A $4.6 billion loss on a $5.9 billion dollar investment.

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David Faber from CNBC:

“A $4.6 billion loss on a $5.9 billion dollar investment."

TPG lost $2 billion really quickly on Washington Mutual, but this one guys, is right up up there, as one of the worst investment during this period for one single investment fund.”
Now, what does the Lee family think of this latest investment loss?

Ho Ching, Temasek’s CEO, wife of Prime Minister Lee and daughter-in-law of MM Lee:
“No. I think if you want to run life with regret, you will end up doing very little.” (when asked if she had any regrets about leaving Temasek, Reuters 6 February 2009, source)

Lee Kuan Yew, GIC’s Chairman, father of Prime Minister Lee and father-in-law of Ho Ching:
“When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up.” (CNA, 7 February 2009, source)

Lee Hsien Loong, Prime Minister of Singapore, husband of Ho Ching and son of MM Lee:
“Both Temasek and GIC are professional investment organizations, highly regarded around the world for their track record. Management hired all over the world. Boards are competent and experienced. They pursued sustainable returns over the long term, and avoided excessive risk-taking for short-term gains. Thus we have achieved good long term returns through ups and downs in the global economy and market cycles.” (in a speech on 21 October 2008, source)
Since we are investing for the long-term, why did Temasek sell of its stake in BOA so early and at such a low price? In less than a year, it lost 83% of its initial investment in Merill Lynch!
Is Temasek pursing “sustainable returns” over the long term by pulling out so early from BOA?

Does Ho Ching still have “no regrets” over such a disastrous loss? Of course she won’t, since the money is not from her own pockets.

Does Singapore still has a future when its SWFs are bleeding our precious reserves dry with such ill-judged investments?
Imagine using the $4.6 billion dollars to help ordinary Singaporeans tide over the current economic turmoil by subsidizing medical bills, providing retrenchment benefits and paying for the education of needy students.

The government kept telling the people that we should be self-reliant and not develop a clutch mentality. It is not as if it has no means to help the less fortunate in society. It is so filthy rich that it is able to blow billion dollars away in an instance without blinking an eyelid!
In her latest speech as Temasek’s CEO, Ho Ching said:
“We must do things today with tomorrow clearly in our minds. The story of Temasek is likewise a journey, each generation doing things yesterday and today with tomorrow very clearly in our minds – to make a difference to our fellow men and women, to support and build a future where Asia and Singapore can realise their full potential for their people, and to put in place the foundation for a better tomorrow.” (read her speech here)

Forget about Asia, Madam Ho. Haven’t you caused enough trouble in Thailand? Obviously the investment decisions made by you during your tenure did not take the future into account. How else can you explain the terrible losses suffered by Temasek from the purchase of Shin Corp, ABC learning and now Merrill Lynch?

The Singapore government must account to the people immediately on the latest loss by Temasek since it is a corporate entity fully owned by the Ministry of Finance which is in turn financed completely by taxpayers’ monies.

It is a shame that the PAP pay only lip service to transparency and accountability and continue to demand us to pay them exorbitant salaries only to screw up big time, again and again.

Article Extracted from wayangparty.com