Leong Sze Hian
Both the Merrill and BoA losses came to light only after securities filings in other countries or when international news agencies reported them – and were not voluntarily disclosed by Temasek or the government.
“Temasek Holdings sold its stake in British banking giant Barclays in December and January, at an estimated loss of between 500 million (S$1.2 billion) and 600 million pounds, sources told the Straits Times”. (Straits Times, 4 June 2009)
This comes on the heels of Minister Mentor Lee Kuan Yew’s remarks in March 2009 when he said: “We’ll most probably stay with the financials… Eventually, it must recover. It is the circulation system of the world.” (Reuters)
When asked to comment on the latest suspected losses, which was first reported by Reuters, a Temasek spokesman was quoted as having said, “We don’t comment on unsourced reports”.
This is akin to saying to Singaporeans that they are still not entitled to know about how much of their money has been lost once again.
The remark by Temasek’s spokesman is really a very weak excuse not to confirm or dismiss the report. I think Singaporeans and our Members of Parliament (MP) should finally say “enough is enough” and demand that the government and Temasek give us straight answers and be accountable and transparent to Singaporeans.
Both the Merrill and BoA losses came to light only after securities filings in other countries or when international news agencies reported them – and were not voluntarily disclosed by Temasek or the government. Earlier in March, the Minister Mentor revealed GIC’s losses to Reuters and not to Parliament which debated the issue a few weeks earlier.
Are there any other losses that Singaporeans still do not know about? And should Singaporeans wait for international news agencies to reveal these?
Non-disclosure of losses between November to March
I refer to the report, “Temasek has made net gain of S$56b since March 2003″ (CNA, May 28).
The Finance Minister said that “even after taking into account the recent sharp decline, Temasek’s portfolio had still grown by S$56 bn over the course of the cycle.”
So, what this means is that Temasek’s investment portfolio gained S$114 bn from March 2003 to March 2008, and then lost S$58 bn between March 2008 and November 2008.
The key point to note is that the mark-to-market unrealized losses (including Merrill) are only until November 2008. What we do not know is how much it has lost from November 2008 to March 2009.
The minister explained this by saying that “the full year accounts to end-March 2009 have not been audited” and that “the picture should not be fundamentally different.”
He further said the sale of the Merrill/BoA investment would not have aggravated the results either. Still, Singaporeans would want to know the losses incurred, if any, for the period November 2008 to March 2009.
If the “sale of the Merrill/BoA investment would not have aggravated the results either”, why is it that the actual amount lost is still not disclosed to Singaporeans?
Inconsistent and arbitrary use of market cycle periods
I am somewhat puzzled by the apparent inconsistency that after 9 paragraphs of the Finance Minister’s statement in Parliament, which referred to a 5-year cycle, from paragraph 10 onwards, it started to refer to a 6-year market cycle instead.
“But while Temasek has performed better than many other large investors over this 6 year market cycle, it is not realistic to expect it to outperform in every cycle,” Mr Tharman had said.
“It is also not realistic to expect it to avoid losses on every individual investment, or losses on its overall portfolio when the markets go through sharp corrections.”
While that may be true, without a consistency in reporting of its performance over 1, 3, 5, 10, 20, 30 years, and since inception, how can one make a meaningful comparison with others?
Why does the minister arbitrarily use a 6-year market cycle for his evaluation, instead of the 5-year cycle he used earlier? In the final analysis, Singaporeans still do not know how much was lost in the Merrill investment.
And the how, why and who were involved in the decisions and processes leading to the loss! If we don’t question how and why it happened, how do we learn the lessons to avoid a repeat of the Merrill/BoA saga?
This is the fundamental issue, which is an entirely different issue from how well Temasek has done over the last 6 years.
