Andrew Loh
Investment bank Lehman Brothers filed for bankruptcy on 15 September 2008. (Guardian, BBC, CNBC)
For the next two months, our town councils kept silent on whether they were affected by the collapse of Lehman, even as investors gathered in their hundreds at Hong Lim Park to protest their losses in similar investments.
It wasn‘t until the 17 November Parliamentary sitting that Singaporeans were told of the town councils’ losses when Nominated Member Eunice Olsen queried the minister on it. Senior Minister of State for National Development, Grace Fu, revealed that $16m had been invested by the PAP town councils in the failed structured products. Interestingly, none of the PAP or opposition MPs asked any further questions about the issue in Parliament.
Ms Fu said, “Are the town councils aware of the risks? I think that is the answer that we should ask the town councils and it is for each of the residents to pose that question to their town council.”
3 months and no answers
And so began a series of events which saw Singaporeans writing to the local press and emailing their MPs directly to do exactly that. They asked for more information and details about these investments – but have been met with a stonewall of silence, except for a few miserable crumbs of information given by a few MPs which do not answer the questions residents have.
It’s now almost three months after Lehman filed for bankruptcy. And the latest that Singaporeans are told by their MPs is to look out for the next issue of the town councils’ newsletters which will provide information about their investments.
Town councils’ newsletters are published and delivered to homes quarterly, or every three months. The next issue should be available in January 2009. (I stand corrected on this but so far, that’s what I know. Perhaps each town council has different schedules.) Whatever it is, Singaporeans are asked again to wait.
Originally, residents were told to avail themselves of the TCs’ annual reports; now, they are told to wait for the next issue of the newsletters; and SMOS Grace Fu talks about a new grading system for town councils – all without answering the questions which Singaporeans are asking about – how much has actually been lost and how much money are invested in structured products or other risky investments.
According to a Straits Times report on 11 December 2008, two of the town councils affected by the structured products “are giving their residents a more detailed explanation of their investments” through a “circular”. Holland Bukit-Panjang town council intends to send this ‘circular… to every one of its 53,000 households today.”
One wonders why it has taken more than three months for the town councils to respond in such a manner and one also wonders what the other town councils plan to do to explain more fully to their residents.
TOC would like to ask all our readers to send us a copy of your town council’s next newsletter when it finally reaches you. Email it to us at: theonlinecitizen@gmail.com .
For now, we keep tab of the series of events which have taken place so far and “admire” PAP MPs and ministers’ display of the art of passing the buck.
Minister passes to town councils. Town councils’ co-ordinating chairman defends town councils. Town councils ask residents to read their annual reports. Town councils then change their minds and ask residents to read the next issue of their newsletters. SMOS Grace Fu then comes up with a smokescreen of having a “report card” for town councils in future.
Nothing in all that they have said have answered Singaporeans’ questions.
One is reminded of almost the same tactic employed in the Mas Selamat Kastari escape aftermath where the buck kept being passed around until finally, those who should have been held accountable never were.
A missing PM and a woeful lack of accountability
A point to note: PM Lee, who has been so fond of criticising opposition parties’ MPs for any shortcomings, has been totally silent on this issue of PAP town councils’ investments – even after three months.
This woeful lack of accountability and transparency, and not to mention responsibility, is characteristic of a Government and a party which have become too arrogant. But more importantly, it is a danger for a country which puts so much stock in its finances and economy to just sweep such failures under the carpet.
Citizens must continue to demand answers and accountability.
The most important questions are still unanswered:
One, how much money is invested in risky investments, besides structured products, by the individual town councils?
Two, what do the town councils affected by the Lehman Brothers’ collapse plan to do to recover the money? Or are they writing off the millions as ‘bad investments”?
———
The series of events so far:
15 September 2008: Lehman Brothers files for bankruptcy. (Guardian, BBC, CNBC)
17 November 2008: NMP Eunice Olsen asks about town councils’ investments in Parliament. “Are the town councils aware of the risks? I think that is the answer that we should ask the town councils and it is for each of the residents to pose that question to their town council.” – Grace Fu (Parliament report, transcripts)
18 November 2008: EIGHT town councils (TC) run by the People’s Action Party have about $16 million invested in troubled structured products. (Straits Times) (Govt revealed this only after NMP Eunice Olsen’s question in Parliament, two months after Lehman’s collapse.)
