<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>Coffeeshop Chit Chat - Sorry, we can't return TCs sinking funds</TD><TD id=msgunetc noWrap align=right>
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</NOBR> </TD><TD class=msgDate noWrap align=right width="30%">8:44 am </TD></TR><TR class=msghead><TD class=msgT noWrap align=right width="1%" height=20>To: </TD><TD class=msgTname noWrap width="68%">ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 3) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft width="1%" rowSpan=4> </TD><TD class=wintiny noWrap align=right>3470.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Ministry reviewing adequacy of town councils' sinking funds
By Dominique Loh, Channel NewsAsia | Posted: 06 December 2008 2221 hrs
SINGAPORE: The National Development Ministry is reviewing the adequacy of sinking funds in all town councils.
Senior Minister of State Grace Fu said there is a misconception among some Singaporeans that these are excess funds and therefore such money should be returned to them.
But a preliminary ministry study shows the sinking funds are not excessive and town councils need them.
Her ministry is also trying to further understand the plans of town councils so as to ascertain the adequacy of such funds.
Ms Fu was speaking during a visit to the Serangoon North neighbourhood to spread the energy saving message to residents on Saturday.
She told residents her ministry is keeping a close eye on the financial operations of all town councils.
Debate over how a town council handles its sinking funds started after it was revealed in Parliament recently that funds from eight PAP town councils were exposed to financial products of failed Lehman Brothers. These invested funds totalled some S$16 million.
But Ms Fu stressed the need for such funds to keep daily maintenance works in housing estates going as well as for long-term projects.
She said town councils need to have a sound and competent financial system, which includes proper procedures and policies, just like a big commercial company, taking into consideration a town council's scale of operations and the impact of the decisions they make.
Right now, the National Development Ministry will study how to implement a performance management system.
It will help to benchmark town councils, to include indicators such as cleanliness and making sure lifts run smoothly.
And this review includes assessing the adequacy of sinking funds in a town council.
Ms Fu said: "It is not quite easy for residents to pick up a financial report and decide whether it's adequate. The number of units are different, the lifespan, the age, the configuration of the flats are different. So we are looking at ways...perhaps (to) grade the adequacy of sinking fund, and if we can make that transparent, it will help residents decide for themselves."
This process will involve consultations with town councils and is expected to be finished in 12 months.
[email protected]
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By Dominique Loh, Channel NewsAsia | Posted: 06 December 2008 2221 hrs
SINGAPORE: The National Development Ministry is reviewing the adequacy of sinking funds in all town councils.
Senior Minister of State Grace Fu said there is a misconception among some Singaporeans that these are excess funds and therefore such money should be returned to them.
But a preliminary ministry study shows the sinking funds are not excessive and town councils need them.
Her ministry is also trying to further understand the plans of town councils so as to ascertain the adequacy of such funds.
Ms Fu was speaking during a visit to the Serangoon North neighbourhood to spread the energy saving message to residents on Saturday.
She told residents her ministry is keeping a close eye on the financial operations of all town councils.
Debate over how a town council handles its sinking funds started after it was revealed in Parliament recently that funds from eight PAP town councils were exposed to financial products of failed Lehman Brothers. These invested funds totalled some S$16 million.
But Ms Fu stressed the need for such funds to keep daily maintenance works in housing estates going as well as for long-term projects.
She said town councils need to have a sound and competent financial system, which includes proper procedures and policies, just like a big commercial company, taking into consideration a town council's scale of operations and the impact of the decisions they make.
Right now, the National Development Ministry will study how to implement a performance management system.
It will help to benchmark town councils, to include indicators such as cleanliness and making sure lifts run smoothly.
And this review includes assessing the adequacy of sinking funds in a town council.
Ms Fu said: "It is not quite easy for residents to pick up a financial report and decide whether it's adequate. The number of units are different, the lifespan, the age, the configuration of the flats are different. So we are looking at ways...perhaps (to) grade the adequacy of sinking fund, and if we can make that transparent, it will help residents decide for themselves."
This process will involve consultations with town councils and is expected to be finished in 12 months.
[email protected]
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