Read also: Temasek may have lost 800 million pounds on Barclays – Reuters —-
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One minute they tell us the investments in the foreign banks are for long term in line with their strategic investment policies. Then the next minute we only get to know from foreign news agencies that these investments has been sold incurring massive losses, follow up with their standard excuse that these investment are no longer in line with their overall long term investment portfolio.
So who has been telling us cock & bull stories ? They are just acting like they are no different from those opportunistic professional conman – duping us all along.
Not shameless meh ?
#28) fengchu on June 4th, 2009 4.47 pm
So far the only people who say they have made money are the elites themselves.
AND, they never volunteer that they lost money unless asked……………..
So…………………
Also, they are paid OUT-OF-THE=WORLD-SALARY for delivering the result, with APPROPRIATE SENSE OF PROPORTION, so is it reasonable that we expect them to deliver OUT-OF-THE-WORLD-PERFORMANCE???
I thought it was LKY that said an irresponsible government would squander all our money.
Oops, I think he was refering to the irresponsible PAP government.
#38 – Lego – “Why did our Finance Minister chose 2003 as the starting to measure Temasek’s performance? Why not 2000? Also, why did he measure the performance in S’pore Dollars? Why not US Dollars?”
Well FM is of coz using his liberty and abusing his status to manipulate the figures to present a rosy picture to cover his and HC’s asses. Another high-handed approach that treats the citizens as idiots with his “trust the upper crust to do the job, don’t question too much, shut up and sit down”.
Gone are our CPF money, not their money. So wait till ur 90 yrs old before collecting CPF.
How corrupt government can get legally? Singapore is a good example
I think the PM will have to take over the role of the Finance Minister. If not, MM Lee will have to come back to see things sort out. There will be never Eough. More to come. Be prepare guys. Hope that we won’t go broke. Hahaha.
I think Temasek did very well with annualised 15% over 6 years.
Temasek should manage CPF members’ money and give us 8-10%, we will be happy instead of letting the insurance agents managing it and lost billions.
27) ironman on June 4th, 2009 4.45 pm
“To be fair to the MPs, some of them like Inderjit and M.Palmer did question the minister about the losses etc. But what do they get?”
What MATTERs is not asking a question but getting the Answer , not any answer but THE Answer. Its commonsense that Anyone Can just Ask that question. Bloggers all over are asking. While Questioning is the mother of all Answering, Actual Answer is what Counts. So, we now need to ask ourselves, supporters and non-supporters, when questions are asked, HOW were they answered and is it Acceptable or Impressive or Convincing to the 1st world Intellectuals of singapore?
“They got assurance (trust them?) that the losses are OK because TMSk made A LOT MORE before, they can afford the losses mentioned, and still look pretty. now beat that.”
Why was this Big Loss not mentioned all the last several months beginning of the year when so many parl sessions have been conducted giving opportunities for the People to hear about their investment results? ‘why’ is because I give him the benefit of doubt that he has some solid reasons for not disclosing, assuming that indeed it is true about the Barclay loss.
Why MSM did not get the news but Foreign world class news able to publish 1st?
This is not the 1st time local MSM is later than Foreign ones when it comes to Singapura news. Can someone from the MSM exprain this?
I have lost all confidence in the PAP, the Prime Minister, Minister and MPs. For the sake of our future, our childrens’ future and our childrens’ future, vote NO to the PAP.
I had a dream while taking a nap just now wondering
did Ho C. knew about this selling in dec and jan 2009 ?
anyone knows?
my commonsense tells me…..
“life too short for regradsification”
Now 62 and got my CPF to almost Zello! & enjoying my monthly annuity payout for life!,,,,,,,,heng uh!…..already crossed the bridge and must that the PAP policies and my parents for being born at the right time! hor……………… Dun worry too much now!
Hi I need some advice
My boss recently asked me about my performance as I had a been on a losing streak for this year.
My response to him was that if he had taken into account the 9 years and add them up, I am still bringing profits for the business
I think this is a fair statement, but he told me that the SHAREHOLDERS want to know my performance for this year and not for other years and we have a yearly review and it should not be taken into account…..
