The Attorney-General's Chambers (AGC) has released a statement outlining the reasons behind the charges pursued against Woffles Wu.
Wu was charged with abetting his employee Mr Kuan Yit Wah to give false information to the police about traffic offences involving speeding in 2005 and 2006.
The AGC noted that it was Mr Kuan, not Wu, who had given the false information to the police and said that there was no evidence of Wu giving payment or gratification to Mr Kuan.
Mr Kuan, 82, was given a stern warning and Wu was fined the maximum $1,000, under the Road Traffic Act.
The Straits Times reported that the AGC said that Wu could not have been charged under the Penal Code for intentionally perverting the course of justice because he committed his offence before the relevant section in the Code was put into practice in 2008.
The AGC said the charge would reflect the seriousness of the criminal act and situation and would also depend on whether there was a specific law dealing with the criminal act, or if the prosecution would have to rely on general legislation like the Penal Code.
As there was no major accident or injury, the AGC said it was considered appropriate to charge Wu under the Road Traffic Act noting that this was how offences of this nature were generally dealt with prior to the Penal Code's 2008 revision.
The Straits Times had reported that Law Minister K. Shanmugam said that the $1,000 fine appeared to be within the norm of usual sentences and had also dismissed claims that Wu got a "lenient" fine because he is wealthy.
Mr Shanmugam said this was factually inaccurate and that nobody is above the law.