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SINGAPORE: Two out of 14 PAP-run town councils in Singapore have invested in Lehman-linked structured products.
Holland-Bukit Panjang and Pasir Ris-Punggol town councils have invested a total of S$12 million in DBS High Notes, Lehman Brothers' Minibond Notes and Merrill Lynch's Jubilee Series 3.
Senior Minister of State for National Development and Education Grace Fu gave this update in Parliament on Monday.http://www.channelnewsasia.com/stories/singaporelocalnews/view/390407/1/.html
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Can any PAP folks explain why only PAP-managed town-concils are using public funds for investment while Hougang and Potong Pasir Town Councils did not ?
Were the TC residence told about this earlier or they are now trying to do damage-control on this less-publicised financial advanture using public funds?
Now, I am very very worried about what they are actually doing to our reserves moni and CPf with little accountability.
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12m not a lot lah................to them.
okay. It's another "honest mistake"....lets move on then.
But wait! What about my RC commitee funding? I notice HDB residence don't get any better service during the bullish good-times...whatever happened to those profit that PAP's TC pocketed during good-times ?Don't tell me they gonna raise conservency fee to cover their Lehman bro lost?
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Originally posted by the Bear:
but seriously..
it was seen as a safe investment.. by a LOT of people...
i wonder.. if they left it to rot in a current account, would people accuse them of not "prudently investing the money" ?
town council exist not to maximize their kitty.
what's wrong with putting it in term deposits and let the money simmer while they figure out how to serve the community better?
leave the investing bit to the likes of experts like temasek and GICs. all the intricate lines linked back to the PAP. the problem is the government here collected way too much money from all sources, including the people and they don't know better what to do with it.
if they have too much money, they are probably collecting too much from the everyday folks.
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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.
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they only use 6.7% and 2.6% which total $12m !!!!!! They are really a blood sucker ...I l live in Pasir Punggol Town, will I be asked to pay more for their losses ... By the way, I did in the past complained in this forum that they had even months did not sweep my common corridors but quick to send demand letter once you are behind payment ... now I know why ... just collect money and do no work !!!!!
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Originally posted by redDUST:
town council exist not to maximize their kitty.
what's wrong with putting it in term deposits and let the money simmer while they figure out how to serve the community better?
leave the investing bit to the likes of experts like temasek and GICs. all the intricate lines linked back to the PAP. the problem is the government here collected way too much money from all sources, including the people and they don't know better what to do with it.
if they have too much money, they are probably collecting too much from the everyday folks.
i know.. but from the rabid idiots who infest this place, they'd be accusing the MIW of not maximising the amount of money..
hell! they'd accuse LKY of JFK's murder if they could (see the illuminati topic)
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with these hundred of millions of reserve, the could better upgrade our living area, reduce conservation charges /mth. and betteer use to improve the life of less fortunate residence in that constituency area.
I feel sad when i watch Li Ming shun and Quan YIfeng TV show helping the poor. and hour later, i heard the news of town council squandering the money of resident!
despots!!!
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soft lollies.. how it look like>?