Frankly i was quite disappointmented that he did not see where I was coming from………
I noticed no body wrote about ST report on Ho Ching resignation date. Can someone clarify.
ST reported Ho Ching step down as on 1 OCT 2008. Which means Cheap Goodyear was the person responsible for losing Barclays monies /shares sold between the period NOV 08 to JAN 09. OR is this another creative way to absolve liabilities and taichi to someone else to take the blame? Which?
The chart showing SOLD period next to her step down date. 1 OCT 2008 .
Wasnt her resignation from Temasek announced only recently? MAR or APR 09
Hi Kum Hong,
TOC did write about Ho Ching’s resignation. Here’s a recent list of opinion pieces on Ho Ching and Temasek Holdings:
http://theonlinecitizen.com/2009/02/madame-prime-minister-bows-out/
http://theonlinecitizen.com/2009/02/looking-forward-to-more-goodyear/
http://theonlinecitizen.com/2009/02/what-the-temasek-debacle-reveals/
FACTS is they kept losing monies meant there isnt any real check in place.. Talk only they are careful investors. We listen, we are convinced. BUT they kept losing monies ONLY shows no one really dare stand up to the OMO whose words is like the ultimate destiny. …
FACE it, all talks about there are CHECKs are BULLs.
Many more losses remained unreported.
#45,
The song is very disgusting!
hongjun
to fengchu
We are not saying that nobody will keep earning without lost, mind you,but did those investor declare themselves as first class with superb capability to justify their pay? they did not….capish? and are they willing to admit their mistake? yes they do….what about our dear leaders? do they apologize and admit their mistake? or do they just brush it off….and do they make such high risk investment with other’s money? so please don’t put words into our mouths thank you….
and look at irresponsible people like John Thain and what happen to him after the fiasco? if that same scenario is apply to you know who, nothing will have been done and we just have to move on…
“Hw do u topple PAP? Pls remember PAP has been ard for 50 yrs” fengchu, so what if they have been around for 50 years,didn’t you ever read chinese history? Dynasty that ranges across centuries collapse due to incompetence….hello! and that is not limited to china history too!
look at a more recent entity, GM, former no.1 automobile company, founded in 1908, and now after a century, is on the bank of bankruptcy….so fengchu, lesson 101, time doesn’t make you invincible, in fact it makes you more vulnerable with complacency and ego! formerly, indestructible entity is now on the brink of its death
lastly, fengchu, that’s crude of you,talking about someone’s passing….i guess it is hard to expect something out of you? do take care!
To fengchu:
We dont support LZH. We support real democracy in Sg, and he happens to be the one of the braver ones amongst many here.
You have been a bast**d to talk about death. Remember, LZH also has his family and love ones, like everyone does.
If you have nothing better to contribute other than curses, why not go to PAP forum to sing their praises. You will not be missed here
Oh Mother of A Nation,
What has happened?
Your GrandSon again?
Did he change the label?
Division C labelled as Division A?
Did he mix the cycle?
6 year cycle mixed up with 5 year cycle?
Did he creatively modify public information?
Asset sales as profit gain?
Oh dear……..
Now we know why ministers are paid millions of dollars,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
At this terrible stage, Alternative parties should have full confident of themselves by now. They should know that pap has no talent at all, and they only sang terrible songs as solution to this crisis. We can safely believe that pap is a weak party, the system is weak and our president is weak too until he stand up and speak on the people behalf why Temasak incurred such huge losses over a short span of time. President Nathan, speak up!!!
this is a good time for alternative parties to think on how to offer solutions, learn from others’ mistake. offer concrete & realistic solutions, win the mandate in the ucoming election.
frankly speaking even if an opposition party, it will have its hands tied close to its chest with so much being lost. S’pore’s moneies are being squandered like end of the world is tomorrow.
