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
*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.