'These attacks are emotional and irrational.'
MR GOH KHEE KUAN: 'In the past few days, there have been letters criticising town councils for making bad investments. These attacks are emotional and irrational. Like all organisations, town councils should invest their funds in a portfolio of investments, with low as well as higher risks. This gives them better returns on average than they would have earned by just investing in 100 per cent safe instruments like fixed deposits. Thus has the Holland-Bukit Panjang Town Council sinking fund grown from $62.6 million in 2002 to $118.8 million in March this year. Investment income contributed $24 million. It lost $8 million in the Minibond investment. So its net investment income from 2002 until now is $16 million. Had it left all its money in fixed deposits earning less than one per cent interest per annum, it would not have netted that amount. So, should we instruct town councils to take absolutely no risks, earn less; and seek more contributions from residents to contribute more for major repairs to the estate because the councils were not allowed to use their funds to earn a better return?'
ST Forum 20 Nov 08
It is as if the writer in his haste to defend to TC failed to see that the principle duty of the TC is to manage the estate. In collecting more that what is needed and investing it in the name of inflation hold no water. These excess would be put into more use in the peoples pocket than into these investment. By collecting more than what they need and locking them is infact devaluing the actual dollar now.
If the writer accept this reasoning like the MP, it is as if it is ok you emblezz fund but if you return them and maybe plus interest. Does the writer also accept my reasoning?
Heard that some ankers and aunties doing gardening work around HDB estates are not doing volunteering work but to pay off the outstanding conservation fees outstanding to TC. No money to pay so got to work and deduct hourly rate payment off the outstanding fees. Duno how true. If that is the case then it must have been damn terrible.