Even the Loyal Opposition Town Councils are doing a better job in managing the sinking funds. Despite the sheer amount of resources commanded by PAP, PAP can still make big mistakes. We are getting more value for our money with the Loyal Opposition.

yeah just ask all the town council in charge to hold a press conference.

then they say sorry to singapore.

then they should bow like what japanese like to do.

be true to the people.

i might forgive them because they are cheated and misled also.

no matter how young or old or smart a person is, he can still be cheated and misled.

cut pay to punished all those responsible.

In an ideal situation, the in-charge would be sack and punishment would be delivered due. The public would also be given an apology by the PAP. However, in Uniquely Singapore, the PAP and their “subsidiaries” would just sweep everything under the carpet and pretend nothing has happened.

So much for transparency

how can town council not try to recover the money back? they must try all ways to recover the lost money even if it means to sue.

people like me who lost $5k will still sue to recover the money.

then town councils who lost millions should hire the QC to sue.

i pay you more tax and charges, just go ahead to sue.

if not the money also do not know will go where?

If their invesments loss : never mind, is not my money.
If their invesments gain : Its party time. Lavish dinner and gift !? I dun know.
For them is sure win situiation.

WTF are our town council having so much in reserves. All these “XXL” fund could have been better utilized to subsidize our conservancy charges, helping the poor and needy etc.

Often we heard about how volatile our economy is, the need to save billions into our reserves in times of eventualities, thus the need to raise revenue from taxes like GST. Then next moment, we have these “billions” in sinking fund of our town council. Is it necessary? What are our town council trying to project here?
Accumulating wealth? In fact, there is no requirement to increase conservancy charges before. All these “extra $” only serve to “attract” top brains to think of what to do with it. They might not feel the pinch but all these “extra $” could have help many families live a better day.

In fact i am alright with our GIC handling our country reserves by investing, but town council…? Now i am quite perplexed. Are there other ministries or government bodies having so much in their reserves also doing investment too? In order to fill so many coffers in tiny Singapore, no wonder cost of living in Singapore is going up.

Talk so much also meaningless……like Jack neo recent movie mentioned Singaporeans only KPKB, complain and complain, with no action taken, slowly it becomes none of my business and the issue will die down eventually.

skeletons in the closet for town councils is only the tip of the shit.
the ultimate is seeing all the skeletons in the emperor’s closet
and i believe the shit will be overwhelming.
proving once and for all, the biggest political conman ever to run Singapore.

This new saga on top of the many dirty laundry lately revealed only goes to show that we have a govt that lacks accountability, transparency and checks.

PM LSL has even advocated for a one-party dominating our governance which I guess most Singaporeans will disapprove but will ask again “What can we do?”

The govt also knows that we can’t do much. What can you do now that your conservancy fees go up in smoke? Can you demonstrate against the loss? Yes go ahead to HLP – they don’t even bother. They know that they have the upper hand now in controlling the power issues in our country. They will not relent so easily and give up this monopolistic power as it is achieved over 43 years fought by the earlier group of politicians led by LKY. This is their fruits if their labour so called.

The time now is to think properly when you next hold your pollin voting card. It is voting not only for yourself, but for your neighbours in other GRCs that have a walkover, for your children and children’s children too.

If everyone of us here tries to persuade at least one or two of our friends to our cause, we will do alright and hope that others will feel the same as we do.

I have ground feeling that this town council investment will help the swing votes to the opposition’s advantage if only they know how to use it well.

Civil consciousness is now at an all time high help much by the current recession. If this loss is reported during good times, people will just ignore it but in this grave time whereby jobs are so risky, this issue will certainly boil over for sure. Those who believe in promoting civil consciousness is doing it at the best opportune time.

Punggol 21 not heard these days…..may be deserted too and ask why???hope my friends conservancy remains the same or be raised for sure? truely lack of amenities!

just vote.

they only listen to that and nothing else. otherwise, “let’s close ranks and move on”

and please, “no witch-hunting”, we are singaporeans!

seriously, any singaporean who doesn’t know that he or she must NOT vote for PAP is a dumb piece of (insert whatever here). i’m not saying vote for incompetent or just any opposition member.

if in doubt, just spoil the vote. deny them their “mandate”. slap their faces without having to remove them per se. not that one could remove them now, actually..

I wonder whether these products were marketed to town councils as a safe? What is the mandate given to town councils for investment? If these were marketed to town councils as ’safe’, then if goes to show that the distributors did the same to retail investors.