Like Owen Hart used to say…..enough is enough, its time for a change…..
kekekeke……..
“Can u tell u a way whereby we will nt lose a single cent, can u propose a way whereby every single investment made will be 100% safe.”
Cannot. But why pay yourselves millions when you are only human
I think the issue here is not just losing money but not revealing it truthfully thus putting the govt in a bad light.
Though we cant label them corrupt yet but there is a true case of misrepresentation here.
I believe that you cant hide away forever. Things will somehow spill out in the end.
The govt has to learn how to be more transparent and own up to mistakes. No govt is perfect and people forigve a govt that takes responsibility.
If the public gets to know such news from foreign agencies then somehting is wrong with our top notch corruption free govt.
hi Gilbert Goh,
i agree with you, post #76, June 4th, 11.32pm.
The problem is Singapore government does not want us to know and we have to learn from foreign media. Transparency?
S Tharman is not painting the full financial figure, just selectively telling us.
Well, who can we blame but Ho Ching!
Can someone please explain this how this happened??
Headline from CNA- Temasek scores perfect 10 points in transparency index….
http://www.channelnewsasia.com/stories/singaporebusinessnews/view/433886/1/.html
Why do we need 2 investment arms anyway? Arent the objecttives of increasing the wealth of the nation the same shared? Why do we need to invest using our own highly paid team ? Why cant we tap on the resources of those private wealth managers like Goldman , who has better insights and connections ?
I suggest dismantling the investment arms, and have team of core decision makers to spread out the investments. Obviously, its happening now when a small group of decision makets decide that 40 pct of financials is the way to go, but at least we get rid of the huge payroll. Cutting costs is also looking after Singapore’s wealth.
I agree that enough is enough
I was Shock! Shock!Shock!
I am a Singaporean therefore NOT entitled
to know! Foreign entities are more
superior than Singaporeans.
All these got to be the next Election issue!
It’s NOW time! Enough is enough!
Flabbergasted Thousand Times Over!
“Why do we need 2 investment arms anyway?”
ONe run by father and another run by daughter. Family business. Daddy want to run business, and daughter also want to run business. Daddy still want control over business, what better way to have 2 arms. Does that explain it ? Have you watched Hong Kong Serial that shows father, son and daughter running business with father controlling and watching move ?
“Though we cant label them corrupt yet but there is a true case of misrepresentation here.”
If every world government don’t have transparency and no need to reveal what they do to public money, there will be no corruption in the world. Corruption only exists because the chance of getting caught is remote. Without transparency, there is very likely corruption especially none of the people can even explain and break down the loss. Is creative accounting consider a fraud and corruption ?
How the newspaper paint the elite as extraordinary in good times, but in bad times, when these elites are truly tested, they show their extraordinary incompetency in handling state assets. Now, you have incompetent people mishandling those assets and still reward themselves like nobody business secretly, now is this call corruption or just business as usual ?
If Chen ShuiBian ever run Singapore, there will be never corruption in Singapore because nothing important about assets and reserves can be revealed to the public, and every loss is considered “What to do, it happens”.
We should look into our own backyard before accusing other government of other countries of corruption.
The PAP can say they make profit $114b + $56b.
But they loss Billion also, they kept quiet until some news from overseas report.
Singaporean are shock.
Please help the Singaporean while this economic is still down.
This Billion lost could help the Singaporean who are being retrench, jobless, company in difficult for months.
I do not see the economic in Singapore going to recover for the next one year.
fengchu,
Your comments are disallowed. Please refrain from making personal challenges and attacks.
Remember this, CPF is never YOUR money. If it is YOUR money, you can DO anything with it – spend it, withdraw it, gamble it away, etc.
CPF is like a joint bank account, except that you are the minor account holder, anything you need to do with CPF, you need permission from the main account holder (Government).
So it is easier to think this way. CPF is never YOUR money to begin with. You have actually been forced to give away 20% of your salary. So if you are doing retirement planning, don’t take CPF into account.
