Just like thousands of Singapore investors who have lost money on failed Lehman-linked structured products, the Holland-Bukit Panjang Town Council may lose its S$8 million investment. – Channel NewsAsia.
From the Straits Times:
TWO town councils – Holland-Bukit Panjang and Pasir Ris-Punggol – have about $12 million invested in troubled structured products.
These products include Lehman Minibonds and Merrill Lynch Jubilee Series 3.
Senior Minister of State (National Development and Education) Grace Fu gave this update in Parliament on Monday, in response to a question from Nominated MP Eunice Olsen.
Since Dec 1 last year, the amount that town councils can invest in non-government stocks, funds or securities has been capped at 35 per cent of the sinking fund.
Holland-Bukit Panjang invested about 6.7 per cent of its total funds available for investment in the structured products, and Pasir Ris-Punggol, about 2.6 per cent.
The sinking funds are used to pay for long-term or cyclical expenditure, such as replacing lifts, pumps and pipes, re-roofing, and repairing and redecorating blocks.
The funds are also used to pay for lift upgrading, so that residents pay a smaller percentage of the total lift upgrading cost.
The sinking fund is distinct from the operating fund, which is used for short term expenditures.
Ms Fu said town councils need to invest their funds prudently so that the accumulated funds are not eroded by inflation.
The investment guidelines – which her ministry has no plans to change – seek to achieve an optimal balance between reasonable returns and financial prudence, she added.
She noted that investments in stocks, funds or securities must be on the advice of a qualified person, such as an investment adviser holding a licence under the Securities and Futures Act, and an approved bank or a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act.
The 16 town councils manage more than $1 billion in sinking funds.
the answer is in my heart.
the answer given by those pap people might not be always true.
beware.
Oooo, this issue again. Town Councils invested In High Risk Products with OUR Money which we put into S & C Funds for the Maintainence of Our Estates Instructure. =D Tat about sums it up right? Previously i already wrote about this issue. This is the exact description of wat S&C is used for
“The service and conservancy charges collected by the Town Council monthly are for the maintenance and enhancement of the common areas e.g. cleaning of common corridors. This does not include collecting and removal of refuse.”
I dun read Investment in High Risk Products anywhere. Anyway, let’s just clarify a bit since it’s not possible tat just by paying the little bit of Money Per Mth by every Household in the GRC will be able to accumlate so much money right? But then again, have we been paying too much S&C such tat every mth there’s surplus which accumlate over so many yrs amt to so much?
Well maybe we should congratulate the leaders of the Town Council for doing Such a Good Job in Investing Our/My Money. So this means I dun need to pay more S&C right? Huh, wat do u mean i still need to pay, Doesn’t the Billions in Funds Belong to the Pple who Paid S&C Dilligently Mthly? Do u mean to say tat Its My Money Being Used to Invest but the Profit Dun Belong to Me? Huh? Simi Logic?
“TWO town councils – Holland-Bukit Panjang and Pasir Ris-Punggol – have about $12 million invested in troubled structured products.”
Ai ya 12m only… Tat’s only 12,000,000 ma… 3 x LKY in 1 yr can liao right? Or is it 4? Nvm la…
“Since Dec 1 last year, the amount that town councils can invest in non-government stocks, funds or securities has been capped at 35 per cent of the sinking fund.
Holland-Bukit Panjang invested about 6.7 per cent of its total funds available for investment in the structured products, and Pasir Ris-Punggol, about 2.6 per cent.
The sinking funds are used to pay for long-term or cyclical expenditure, such as replacing lifts, pumps and pipes, re-roofing, and repairing and redecorating blocks.
The funds are also used to pay for lift upgrading, so that residents pay a smaller percentage of the total lift upgrading cost.”
Can invest 35%. But only 6.7% and 2.6% in troubled products. So if this 6.7% and 2.6% = S$0 is my Loss ah? Then if Earn whose Profit? And hor, can use to pay for lift upgrading so tat residents pay a smaller %?? Y Got Profit, I Still Must Pay? Risk I tahan, Profit I no Enjoy ah? Simi Logic?
