Tuesday, July 22, 2008 8:00
Why so silent, PAP Town Councils?
In Andrew Loh, Main Stories, Top Story • 3,958 views • 41 Comments
Andrew Loh / Deputy Editor
In this time of record inflation, rising costs and record fuel prices, why aren’t the Town Councils, especially the PAP-run ones, doing anything to help residents cope?
The PAP town councils together have more than $1 billion in their sinking funds, with millions invested in shares and corporate bonds, as reported in the media recently.
The Hong Kah Town Council, for example, “has about $150 million in its sinking fund, with one-third invested in government bonds returning 2 to 3 per cent. Another third is in short-term fixed deposits with returns of 1.5 to 3 per cent, with the rest handled by fund managers.” (Straits Times, Dec 2, 2007)
According to Creative Technology’s (CT) annual report, Holland-Bukit Panjang Town Council (HBPTC) was listed as one of the majority shareholders with 530,000 shares currently valued at about $3.2 million. (The Online Citizen).
One then would have to ask: What are these investments and their returns or yields used for, if not to help residents in time of need? In all the reports that I have read, none have clarified what these returns are for.
Isn’t it about time that the PAP town councils do something for residents? (I refer only to PAP-run town councils as the two opposition ones do not invest their funds, as far as I am aware.)
In our earlier article on TOC, we reported that:
The Sembawang Town Council has $269 million in its funds – with $237 million going into its Sinking Fund.
Aljunied TC has $93 million – with $67m going into its Sinking Fund.
Bishan-Toa Payoh has $139m – with $96m going into its Sinking Fund.
Opposition-held Hougang Town Council has $14 million in its Sinking Fund.
The only thing which the town councils have done so far in terms of helping residents cope with rising inflation is to freeze their Service and Conservancy Charges for this year. (See here). The Government has also chipped in with ad hoc subsidies.
I think more can be done.
For a start, the town councils should reduce their penalties for late payment, at least for this year. They should also reduce the S&C amount itself. It is quite evident that the PAP town councils are in a position to do so.
The consequences of not being able to pay your S&CC can be very dire indeed.
If you can’t pay your S & CC, you are slapped with late payment charges of up to 2% per month – which is comparable to that charged by credit cards companies. Why is this so?
Next, you will get a legal letter of demand, followed by a court appearance if you still can’t pay, where you may be slapped with a fine. Reportedly, there can be hundreds in court on a single day. If you can’t pay, how can you afford to pay the fine?
Will you end up in jail?
Thus, reducing S&CC will go some way in helping Singaporeans cope with the record inflation now being experienced and ease Singaporeans’ minds. The fact that the town councils have remained prominently and conspicuously silent says a lot.
Why should town councils still be collecting so much money, stash them away in so-called investments, make reasonable yields, and not use these to help residents?
As Mr Wang said:
It’s as if the town council were a fund manager or a unit trust. Except that you as customer are never going to get a cent back. They took your cash, and used some of it to maintain the physical facilities of your neighbourhood … and the rest of your money is for the town council to go and play with, according to their own rules! And you still have to pay them. Every month.
As if these were not enough, Minister of State for National Development, Grace Fu, said in September 2007 that “according to feedback to HDB, 81 percent of residents said they were willing to pay more for service and conservancy to enjoy the new flat designs. About half of them said they were willing to pay above S$10 more than the usual rates.”
This was followed by reports in May, 2008, that Aljunied Town Council was looking to increase S&C charges for ‘the dirtiest precints’, despite the fact that residents there already pay one of the highest rates of S&CC. The town council have since clarified that they have no intention of raising the S&CC.
The PAP’s election manifesto was titled “Staying Together, Moving Ahead”. Now is the time for the PAP town councils to live up to that declaration and show Singaporeans that they mean what they said.
After all, MPs of the town councils should show not only leadership but also empathy and understanding. Continuing to collect so much from residents and then stashing the money away in ‘investments’ which returns or losses are not readily-made known only shows the insensitivity that the town councils have towards the plight of residents.
PAP town councils should go the extra step and adjust S&C charges downward.
Singaporeans are not the piggy banks with an endless supply of funds which the town councils can keep coming back to for more and more money to “invest” – especially at this time when Singaporeans are anxious about rising cost and record inflation.