Found an article. Way back in March 08, there were reports that DBS placed Lehman on its ‘watchlist’. If this is true, did it continue to market Lehman products to retail investors?

http://www.reuters.com/article/fundsFundsNews/idUSSIN22541620080317?bcsi_scan_DBB7B26862527453=bG5KeMCoQsfQjuD2mGkiYSAAAAADY0wT

to them…it’s a small loss…nothing to be alarmed! u will still get your ugly shelter and shit longkang…

What ’s the loss (assumption here given the market trend of the last few years on this stock) incurred on Creative?
Bukit Panjang TC seems too gung ho in it’s investments and it is obvious their track record shows they are not investment-savvy.

Rules on the accumulation and disbursement of sinking funds must be put in place away from the current hoarding.
There should be a cap on the amount of sinking funds kept and a maximum tenor by which date funds from this sinking funds must be used for upgrading the estate else be refunded in the form of S&C charges offsets.

The MP’s must RESIGN and be accountable to their constituencies.

‘It was an honest mistake, lets move on.’

Why are they running surpluses in the first place??

C’mon Grace Fu. Dont hide. Admit it is WRONG to have the surpluses. Take less away from the HDB dwellers in the first place. Better still, give back to the residents.
C,mon Dr Teo, past performance is history. Whats the purpose of pointing that out? Can u monetize those gains to repair the damage here? NO. So why mention it?
C’mon guys. See them for what they are. NO BETTER THAN THE OPPOSITION in running the wards. So much for their boast…

They said in good time, their investment gained profit. But I am not aware, I still pay the same conservancy fees. So if now they lose money in the investment, can I request whoever respondsible with this investment, kindly top up the money accordingly with his own pocket money. I think this is fair.

What will happen if the opposition party TC had invested and lost money ? Of course the ruling party will take this opportunity to trash them, right ? Now the ruling party TC lost in this stupid investment, which opp party can screw them, none. Opp party shld bring this issue up in next parliament mtg. Another question is who has given the authority for the TC to invest in this risky investment.

Just a thought. I think the Holland-Bukit Panjang GRC will be dismantled in the next GE.

First, with the losses from various investment suffered, the residents will be very upset. Need to preempt any potential backlash.

Second, by splitting the GRC, the remaining assets of this GRC will be distributed to the new grouping thereby “averaging down the losses”.

Third, should the pressure on TCs to publish their accounts come to any fruition, there will a new clean slate from the new GRCs to publish their accounts. Holland-Bukit Panjang will be history and swept under the carpet.

/// 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.

Is anyone surprised by the nonchalant way this was announced and then subsequently reported?

Whatever amount these Town Council loses, they should divide & pay back the same amount to the individual staying at these GRCs.

Welcome to SINGAPORE! When the govt. makes a mistake. It’s an honest mistake. Lets move on they will say. However when others make a mistake, they will say you have to pay and account for it. Whats new?

Lets wait and see what other things surface in time. So this is our clean govt taht the PAP likes to blow their trumpet about.

I await for more to be revealed in time.

i stay in one of the affected areas. this is totally unacceptable!!!

either the town council sacks the persons-in-charge (i bet these will be the kuching kurag) or it should try to get the money from the minibond sellers.

the root problem is really that these town councils have too much $$$ on hand, such that they are comfortable to make risky investments callously.

i’ll see if i can talk to my mp about this!

This announcement came only after much plodding by the public. There are three issues at hand:

1) if it is the case of opposition wards losing all those money, the PAP govt is going to make a big hoohah over it. In the light of this screw-up by PAP town council and their evasiveness about the losses (dismissing it as only a few % point, which amounts to a few million dollar!) , it actually makes the opposition wards look like they can govern better than the PAP MPs.

2) Some of these town councils are in GRCs with super-ministers, such as the SM, helming. Why are there no oversights?

3) Besides the town council, how much did the Singapore government GIC and Temasek Holdings and other government linked companies lose in such related investment?

It seems that if nobody bothers to ask, the government does not bother to reveal.

18/11/08

I am not surprised nor shocked as many of the PAP Town Councils are headed by PAP MPs are who elites and very highly educated they should had known the risks also (perhaps let me write this again they are are like those Uncles and Aunties who allowed Greed to gain control over them-perhaps want to show to the voters they can maximise these funds to the very maximum)

27) Andrew Chuah

Yah, you’re right. Maximise to the maximum until it falls out of the pockets and into the longkang.

it may be a few % point but the quantum is in millions of dollars. The least they should do is to mention that they will be extra ordinary carefully in future when investing. In a turnmoil like this, it is understandable to make some investment mistakes. Unfortunately, what I see here is one after another investment is losing BIG $ (ABC Learning, UBS, Citi, etc)!

They should take a step backwards & look at what went wrong. Telling us that it is only a few % lost is like rubbing salt on wounds.

No wonder they say pple buying the mini bone “went in with eye open” and “if you want your money to be safe, put in in CPF” lol.

I am returning to Singapore next mth and will head to my Town Council to check on their accounts as a paying S & C resident.