81) Daniel on June 5th, 2009 9.32 am “Why do we need 2 investment arms anyway?”
Daniel, every businessman will know why you need as least 2 companies to run a same business, left pocket to right pocket, right pocket to left pocket, you know what this means?
fengchu, good riddance….since you are so ignorance about “when did i make personal attacks” i hope you see this, look up and see your previous post….but of course this is futile, since it is good riddance to you!
” every businessman will know why you need as least 2 companies to run a same business, left pocket to right pocket, right pocket to left pocket, you know what this means?”
Family business ? Singapore Inc is indeed a big family business with multiple companies to generate money for you know who.
U are right. temasek transfers assets to GIC and GIC transfers assets to temasek on paper. Wow… look good on paper, transfer capital and asset here and there to make accounting looks good without getting caught. That genius of the establishment. What can I say. World-class !
Sold our power stations and buy BOA, PaP makes Singaporeans Poorer and Poorer!
To do a good job we must have a peaceful envrionment. With so much noise, attacks, name calling etc no wonder Temasek lost its cool and sold out early. No one gained.
I agree that we all should be angry and heartbroken that Singapore did not come out winners in the recent events. But as we know cash is best, and, I am confident if we wait it out, our investment will regain its losses and even make us richer. I am in the same shoe. I bought in and the market crashed. I average down and I am sitting on a small profit now. How can I point a finger at anyone as long as they apply honesty and due deligence in their job. That is life and we have to accept it.
Changing horses in midstream is not good. The incoming CEO would want to clear the table and restart. He has a reputation to uphold. Maybe that could be the extra pressure to sell out early. Very sad indeed if that was the case.
Re-aligning portfolios does not mean we anyhow reduce existing portfolios. The reason to sell must be because we feel that there is no more future for BOA or Barclays.
Cool down and lets look for a brighter future. The signs are good.
The PAP government is ever ready to claim credits whether they deserve it or not. Even after Temasek sustained such a massive setback, the Finance Minister
has the cheek to claim that Temasek is still doing a good job. It is too easy to lower standards to confuse Singaporeans and score political points but is it wise ? To do so is to condon and promote failures. Is this what the PAP government and Singaporeans wanted ? Is selling failures as a success the
way forward for Singapore and Singaporeans ?
Last time elites were always bragging about us being no. 1 in Airport, Container Terminal etc.
Now they just got another one in their accolade.
No. 1 loser in world for SWFs. Well Done Guys! Keep it Up! (Or Down?)
Arr…. I missed fengchu’s great speech. Hence, no idea what he’s talking about previously. But to flame so many people, his speech must be…. “Great” indeed
“simply put, propose a way whereby u think u can outperform GIC/Tenasek, propose a way whereby every investment u made will not lose a single cent. I’m simply asking for tht.”
It seems like the forum is mainly asking for accountability and transparency, not superb way of making money at zero losses. I believe you can count, maybe you want to read and count the posts again, how many is talking about not losing a single cent; Maybe your post only and the one I missed (that one got deleted)
Nonetheless, I don’t know how to play football, does it means tha I cannot tell singapore football standard is so-so only? I am not a cook means I cannot tell a poorly done food/meals taste no good and I cannot tell the cook his cooking is bad?
Please don’t do selective reading lah, if your mind is as “Great” as you claim to be, then argue more effectively; substantiate your argument with facts and logic.
Lastly, the internet is a true freedom of speech (subjected to in-country laws and policy), you will hear things that you don’t like, people with opposite opinions like you. You are entitled to your own opinions that the forum here are not friendly to you, and you are not being “welcomed” like a VIP. Why? Becos other don’t think you’re entitled. That’s their opinions and they are entitled to their opinions. If you want to change their “opinions”, then argue your case convincingly and effectively.