“Ms Fu said town councils need to invest their funds prudently so that the accumulated funds are not eroded by inflation.”
Ai yo, LKY say liao lo…
“Please remember, when you get higher returns than what is the average in the markets, that means you are incurring higher risk. So on that message I leave you to ponder about your next purchase,” he said.
Mr Lee said many educated and young investors went in with their eyes open and banks will offer compensation according to what is fair. ”
I think our Dear MM very right lo… Tsk Tsk, our Town Council OrbiGood… But >_<~~~ The Money they Lost is Our/My Money right? …
“She noted that investments in stocks, funds or securities must be on the advice of a qualified person, such as an investment adviser holding a licence under the Securities and Futures Act, and an approved bank or a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act.”
Haiz, Investment Adviser… So sad, the IA also give wrong Advise. Somemore is approve by MAS. Ai yo… y like tat… Town Council also kanna Cheated by the Investment Adviser aka Relationship Manager and invested in these Products which r Approved by MAS… Tsk Tsk…
Well, We/I Pay S&C which is not being used fully resulting in Surplus which Max of 35% is invested whereby Risk is Beared by Us/Me but Profits not Enjoyed by Us/Me.
Our Dear MM says “You Walk in with Your Eyes Open”
So ahh… Can I dun pay S & C anymore?
http://informationreadbyme.blogspot.com/2008/11/lucky-is-67-26-and-not-35.html
can still remember the 2008 national day rally speeches of how our kind government is actually trying to help singaporean to cope with rising costs by helding back some of the increases on service and conveyance charges.
They still have the intention to increase service and conveyance charges despite with so much town council funds on hand.
don’t complain lah singaporean, u give them blank cheque to do whatever they want. not happy? election time just throw them out loh, that is with or without good candidate.
Losing residents’ hard earned savings is a very serious matter. Who ultimately will be held responsible for the loss? The MPs, financial advisors, banks or the government which authorised the town councils to make such investments? I don’t know the answer. Residents deserve an immediate answer for they have placed their entire trust in their town councils and should not be made to bear the loss, whether substantial or not because they never authorised such investments.
Fellow citizens of Singapore, look what Top-Talent and World-Class has brought us to – Million dollar losses.
Is someone going to say, “Those losses are nothing, only the combined annual wages of a few of us.”
As what most netizens will label it: EPIC FAIL. Period.
“Fellow citizens of Singapore, look what Top-Talent and World-Class has brought us to – Million dollar losses.”
I think you underestimate our world-class governing talent. Do you think they care to call themselves world-class by losing just only millions ? No, they call themselve world-clown by losing billions.
Ya this is just another one of the many PAP’s screw-ups and it just make me boiled. We have given them too much trust and they have actually betrayed our trust in them all these years. One wonders what other dirty cobwebs will be revealed if we ask for a detailed BOI? I am not surprised GIC/Temesak is il the red to the tune of a few billion tax-paying surplus reserve money. You must know this money belongs to the the govt but belongs to the people who earns it by going to work 8 to 5 and also from our fathers who toiled day and night for a better Singapore.
My take is that Town Councils have being over-collecting from residents. Their last raise was only less than 5 years ago and now they have accumulated close to $2 billion in conservancy fees and this is growing by the millions daily due to regular intake and investment gain if any. They should now think of reducing such fees as I see many of my neigbhours struggling to pay so many bills monthly. This is not right especially when we have $2 billion extra fees in the town council coffers. This should be brought up in PArliament and any HLP protest.
Town Councils should not have at least 35% exposure to the risky equities market as the money belongs to the people – they toiled day and night to earn it and not to pay for some councils to squander it in the stock market. Any excess overtime should be returned to the residents or used to offset owed conservancy fees for those who are jobless or poor now.
Town Councils should also think of ways to return back the losses even if it is to “borrow” from the other govt coffers. As mentioned, the money does not belong to the govt but the people. It is hard earned money coughed out from those who toiled as a bus driver, factory worker, office executive, hawker, restuarent helper.
