good example of strenuous negotiations” because his family accepted the asking rent stipulated by the property agent and the limited scope of works proposed by the managing agent.

“I should say that when I conduct foreign affairs, I am a far sharper negotiator,” he said.

Dr Balakrishnan also said that he and his wife were “acutely aware” that although they were dealing with a property agent, the ultimate counterparty to the tenancy agreement was the Government.

“At all times, we were scrupulously careful to ensure that everything was above board.”