Looks like the prices of our HDB flats won't come down for sometime to come.
Forum: the Sammyboy's Alfresco Coffee Shop™ Forum
> Subject: HDB units pay directors 661% more
> From: (GENTAN)
> To: (ALL)
> DateTime: 30/06/2004 02:11:16
>
> Wah HDB so profitable! More good years ahead!
>
> HDB units pay directors 661% more
> Bulk of jump in directors? fees, remuneration incurred by new HDB
Corp
>
> By Chua Kong Ho
>
> DIRECTORS? fees and remuneration paid by Housing and Development
> Board subsidiaries rose 661 per cent to $3.04 million last year
from
> $459,000 in 2002, according to its 2003 financial statement
released
> this month.
>
> Most of the expense was incurred by HDB Corp, a wholly owned but
> separate private limited company formed last year to take over the
> functions of the former building and development division.
>
> HDB Corp?s status as a private company means that it paid out
> directors? fees and remuneration ? something that it did not have
to
> do as a division within a statutory board.
>
> Said HDB in an e-mailed statement: ?The bulk of these fees, ie $2.6
> million, was incurred by HDB Corp, which is a private company. It
> includes the fees, salary, bonus and other emoluments, including
> benefits-in-kind, for the directors in HDB Corp as well as its
> subsidiaries.?
>
> It was responding to queries from Streats about the jump in
> directors? fees and remuneration.
>
> It added: ?We wish to clarify that HDB does not pay directors? fees
> and remuneration. It is our subsidiaries which paid such fees.?
>
> A check of records filed with the Accounting and Corporate
Regulatory
> Authority showed that HDB Corp has 10 directors, including chairman
> Ngiam Tong Dow, former HDB CEO and architect Liu Thai Ker, Keppel
> Land managing director Kevin Wong, Far East Organization CEO Philip
> Ng, Actis regional managing director Chin Bay Chong, Parsons
> Brinckerhoff CEO Quek Sze Swee, Ministry of Defence second
permanent
> secretary Tan Kim Siew and HDB Corp CEO Tan Thai Hong.
>
> Mr Tan Thai Hong is the only executive director on HDB Corp?s
board,
> a check with the company confirmed.
>
> While not strictly comparable, United Engineers, the largest
publicly
> listed construction group on the local bourse with a market
> capitalisation of $346.4 million, paid its directors $740,000 in
> remuneration and fees in 2003, according to its annual report.
> However, this excludes stock options granted by the company.
>
> The total bill for last year?s restructuring exercise stood at
nearly
> $400 million, taking into account the payouts in special
resignation
> benefits and the cost of investment in the new set-up.
>
> The annual report showed that HDB booked an additional $31.1
million
> in restructuring-related costs in 2003, on top of the $218.5
million
> in 2002.
>
> HDB also invested $142.6 million as share capital to set up HDB
Corp,
> bringing the total for the restructuring exercise to $392.2 million.
>
> HDB?s deficit from normal operations ? which exclude costs related
to
> the restructuring exercise ? climbed to $821.1 million last year
from
> $557.5 million in 2002, due to an increase in the number of CPF
> housing grant cases, lower surpluses from mortgage financing and
> higher upgrading expenditure.
>
> The statutory board?s annual deficit is fully covered by a
government
> grant.
>
> The annual report showed that HDB?s staff strength fell to 5,116 at
> the end of the 2003 financial year, down from 7,861 a year earlier,
> partly as employees were let go because of the restructuring.
>
> Wage costs for HDB itself totalled $337.1 million, or 27.8 per cent
> less than the previous year?s $466.8 million. totalled $337.1
> million, or 27.8 per cent lower than the previous year?s $466.8
> million.