I WOULD like to clarify the recent commentaries and queries from readers.

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Do Holland-Bukit Panjang residents know that the TC sinking fund is about $110M?

That $8M investment loss is 7.2% of their sinking fund.

7.2% Think.

Now, with 35% cap, Holland-Bukit Panjang TC has $38.8M it can use for investment.

That $8M investment loss is 20.6% of their investable sinking fund.

20.6% Think.

How is the rest of the investments doing? Dr Teo Ho Pin, please account in details how "Well protected, with positive returns" is the TC investments.

"Institutions and investments that were considered safe by most have failed and are now deemed high-risk on hindsight." ...hmmm...so who are those that didnt consider them safe in the first place? those are the ones that know their deals....

it's really pathetic. sgx bonds can give 2.9%, and after all their higher risk, they only managed to gain 0.1% more returns.

the other question is, if 3% is the AVERAGED return, then which TC is below average?

Why are we paying TC every month if TC is at Top Cash!

Oh my GOD!

We are mindful that overly conservative investments generate low returns and do not sufficiently protect against inflation, thereby building up pressure to increase S&CC.

Our aim is to generate higher returns during the good years to offset lower or even negative returns during the bad years, so that we can still achieve a healthy average return over the medium term.

Proverbs 23:5 For riches certainly make themselves wings; they fly away as an eagle toward heaven.

Dr Teo Ho Pin and PAP town councils will do a better job in showing residents sinking funds are "Well protected, with positive returns" raised by The Online Citizen.

Don't just tell people what you want to say. Answer the questions raised by the people if you understand what it means to be Public Servant.


Questions raised by The Online Citizen to the town councils:

1) Full and transparent disclosure of all investments currently held by the Town Council (whether they are structured products, stocks, bonds, fixed deposits or others), made using sinking funds.

2) In particular, whether sinking funds have been used to invest in any structured products that are not related to Lehman Brothers, but which may now be at risk.

3) The performance of the Town Council’s investments over the past three years, and whether these performance figures are based only last audited figures or include recent investment losses and/or write-offs.

4) What would the performance have been, if the Town Council had used all investable funds to purchase 10-year SGS bonds instead.

5) Who were the qualified persons who had advised the Town Council on its investments, and how were they appointed.

6) Whether the Town Council had purchased securities or otherwise placed any investments with these qualified persons, and if so, how the Town Council had addressed the apparent conflict of interest.

7) Whether the Town Council believes that it had been missold any investments (whether related to Lehman Brothers or otherwise), and if so whether the Town Council intends to take action for such misselling.

8 ) Whether there are any minutes or records of the Town Council’s deliberations on decisions to invest in structured products, and if so whether the Town Council intends to disclose them.

I would like to remind you of the statement made by Minister for National Development Mr Mah Bow Tan:

“Each town council has the duty to explain to its residents how it invests its funds, what is its philosophy, what are the risks it takes”. (Sunday Times November 23)

Why is there even a need to have separate TC investment fund? Why can't we just have a single centralize system to manage all our TC investment fund? Before forwarding the funds back to the respective TC?