Do you think they will allow me?

Next bubble to blow is the HDB bubble, prices are simply too high. Don’t tell me that Singaporean and PRs have become so much richer in just a few years. Don’t tell me that PRs can increase so fast in the next few years when recession is around. Don’t tell me that with private home prices falling,no enbloc,ppl will be stupid enough to pay for the sky high HDB prices.

HDB prices always follow the private home prices with a lag,this time it would not be different.

So,next time you hear PAP bigshots saying that HDB flats can only rise,think again.

Why the MPs (as their consultant) allow TCs to charge higher SC&C so they can have more saving kept aside for them to gamble?
On the other hand, those citizens who cannot or unable to pay up their SC&C for some months would be charge in court and slapped with additonal fines? I really don’t get it, it doesn’t make sense at all?
Can anyone here find any logic here?

31) cy on November 18th, 2008 11.49 am Next bubble to blow is the HDB bubble, prices are simply too high. Don’t tell me that Singaporean and PRs have become so much richer in just a few years. Don’t tell me that PRs can increase so fast in the next few years when recession is around. Don’t tell me that with private home prices falling,no enbloc,ppl will be stupid enough to pay for the sky high HDB prices.

HDB prices always follow the private home prices with a lag,this time it would not be different.
———–

They priced the HDB so sky high that when you cannot afford or unable to service your loan should you be retrenched or out of job, just like the TCs ways of handling the people, they just throw you to face the court and slapped you with additional fines, and when you cannot pay up, they just throw you into jail, simple as that. These are the ugly things not published on the MSM nor known to many, other than those unfortunate hundreds or maybe thousands who have already gone through all these merciless treatment. This is uniquely Singpaore system.

WANTED: 84 genuine care for Singapore democracy Nominees for POLLING DAY.

Don’t give the PAPees any walkover – we must fight all over the islands. We want CHANGE for the country – YES, WE CAN !!!

I want to vote !!!!

The best way to solve this bloody problem is to Stand for election to be an MP in Parliament, be it as an Independent or what may as a group in GRC. There are so many of these “bongo” and “wanaba” active people in this TOC that are raring to GO. I am sure some of them will get elected by “fluke” shots as what had been happening in a Northern country. Don’t just criticise and kick about the bushes. Why wait? Get ready for the Nomination Day. Drink more glucose now to smoothen the throat for the coming BIG event to “lawant” the ruling Party.

Why delay the TC losses report on the mainstream media only until the 17th Nov?

TOC already report the TC losses long ago. If our so call controlled mainstream media reported this TC losses in Lehman minibonds back last month when ill-fated investors gather at Hong Lim, the turn-out might be a sensational one that gathers lots more since the losses are no longer individual ill-fate investors but the whole TOWN.

Our mainstream media waited until the coast is clear and more Singaporeans as usual have short memory and have forgotten about the minibonds episode then choose this moment to release the news on TC losses.

As usual, this shows our mainstream media is heavily controlled.

I think the Opposition TCs should highlight the returns that they have made so far and compare it with the PAP TCs. Now would be a good time for them to show that they have done an even better job in managing their wards by showing off their accounts.

Unless of course the Opposition TCs have even more skeletons in their closets than the PAP TCs.

the nonchalant and arrogant way in which Dr Teo revealed that many TCs have invested in these structured deposits is simply ‘too much for an ordinary citizen’ to take. No apology made and to top it up, ‘just a few % of total sinking funds’…still in the black…can continue to carry out repairs works etc…why are we seeing such people in parliment? They are said to be ‘the best’ that the ruling party can find. Just too insincere to be an MP! These unproven politicans are just hiding under the GRC skirt. Sure way of getting into Parliament! Hope they call for a snap election and we will show them what mandate the ruling party can get.

The town councils are damn rich and why do they collect so much funds in the first place?
In actual fact, we are being shortchanged all these years.
We pay so much Service and Conservancy Charges for Town Council to invest and fatten their own pockets.
So this saga is over? This is an honest mistake & let’s move on?
So we continue to pay unreasonable high S&CCs for Town Councils to invest?
True, what can we do? Even if we protest, they will still ignore.
Helpless & hopeless with zerO faith in gahment.

Its time for the government and town councils to come clean. We always have to listen to our government about how clean and corrupt free they are, Now lets see how competent are these so called corrupt free officials are.

Most of them were not elected by the people. They were appointed byt he government. I totally agree if one of the opposition town councils had lost money you will never hear the end of it from the PAP government in the government controlled newspapers.

So lets wait and see what follows next. Its time for those responsible to be made to answer for all these losses. Incompetency must not be tolerated when its the peoples money that they are using to invest. Agreed they should be commended when they do good, but at the same time must be held responsible when they fail.