87) fengchu on June 5th, 2009 12.28 pm
hahahaaha even TOC is siding them, when did i make personal attacks, wt I calling for is mere alternatives, simply put, propose a way whereby u think u can outperform GIC/Tenasek, propose a way whereby every investment u made will not lose a single cent.
Well, it is not possible to have every investment making profit. That is in IMPOSSIBLE target. So I don’t think we are talking about that.
So, what are we talking about. We are talking about an UNACCEPTABLE situation where the GLC and GIC lost billions after billions. We are talking about UNACCEPTABLE reply that all is fine because we are still ahead in overall sum. It is UNACCEPTABLE because we don’t know if this NET PROFIT will still be there tomorrow. What is there to assure us that the NET PROFIT they declare today will not be lost next year with some other bad investments.
All these losses make people feel unease with the way they handle the investments, OUR MONEY. Just saying they know what they are doing and that they are doing the best is no longer enough. The public confidence is eroding. So, what do we want:
They must account for the decision process that result in the losses. They must review and tighten the decision process. They must hold those made the investments accountable.
PAP also said there was nothing wrong with OLD NKF until they finally faced that can of worms. We don’t ask for perfect investment records, but we can feel something is wrong if they lost billions after billions. If they say this is the best they can do then people may have no choice to vote PAP out. It is just like the NEW NKF finding out what went wrong and fixed the system.
The NEW NKF did all the changes and improvement the OLD NKF said could not be done.
No people may be able to provide a better scheme now given the lack of data and resources. But when a new team take over GLC and GIC, it will be possible.
#42 farnie
“oh go ahead and whine more. think about who put them into power in the first place”
Yes, undeniably, Singaporeans put them in power. Singaporeans, or some Singaporeans, trusted them. But what have they got in return? PAP deceit!
We have been fooled before, yes, but the time has now come for us to correct our mistakes. Let us all ensure our voting in the next elections will help to make clear our feelings against this self-serving, bullshitting govt.
How can we believe what the PAP government tells us when even MM and self-proclaimed founder of modern Singapore has lied to us. While he was assuring us that those investments in Western Banks are for long term and the losses are
not realised yet, Temasek was quietly liquidating the very same investments MM was talking about and locking in $billions of losses. I am sure MM knew what Temasek is doing as 1. these are big sums of money and 2. the CEO of Temasek is his daughter-in-law. I find it difficult to trust the words of the PAP government again.
He also promised us not too long before the onset of this deep recession that we are in a GOLDEN ERA. How can this be a GOLDEN ERA when so many Singaporeans are out of jobs or are fearful of losing their jobs, and so many Singaporeans are finding it extremely difficult to make ends meet. Looks like our PAP leaders are living in a bubble and completely out of touch with reality on the ground. Otherwise how can such a proven wise man like MM get it so very wrong ?
“Singapore Finance Minister Tharman Shanmugaratnam has claimed that despite recent losses Temasek has made gains averaging a respectable 15 respectable a year. However, this was during a sustained global bull market and also reflected the fact that some of its assets were state-owned companies whose shares had been transferred at non-market prices. These included power stations which have been sold off over the past two years, generating large gains which cannot be replicated.”
Maybe Tharman should be renamed as Turtle. Whatever good work he done in the past has been negated by his cover-up as finance minister.
Above from
“http://asiasentinel.com/index.php?option=com_content&task=view&id=1919&Itemid=233″
Power Corrupts and Absolute Power, Corrupts Absolutly.
This govt…just doesn’t want anyone in Temasek to be accountable. Why …I think , we all know Why and they Can.
If Singaporeans need a painful lesson, then we should suffer. Pain and Suffering will bring the genius out in us….
Just imagine..people turning old…and not having any money to collect from their CPF’s….
This has happened before in the US . I hope it happens…. to wake ourselves up ….. to Vote wisely next time.
TO VOTE THE OPPOSITION IN, at least a few.
I hope people see it and make the right choices in the next GE.