AHPETC arrears trend ‘will impact services for residents’

[richardg]

Does not look good.
Reminds of companies that goes under very quickly.
============

PUBLISHED: 10:26 PM, NOVEMBER 7, 2014UPDATED: 4:00 AM, NOVEMBER 8, 2014
SINGAPORE — The service and conservancy charges (S&CC) arrears racked up by Aljunied-Hougang-Punggol East Town Council (AHPETC) has “serious implications” for residents, said Minister of State for National Development Desmond Lee.

Referring to APHETC’s poor ratings for S&CC arrears in the latest town council management report by his ministry, Mr Lee had noted the sharp increase in arrears, and said that if the trend continued, the town council’s finances “must surely decline” and it would not be able to sustain its operations.

Mr Lee made these today (Nov 7) comments in response to remarks made by Workers’ Party chief Low Thia Khiang on the APHETC’s poor showing in the areas of S&CC arrears and corporate governance in the annual report.

Mr Low had told Lianhe Zaobao yesterday that problems in the two areas did not have a direct impact residents’ safety and the living environment. He also said in collecting S&CC, some residents would need more time, and most would pay up eventually.

However, Mr Lee, in a statement last night, said he disagreed with Mr Low’s “sanguine” views. While some arrears are inevitable as some residents may face temporary financial difficulties, an “abnormally high” S&CC arrears rate means that some residents who can pay are probably not bothering to pay, or to pay on time, he said.

As at April last year, 39,000 households in AHPETC were “effectively subsidising” 16,000 households who did not pay their S&CC, he noted.

According to the report, released on Tuesday, AHPETC’s S&CC arrears rate had increased to 29.4 per cent as at end-April last year. This was up from 2.6 per cent in FY2010 and 8.4 per cent in FY2011 and FY2012, after the town councils in Aljunied GRC and Hougang merged.

“If this trend continues...the delivery of essential services must then be affected, to the detriment of residents,” said Mr Lee. “We should bear in mind that all town councils have to replace at their own cost, critical infrastructure, like lifts and water tanks and carry out all sorts of other building, mechanical and electrical repairs.”

He also pointed out that Hougang Town Council, which had an S&CC arrears rate of 7.8 per cent in FY2010, was in financial deficit — it had a net operating deficit of about S$92,000 and an accumulated deficit of about S$9,000. It only managed to avoid a cash flow problem after it was merged with Aljunied Town Council after the 2011 General Election.

Before the merger, Aljunied Town Council had an operating surplus of S$3.3 million, but within two years, the merged AHPETC’s financial position has “deteriorated rapidly”, Mr Lee said, pointing to an operating deficit of S$734,000 in FY2012.

“AHPETC’s financial position today may in fact be worse. For the town council has not submitted its FY13 financial statements, despite repeated reminders.” said Mr Lee. “And yet Mr Low says AHPETC ‘has no cash flow problems’. I hope he is correct.”

[hkh]

Think next GE is coming.........and thanks to AHPETC.....I learned about PAP's company AIM.........

[jwhtan]

[Aris]

Maybe Hammertown should use some of the monies and get some extra income from our casinos.

Unlike other town councils that lost millions of tax payers money (see link)....http://mrwangsaysso.blogspot.sg/2008...at-fiasco.html

" Nov 18, 2008
FINANCIAL CRISIS
Town councils' exposure: $16m
Another $3m invested in Pinnacle Notes Series 6 could be at risk
By Goh Chin Lian

EIGHT town councils (TC) run by the People's Action Party have about $16 million invested in troubled structured products.

The lion's share of $12 million is from two TCs: Holland-Bukit Panjang ($8 million) and Pasir Ris-Punggol ($4 million).

The products include Minibonds linked to bankrupt US investment bank Lehman Brothers and the now worthless Merrill Lynch Jubilee Series 3 LinkEarner Notes.

Dr Teo Ho Pin, chairman of the Holland-Bukit Panjang TC as well as coordinating chairman for the 14 PAP town councils, disclosed this yesterday.