It matters not who you are , you make a mistake you must be answerable like all of us. Lets not sweep it under the carpet. Just today i found out I have lost money on investing my money from my special account and i bear the responsibility for it cos I took the risks and accept it. So if you invest the peoples money one should bear responsibility also. Its not your money!

Using Tanjong Pagar TC FY 2005/2006 as a case study.

Link: Tanjong Pagar TC Annual Report 2005/2006 (page 18-34)

Partial Listing:

* * *
Operating Income
• Conservancy & Service fees = $35,168,771
Less:
• Operating transfer to Sinking Funds (min required by law) = $11,703,106
• Other Income = $3,328,229

Subtotal = $26,793,894

Less:
Operating expenditure = $28,547,957

Operating (deficit)/surplus = ($1,754,063)
Add:
Non-operating income = $395,450

(Deficit)/Surplus before taxation but before Government grants = ($1,488,278)

Add:
Government Grants = $10,683,720
Less:
Transfer to Sinking Funds = $2,536,000
Transfer to Town Improvement & Project Funds = $2,464,723
* * *

• ACCUMULATED SURPLUS AS AT 31 MARCH = $19,801,196

Non-Current Assets:
• Funds with fund manager = $37,175,597
• Investments = $73,307,489
(Total = $110,480,086)

***
As seen, part (min required by law) of S&C fees are transferred to sinking funds. All PAP town councils always get government grants and part of the government grants goes to the sinking fund again. For FY 05/06, the operating expenditure was a deficit, government grants seem to help TPTC to recover. But look at the amount of money that is with the fund manager and for investments. The money ($110.5m) tied to the fund manager and investments is greater than the accumulated surplus ($19.8m).

Something is not right here…

The strange thing is, I am not surprised. I have always believed that the govt and its many organizations – TC, GIC, NTUC etc etc – all work in tandem and in secret it appears. I always found that the TC fees I pay for my flat is high for what I get – urine stained lifts, occassional wash downs, loan shark graffitti. Well, now I know why. In the interest of building a nest egg (we seem to be particularly zealous about this), the folks have forgotten about the “service” element in TC charges. What I really would like to know is, in the many years of high profit – where did the money go towards? Extra bonuses for TC managers? Could they have not identified which households were struggling and waived the fees in those good years? Many questions but unfortunately, little answers. We are Singapore. Reans. After all.

41) Sunshine

Don’t remain bewildered.

Take a walk and visit your town council to have all your queries answered.
Do not leave until you are satisfied with their answers.

Don’t forget to get your relatives & friends to go along with you so that they can cross-examine the town council till all are satisfied.

If every Singaporean were to do this at every town council, the govt cannot hide much longer, can it?

Joe:

I dont quite get you here. Are you saying that there are too much funds put into investment or otherwsie? Please clarify. I am a Maths idiot.

Gemami/Sunshine:

Let us give credit to the govt for allowing such adverse news to be publicised in the first place.

They could have hide all this within the closet and do you think Singapore will know?

26) nogov: ” Besides the town council, how much did the Singapore government GIC and Temasek Holdings and other government linked companies lose in such related investment?”

If govt tell citizens, then foreigners will also know. Therefore, govt cannot tell ….

If you buy this logic, all very well with you as an obedient citizen.
If you don’t buy this logic and ask more, you have hidden agenda and motives, you may be a foreign spy ….

Heads you lose; tails you also lose.

Believe me Gilbert, we WILL know, if not now, later.

I also believe there are a thousand and one things that remain hidden but the day will come when all will be exposed.

How many people could have imagined that Mrs Marcos had that kind of shoe collection?

Time will tell, and Time will balance things out.

Hi Mr Gilbert Goh,

I am a Maths idiot too. I believe that you still can use the surplus to maintain the town, but can you take the money back from the fund manager to maintain the town, if the TC needs to do so.

It seems important for the town councils to transfer money to the sinking funds. Sinking funds come from fees collected and government grants. I am just highlighting the numbers from their TC annual reports. There are a lot of questions here and the annual report did not seem to provide enough answers. Maybe, some accountants here would help us to shed some light.

Gemami:

Actually I have problem sleeping lately with so many grouses popping out lately in my country. My heart also ached when i realised how much we have slid backward since the days of Rajaretnam, Ong Teng Cheong and of course our dear LKY.

This present lot seems to be unprofessional and slacking. Maybe they have too easy a political path unlike our forefather politicians who climbed their way to the top by merit of their hard work and strong conviction.

Our current MPs don’t even have to win votes on their own merit and some even have walk-over wards. They walk into their political career not knowing how to connect with the ground and perhaps even without any political goal and aspiration. The way most MPs operate now left much to be desired. They lack the omphs of our forefathers and certainly lack experience and conviction.

