I don’t know what is worse:

1) having a “small exposure” to a worthless fund

2) realising that a single town council is hoarding over $178 million in cash.

It does not meet the eye, if you ask me.

Why invest $250,000? What is $250,000 in comparison to the hoarded amount of $178M?

I feel someone in the TC has secretly invested this sum to line his own pockets.

Proof to me, and to Singaporeans that this is not true!

2) gemami on November 21st, 2008 10.20 am

It does not meet the eye, if you ask me.

Here is my understanding from the report, total sinking fund $178M, 35% can be invested, some of the money was placed with Lion Global Investors to invest.

Lion Global Investors likely used the fund to invest in several financial instruments to build a diversified portfolio. One of the investment was $250K Lehman Brothers.

Correct me if I missed something.

No one will believe what they say now. From now onwards, they have absolutely zero credibility in the people’s eyes.

Only way for them to save themselves now is to establish an Independant Committeee of Enquiry to audit the TC accounts and present the findings to the people.

Part 1
See? a simple explanation also cannot give.

The town council did not purchase any Lehman Brothers funds directly.

One of the town council fund managers, Lion Global Investors, has informed us it has a small exposure to Lehman Brothers bonds.

What is exposure? Is it purchase of the structured products or not? ‘Exposure = Purchase” is it not?

It invested $250,000 in the bonds.

Why go round the mulberry bush to admit that there was investment?

This amount accounts for only 0.14 per cent of the town council’s total sinking funds.

There is no need to downplay the investment. It is not the sum invested. It is a blatant breach of trust that the residents have placed in the hands of the TCs.

Part 2
I have read the forum letter and it is clear for all to see that it is a sneaky letter to say the least.

The letter started off painting the backdrop by which the exposure is susequently measured against. It does not hide the fact that a loss was made due to, what MM has described as ‘walking in with eyes open’, risky investments which is totally unnecessary.

For the part of the one who granted the taking of such risks, there must now be accountability because no matter how small the loses may seem to be, it is still the people’s money.

Or is the TC trying to tell us something else?

That the money came from earlier profitable investments and therefore do not belong to the residents? And that is why there is no need for consultation? And that there is no need to reveal investment strategies that had gone wrong? That it does not have to account for the losses?

Now, why are we getting a forum letter that describes Tanjong Pagar’s situation? Is it to cover up the larger mess of the other estates? Is TP the least affected by the Structured Products fiasco?

How about the rest of the GRCs and SMCs doing likewise?

Finally, the main and most important question is still left unanswered. How come TCs are focusing more on investments and making money more than it should be taking care of the town and estates?. Why?

So, will such a small exposure result in higher fees per month?

Loosing the public’s money is inconsequential as it represents a small fraction
of the invested fund. No apologies to the residents deem necessary. More loses
may be uncovered at a later date.

I wonder what it’ll take to make the PAP Town Councils to be accountable
to the people?

I wonder when will they humble themselves and learn from
Mr Low Thia Kwang of the Houggang Town Council who is able to earn 6% on the average over the last three years?

No. 6 James “So, will such a small exposure result in higher fees per month?”

No, they won’t. It’s just a small exposure, a tiny drop, so no impact. At most, they will leave things in a state of disrepair until the next GE is just around the corner.

Lion Global Investors,
that’s not the point. We are asking if you understand the prospectus and the product well enough to invest in it.

So Question is :
DO YOU UNDERSTAND THE MINIBOMB PRODUCT BEFORE YOU INVEST IN IT ? DO YOU CONSIDER IT HIGH RISK OR LOW RISK WHEN INVEST ?

So stop beating around the bush !