Read also:
You give your money to your town council so that it can play the stock market – By Mr Wang
Taking the easy way out? – By Leong Sze Hian & Andrew Loh
$1 billion in town council funds: What are they used for? – By Leong Sze Hian
Uniquely Singapore, F1 or F9: Residents willing to pay more for service and conservancy? – By Leong Sze Hian
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41 Comments
Pondefecator
Samtom
The resident will be in big trouble if town councils operate like Singapore Inc; maximise return; build a big fat reserve; pay high salary and give peanut to residents. The priorities and objectives are in wrong order.
kf
My line of thought is similar to yours. However, I am not sure anyone noticed. Firstly, there was no proactive accountability (meaning the town councils should have come forward to give their accounts). Secondly, even when asked by the public, I am getting the impression that your questions will (again) not be answered, or answered completely (at this point, I have chosen to suspend my judgement if there is high handedness to ignore public concerns). 1 billion is ‘not a lot these days’ (:-)), and I have no issues with us paying good salaries, but the accountability AND PERFORMANCE levels (INTEGRITY AND ETHICS, AS FAR AS I AM CONCERNED IS A GIVEN, IN THE LOWEST SALARY SCALES) must be there.
James
this is singapore
mugabe
folks, wake up your ideas! your multi-million $$$ mps don’t stay in hdb anyway. who cares if peasants are getting the raw end of bargain there….
Tew NS
They are charging us too much and provide lousy service. Lifts are littered, and a lot of rubbish uncollected. They employ cheap labour, and make huge profits. The previous estate mgmt by HDB under area office is much better than TC. I want to scold, vulgar words but there is no freedom of speech here. My surname is Tew, actual surname !!
The SS
Why so slient you asked? Because they CAN !
By now we can figure out their attitude.. the electorate keep voting them in and they do what they please and not only not Reducing S&C fees, they invest in stocks with no apparent accountability on the returns ! Even fund managers have a benchmark on their performance.
Shouldn’t these profits (if any now) be given back in terms of rebates?
What are the risk management policies in place, if any?
Who sits on the risk management committee?
Who are they Accountable to?
aygee
Interesting piece, Andrew, and clearly, an ongoing question, having read Sze Hian’s piece in the past.
in a perfect world, i would trust that the profits made on investing those sinking funds are reported, open for public scrutiny, and put back to use among the residents – be it in buying new cleaning equipment, giving a pay raise to cleaners, etc etc. There could be a referendum for the public to choose how to spend the money made.
Considering that even the most solid unit trusts/funds have suffered terribly over the last year due to the poor-performing stock markets, this could be the worst time for any member of the town council to talk about the funds they “manage”.
Can we get this out of blogosphere and challenge individuals/organisations for a response? put it in the ST Forum, get a journalist/columnist to write about it? an opposition MP to bring it up in Parliament?
yet another example of Singapore Inc at work – rather than focusing on their original objective, they’re there to make money.
and, as they say, in times of plenty, people wont be asking, but in times of hardship, more and more will be asking tougher questions.
lim
The job to assist citizen is supposed to be at cdc rather than town council level.
At town council level, the job is like mcst to manage the property and make sure costs are managed. Otherwise duplication of services = more waste.
For role of cdc, can check out:
http://www.cdc.org.sg
Daniel
Isn’t it amazing that how the town council works is also how Temasek and GIC works ? Take your money, give back some, and leave majority for them to enjoy and play with ? Just ask LKY.
Wake up, Singaporean ! Your heart-earned money go into this greedy coffers who has no conscience to keep asking money for their loss and keep their luxury lifestyle.
blackfeline
dogs cannot make their own decision without master’s approval mah…
As sung by MC Hammer:
thng, thng, thng, thng,
You can’t touch this
LOL,
Kaffein
aygee
Daniel, its Singapore Inc.
GIC and Temasek are business entities, so its ok for them to make money.
But its the other govt depts and utilities companies, from Singapore Power, to PUB, to SBS, to MRT, to LTA..when they turn into profit centres and money management depts, rather than public service depts, thats where i worry where their energies are spent.