I list several recent hiccups which troubled me alot:

1. PM Lee advocating a one-party monopoly power which signal that we will not change much from what we have being receiving now. There is no change at all.

2. Failure of the govt to look into the needs of the minibond investors – they do not have to promise them that they will be compensated but there is a lack of care and concern here. Everything is done very officially and detached. Don’t expect me to comfort or console you as you have a wrong investment decision.

3. Town council’s investment into risky securities. This is the deepest cut of all and my heart was in much pain after knowing this news. How can they? When people who toil day and night some without proper food on the table…sometimes without lights as their power bills were unpaid. Enough…

4. Serangoon Garden dorm saga – again this piece of news make me realised how detached the govt is. They want to bring in FTs and they rather please those bosses who some unwittingly bring them in for a cut from contracts than taking care of the needs of our people. A deep cut here.

5. Investment florays of GIC/Temasek into loss making ventures. First it was Shin Corp, next Goldman Sans, Citi, then ABC Learning. There is no end to how much we have lost to date though it may be paper losses only. Another cut here.

6. Pricing new HDB flats at Pinnacle to the tune of $600,000 and saying that they use the surrounding resale prices as a guide. I find after this episode that the govt is no longer really caring for it’s people but finding all ways to explore on how to max out the population. Are they in need of money? One wonders.

7. Raising the electricity tariff by a hefty 21% and never convincing the people that it is the logical thing to do. The worse is that I do not see many MPs stepping in to question the issue on behalf of the people. They merely asked one or two questions and let it be. A big cut here.

I hope that there won’t be any other hiccups from now on as my heart may not be able to take it any longer.

48) Gilbert Goh Keow Wah on November 18th, 2008 5.10
I don’t think so that there would be anymore hiccup to come, well at least not till the next GE (but again, don’t even know if there will be one or just their so called internal change of the ruling party) then, after that all the hiccups continues with more newer ones coming up.

Joe:

Ok maybe they have a formula to do it whcih we don’t know about? Maybe the MPs should ask the Town Councils how they operate. I doubt much will be shed here.

Latest from Parliament:

More state companies are exposed to the toxic investments:

Singapore Land Authority

Professional Engineers’ Board

Civil Service College

47) Joe on November 18th, 2008 5.03 pm

A lot of us are good in doing complex maths problems – E-maths, A-Maths, Engineering Maths, Financial Maths, etc.

But It is quite strange that when it comes to simple everyday things in life which do not quite add up, some people just happen to gloss it over and provide all the rationale for such silly myopia.

1) smallvice585 on November 18th, 2008 12.54 am
Even the Loyal Opposition Town Councils are doing a better job in managing the sinking funds. Despite the sheer amount of resources commanded by PAP, PAP can still make big mistakes. We are getting more value for our money with the Loyal Opposition.

———————–

Is it ??
If so, then can we say that the Alternative party town councils in this aspect has performed better than them?

I no idea wor.

Chiam reported that his town council only buy bonds from government and government agencies. It was on Channel News Asia.

34) Volunteer 84 wannabe alternative MPs for coming GE on November 18th, 2008 12.41 pm

WANTED: 84 genuine care for Singapore democracy Nominees for POLLING DAY.

…..

If 2 weeks before the election,
IF 20 – 50 independent and / or new alternative political party candidates spring to the scene, would there be enough time to ‘check’ on their ‘weak areas’ that if found may invalidate their election chance?

Singapore has more than 50 MP-level talents who are singaporeans, i am sure.
Look at our MPs like lee bee wah. so talented, maybe only a few tens of singaporean out of 4 million can match her calibre.

So, imagine if at last minute, 50 new faces spring up. Pleasantly surprising singaporeans who want to vote by way of not having WALKOVERs. Imagine!

Is 2 weeks sufficient to ‘check’ and comment on all the 50 new talents who step forward? I mean check by our highly unbiased and world renowned MSM ?

And if Walkovers are reduced, or eliminated by this, what would the results be like?

Will this surprise enable the many who did not vote due to walkovers finally get the chance to vote?

what if more than 50? Anything is possible. :)

“Latest from Parliament:

More state companies are exposed to the toxic investments:

Singapore Land Authority

Professional Engineers’ Board

Civil Service College”

————————————————————–
Did our gov spout half-truth again ? Is this the best list they can give ?

How about the most ultimate company of all times ?
Temasek Holding and GIC ? Didn’t TH invest in some of these companies that buy or sell these toxic financial products ?

Isn’t TH also a company ?
http://en.wikipedia.org/wiki/Temasek_Holdings

“Temasek Holdings is an investment company owned by the government of Singapore. With a multinational staff of more than 300 people, it manages a portfolio of about S$185 billion, or more than US$127 billion, focused primarily in Asia. It is an active shareholder and investor in such sectors as banking & financial services, real estate, transportation & logistics, infrastructure, telecommunications & media, bioscience & healthcare, education, consumer & lifestyle, engineering & technology, as well as energy & resources. In 2008, The Economist reported that Morgan Stanley had estimated the fund’s assets at US$159.2 billion[1].”