Earlier in Parliament, Senior Minister of State (National Development) Grace Fu identified the two TCs when she was asked whether a stricter cap on risky investments was needed.

In his statement, Dr Teo defended the TCs' investment strategy, saying the funds are diversified across deposits, securities and other financial products.


Surely there must be some accountability for this. Unlike Temasek and GIC, town councils have no way of pretending that their money is not public money.

This is not the first time I am criticising how the town councils handle public money. You can read this post that I wrote last year: You Give Your Money To Your Town Council So That It Can Play The Stock Market.

Maybe I should change the title of my current post to "You Give Your Money to Your Town Council So That It Can Buy Lehman Minibonds".

The fact that town councils invest your conservancy fees into stocks, shares, bonds and structured products really just goes to show that Singaporeans have been paying way too much in conservancy fees.

What do town councils need so much money for, anyway? As of last year, they had more than $1,000,000,000 of excess cash in their sinking funds! Surely it doesn't cost that much to build a few playgrounds and basketball courts, and to pay some Bangladeshi workers to clear the rubbish and sweep the floor every day.

Note that town councils aren't responsible for maintaining everything in your HDB estate. Organisations like the National Parks Board pay for the maintenance of the parks; while the Land Transport Authority pays for maintaining the roads and bus-stops; the Singapore Sports Council pays for the maintenance of the public swimming pools and sports stadiums etc.

In yesterday's Straits Times, Dr Teo Ho Pin, coordinating chairman for the 14 PAP town councils, is reported to have said that town councils need to build up their sinking fund for long-term improvement works, like replacing lifts every 28 years.

Seems like a poor excuse to me.

Under the Lift Upgrading Programme, the town council pays only a very small fraction of the overall cost. For example, according to the HDB website, on average the town council pays only 7.6% of the cost of upgrading the lift for a 4-room flat in a standard block, or approximately $900.

Holland-Bukit Panjang and Pasir Ris-Punggol lost $12 million. That could have upgraded lifts for more than 13,000 flats. All at one go ... and not over the next 28 years!"

Yet no slap on the wrist and all swept under the carpet. And the best part of it, they are still making tons of money from citizens. I think Hammertown Council are either too stupid or the PAP run TC have some special skills.

[richardg]

do you agree with the cartoon?

Originally Posted by jwhtan

[

[hkh]

I remembered that we must be THANKFUL to Dr Teo Ho Pin.........

[globalcookie]

Funny thing is... how many percentage of our S&CC goes towards the upkeeping of the estate? How much are actually surplus and what is done to these surplus?

Why don't the PAP side come out with these figures to show us Singaporeans why they had hike the S&CC charges in recent years, when there are already surplus every year??

Be transparent Mr Lee!

[Dave57]

Assuming resident's wealth is evenly spread out among the towns of Singapore.
Why does AHPETC has such "alarming" rate of arrears compared to other towns?
What's more puzzling is that AHPETC charged less compared to other TC ran by PAP, shouldn't the non payment rate be lower since its cheaper?
What about the other mature estates with bigger percentage of aging population, are they facing any problems with collection?

[globalcookie]

Originally Posted by Dave57

What about the other mature estates with bigger percentage of aging population, are they facing any problems with collection?

I doubt got problem w collection, problem most likely is these aging and retired/jobless making payment instead, but that's not THEIR problem.

If some particular person can suggest throwing a non-kin onto the street for the state to take over..... and my personal experience with a homeless being told to come back 1 week later.... i've little or no faith in these ppl

[vincent2982]

So PAP TC squeeze $ out is right. While AHGTC being nice but not forcing their ppl to pay is wrong? Please lo, at least they dun charge u to court for not able to pay. I kana b4 during my downtime, tio lawyer letter for not being able to pay, go c MP, the stuff say MP very busy, talk to any 1 of us oso can, the ****er told me 1 word, u want to live in HDB u must pay the conservancy charge, they can only help me write letter delay payment. So the amount accumulate!! All those so call maintenance of our facility should come from the gov, not from our pocket! Your are being voted to work for us, not we work for u !!