Last year I blogged about how the Bukit Panjang-Holland Town Council had funds in Creative Technology, a money losing stock. I wondered why town councils are allowed to put their money into high risk equities. Some time later in late 2007, it became an issue discussed furiously in the blogosphere as well as commented on by MPs and ministers.

All along they have given Singaporeans the assurance that town councils’ funds are only put in low risk investments, and are closely monitored and controlled. However, it has now come to light that several town councils are exposed to Lehman Brothers’ losses totalling millions of dollars.

This topic is already discussed to death in the blogosphere, where plenty of insightful articles can be found on The Online Citizen

I also like to point out that in May this year, SM Goh told residents to check on opposition wards’ town council funds. Now it seems that residents of all PAP town councils should check on their funds as well. In the first place, town council funds should be put where they should be – saved up for town improvements. It’s total bullshit to say that they invested in Credit Notes to guard against inflation. Is that what credit notes are meant for? I don’t think so.

In justifying the town councils’ investments, one of the ministers also pointed out that fixed deposits would yield an average of just 0.9% per annum. That’s bullshit again. I get 1.88% per annum as a small time saver in one of the foreign banks here, and the interest rate goes up with higher deposits. Another justification was that the town councils earned money on their investments in previous years, enough to cover the losses they incurred this time. That’s not a valid argument. That’s just to justify that the loss was inconsequential, and not to justify the very decision to put the money into such stupid investments in the first place.

So what if the losses continue to mount, and wipes out previous years’ profits? What excuses would we be hearing then?

In my opinion, heads should roll for these systematic failures – the people running these town councils have lost sight of the town councils’ primary function – to provide services to residents, and not be run like profit-oriented companies. So what if they get lots of ROI? The bulk of the money would still be kept in their bank accounts and not be used for improving facilities for residents.

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3. On Passion