18 November 2008: Teo Ho Pin disclosed the two town councils’ investments. The lion’s share of $12 million is from two TCs: Holland-Bukit Panjang ($8 million) and Pasir Ris-Punggol ($4 million). (Straits Times)
19 November 2008: Dr Teo says ‘be thankful’. (Today).
23 November 2008: Town councils to explain. Mah Bow Tan says TCs “must be accountable to their residents for what they do with the money they collect from them” (Straits Times)
25 November 2008: TOC asks readers to send email to town councils. (TOC)
28 November 2008: Teo Ho Pin’s first letter to the Straits Times and Today.
5 December 2008: Teo Ho Pin’s second letter to the Straits Times. “Investment types, returns open to public”.
6 December 2008: Teo Ho Pin replies to Gilbert Goh’s letter. “Council funds ‘in a healthy state’” (Today)
6 December 2008: “Town councils get graded”. (Straits Times)
6 December 2008: Pasir Ris-Punggol town council chairman, Ahmad Magad, sends email reply to wrong recipient – revealing that there may have been an internal agreement not to disclose “anything further” about the town council’s investments. (TOC)
7 December 2008: Use of funds to be assessed. A REPORT card on how town councils are doing will be ready next year and it will assess how they run their estates and manage their finances. (Straits Times)
11 December: 2 PAP town councils to open up. Holland-Bukit Panjang Town Council will send a circular – in the four official languages – to every one of its 53,000 households today.Straits Times.
—–
Related posts:
- Transport subsidies for the disabled – passing the buck?
- Don’t pass the buck to Ang Mo Kio residents
- A week of coverage on JBJ’s passing
- WP Statement On The Passing Of Mr J. B. Jeyaretnam
- Town councils, anymore skeletons in the closet?
Believe me fellow singaporeans, they will never or would want to give you the answers because if they do, it means that they admit to all these malpractices, which are illegal, and this could even lead to many more other areas which may still be well hidden from the people eyes.
This fiasco only serves to show that the elites think they need not be accountable to the residents and there is nothing we can do about it. The TCs could have helped the 10,000 investors who lost their money by filing a complaint together to FIDREC. But then again to these elites the money lost is small change to them so why bother?
If they think they can get away with all this passing of the buck then they are seriously mistaken. Hopefully more Singaporeans will wake up now and use their votes more wisely at the next election and make sure the buck stops with them.
Cannot help it. Big ship moves slowly.
But ArtBoon, aren’t we a small ship? As in a rowing boat, all rowing in the same direction (according to some distinguished civil servant)?
Boggles the mind, these mental gymnastics
If we are a big ship then we must be the Titanic that is now heading for the iceberg.
Workers are busily keeping the ship running but the elites that steer it are sleeping on the job.
I suggest all these should be dropped into a folder called “Issues to bring up during next election”.
Right now, they will not reply.
If the Town Councils were to siphon all the money and leave the country, there’s nothing we can do also. That’s my level of confidence.
when the MPs make a little something which they think makes them great
trumpets and red carpet rolling
today when something serious misfired
all blind deaf dumb and bodoh
who want to be a hero?
why don’t we start with
tanjong pagar town council first?
afterll
everytime when a dinner gathering is host in tanjong pagar
you can hear the mental1 great trumpeteers blown
more louder than the sound of music
tonight?
he have an earLEE night
simpLEE
because its rainning…
Maybe we should call in the professionals? Like agent molder and scully?
they are hoping for the whole fiasco to die down naturally….let’s keep bugging them like an irritating pimple on the face…keep the fire burning!
The way TCs hide their investment details reveal that there could be bigger losses on other instruments.
One reader has commenetd that he saw one TC listed as the top ten investors in Creative Technology company.
Remember that they can invest up to 35% of their sinking funds into risky instruments.
Considering that we have $2 billion sinking funds, that means a total of $700 million can be legitimately invest into stocks and shares! That is way too much though many TCs have not breach or are near to that mark yet.
I think the big problem here is that residents do not even have a chance of sitting in any committee TC meeting as the advisors are all hand picked by the MPs/minister. They have no way to influence any policies initiated by TCs. Thus, they are like an independent unit running autonomously answering not to the residents but the top (maybe MND).
The govt has all along never want to provide too much details especially into financial matters. GIC and Temasek have never provide annual reporting until the past year due to national security reasons. It is as if the money strictly belongs to the govt all along.
I agreed that this will be the biggest bugbear of the govt since Selamat Mas. History will go to show whether this incident will bring them down.