/// During a six-year period starting from 2002, the return on its investments totalled about S$24 million. As of March 31 this year, it also has a total kitty of S$118 million. ///
Assuming there were zero dividends from all its investments for the entire 6 years, and assuming that the fund size in 2002 was S$94 million (118 – 24), the returns worked out to be 3.86% per year for the 6 year period (or total gain of 25.5%). This is a miserable and pathetic return compared to the STI which had gained 98.3% for the 4-year period (31 Dec 2003 – 28 Dec 2007), when the Index rose from 1730.38 to 3430.89, giving a return of 18.7% per year. (Can’t get the Index for beginning of 2002, but it is likely to be much lower, and the return of the STI likely to be much higher that 18.7% per year.)
From 31 March to 18 Nov today, the STI has fallen by 42.8%. If we assume that most of the fund are invested in the local stock market (and not minibonds, CDOs, LDO, etc), that total kitty of ST118 million would now be worth roughly S$67.5 million. In other words, it is under water to the tune of S$26.5 million compared to the estimated original S$94 million in 2002.
The question to be answered is who should be made responsible or accountable for this saga?
60) loop asked: “The question to be answered is who should be made responsible or accountable for this saga?”
The answer is very simple: you Singaporeans. You place too much trust in a self-professed clean and incorruptible party government to deliver, paying them millions of dollars and when things go wrong, they just say, “Lets’ learn and move on…” They take you for granted, note how the PM implied in his speech that Singaporeans cannot be trusted to change the government and that change can only come from within the PAP.
So don’t blame government for all its screw-ups. Remember who put them in power today. If you wish better governance, those who are able please be brave enough to step forward, those who are not able please exercise your votes carefully.
Agree with 61) Tiredsingapore, but Singaporeans are very politically naive. Taiwanese writer Li Ao once said that Singaporeans are naive and stupid. He is right. The PAP also sell snakes oil and Singaporeans (at least those who get to vote) swallow them by the bottle.
On the other hand, those abled Singaporeans who can serve are either co-opted (change the system from within: fat chance!) or are too fearful of abandoning their comfortable existence to serve Singapore.
Come to think of it, it all boils down to fear (kia). No wonder everyone says that Singaporeans are so kiasu and kiasee. The PAP basically have a political walkover just by treading on these fears.
Tiredsingaporean/nogov:
I agreed with you two that our nation is a population of politically apathetic and fearful lot. They just dont bothered about what’s happening and carry on earning their 8 to 5 salary so long that they have a roof over their head and food to eat on the table.
The govt has seized the opportunity to persuade the nation that all is well so you can gomake your money and left everything to me. So now you have GIC reporting billion dollar losses in ABC Learning, Goldman Sachs, Citi and other lukewarm investments. Town Councils now reporting Lehman-related investment losses.
The late President Mr Ong Teng Cheong wanted to take a peek into the state accounts but were banned from doing so thus creating his own political demise. He did not even have a good state burial. Why can’t the President, with invested Presidential rights, take a look into those accounts? Until now, SIngapore has no clue to why Mr Ong can’t take a look.
My greatest fear is that we did not manage our state financial accounts well enough. Much was squandered along the way by some wayward investments. How GIC and Temesak Holdings invested our surplus money make me very worried and concerned. We lost billions in Shin Corp and 1/2 billion in Chartered. Another half billion now is lost in ABC Learning (A$441.00).
How much more money can we lose so that our nation will say no more! Show us transparency please!
Agree with 44)someday perhaps we have found our minority PM sooner than PM Lee expected. PAP should make her the PM and score points for choosing a minority PM and a lady some more!
63) Gilbert Goh Keow Wah on November 18th, 2008 11.37 am
The late President Mr Ong Teng Cheong wanted to take a peek into the state accounts but were banned from doing so thus creating his own political demise. He did not even have a good state burial. Why can’t the President, with invested Presidential rights, take a look into those accounts? Until now, SIngapore has no clue to why Mr Ong can’t take a look.
