Endoh’s Dungeon

Last week, I saw a news on TV reporting that 260 investors who threw their money into the minibonds had already been rejected for any compensation. Today, I read of how a lady protested in Raffles Place before she eventually received a “review” of her case. Til date, I have not said anything much towards the issue (not like my words carry any weight anyway) but I think reading the story of how a cancer-stricken lady had to go to this extend, my heart does go out to some of them.

I am sure many of you are already aware of the full blown activities at Hong Lim Park to help those whom may have been deceived into buying the minibonds. On the surface, it looked like just one of those buy-and-refund saga. If only it was that simple I wouldn’t have bothered a single bit. I’m not an investor in these minibonds anyway, what losses have I incurred? But then again, isn’t this a good indication that I made the right decision not to place my trust in these so-called bankers? I have never trusted all these financial advisors etc just in case you’re wondering.

For those who are stupidly still holding faith in the system here, then it’s time to get your feet back down on earth.

When something sounds toooooooo good to be true, it probably is!

I am enraged not just because of a fake economy imported from elsewhere, but the obvious refusal to acknowledge one’s mistakes and recognize the flaws in our system. Why a fake economy? Noticed how many of these products and services (financial industry or not) from the US actually involved future money instead of their actual current values? Talk about the Web 2.0 or IT companies and their “supposed growth”. Talk about financial products that promised “returns” 10 years down the road. And you thought they would have learnt from the dot-com crash never to exaggerate the potential of future returns.

But then again, that’s business and all about selling. It doesn’t look that bad but once flaws are detected in such selling propositions, then we have to recognize it and Singapore needs to stop being a follower of a fake economy that doesn’t exist. How has Singapore been a market leader? Yes, our ministers and statutory boards can boast for all they want that Singapore is indeed a market leader. But with what?

I said we need to recognize the flaws in our system. What flaws then? While it is my duty to tell you I can never be sure of what I am going to say next, these are possible flaws that the officials do not want to be dealing with at this point. Even better, if these flaws die a natural death.

1. Media blackout?
Some bloggers have already suggested this. When DBS (Hong Kong) announced their response after some pressure from the Hong Kong’s Government, many Singaporeans were kept blind about it. Not until some gungho netizen dug up the news elsewhere (if I did not remember wrongly). It was not until days later that the press in Singapore ran the story. Go figure.

2. DBS also represent DouBle-Standards?
DBS (Hong Kong) was the FIRST to redeem the minibonds, in what analysts said was a good role example for the banking industry. All the investors needed to do was prove that DBS staffs had misled them in the buying process. What about DBS (Singapore)? I am sure the folks from The Online Citizen can share a lot more with you. Do drop by for their coverages!

Let me share a little story here. Many years ago, I signed up for a course with a private school which was situated at Starhub Centre back in year 2000. Still serving in National Service, I resorted to paying off my school fees in instalments with my miserable NS pay. As I prepared to enquire for university vacancies close to the end of my course, it was brought to my attention by the university coordinators that they do not recognize the diplomas from this school. That wasn’t what I was told when I first signed up - FOR SURE!

I left the school without completion and I received a demand from the Small Claims Tribunal regarding my outstanding school fees of $800+. Furious, I confronted the school and all the center manager could say is “it’s my words against their words”. Why? The course coordinator had already resigned and there is no way to verify what was said between us when I signed up for the course. I didn’t ask for a refund of what I had paid up. I told her upfront she will not see a single cent from me anymore from there. Sue me if you want!

3. It is ok to mislead investors in Singapore?
The Hong Kong Government has pledged to investigate the possible misrepresentation of the minibonds in the selling process. Bankers in Hong Kong may even be sued in court. That’s how involved the Hong Kong Government is. What about Singapore? Apart from putting a few old faces to “assist” in the settlement, we don’t see the Government exerting more pressure. Or rather, what responsibilities have Monetary Authority of Singapore taken up here?

4. Assessment flaws
How did these high-risk minibonds end up being sold to the average citizens in Singapore in the first place? It is in my belief that not all investments are opened up to the public due to the risk involvement. And, it is also MAS who regulates and monitors all these investments that are being sold on the ground. Instead of MAS taking the lead (they called themselves the AUTHORITY mind you!), it has gone rather quiet. They suggested that the banks should appoint “their own investigators”. That brings me back to the same old question - what is your AUTHORITY about then?

If your analysts and academics in your “authority” are so lousy at their jobs, remove them! Even though MAS had appointed their own investigators now, will we be expecting to see some genuine answers? I doubt it.

5. Sinking funds
All the investments made by the town councils in Lehmann Brothers’ linked products, need we actually say more? We would have trust that we have abled leaders in these departments to study what’s good and what’s not. Evidently, not all of them are. It placed a big question mark on the abilities of these people leading the town councils and the respective accounts. Are they even working for the citizens? Really?

6. Banks can get away with misrepresentation?
It is no longer a secret that some investors have been duped into this high-risk investment. The initial priority of settling these buybacks is already in process. I’ll give the benefit of doubts that it will be handled “fairly and appropriately”. But what comes next? Are there any talks from MAS that they will proceed with acts of justice to hurl “guilty parties” into court? I have heard nothing, have you?

If this is the way MAS is conducting itself, I do not see how it is the AUTHORITY! Never mind if you’re not leading the charge, but you are certainly in the position to penalize those whom had gone against the ethics and policies. MAS, are you not? Let’s gather a bunch of people, donate some money and start an investment company mis-selling such bonds. Why? We know MAS is not going to take any legal actions so why worry about being caught?

7. Is DBS confident of their own decisions?
Being the biggest bank in Singapore, you would have expected it to lead the market. But through the minibond saga and also the reverse decision to retract references to the charity they willingly adopt, the bank has shown Singaporeans that they are not confident of their decisions at all. Especially through the charity saga, DBS has shown to be unsure if they’re donating to the cause of the charity or to the background of the charity. They’re essentially two different aspects.

How can Singaporeans be confident of their money being placed with such a bank? And in DBS’s Mission Statement, it actually says;

We aim to be a world-class regional bank, renowed for quality, added value and innovative service at an affordable cost to our customers.

Haha?

8. Infamous words from SM Goh Chok Tong
Our senior minister made a very interesting statement; That’s life, if you want good rewards, you have to take risks. Otherwise, leave your money with the CPF.

I am not sure how I am supposed to digest that. Let me try though. If I want good rewards for being a Singapore citizen, I will have to take the risk by voting oppositions into the Government since the current one seemed a little incompetent to me. The oppositions have always been criticized but based on the understanding of the above statement, it is a risk that Singaporeans have to take to even dream of better governance. That’s life, so let’s just move on shall we?

It is high time Singapore (or rather the Goverment) stop boasting to be one of the market leaders when you cannot even take charge in a small little red dot. And you’re talking about being one of the market leaders in the world? This is exactly what makes me feel ashamed of being a Singaporean, when the country steps up to proclaim something and yet the truth is far from it.

Are Singaporeans really your cash-cow? In which aspects do Singaporeans deserved unfair practices and injustice? If in such event where the livelihood of the locals are not protected appropriately, why should we even support your foreigner policy? Do you really think after all these years, Singaporeans are really idiots? I can almost say where my next vote is going to this very minute.

You just shot yourself in your own foot. You’re exposing yourself way too much, my dear and beloved Singapore.