The previous Aussie Howard govt was brought down by several factors:
1. Implementation of GST.
2. Huge inflow of immigrants for at least 5 years
3. Internal political feud
For us, we should see during the next election.
aiyoyo
think commoners still has the question :
how to recover the investment loss??
how to get reasonable % return (with minimal/no risk, not like lehman)??
why things not fully declared & put on the table for every commoners to see??
why keep so much $$ in TC? can commoners keep the $$ themselves instead??
how good the ELITEs are in investing??
times are bad now, how to help commoners??
bukit panjang friend say she got TC leaflet that ‘explain’ the recent TC investment
saga, but look everywhere, no info related to her query, why huh??
etc. etc. etc.
aiyoyo
Firstly, all the monies collected by the TCs are obscenely wrong and immoral.
There is a cap to the amount that these TCs can invest in but the actual cap should be on the amount collected and accumulated. It is clear that it exceeds what is necessary to upkeep an estate.
The underlying reason why these PAP TCs are accumulating and increasing their wealth is primarily to hold us, Singaporeans, to ransom. We have already seen how it was used to threathen us during election time that should we vote in an inept opposition representative, our accumulated funds would be wiped out with irresponsible usage. Can they make these sort of threats if the funds are not so obscene, in the billion dollar range?
Another thing, imagine what this $16M can do for our fellow citizens in Potong Pasir and Hougang.
[i]gemami on December 15th, 2008 8.31 am
Another thing, imagine what this $16M can do for our fellow citizens in Potong Pasir and Hougang[/]
eer..
psst…
the above 2 wards did not BURNT in the lehman brothers deal
simply because the oversmartarsh scholars didn’t invite this 2 wards to a high tea 5 star secret location to buy lehman brother guranteed surewin bonds…
Discussions with a friend raised two interesting points-
a) When TC make money, nobody says anything. When TC lose money every complain.
The rationale behind it is that it is really our own greed that’s causing our reaction, and not any outrage of mis-spending by the TCs. I find that logic rather bizzare and reeks of cynicism and arrogance.
Firstly, even if they had made money, did it lead to lower SC charges? Secondly, if people had been told of how the money would be invested in the first place, then, yes, we would have to bear the collective fault for not properly scrutinizing the products. The issue is really a complete lack of information on how our SC money was spent.
b) The Government shouldn’t admit its mistake because it would erode the authority and trust in them. If they admit their mistakes to everything, then we would become like Thailand.
I leave it up to you guys to fill in the counter-argument to that.
But what disturbs me was really that these thoughts came from an educated person who has travelled around more than I have. i suspect the reason why there’s still no as much public outcry is because of such thinking.
That most governments are worst, so we should allow our own government, though imperfect, off the hook for their mistakes… because the number of our homeless is the second lowest in the world (though i wonder if you convert the absolute numbers into percentage, would they tell a different story)…
I have received the latest issue of the newsletter (issue 24) from pasir ris-punggol town council. A copy has been put up on their website http://www.prpg-tc.org.sg
Good Morning all,
This is very sad. But I can’t help feeling most of the ill will provoked from this TC failed investments incident has to be an own goal. of sorts
After all, didn’t they invest so much in the myth of the dream team – 1st division – super duper man; so what were the people supposed to do? Naturally, you cannot blame them when they set their expectations ‘high.’ That’s what happens when you stage a 1st division game – people expect to see Maradonna and Zidane.
But when people suddenly find superman is taking the lift instead of jumping over tall buildings in one leap and worst still, he even trips and falls sometimes – then what happens? What happens when the 1st division game degenerates into amatuer hour?
When people subsequently find out TC’s may have collected more than they should? And may have even failed to invest wisely?
One thing is very clear; what we may well be seeing here is the beginning of the onion story; the more you peel. The more you cry. But ONE thing is very clear from all this, no one NOW believes; the myth of the super duper man or the 1st division clap trap – no matter how you cut, slice and splice it – it has to be a fairy tale.
And that is not such a bad thing.
Welcome back to the good earth. Yes, you’re like the rest of us.
SD (Internet liaison officer of the brotherhood)
I suggest that everyone calls for a change in the way TCs manage money.
S&C fees/budgets should be handled on an annual basis, no more sinking funds.
the fees should focus on what its intended to do, and not make TCs into fund managers – which is not their role.
singaporedaddy,
What we need is some very concerted effort to pluck the heartlanders from their imagined fear/adoration of the govt.
They have to be politicised and made to see reality of the present state of the govt and convinced that the only cure is not to let the govt control every bit of their lives and livelihood.