Yes, I believe there are many singaporeans who still cannot figure out the reason behind all these hidden stuff. Why our late President Ong who is well liked by many singaporeans, was then being stripped off of his post by who we all know? and I wonder if this got to do with something very serious in our nation reserve that the ruling do not wish to let the people know. Could it be too much losses to the point of serious depletion or too much of surplus that that it have to be kept secret so they can continue to tax us further for something else?
The PAP has really shown themselves as incapable time and again. Even a simple thing like managing sinking funds can be screwed up, and yet they can still claim they are able to take care of us. Why should we give them the mandate to rule again? Lost reserves, escape terrorist, transport hikes, utility hikes, and a union chief claiming to be unaware when people are retrenched. Is this a govt that deserves nus mandate?
and please dun give us the crap that it is hard finding people who are capable to run the country. If so many can migrate and survive overseas, i am sure the we can find enough talented people out there to run a small country like ours. Problem is that they have created a system whereby only people who fit into their mould are deemed good enough to be leaders.
“The PAP has really shown themselves as incapable time and again. Even a simple thing like managing sinking funds can be screwed up,”
Maybe it is meant to be in the first place as the word “sinking funds” tell you so. It is supposed to “sink” into the depth of abyss, uncoverable and unremorseable. It should more appropiate be called Shit Fund because losing it create Shit for the citizens who now need to pay extra levies to make up for the lost Shit.
No wonder the MM, PM, SM, and many clowns love the word “CAVEAT EMPTOR” because it means “NOT MY BLOODY BUSINESS”. No wonder they even distinguish between VULNERABLE and NON-VULNERABLE investors, and only VULNERABLE can seek compensation on case-by-case basis.
Who is the greatest and biggest investors in these SCAMBOMB who nonchalantly invest millions of taxmoney in it ? So does it take a rocket scientist to figure out the type of investor Town Council is ? Imagine how much DBS need to pay back taxmoney if Town Counil belong to VULNERABLE investors. How many of VULNERABLE investors beside TC/GIC actually invest millions and large sum of money ? I thought someone mention VULNERABLE investors represent only 5% ? It means 95% are the one contributed greatly to SCAMBOMB, of which TC/GIC make up a peanut of it.
In other country, terrorists drop real bomb to create devastating economical impact. In Singapore where we are more civilised and non-violence, we have here SCAMBOMB to create similar financial impact.
Can we ask the TC to repay back our conservation fee loss ?
“I am not surprised GIC/Temesak is il the red to the tune of a few billion tax-paying surplus reserve money.”
Don’t worry about gov depleting our reserves over bad investment. Singapore will never devoid of reserve no matter what because the populace is the real reserve. As long as there are millons of population, these reserves can easily be milked from these reluctant donators through increasing tax, PayAndPay schemes.
Now who dare say we will run out of reserve ?
As long as chicken exists, don’t worry no reserve to harvest.
69) Daniel on November 18th, 2008 9.16 pm
Can we ask the TC to repay back our conservation fee loss ?
Asking TCs to repay us back our SC&C fees? must as well ask them also to pay back all the court fines they had penalized earlier from those poor citizens who are unable to settle their monthly dues, its just complete madness to see so many affected singaporeans being penalized in court and further slapped with additonal fines for not able to pay up their SC&C fees. Do these citizens have to be treated like criminals?
>>THESE ARE NOT PAP’s OWN LOSSES. TOWN COUNCIL’s LOSSES ARE RESIDENTS’ LOSSES!!! (Post 14)<<
Judging by the statement – I’m not a Notes investor, but now I think I need to go and protest at Hong Lim Park next Sat.
The govt need to answer to the following questions.
1. What exactly are the sinking funds used for?
2. Why are there so much surpluses?
3. If there is a profit from the investments, will it be used to offset its resident’s SC&C charges?
4. Now there is a loss, how TC is going to account for the investments lost? (8 or 4 million is STILL not a small sum of money. So is TC going to
- Write it off?
- Increase SC&C charges for it residents to cover its loss?
- Deduct from minister’s pay?