Daniel
aygee,
Singapore Inc has not extended to business company, it also extends to major aspect of government’s service because the government is testing citizen’s patience knowing that the people can’t do anything even if they lose all the money and continue to rise charges. Town council is just following the footstep of Temasek and GIC, investing money for themselves rather than for Singapore. For them to gain is for us to lose. We should be familar with that. As long as people did not fight for the right, people will continue to be oppressed.
Needless to say, those who handle the investment money will get higher bonus and performance just like a fund manager. But for our uniquely coffers, they will get money whether they gain or lose. If investment make money, tell the people we are elite, and if investment lose money, tell the citizen we are government that make honest mistake.
Daniel
aygee,
this is the kind of corruption that will happen if other countries follow Singapore’s footstep. Monopoly and nepotism running company with government officials that engage in collusion. Only that there is no such thing as monoply and nepotism when it comes to Singapore government. In many democratic countries, this is corruption of highest order. That is why we should never tied governing with business entity. Legal corruption officially practice and widespread here, and it is only that MSM brush it as culture of practice of uniquely Singapore and therefore consider it a non-issue, and use it as excuse of nation-building.
How are we different from Qing Dynasty ?
Aiyah actually answer very simple what – siren majority is siren so town council also siren lor.
Tak keh si ho peng yew long long no need to tua swey siah, quiet quiet can already. Only if majority got cow peh then need to speak louder dan boh.
Actually I belive most of you’all can afford bah gui kor S and C charges, sup sup sui. Why comprain? No need comprain what, you can tahan one. Dose really got no money one won’t come to hinternet to comprain – they can only comprain at coffeeshop.
Last time coffeehouse, now only coffeeshop.
So how? Boh Bian Act lor… Just tow zeng gae gae chio chio macam boh dai gee, aw beh store power macam Dragon Ball Z… fooooosh!
Tew NS
Lim Leng Hiong,
Ni kong mak kai ?
Wizard
Once in a while a skeleton escapes even when the cupboard door is locked, the room doors bolted, the house itself is securely sealed, with guards patrolling the perimeters, the operation HQ monitoring the house through CCTV and finally the biggest brother of all watching all that goes on. But very quickly and efficiently all attention is redirected in destroying the skeleton or clothes are put on the skeleton so that people don’t see the decaying and rotten bones. Now, in order the really understand the number of skeletons in the cupboard one has to first overcame the multi-level of security protecting the cupboard. However the people involved in protecting the house are themselves deeply involved with the skeletons it would need a major force to get to the skeletons. And when that happens, we mere humans will be overwhelmed beyond….belief.
Daniel
Lim Leng Hiong ,
you are RiGhT. Cannot TaHAn also must tAhaN thank to 66.6% PAP supporters. Even though talk-rot-SingSong minister says that he also pay ERP although the ERP of $300 is only 0.2114% of his monthy pay ($1,700,000 annual and not even including his bonus and perk yet ! ) whereas for layman earning $5000 monthly, it is 6%. Lim Swee Say, so be it. No wonder it is Lim’s Sweet Say, of course must be sweet words la for hims lay. Million dollar for him cannot say also must say, siong, siong for himself.
http://blueheeler.wordpress.com/2008/06/23/lim-swee-say-says-that-he-pays-erp-when-driving-to-work-too/
Aunt, Uncle complain using
“Last time coffeehouse, now only coffeeshop.” illegal gathering of five, mata will catch.
whereas we do it in 24 hours international CoffeeMall aka http://www.onlinecitizen.com ” laki PoWerFuL. No pathetic RulE and PErMissIon need apply. Gahmen see also ScAre, sCaRE because cannot suga suga tell lies, half-truth or bullshit anymore, wait kena hum-dum just like disgraceful old-man with his inaccuracy. Making honest mistake also kena shoot now. Gather as many as possible, drink coffee and complain to delight ToGeTheR. World-wide friends also can join in and TalK tAlK and SinG sOnG.
Uncle, Aunt, come and join in the fun in the new CoffeeMall. No need to run faster than Mata anymore and invite to their unforgettable tea session.
To Tew NS:
Sollie I not very hinclusive.
Note to self: Must use less pasar hokkien when speeking Singrish. Gau Dim!
To Daniel:
Whoa your “layman” horready got fi thousand ah? I have half happy already.
