6 town councils transferred $62m to sinking funds when elections announced in 2011?

February 28, 2014

Further to my article “Alternative news in 1 day? (part 68) – $17.8m surplus transferred to sinking fund of just 2 town councils?” (Feb 28) – I tried to collate the financials from the annual reports of the 8 town councils that announced an increase in service and conservancy charges (S & CC) yesterday.

Surplus for the year     Accumulated surplus    *Surplus transferred to sinking fund                                                                 

Jurong                            $598,503                       $2,404,235                     $4,930,421

Ang Mo Kio                    1,793,752                         6,280,934                     12,826,802

Marine Parade              1,338,567                         4,632,719                      13,125,951

Moulmein-Kallang             22,714                         1,753,123                       cannot find

Pasir-Ris Punggol         1,700,416                         5,144,495                      10,808,955

Sembawang                   3,236,000                     11,436,000                      20,383,000

Nee Soon                         Unable to find the annual report

Potong Pasir                   Unable to find the annual report

Total:                             $8,689,952                   $31,651,506                    $62.075.129

* Note: Transfer of accumulated surplus to sinking fund under section 34 of the town council act

$8.7m of surplus and $31.7m accumulated surplus?

From the above, the 6 town councils (excluding Nee Soon and Potong Pasir as I am unable to find the annual reports on their web sites) had total surplus for the year of $8.7 million, accumulated surplus of $31.7 million and accumulated surplus of $62.1 million transferred to the sinking fund on 18.4.2011 under section 34 of the town council act which stipulates that upon the issue of a writ of election, 80 per cent (100 per cent if the party that wins is a different party) of the accumulated surplus to the sinking fund.

$62.1m accumulated surplus transferred to sinking fund last election?

This effectively deprives the town councils and their residents from utilising the accumulated surplus for operating expenditure.

Why would any Parliament have passed such a legislation?

Still increase S & CC?

Finally, since all the 6 town councils had surpluses for the year and huge accumulated surpluses (despite the whopping $62.1 million transfer to the sinking fund on 18.4.2011) – why is there a need to raise S & CC?

Did Nee Soon and Potong Pasir have surpluses for the year and accumulated surpluses too, like the other 6 town councils?

Uniquely Singapore!

Leong Sze Hian

P.S. Thanks to ES who sent me the link to Potong Pasir town council”s annual report – it had a surplus for the year of $44,580 and an  accumulated surplus of  $295,298. However, I was not able to find what was the the accumulated surplus transferred to the sinking fund during the last election.

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.