TC invested our SC&C fees “with their eyes open”, so how will TC account for it?
tiredsingaporean,
look like Singapore citizens ought to return back the “kindness and goodness” our government using ElectionBomb in the election where all citizens vote negatively against the clowns. Let those ivory tower clowns taste the devastating effect of ElectionBomb where the PM lose the mandate to govern and all GRCs lost all the important contest. Will you think an army will be called in for freak election ? What if those army of soldiers and polices are themselves victims of SCAMBOMB and devious PayAndPay scheme ?
It is really ironic that our gov can even spend billions on infrastructure and tools to impede physical terrorist from entering our country and destroying the economy. Did the gov even introduce measurement and weapon against a new form of “terrorist” aka a financial “Terrorist” that legally and happily circumvent financial measurement and policy to introduce SCAMBOMB through financial product that even more potent than a real bomb ? A real bomb is illegal and can be detected, and its impact can be observed and felt, how about SCAMBOMB which is legal and cannot be detected and even supported by those in Ivory Tower as long as it makes money and boost GDP much to the detrimental of those who purchase it. The impact scambomb can be hidden, covered-up, move-on and kept secret as can be seen from TC’s attempt. SCAMBOMB is just a timebomb waiting for the adverse signal to trigger and bring financial devastation onto economy and innocent investors , vulnerable and non-vulnerable alike.
How are our government to guard against SCAMBOMB which at same time can be effective in accentuating Singapore as a financial hub ?
OUr measurement against SCAMBOMB ? Market Discipline and CAVEAT EMPTOR ?
73) Daniel on November 18th, 2008 10.02 pm
I supposed these MIW are now scratching their heads trying to gather all the resources they have to come out with a plan on how to solve all these problems created by them. Its not surprising when the top people are having a good times thinking how to pamper themselves with those $billions while their system actually created a big time bomb exploded. This is the big cost to pay for being too complacent and over confident of themselves all these years. But then again, it is still the citizens that is going to suffer for the mistakes of theirs and this also serves as a very good lesson learned for those people who has been supporting them with their votes blindly all these years. Hopefully, whether a forced 1 party system be implemented or not, the coming GE is definately not going to be something the citizens would not take on easily like those from the past events.
So much loss of taxmoney in ScamBomb, and dubious investment, so it is time ripe for the gov to introduce the Annuity scheme ASAP to get money from the citizen again, with this time quote that Average Citizen’s life expectancy is 100 years old.
“Hopefully, whether a forced 1 party system be implemented or not, the coming GE is definately not going to be something the citizens would not take on easily like those from the past events.”
How can the citizen and opposition party prevent a “WALKOVER BOMB” onto us by the desperate gov ?
There apparently is no effort to conduct an inquiry into this matter. Is it possible for citizens to set up a committee and investigate this matter?
77) Usherer
If I heard the Minister of State correctly, there will not be any changes to the investment strategy of TCs and BTW what can you do about it?? Did you hear PM LSL came out to speak on the issue? He is again trying to distance himself from such issues that might implicate him.
Your best bet is your voting card if you have the chance to vote that is.
THE SC&C FEE COLLECTED IS NOT SUFFICIENT TO MAINTAINENCE THE LIFT AT ALL.
MAY BE WE CAN CONSIDER OURSELVES LUCKY AS TO HAVE BEEN SUBSIDED.
AND WHEN ASKED, A STUDENT ANSWER: ‘ WHERE DOES THE EXTRA FUND COME FROM?’
NEITHER HE BELIEVED THE FUND IS LOSS IN ANY INVESTMENT.
AND HE SUGGESTED WHY NOT JUST RETURN & PUT BACK THE MONEY AND LET THE MATTER REST.
I THINK IT’S FAIR & HONEST.
Stop.. Wait a sec.. hold on just for a moment…
WHY THE HELL WAS A TOWN COUNCIL INVESTING MONEY IN DUBIOUS FINANCIAL PRODUCTS IN THE FIRST PLACE?!
Since when did the job scope of a town council include profiteering and investing the people’s money in financial products?! Explains all the ridiculous increases in conservancy charges and other idiocies.