Must be a honest mistake from the gov to leave TH out !

What if more were invested in the loss-making investment?
Luckily, it was not the whole 35%.
But then this fiasco worries me.
Past, present, future.

“Luckily, it was not the whole 35%.”
Since when the government is capable of telling the truth ?

The founding father turned out to be the evil stepfather, for whom we, true sons and daughters of Singapore, are nothing more than an avenue for his lust and greed. We have been abused, prostituted and sold cheap. We can choose to remain in chains for a few more decades, or we can be brave to fight for our freedom and future. Come on, we have nothing to lose and everything to gain when we vote to break their stranglehold

According to ST today, 5 statutory boards bought credit-linked notes:
Monetary Authority of Singapore
Infocomm Development Authority of Singapore
Singapore Land Authority
Professional Engineers’ Board
Civil Service College

YA the news just get sicker isnt it? Who knows maybe MAS and other state companies may even buy into other stocks and shares that they have not declared at all.

I think it is true now that our transparency is very shallow and they have hide away alot of state accounts. So far, no one, noteven the Presdient, can have access to these accounts.

How to make them reveal more of these dark secrets?

You realise how LSL is so quiet these days?

I’ve been trying to locate the town council financial rules on the web. i tried the statutes but have been unable to find. would anyone know where I can find them? thanks.

49) Gilbert Goh Keow Wah on November 18th, 2008 5.10 pm

In your list of hiccups there are seven items. Of these seven items, only the first one does not have anything in common with the other six.

The first one talks about a one-party system of governance that translates directly to one party harbouring absolute power. The absolute power being held by this party will eventually go to one man – the one who is at the top. This is absolute danger..
How can anyone not think and consider this is beyond my comprehension.

The common feature of the other six points is; MONEY. Everything boils down to money. When a family talks about money day in and day out, what does it tell you about such a family? Yes; it no longer is a family but a business. And this is what Singapore has become.

The more money the better they proclaim. The more money the easier to solve problems, they shout from on high. The more money we make, the more we can distribute and share, they promised. The more money, the more first class we become, or so they hoped.

Whatever happened to: Money being the root of ALL evils?. Absolute power blinds the one who has good intentions, even.

You are right that the GRC is another devil disguised as an angel. Those who walked through the back doors will be more interested in running Singapore, the business, rather than Singapore, the family.

I have always thought about what Observer (SG-HK) said in one of his many posts; that the spirit of camaraderie of an age gone by is the missing ingredient in today’s society. I thought I understood what he meant but in all truthfulness, only now do I get a glimpse of what he had actually meant.

We have lost it haven’t we?

We need to take back what belongs to us. It is a LONG and HARD road ahead and the first step is always the most difficult but taking that first step is not a choice.
IT IS NECESSARY!.

Singaporeans. Let us all take this first step together. Let us take back our home. Let us cast our vote for the Opposition, never mind who it may be. Never mind the danger it will bring. Because we are already in dangerous waters and are already drowning. What difference will it make if we cling on to a leaf or a log? As long as there is a glimmer of hope, it will keep us alive.

I have said my mind and made my peace with myself.

What about you, my fellow Singaporeans and family?

Hi Meng,

TOWN COUNCILS ACT (CHAPTER 329A)

LINK to the Act

A few points from the Act:

Power of investment
41. A Town Council may invest its funds in accordance with the standard investment power of statutory bodies as defined in section 33A of the Interpretation Act (Cap. 1).

Grants
42. For the purposes of enabling a Town Council to carry out its functions under this Act or any other Act, the Minister may from time to time make grants-in-aid to the Town Council of such sums of money and subject to such conditions as the Minister may determine out of moneys to be provided by Parliament.

For your information.

hi Joe, thanks, i checked that site too. Unfortunately, they do not talk about the specific investment rules e.g. 35% max in riskier investments, etc.?

Hi Meng,

I am also looking for that part too. I am still searching but I found some hints from an old ST news article:

ST Dec 2, 2007
New rule to safeguard council funds
By Tan Hui Yee & Mavis Toh

TOWN councils tempted to play the stock market to increase the returns on their sinking funds will now have to meet a new rule that caps how much they can put into higher-risk investments.

Councils, which have had some leeway when investing their cash, must limit their investments in non-government stocks, funds or securities to 35 per cent of the sinking fund.

This new rule, which kicked in yesterday, applies to more than $1 billion in sinking funds managed by the 16 town councils in Singapore.

