How much public funds did PAP Town Councils lose in total from the failed minibond investments?

October 30, 2008 by admin
Filed under: Financial Matters, Wayang Party Club 

By Eugene Yeo, Senior writer, Wayang Party Club
29 October 2008

Excerpts:

We have received an anonymous email from Michael who claimed that a few PAP-controlled Town Councils have lost quite a substantial amount from the failed minibonds investment:

Hey Wayangparty,

You may be interested to know that a few PAP Town Councils lost quite heavily, possibly more than XXXXXX (amount not stated due to legal concerns) from the minibonds.

A similar post was made by “Eric” on Mr Tan Kin Lian’s blog yesterday.

There appears to be an element of truth in them according to this CNA report if you read carefully in between the lines:

“The sinking funds under all 14 PAP-managed town councils are safe and not significantly affected by the failed Lehman Brothers products. Town councils said only a small percentage of their total investments were spent on those affected products.”

My interpretation: It is TRUE that sinking funds of PAP Town Councils have been spent on the affected investments regardless of how small the percentage is.

“Every PAP town council has between S$30 million and S$150 million in their sinking funds. Although some of the town councils have purchased Lehman Brothers-linked products, the investments are minimal. Maybe a couple of percentage out of the total investment portfolio (were used in those investments), so the exposure will not affect the overall investment portfolio or the sinking funds per se.”

Read the full article: How much public funds did PAP Town Councils lose in total from the failed minibond investments?

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