Channel NewsAsia
Updated: 10/23/2012 04:59 | By Channel NewsAsia

High Court dismisses S’pore US$4b IMF loan case

High Court dismisses S’pore US$4b IMF loan case

High Court dismisses S’pore US$4b IMF loan case

SINGAPORE: The High Court has dismissed a legal bid by opposition politician Kenneth Jeyaretnam to stop Singapore’s US$4 billion pledge to the International Monetary Fund (IMF).

In April, Singapore made the pledge to bolster the IMF’s war chest to tackle the ongoing eurozone debt crisis.

The Monetary Authority of Singapore had previously responded to the issue, stating that Article 144 of the Constitution "does not apply to lending by Government" but "prevents the Government from borrowing without the authority of Parliament and the President’s concurrence".

Mr Jeyaretnam, who filed the application in July, will have to pay costs. He had argued that the loan violated Article 144 of the Constitution, as no approval for the pledge was sought in Parliament or from the President.

However, the court maintained that the consent of the President is not required — as Article 144 only operates when the Government takes a loan or gives a guarantee.

The court also found that Mr Jeyaretnam did not have the standing or ability to make the bid, as he was not personally affected by the extension of the loan.

—CNA/ac

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