It can be done.
3 months no answers. And what are we gonna do about it?
I see that there is absolutely nothing, NOTHING we can do about it.
Very unique.
got 80+ peoples’ representatives to serve the country leh.
they so deserve earning money from the country leh.
the best part is,
they were elected by the people.
hip hip, horay!
hip hop, boleh!
I think these people must be very proud theyare tasked to Represent the People.
So selfless, so Accountable and Integrity and Honest.
Even more many many Grassroots Leaders. I am sure they will help the people ask the TC ?
I think and think only lah.
1st world lah!
very very sad and very very tired now to live here . . . thinking if I shud just packed and leave . . .hmmmm. . . also won’t do, they just replace me with another foreigner cum offered citizenship, but if to stay put, dunno how long more have to suffer along with the rest of the citizens . . . . sigh!
I believe, in the past few years after the recent GE, this government has shown that it is NOT beyond reporach and it is NOT Division 1 quality. NKF, Mas Selamat, Lehman Minibonds, TC Investment Funds, Loss of Jobs in the recent downturn – what does all these events show?
It shows that we Singaporeans should wake up and not expect our government to take care of us all the time and therefore stop putting them on such a high pedstal. Once, we have come to terms with that, we will start to see that they are ntot demi-gods who can shield us from all threats; domestic and foreign. Then we will start questioning whether it was worth paying them millions and still have our economy perform very much correlated to the global economy. Did they really add so much value to qualify for the premiums over other world leaders? Then we will start to question that if a 1st world country like US has a senate and congress oversighting the current administration, what makes us think that our leaders are better than that they do not require checks and balances.
Once we have come to terms that they are not demi-gods like the old time emperors and their court officials, we will start asking the right questions and doing the right things for our children.
I knew some day all this talk about best in the world, 1st division team etc will back fire. My father is just a taxi driver. Even he told me and my mother this one day. If you are good. You dont need to tell people all the time. They will know. That is why, he said, when he was a taxi driver starting off in the good olde days. Mercedez benz was No.1. No need to even talk so much. But when you are not so good, then you have to keep telling everyone like a koy yok man, that is fine, but what happens when the medicine dont work. What happens when you are not so tokong. Game over lah.
Phua kang lah. SD is right. Exactly like what my father used to say.This had to give way sooner or later and they have no one to blame, but themselves.
we can continue to ask all the right questions we want, but the point is either they are keeping eerily quiet or coming out with answers that are irrelevants to those questions. It has been like that all these years, even in parliamentary debates, how many time I can’t help but noticed that the questioner and the answerer is from the same minister, and the rest of the 80+ ppl would just laughed or keep their heads down. Its sad isn’t it?
Testing the memory of Singaporeans….. after 3 months, most Singaporean forgets about this fiasco. Not to mention come next GE, no body remember Mas Selamat, TC sinking fund investment……. etc.
So much so TOC must continue and act as constant reminders to the people of singapore of what is and has happened in and around singapore, or else, soon the MSM will start all their usual wayang to divert the attention of the people again.
Mas who? Leh-who? What is sinking? blinks
LKY says you want high returns, you go in with your eyes open.
Teo Ho Pin wanted 5% returns. And in the cover pages it says you could lose all the money in this structured product.
Teo Ho Pin went ahead and signed into the investment.
Was Teo Ho Pin mislead by relationship managers, as indicated by Tan Kin Lian?
Or was Teo Ho Pin plain incompetent? Going into products that he does not understand, even with the clause in the front pages?
Do we write this off, and just move one? Who pays for this error?
Of course, they cannot just write off from the books, its the monies belonging to the people of singapore, not ah gong’s money. somehow or rather the loser will be the people paying them in the end.
22) tiredsingaporean on December 15th, 2008 1.59 pm
…thinking if I shud just packed and leave . . .hmmmm. . . also won’t do, they just replace me with another foreigner cum offered citizenship, but if to stay put, dunno how long more have to suffer along with the rest of the citizens . . . . sigh!
—————————————–
thats right, if u stay, you have a chance to vote.
if you migrate, you lose the chance to vote.
and the replacement is someone who likes what they see, else
they would not have dropped their citizenship of their motherland and
this means 1 outcome only.
AS PREDICTED BY MANY
THE PEOPLE ARE STARTING TO FORGET
THE FISACO’s.
AS THE DAY PASSES BY
WITHOUT ‘THE’ ANSWER.
