The Supreme Court made the ruling, stating that the payment will comprise of SGD 100,000 in general damages and SGD 50,000 in aggravated damages.
"While the cases indicate that the damages awarded to Prime Ministers who have been defamed have been substantial, some in excess of SGD 300,000, none of them involved a defendant of modest standing. The comparatively low standing of the defendant warranted a substantial reduction," a judgement from Justice Lee Seiu Kin stated.
Roy charged that the Government did so via its investment arms, Temasek Holdings and Government Investment Corp (GIC).
City Harvest leaders were convicted recently for mismanagement of SGD 50 million donated by church goers to promote gospel by building a career of a leader's wife.
The blogger was ordered by the court to no longer publish any assertions that Lee was misappropriating CPF monies.
The judge held that allegations of corrupt and criminal conduct could have severe repercussions, especially if levelled against the leader of a country.
"In the present case, the allegations that the plaintiff had criminally misappropriated monies paid by citizens to a state-administered pension fund was one of the gravest that could be made against any individual, let alone a head of government" the judgement read.
It struck at the heart of one's personal integrity and severely undermined the credibility of the target, and was a grave defamation that a fair-minded person would react with indignation," it said.
The judge also concluded that the defendant's conduct was "malicious" as Ngerng knew his blogpost claims were false and injurious to Lee, but still published it.
"It was likely that the defendant had cynically defamed the plaintiff in order to increase viewership of the blog," the judgement read.
In July, Lee himself took the stand for about six hours for the hearing in the court.
His lawyers asked for "a very high award of damages", citing "malice and continuing attacks" by the blogger.
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