Nearly S$140 million (US$109 million) held in Singapore bank accounts belonging to the son of convicted Indonesian palm oil tycoon Surya Darmadi will remain under seizure for another 12 months, despite a court finding significant procedural lapses by the Corrupt Practices Investigation Bureau (CPIB).
District Judge Shen Wanqin ruled that the funds should remain frozen pending High Court proceedings, saying there was still a reasonable basis to believe most of the money could be proceeds of offences linked to Surya’s corruption and money-laundering activities.
The funds were seized from four accounts held by Bill Darmadi in May 2023 after CPIB investigated whether he had helped retain criminal proceeds belonging to his father.
Surya, owner of PT Duta Palma Group and chairman of Darmex Agro Group, was sentenced in Indonesia in February 2023 to 15 years in prison and fined 41.9 trillion rupiah, or about S$3.71 billion, for corruption and money laundering.
Singapore investigators found substantial fund flows from Indonesian companies linked to Surya into Singapore-incorporated firms Rich Asian and Palmbridge, before money was transferred into Bill’s accounts.
However, the court found that CPIB failed to report the seizure within the required one-year deadline and had no lawful authority to continue controlling the funds between May 17, 2024, and March 24, 2025.
The judge also found that Bill’s right to be heard had been infringed after CPIB failed to notify him of its 2025 extension application or provide him with the supporting report.
Despite the breaches, Judge Shen ruled that the procedural failures did not justify releasing the funds once the seizure had subsequently been brought under court supervision.
About US$8.7 million could not currently be traced to funds linked to Surya’s criminal conduct, but that amount will also remain frozen as it is subject to separate High Court proceedings.
The High Court hearing is expected to take place at a later date.