Actually your point is corright but even so we also boh bian. If we want gahmen to listen, the majority cannot siren mah… if majority siren and gahmen dowwan listen who salah? If only a few people cow peh and most people still very lurb lurb gahmen den is no use one.
Only gots two way – either the few people cow peh all very tuah hoot one, or many many normal-normal people all cow peh same time. Udderwise not gahmen salah – if peoples not unite den cannot blame gahmen dun care.
Daniel
Lim Leng Hiong,
put $5000 monthy to make gahmen look good otherwise it will be more than 6% and gahmen will cow peh for InTerNEt RegULaTioN. Give gahmen some faCE FAce la otherwise they will start to sHiT and fArT EvERyWheRe on the NeT, LaKi SMelLY oNE.
xtrakm
If the monies are invested in equities, the silence is understandable… Most equities have been whacked since Nov’07. With the present inflation, the monies they put into bonds are not doing too well too.
I will not be surprised if their total returns in YTD 2008 is quite negative… and therefore nothing to boast about. So the best thing for them to do is to keep as quiet as can be.
They will hope the $1M bounty for Mas Salamat, Beijing Olympics in August & F1 in September will distract Singaporeans for a while.
Hopefully, by then the recovery in the global economy will be in sight …
aquarius
The same goes to NTUC. Membership funds invested in supermarkets & other businesses at the expense of members’ union fee. After PAP Town councils issues, we should address the issues of NTUC respresenting the labor force of each and everyone of us. It’s time to speak up and not remain to be silent! Let the opposition MPs to bring this up in Parliament. Are the MPs deserved to be paid $millions salaries? Think about it!
Daniel
“The same goes to NTUC. ”
We should ask too why the fish NTUC is so expensive and high-maintenance compared to ShengSiong. NTUC is using tax-money and yet unable to perform and compete generally with ShengSiong which doesn’t use our tax-money.
Something is wrong with the equation.
This shows very much of boasting by government saying that they are the best when there is simply no competition. Now how fair is fair price from NTUC ?
On the whole, which has fairer price, NTUC or Sheng Siong when it comes to necessity ?
Lai CF
Andrew,
WHy don’t you do an investigation for the new 50-storey Pinnacle@Duxton Plain?
Who will pay for all those replacement – lifts, water tanks, electrics, etc – after end-of-life say in 15 years time?
Will all 1,828 famailies got to fork out the complete costs – say S$100-million – to replace all those mechanical & electrical services – durign their 99 years leasehold?
Think carefully people.
The higher the building, the more expensive will be the vertical transportation system, fire protections sytem, etc.
And that S$1-billion “sinking funds” may not be sufficient to pay for all those HDB blocks through their 99-year life span.
You are “cursed” if you live in DBSS HDB blocks as they are wholly private sector and you may nto get that subsidies from Town Council, but run like a private estate with your own sinking funds.
Just watch out for Future Trend when HDB goes wholly private, People.
Wizard
Accidently, came across page H6 in today’s ST. I was really amused. $1500 fine upon appeal by prosecution for not haing a exit permit for a guy who returned to do NS. Another gets 3 months prison.
The same, prosecution drops other charges against TT Durai and he too was given the same three months for fruad and a national level scandal.
Judge triples jail term for man who punched cabbys. Agree with this but according to the papers cabby is a public transport worker suddendly. I though they claimed that taxies were not public transport when they raised the prices.
The poor blind folded lady is sure getting buggered..
izard
Our highly paid competent Minister who cannot be replaced has blunddered again. Does he know what’s happening?. Thanks Ms Budak. This is really funny and pathetic at the same time….So much for transparency, now its about shielding information, just like the TCs.
are they partysan
I wonder people who are working in town councils are they partisan or non partisan?
Alan Wong
The way I see it is :
This is how the PAP treat us like animals or cows to be exact, so that they can milk us dry to pay in part for their ministers salaries.
As far as I am concerned, I was not told that my S&C fee was to be used as a contribution for them to speculate in shares.
So on the other hand in the years to come, PAP town councils would have no valid reason to ask for any further increase until the funds for the shares are depleted since they have such a surplus.
muimuihong
Since transport system is operated by private sector ‘public’ service,
I would hope to see solid competition from players from overseas to come in here and do provide even more real private sector competition and make our operators show how good they can really be.
