Nov 17, 2008
$12m in troubled products
TWO town councils - Holland-Bukit Panjang and Pasir Ris-Punggol - have about $12 million invested in troubled structured products.
These products include Lehman Minibonds and Merrill Lynch Jubilee Series 3.
Senior Minister of State (National Development and Education) Grace Fu gave this update in Parliament on Monday, in response to a question from Nominated MP Eunice Olsen.
Since Dec 1 last year, the amount that town councils can invest in non-government stocks, funds or securities has been capped at 35 per cent of the sinking fund.
Holland-Bukit Panjang invested about 6.7 per cent of its total funds available for investment in the structured products, and Pasir Ris-Punggol, about 2.6 per cent.
The sinking funds are used to pay for long-term or cyclical expenditure, such as replacing lifts, pumps and pipes, re-roofing, and repairing and redecorating blocks.
The funds are also used to pay for lift upgrading, so that residents pay a smaller percentage of the total lift upgrading cost.
The sinking fund is distinct from the operating fund, which is used for short term expenditures.
Ms Fu said town councils need to invest their funds prudently so that the accumulated funds are not eroded by inflation.
The investment guidelines - which her ministry has no plans to change - seek to achieve an optimal balance between reasonable returns and financial prudence, she added.
She noted that investments in stocks, funds or securities must be on the advice of a qualified person, such as an investment adviser holding a licence under the Securities and Futures Act, and an approved bank or a merchant bank approved as a financial institution under the Monetary Authority of Singapore Act.
The 16 town councils manage more than $1 billion in sinking funds.
The first word that came into my mind when I read this is FUCK!
What the hell are the town councils using our money to play shares for?
If you read this whole article, you find it is full of bullshits.
Grace Fu said they need to invest so to prevent the funds from being eroded by inflation, Yeah I have a better solution for that, DON’T ACCUMULATE SO MUCH MONEY!
Have you ever how many percent of you month conservation fee actually go into the maintenance of your estate?
My block is being wash once a month and the worker only sweep it like once or twice a week.
Another question, what the town council do with the profits they the got from these investment? Bet they just keep it for themselves!!
Isn’t nice to be a town council?
Take other people money and use it on your investment. If got profit just keep it, don’t have to share it out to those who lend you the money.
Best still, if lose money, just shrug your shoulder and said too bad.
2 comments:
the profits from these investments can be channelled to benefit the citizens in that GRC. Eg, buy and distribute a packet of core groceries to the households etc.
Did they explain in the parliament how it was channelled back to residents?
no wonder some CC guy can koo tok $ from the accounts... just too much $ around for people to notice that $50k was missing... and too much $ around to tempt so-call volunteers to channel for personal use...
Yah boy..how can they take our hard earned money and then use it to speculate? Now lose money already, its the citizens who suffer cos its our hard earned money.
Recently also got the complaints where all these town councils employ these foreign workers who waste water and never do a good job in maintaining our towns...and all the town councils do is to warn them...maybe they should then fine themselves for not ensuring that the jobs are properly carried out.
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