The money is collected through monthly service and conservancy charges and government grants and is used for cyclical repairs, such as re-painting or re-roofing.

The Ministry of National Development brought the rule in to strike a balance between councils trying to get good returns on their funds and not taking undue risks with residents’ money.

Some council cash has been going into shares and corporate bonds, which are considered riskier than government ones.

The president of the Society of Financial Service Professionals Leong Sze Hian said: ‘Corporate bonds are only as good as the company can pay. The risk of a company running out of money is higher than that of the Government.’

Before the new rule, council investments were governed by the Trustees Act, which placed restrictions on some instruments. The new 35 per cent cap is seen as stricter, but no council contacted by The Sunday Times said it would have trouble complying.

The Hong Kah Town Council 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.

The investments can include corporate bonds and stocks, which are riskier. But this portion, handled by fund managers, nets about 8 to 10 per cent in returns a year, said council chairman Ang Mong Seng.

Sinking funds are typically parked in safe investment instruments, such as government bonds and fixed deposits. But a few years ago, many councils felt that they could do better by investing in other instruments, such as shares.

Many then let fund managers invest a bigger portion of their cash and reap better returns.

Ministry of National Development is the one that set the 35% rule. Before the 35% rule, TCs were using the Trustee Act to “play” with the sinking funds. Now, the trace somehow needs to start from MND. We need to find where is the starting point.

It is going to be a long day.

I felt really sad when our PM said we have no place for a two party system.
What has already been said, absolute power at the top, abuse of power, no check and balances etc. is one side of the story, but I think PM has raised us to a laughing stock amoung the democracies! This is really sad, not only insulting but intelligence but a shame to the world of nations. My goodness a man of his stature and intelligence and experience, what is he thinking of.
Really sad and I feel sorry for our country.

68) ACACIA

Can’t agree more.
This is another manifestation of Uniquely (U NEED LEE) Singapore.

the town councils had too much $$$$ surpluse
should reduce 60% of monthly conservancy charges

Looks like TC are only allowed to invest in stocks and bonds. CDS/CDO/CLN underlying the structured products are derivatives. Therefore the TC/fund managers appear to breach the investment mandate. The fund managers should be revealed and sacked if this is the case.

Link to comment (2:46AM, unedited) on Mr Tan Kin Lian’s Blog on the post of “Town councils should take legal action for mis-selling” dated Wednesday, November 19, 2008

The release of information about the losses by the Town Councils and MAS are part of an overall political move to show that these are legitimate products. The move is to defeat the arguement that these are illegal products which should never been sold to the investing public in the first place.
.
Politically, there is no way that a legal action will be allowed to succeed in the Singapore’s courts. The Singapore courts are fair 99% of the time. However in the 1% of the time that the decision has significant political implications, then there will be executive guidance on what the “correct” decision should be.
.
Hence while there is considerable anxiety to do something now, it would be best to wait for a precedent to be established in another jurisdiction e.g. Hong Kong. If there are a series of sucessful law suits across the world where banks are made pay compensation, then it will make it very hard for the Singapore courts to rule against such compensation. The last thing you would want is for a Singapore court to set the legal precedence for such cases.
.
At the same time, sucessful action overseas would put pressure on the Singapore government to act in a way which is consistent with what has been established internationally. Your blog and speeaches at Hong Lim are therefore crucial since there would be an effective media blackout on such news.
.
Really appreciate your time and effort to help those who have lost money and ensure that there is a fair outcome.

Politically, there is no way that a legal action will be allowed to succeed in the Singapore’s courts. The Singapore courts are fair 99% of the time. However in the 1% of the time that the decision has significant political implications, then there will be executive guidance on what the “correct” decision should be. – comment on TKL’s blog (#72)

If the Court rules in favour of financial institutions, the Singapore Judiciary looses its standing in society as an impartial forum to address grievances. If the Court rules in favour of victimised investors, MAS looks bad. Either way, the PAP government looks bad.

Plus you are suggesting that PAP is politicising the issue by airing that they made losses over the Lehman debacle. On the contrary, it actually highlighted why PAP government does not want to investigate. The PAP government themselves had made losses from the Lehman debacle, so they cannot be an impartial investigator.

It is not only retail investors such as Ah Gong and Ah Ma that have lost money. Other victims who had lost money due to the Lehman bankruptcy includes the PAP Town Councils, Monetary Authority of Singapore, Singapore Civil Service College, Singapore Land Authority, Infocomm Development Authority of Singapore and Professional Engineers Board.

Source: http://www.straitstimes.com/Breaking%2BNews/Singapore/Story/STIStory_303765.html?vgnmr=1

73) smallvice585 on November 20th, 2008 10.09 pm
It is not only retail investors such as Ah Gong and Ah Ma that have lost money. Other victims who had lost money due to the Lehman bankruptcy includes the PAP Town Councils, Monetary Authority of Singapore, Singapore Civil Service College, Singapore Land Authority, Infocomm Development Authority of Singapore and Professional Engineers Board.