Competition will drive fare prices down to the benefit of the public transport system users like those who are not rich enough to own a car or have million dollar salaries.
More Competition!
Solid competition!
Only the really competent can be left standing.
No one owes no company any profit.
They got to earn it the honest way.
If they cannot, or are simply incompetent,
they must be ’sacked’ by the people.
Waliao! All so daring ya! Want to rebel issit? Hahahahaha…
People make money you green eyes issit? Hahahahahaha…
Tomorrow go short Creative lah!
The Singapore Daily » Blog Archive » Daily SG: 25 Jul 2008
[...] Inflation – TOC: Why so silent, PAP Town Councils? [...]
There is a whole world of difference let’s say… between Toa Payoh Lorong 1 and Toa Payoh Lorong 8 (opposite ward portion)
Jason
hi all, u can talk all u want, by the next election the majority will still vote for PAP
Accountability_und_Transparency
Hello TOC,
May i propose the Quote of the Day :
“I suggest you study the annual accounts of the town council to ensure the funds are properly used. Check whether the arrears for service and conservancy charges are piling up, and eating into its reserves. Make sure enough money is put aside for cyclical maintenance. In your walkabouts check on the estate maintenance.”
Who should / could / check on all the other town councils? Maybe we should all take goh’s ‘creative’ recommendation.
Would Mr Leong Sze Hian please be elected to perform this for the People please? Thanks. hee hee.
Leong Sze Hian
Dear Accountability and Transparency
I am only an ordinary Singaporean
So, can only try to write …
“Check whether the arrears for service and conservancy charges are piling up, and eating into its reserves” – It may mean that the town council is more compassionate in not charging those in arrears – 2% per month, legal letter, charge in court, fine, jail if cannot pay? How much reserves are enough? Always keep accumulating more?
Cheers
Leong Sze Hian
Accountability_und_Transparency
Dear Mr Leong,
Its my pleasure, no worries ;)
And thanks for providing your views of the phrase in the news.
I think it sounds safe to say that I support goh’s idea to check on Town Councils.
Since goh suggested checking on Town Councils, I like to ask how should this process get underway?
There are so many Town Councils. Which is the Biggest of them all? Which one to start auditing 1st?
Unemployment has risen even as national day approaches.
I mean, the effort to check on ALL Town Councils could potentially add quite a number of jobs for accounting, legal professionals and even students needing to earn some spare cash.
Thus, I am glad goh mentioned that. I hope he can be the sponsor for a “Audit Town Council” movement as well as “Keep Town Councils on their Toes” movement. No Town Councils should not be enjoying the benefits of the recommended suggestion of goh.
okie, have a nice Weekend !
Regards
Transparency & Accountability
“Walk the Talk or Walk like a TalkingCork.com”
tiredsingaporean
36) Leong Sze Hian on July 27th, 2008 4.22 pm
Dear Mr Leong, would appreciate if you can check especially for the total no. of those ppl so far been charged in court, what is the total amount of fines they collected, and how many of those unfortunate ppl has been send to jail todate. I am sure alot of these affected victims in singapore would like to know the answers.
alky
Technically doesn’t this mean every resident under a PAP TC that lost money on the toxic products are investors of such products also?
Can we then say that it is not safe to put our money with the PAP TCs as they are not guaranteed also according to our dear PM?
Leong Sze Hian
Dear tiredsingaporean
Have been asking these questions over the years, but since my letters were not published, still no answers
Cheers
tiredsingaporean
Dear Mr Leong,
I am very sad to hear that. The citizens have to go through all these threads from these TC taking the whole lot of them up to court and slapped them with additional fines whereby they are already finding dificulties in paying up their SCC charges while these people can have $billion in their sinking funds to gamble away. what sort of country do we have here, this is our taxpayers monies.
I have a few questions for the town councils.
1.) Who are your bosses?
2.) Can you emphatically declare that you are above board in the way you conduct your responsibilities.
3.) If so, then please explain why some business establishments can occupy sheltered linkways meant for residents to travel from one point to another without getting wet in the event that it rains. To compound this irregularity, they actually riveted the tables to the newly laid tilings. Are you blind to this or you going to tell me it’s none of my business.