Bloomberg LP has agreed to pay damages and costs for defaming Prime Minister Goh Chok Tong, Senior Minister Lee Kuan Yew and Deputy Prime Minister Lee Hsien Loong in an article "How Far can Singapore Inc. Get Out of Business?" by Patrick Smith. The article appeared on Bloomberg’s website, Bloomberg.com, on 4 August 2002, and in the New Sunday Times of Malaysia on 11 August 2002, and was sent by Bloomberg to its subscribers worldwide. Bloomberg has since removed the article from its website.

In an apology on its website and in today’s New Sunday Times, and which has also been sent by Bloomberg to its subscribers, the international news organization said that it recognized that the article was understood to mean that PM Goh failed to discharge his duties as Prime Minister because he appointed Mdm Ho Ching as Executive Director of Temasek not on merit but for some corrupt motive to promote the interests of the Lee family. It also accepted that the article accused SM Lee and DPM Lee of procuring Mdm Ho Ching’s appointment and of nepotism.

In the apology, Bloomberg admitted that these allegations are false and completely without foundation, and unreservedly apologized to the Singapore leaders for the distress and embarrassment caused by the allegations. It also undertook not to repeat these or similar allegations, and to pay damages and costs for the libel.

The apology was published in response to a letter of demand dated 14 August 2002 from lawyers acting for the Prime Minister, the Senior Minister and the Deputy Prime Minister which threatened legal proceedings for the Internet defamation unless Bloomberg apologized and agreed to pay damages and costs.

In that letter, the lawyers pointed out that if Bloomberg and Patrick Smith had referred to publicly available information, or had made enquiries, about the circumstances relating to Mdm Ho Ching’s appointment, it would have been clear to them that Mdm Ho Ching had been appointed on merit and through proper process, that PM Goh had agreed to Mdm Ho Ching’s appointment on this basis, and that neither SM Lee nor DPM Lee had appointed her, nor procured or influenced her appointment. The lawyers said that by publishing the article without exercising due care, Bloomberg and Patrick Smith had acted maliciously.

Bloomberg has until 28 August 2002 to propose an amount for damages and costs. If the proposal is not accepted, the question of how much compensation and costs the Singapore leaders are entitled to will be decided by the Singapore courts.

Ong Keng Yong

Press Secretary to Prime Minister

25 Aug 2002