Is it they do not need cash so urgently? If deposited into those short-term fixed deposit i still can understand, but why minibond which required maybe 5 years to maturity. Who are accountable for this investment?
In investment companies, the return of their portfolio are usually mark against a benchmark which determined their year end bonus and thus an incentive to 'open their eye big big' but what about these 2 town councils?
Who are responsibile for this failed investment? What are their incentives to perform well?
Do they have the rights to invest in such high risk instrument? Who recommended them these instrument? Are the relationship manager in those locals bank who they signed up with related to the town councils?
It makes more sense if they invested in funds by GIC or Temasek but why these bonds?
I think seriously we need some answers.
In investment companies, the return of their portfolio are usually mark against a benchmark which determined their year end bonus and thus an incentive to 'open their eye big big' but what about these 2 town councils?
Who are responsibile for this failed investment? What are their incentives to perform well?
Do they have the rights to invest in such high risk instrument? Who recommended them these instrument? Are the relationship manager in those locals bank who they signed up with related to the town councils?
It makes more sense if they invested in funds by GIC or Temasek but why these bonds?
I think seriously we need some answers.
