Project Manager Jailed for Seeking Confidential Defence Tender Info

A project manager was sentenced to four weeks in jail for illegally obtaining confidential information related to a government tender. Tan Kian Meng, aged 47, served as the project manager for John Holland Electrical & Service (JHES) when he solicited sensitive details from Hsu Yee Chern, a former employee of the Defence Science and Technology Agency (DSTA). The verdict was delivered on October 3, 2023, after a District Judge dismissed Tan’s request for a fine.

Tan pleaded guilty to two charges under the Official Secrets Act for receiving confidential information from Hsu, who was a programme manager at DSTA. Two additional charges of a similar nature were considered during sentencing. The information Tan received involved the financial status of a competing company and DSTA’s internal evaluation findings for another project.

Hsu was previously sentenced to four weeks in jail on July 2, 2025, after resigning from DSTA following an initial suspension. DSTA is a statutory board under the Ministry of Defence (MINDEF), responsible for the design and maintenance of defence infrastructure, including construction and renovation works for the Singapore Armed Forces.

Details of the Case

Hsu, who joined DSTA in 2005, had a history of evaluating bids from vendors like JHES. He first met Tan in 2014 during a construction project at Pulau Tekong. Their relationship developed over the years, with Hsu attending multiple dinners hosted by Tan between 2020 and 2022 at various venues. Despite knowing DSTA’s policies against conflicts of interest, Hsu accepted meals from Tan, claiming these gatherings were friendly occasions.

One significant project involved power upgrades and renovations at Stagmont Camp, with DSTA’s budget set at S$3 million (approximately USD 2.3 million). In March 2019, Tan approached Hsu via text for guidance on the tender requirements. Hsu advised Tan not to quote more than S$3 million, allowing JHES to determine its bid based on projected profit margins. JHES eventually submitted a tender for S$2,615,000.

After the tender submission closed, Hsu, as part of DSTA’s evaluation team, informed Tan that JHES’s tender price was deemed too low and that their proposed cable size was smaller than typical. Although this information could have benefitted JHES, the company ultimately did not progress to the next stage of the tender process.

On November 21, 2022, a whistleblower alerted DSTA to the close ties between Hsu and JHES employees, including allegations of frequent social outings. The complaint prompted a referral to the Corrupt Practices Investigation Bureau on December 14, 2022, leading to Tan’s arrest on January 18, 2023.

Legal Proceedings and Sentencing

During the trial, the prosecution recommended a sentence of four to six weeks’ imprisonment for Tan, emphasizing the need for general deterrence. Deputy Public Prosecutor Ronnie Ang stated that both Tan and Hsu’s actions compromised fair competition for DSTA projects and risked undermining value in procurement processes.

Tan’s defense team argued against a jail term, seeking a S$4,000 fine instead. They contended that the information Tan received was not highly sensitive and that JHES did not win the tender, making any potential gain speculative. The defense claimed that Tan acted as a private citizen and did not abuse his position.

In response, the prosecution maintained that a fine would send the wrong message regarding the severity of the offense. District Judge Victor Yeo determined that a jail term was appropriate, citing the sensitivity of the information exchanged and the impact on competition for government projects. He concluded that the communications between Tan and Hsu were not isolated incidents and warranted a custodial sentence.

This case highlights the importance of maintaining integrity in government procurement processes and the potential consequences of unethical behavior within the industry.