A lost is still a lost, whether its paper or cupboard, so don’t confuse the public which all these idiots are good at, always never admitting to their mistakes!

tiredsingaporean (#74),

I stress again: On the contrary, it actually highlighted why PAP government does not want to investigate. The PAP government themselves had made losses from the Lehman debacle, so they cannot be an impartial investigator.

smallvice585,
this gov is deadlocked on doing the right now in the minibomb saga. As you have said, the court obviously cannot rule positively and partially for the investors as it means that the bank needs to compensate Town Council and other GLC companies who invested in the minibomb. Note that these entities prudently avoid quoting the risk level of the minibomb (high/low risk) when they first invested in the product. If they said low risk then it is obviously mis-selling and mis-representation have occurred and legal investigation must be conducted as it involves illegal use of the public fund to purchase a product that is not what it is. If they quote high risk, it means they are incompetent and greedy because they invest “WITH THEIR EYES WIDE OPEN” for such a highly risky and poor return using public money, and therefore the management team must step down.

But from the press, it is obvious that they consider it low risk not high risk for minibomb, hence a thorough investigation must be conducted otherwise they just prove to us they are nothing but a kangaroo government. We are talking about abusement of public fund now.

they are incompetent and greedy because they invest “WITH THEIR EYES WIDE OPEN” 76) Daniel .

You are absolutely spot on! Teo SL knew the structured products were complex.

The Town Councils did not foresee the financial tsunami and its impact on complex structured products. Teo Ser Luck, MP Pasir-Ris Punggol GRC.

Yet, he found it wise to invest public funds into it. Whether he foresaw the tsunami or not is another thing altogether. Why use public funds for complex investments with high risks?

You are therefore right that “legal investigation must be conducted as it involves illegal use of the public fund”. Walter Woon has also gone into hiding.

With reference to ST Forum letter by:

Simon Koh
General Manager
Tanjong Pagar Town Council

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. It invested $250,000 in the bonds. This amount accounts for only 0.14 per cent of the town council’s total sinking funds.

TC does not invest in LB directly but FM did. Er, it seems like TC pushing the blame to FM. You mean that TC did not know what FM invested in, till now? Again, TC is using the percentage tactic.

Another spinning effort.

see! alot of push here and push there gong fu masters trying to eh_lak the responsibity.

i wonder why “highly-intelligent” people are deluding themselves into thinking that they must be the best because they are MPs. they tell you they have your interest at heart and will decide what is good for others. If someone has decided that he is the best and he knows everything, nobody can help him. The best way to learn and succeed is to know that we may know nothing because the universe out there is really complex (as shown by recent global financial crisis). Ego, arrogance and overconfidence in our MPs are very lethal to SG.

Aiyah dodo,

I remembered LHL telling Singaporeans during the so-called Marxist plot that his father, the Whiter-than-white Immortal, had read the bible a couple of times and he knows everything about the bible.

See, he knows everything. He is already God! No wonder his son takes after him, declaring that he is also the second God. With the gods in power, who needs mortal men to oppose them, let alone stand side by side with them.

Pui! to these fake gods!

68)ACACIA:

I wrote an article on the merits of the two parties system and was published in ST forum page two days ago.

Today, there are three letters published there advocating for one party politics! What a shock.

Frankly, I am not so bothered by the loss or exposure by the Pasir Ris-Punggol council. High risk comes with High returns. What I am troubled is that the estate committee and finance committee at this Town council are a “Bunch of Crowns” .
They are totally out of touch concerning the real needs of the residence at this estate.
Not to long ago, they splash over a million dollars building bicycle tracks on an experimental move that they hope would revolutionize the precinct afterwhich others Town councils would emulate. Till today, they have not openly admitted that the funds( million $$) could have been put to more productive use.
Recently, a basketball court next to my executive flat in Pasir Ris was resurfaced closed to S$30k. This court is hardly used by over a dozen kids daily. Prior to their massive resurfacing, the court looks relatively good and in an excellent condition . I wonder if they are enriching the contractors at the residents expense.
Like the bicycle tracks, did they seriously conduct a prolong period of observation and headcount to assume the viability and accountability of such projects.
Anyway the GM of Pasir Ris-Punnggol is totally hopeless, arrogance and a truth snob. She should start s analysising her priority and duties to the residents.

I am also concerned with the composition of TC finance committee. What are their experience and qualifications with fund management, and how do they select fund managers. How much are fund managers paid and how are the aggregate returns computed? These are very specialised skillsets and I wonder how able is the finance committee to tackle these issues.