A political website apologised yesterday to Singapore’s prime minister for a posting that alleged nepotism in the appointment of the premier’s wife as head of a state-linked investment firm.

Temasek Review Emeritus - well-known for its anti-establishment articles - said the article was without basis.

Prime Minister Lee Hsien Loong’s lawyer had on Sunday written to the political website’s editors demanding an apology and the removal of the post published on Feb 16.

“We unreservedly apologise to Prime Minister Lee Hsien Loong for the distress and embarrassment caused to him by this allegation,” Richard Wan, one of the website’s editors, said in an online post yesterday.

“We admit and acknowledge that this allegation is false and completely without foundation,” he added.

“We have removed the article and the comments in response to the article and undertake not to make any further allegation to the same or similar effect.”

Wan also acknowledged information contained in the lawyer’s letter which showed that Lee was not involved in the decision-making process to appoint his wife Ho Ching as the chief executive of state investment firm Temasek Holdings.

In his letter, Lee’s lawyer Davinder Singh had said it was “publicly known” that Ho’s appointment in January 2004 was made “on merit and through proper process”.

Temasek Holdings is one of two Singapore state investment firms and had a portfolio worth S$193 billion (US$153 billion) for the financial year ended March 31, 2011.

In a note that accompanied the formal apology, the website urged its readers to refrain from making similar allegations, which it said would be deleted.

International human rights organisations have regularly criticised Singapore’s leaders for using financially ruinous libel suits to silence critics and political opponents.

Singapore leaders however have countered that the lawsuits are necessary to protect their reputation.

Publications like The Economist, Bloomberg and Financial Times have previously paid damages and apologised to the Lee family for publishing similar allegations.

- AFP