SAD. BUT GOTTEN USED TO IT.
wow, people representation.
leadership.
honesty.
i also wan
Maybe this Scene (ALL THE HDB ppl walked out and sit at all MRT STATIONS,,and
haaaa…..(something like Thai ppl,,,they sit at the Airport !!)
sorrry,,,just think how many Feedbacks ,,Do Gahmen Listen??
I think Teo Ho Pin and other chairpersons of TC who lost millions should resign or be brought to court!
35) brought to court on December 15th, 2008 7.39 pm
I think Teo Ho Pin and other chairpersons of TC who lost millions should resign or be brought to court!
Oh how we all wish we can do that, lets make it our wish for this coming christmas!
Dear readers,
I guess the answer is right infront of us and its staring us right in the face.
How we feel deep inside, in the silence of answers tells us that they do not have the answers to our very valid questions.
Thats the answer!!, I am sure the viewership is getting wider as word gets out.
I guess the internet is god sent to save Singaporeans, Why they choose to read and not awswer these questions is clearly an indication that we need an opposition
Its funny how every 5 years they wake up from a long sleep and walk around.
The erosion has started and the stench will attract a lot of unknown questions.
What Singaporeans need to understand right now is how OUR money is being managed in all aspects.
34) NORTHGATE2007 on December 15th, 2008 7.09 pm
Maybe this Scene (ALL THE HDB ppl walked out and sit at all MRT STATIONS,,and
haaaa…..(something like Thai ppl,,,they sit at the Airport !!)
—————–
not possible – too many members ….i mean members of the air port fan club of the ultimate warrior super mighty tuakong orang utang.
NOL is GLC or ABC ?
i no no wor.
What goes around, comes around.
A senior fat cat talked big about asking residents in opposition wards to ask and check on their MPs on how they run the Town Councils just before the TC Lehman Bro’s fiasco.
The hubris finally pays off!
With the Teo Ho Pin Revelation of revealing nothing, he’s now put to silence.
With foot in his mouth, may he remember his poor past and not treat the less fortunate (& more courageous who refused to be bulldozed by HDB upgrading bribe) with his insensitivity and derision.
Is it Pay Back Time for PAP?
We can make it so.
feedmetothefish
b) The Government shouldn’t admit its mistake because it would erode the authority and trust in them. If they admit their mistakes to everything, then we would become like Thailand.
I leave it up to you guys to fill in the counter-argument to that. – Zefly (#14)
Only a government that lacks legitimacy would not admit its mistake to maintain its authority.
Do support the online petition for more transparency into town councils’ investment here:
http://www.petitiononline.com/mod_perl/signed.cgi?tc0502
We have 120 signatures to date. The petition will be sent to Dr Teo soon.
Thanks.
Does it still apply to this year and the next and then the next?
14) Zefly (aka Joshua Chiang)
I agree with small vice “Only a government that lacks legitimacy would not admit its mistake to maintain its authority.”
Furthermore, it is not money been lost that make people piss off…it is the way they invest, the way they do it and their arrogance that is getting on the people’s nerve.
“The Government shouldn’t admit its mistake because it would erode the authority and trust in them. ” come on, even without admitting their mistakes, the erosion has already begin, if they admit it, it will be asking for a death cert and D-Day will come on them
small vice, SZ,
I agree with you. Amazingly, these are the arguments some people actually throw up in defense of the govt.
Why not we present the singapore situation and issues like TC investment not disclosed in the manner we asking to foreigners and let them comment and show all these comments and get them to sign on the petition?
Or do we expect foreigner comments to be published in MSM?
ha ha
Our MPs so free to cut ribbons & attend award ceremony but cannot answer simple questions.
Have our TC invested in Great Eastern’s funds linked to the fraud of Madoff?
Is this another skeleton in the cupboard, yet to be revealed?
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSIN36577620081217
worst of all
many of our cpf savings funds
is tied up with insurances companies
under the gohchoktongue premeirships
it was HE
who recommended that
all our cpf savings should be used to ultilised in that kinda of insurances GURANTEED investments…
it better not turned into a ZERO $ note hor…
i won’t hesistate to torch cpf building
when my time is dued….
This is possible since everything are being kept in the dark from the people. Hopefully, they just dont just empty our life savings and say what to do, it happened, lets move on.
49) moshedyan on December 20th, 2008 4.45 pm
It is possible if not why they are still keeping everything in the dark from the people. Just hope the losses are not so serious to the extend of emptying our entire life savings and then say it happened, what to do, lets move on . . . .