GIC Loses Another S$ 1 Billion
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GIC faces potential losses of more than SGD$1 billion dollars as Tishman, BlackRock Default on Stuyvesant Town
Written by Our Correspondent
Singapore’s Government Investment Corp. (GIC) faces potential losses of more than SGD$1 billion dollars in another failed overseas investment, this time in an upscale apartment complex in New York – Stuyvesant Town.
The sprawling Manhattan apartment complex known as Peter Cooper Village and Stuyvesant Town was acquired for $5.4 billion in 2006 by Tishman Speyer Properties and a unit of BlackRock Inc.
According to a Wall Street Journal report in September 2009, Singapore’s GIC owns a $575 million mezzanine loan backed by the property, and about $100 million to $200 million in equity which amounts to roughly SGD$1 billion dollars or more.
On 8 January 2010, Tishman Speyer and BlackRock Inc released an official statement saying that “they wouldn’t make a full scheduled debt payment to senior lenders on Stuyvesant Town and Peter Cooper Village.” (read report here)
CWCapital, the special servicer acting on behalf of the lenders is expected to issue a notice of default over the payment which amounts to $16 million dollars.
GIC risks having its entire investment wiped out unless it buys up more senior debt. As usual, GIC has declined to comment on the matter which was not reported in the Singapore media.
Though GIC proclaimed itself to be a global investment management company established in 1981 to manage Singapore’s foreign reserves”, its primary source of funds come from Singapore taxpayers. It is not a private equity company, but a sovereign wealth fund owned by the Ministry of Finance.
The Chairman of GIC is a former Prime Minister of Singapore who currently holds the position of “Minister Mentor” – Lee Kuan Yew. His daughter-in-law Ho Ching heads the other sovereign wealth fund Temasek Holdings. His son is the present Prime Minister of Singapore Lee Hsien Loong.
Still, the potential $1 billion loss pales in comparison to the losses it suffered in the fiscal year ended March 2009 – estimated at around $59 billion Singapore dollars by Wall Street Journal. (read article here)
GIC is the world’s fourth largest sovereign fund in terms of money managed, according to Deutsche Bank, with high-profile investments in Western financial institutions like Citigroup and UBS.
Though he is a lawyer by training and has little experience in the finance industry, MM Lee was appointed as a “special advisor” by Citigroup in 2006. He has since relinquished the position.
Despite losing billions of dollars, MM Lee remains in charge of GIC and nobody knows its exact losses to this day. There is no opposition in Parliament to check on the ruling party to hold it accountable to the people.
Singapore’s Elected President is supposed to safeguard the nation’s reserves. However when former President Ong Teng Cheong tried to find out the real figures, he was told by the Accountant General that it would take 52-man years to produce the list of assets held by the Government.
In the corporate sector, CEOs who lost so as much money will probably be sacked immediately. In Singapore, nobody has stepped forward to assume responsibility for the losses.
In a famous interview with Channel News Asia on 4 April 2007, MM Lee warned that the Singapore economy would be in jeopardy if it does not pay top dollar for top people.
“So for the average family earning S$1,500-S$3,000, we are talking of astronomical figures but for people like me in government, to deal with the money which we have accumulated by the sweat of our brow over the last 40 years, you have to pay the market rate or the man will up stakes and join Morgan Stanley, Lehman Brothers or Goldman Sachs and you would have an incompetent man and you would have lost money by the billions………..If you are going to quarrel about S$46 million – up or down another S$10 to S$20 million – I say you don’t have a sense of proportion.”
Singaporeans really have no sense of “proportion” of the losses suffered by their two sovereign wealth funds so far.
Makes you numb dosen't it... the amount of tax-payers' money they keep donating to Uncle Sam.
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If this is true, then the bunch of goondus who failed to keep an eye on the investment shought be removed. They've done a lousy job and should be sacked to show accountability and responsibility, not treat it like as trivial as dropping a dollar coin into the toilet. If you put in one billion dollars of the people's money you monitor the investment like a hawk.
Another billion reasons not vote for PAP.
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It is perfectly fine. They can afford to lose as much as they want, afterall the money loss does not belong to them.
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Why no one held accountable for losses?
No one is ever held accountable for mistakes in Singapore.
Salary highest in the world? Oh my god.
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''Despite losing billions of dollars, MM Lee remains in charge of GIC and nobody knows its exact losses to this day. There is no opposition in Parliament to check on the ruling party to hold it accountable to the people.''
wa. where this article come from ??
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Who wrote this article? It says there "written by our correspondent"
I want to know more about this potential loss, but 3/4 of the article focus on criticizing GIC, with very little info about the main topic.
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Singapore GIC and Temasek holding is a bunch of fools. They can fool the malaysia, Indonesia and Thailand people but not ang mo. That goodyear dunno pocket USD 20million of Commission before he quit Temasek.
Goodyear: He get his 50k salary, free logding, transport and free meal. He came for only 6 months. I believe he conborate with the US major players to dub our money.
I believe he tender in morning and afternoon take the flight back to America. Come one time earn millions. His friend waiting for him to open campign and celebrate for him.
He ask to invest to Bank of America. Usually Temasek holding target are in Asia. WTF, he invest more to America.
Now another case always walk into people' trap. Brothers, Our government's talent are no match to the Angmo In America. So jolly well wake up.
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this thread ish not simpurr ... More goot ears :D
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Originally posted by ahpork:
this thread ish not simpurr …
More goot ears
Yes. Brother. I studies the situation. I know what is happening. That goodyear is a black warrior. His aim is not about salary but aiming for millions of commission.Come 1 time singapore. Earn enluff for his entire life. But brother, they have no evidence at all.
I hope i got a chance to learn from him. He is jsut like a 5 star general.
Singapore talent. Sorry to say that. I feel the most is 2-3 star general calibre. There is a lot grey and dark area behind IPO. You need to take full advtanage of the situation. not easy. Things for me to learn. I hope the government had learn their lesson.
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Originally posted by yiha093:
''Despite losing billions of dollars, MM Lee remains in charge of GIC and nobody knows its exact losses to this day. There is no opposition in Parliament to check on the ruling party to hold it accountable to the people.''
wa. where this article come from ??
The article was sourced from Temasek Review.Please note that sometimes it is difficult to access TR as the site is always under cyber attack... but they recently switched their web host / server, so it may be better now.
You can also read the article here :
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I was going to reply to a thread that got deleted without reason titled wake up Singaporean so I'm replying it here:
If the govt made criticizing them illegal then they should also be banned from criticizing the people which they often do through their media. These PAP have been dreaming much too long...now they think their god.....while in fact they are mere rats....rats...pitiful people who think themselves great....really needs our pity. -
Then again PAP are cowards afterall......rotten cowardice rats
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Originally posted by Miracles&Prophecies:
I was going to reply to a thread that got deleted without reason titled wake up Singaporean so I'm replying it here:
If the govt made criticizing them illegal then they should also be banned from criticizing the people which they often do through their media. These PAP have been dreaming much too long...now they think their god.....while in fact they are mere rats....rats...pitiful people who think themselves great....really needs our pity.
Mmmm..I put up a thread this morning titled "Are HDB Policies Favoring PRs" which was extracted from another site...
but after just one reply... it was deleted.
Dunno what's wrong with it... when same-titled thread has no problem elsewhere.
The Moderators here are trigger happy.. aren't they ??
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moderator are Jason, FireIce, etc.
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i suspect if they open the books of gic and temasek they wouldn't look pretty.
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So when GIC keep quiet you guys keep saying not transparent enuf, now that they declare to you about the loss, you guys keep criticising, so how, you want them to keep quiet again??
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1 billion!!
enought to build one noah ark liao
!!!
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more than a billion lor, at least lost 3 to 4 billions, just tell you 1 billions only.
wha!!! 1 billion keep inside my bank, fix deposit 1%, can shake legs for my whole life liao.
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Originally posted by assolingam:
The article was sourced from Temasek Review.Please note that sometimes it is difficult to access TR as the site is always under cyber attack... but they recently switched their web host / server, so it may be better now.
You can also read the article here :
Yeah, I noticed a lot of these anti establishment websites have been getting hit by these cyber attacks recently.
Can't access them at all sometimes.
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what to do? no money to buy better computer. So get those cheap cheap $3k plus one, how to access a hot website, by the time the RAM start to work, someone Rammed you liao.
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what to do? no money to buy better computer. So get those cheap cheap $3k plus one, how to access a hot website, by the time the RAM start to work, someone Rammed you liao. Go
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LKY n Communist China thought they can control Western countries n America by their so-called "Soft Power",which is money.But really,do they think the Americans will be so stupid to let them do that?
They can confiscate LKY n Communist China money anytime they want,it is THEIR COUNTRY,what can LKY n Communist China do?Stupid Losers.
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$1000 million nia mah. sure got ppl come in and say we are kicking up a fuss over such small amount.
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Originally posted by freedom4ever:
$1000 million nia mah. sure got ppl come in and say we are kicking up a fuss over such small amount.
ya lor.. and that is only 1000 000K nia what kicking up a fuss over such small amount... -
GIC alot of scholars.....all based on books and good writing...nothing else.