Residents call for more transparency in use of sinking funds by Town Councils
Channel NewsAsia - Tuesday, July 28
SINGAPORE: Singapore residents have called for greater transparency over the way town council sinking funds are used.
The issue was discussed at a recent dialogue session on town council financial management aimed at helping the National Development Ministry draft a score card for town councils.
Some of the service and conservancy charges paid by housing estate residents every month go towards improvement works like covered walkways and railings.
But the bulk goes into a sinking fund for long—term maintenance projects and to guard against a rainy day.
These reserves typically run into the millions and at a recent dialogue session, residents said they want the councils to be more clear on how this money will be used.
They suggested for instance, that the council publish a list of works to be carried out over the next few years.
But Dr Teo Ho Pin, who is Coordinating Chairman of the PAP Town Councils, and Chairman of Holland—Bukit Panjang Town Council, said while the information could be made available, it is only a forecast and is subject to change, say, should the precinct be later selected for government upgrading works like the Lift Upgrading Programme.
The councils are also allowed to invest up to a third of the sinking funds in non—government stocks, securities and bonds.
A controversy erupted last year over millions of dollars lost in soured investments, leading many to demand greater accountability from the town councils.
Since then, most of the councils have published their financial reports online.
But these documents are not always easy to read.
So dialogue participants said an additional summary written in clear, simple terms, should also be made available.
Some residents suggested that town council funds be pooled together for investment to benefit from economies of scale.
In late 2007, the 14 PAP town councils had discussed the same idea, but eventually decided against it.
One of the reasons is that the profile of the various town councils is different with some estates older than the others.
Thus the amount of sinking funds available for investment may vary.
Furthermore, each have their own schedules for long—term maintenance works, which will affect the investment timeframe.
Mr Teo said: “You must be unanimous that yes, we all go, we all come out at the same time. So it’s not so easy to coordinate. If we put in different amounts, let’s say I put in S$5 million and you put in S$30 million, who has the say in terms of whether we should liquidate the fund or not?"
Residents also felt that the councils should enforce penalties such as fines and high interest rates on those who do not pay their service and conservancy charges without good reason.
Some suggested for instance, the fines and high interest rates be imposed, similar to private condominiums.
The annual Town Council Management Report, to be out next year, will assess town councils on level of estate cleanliness, maintenance of amenities and financial management. — CNA/vm
Channel NewsAsia - Tuesday, July 28
SINGAPORE: Singapore residents have called for greater transparency over the way town council sinking funds are used.
The issue was discussed at a recent dialogue session on town council financial management aimed at helping the National Development Ministry draft a score card for town councils.
Some of the service and conservancy charges paid by housing estate residents every month go towards improvement works like covered walkways and railings.
But the bulk goes into a sinking fund for long—term maintenance projects and to guard against a rainy day.
These reserves typically run into the millions and at a recent dialogue session, residents said they want the councils to be more clear on how this money will be used.
They suggested for instance, that the council publish a list of works to be carried out over the next few years.
But Dr Teo Ho Pin, who is Coordinating Chairman of the PAP Town Councils, and Chairman of Holland—Bukit Panjang Town Council, said while the information could be made available, it is only a forecast and is subject to change, say, should the precinct be later selected for government upgrading works like the Lift Upgrading Programme.
The councils are also allowed to invest up to a third of the sinking funds in non—government stocks, securities and bonds.
A controversy erupted last year over millions of dollars lost in soured investments, leading many to demand greater accountability from the town councils.
Since then, most of the councils have published their financial reports online.
But these documents are not always easy to read.
So dialogue participants said an additional summary written in clear, simple terms, should also be made available.
Some residents suggested that town council funds be pooled together for investment to benefit from economies of scale.
In late 2007, the 14 PAP town councils had discussed the same idea, but eventually decided against it.
One of the reasons is that the profile of the various town councils is different with some estates older than the others.
Thus the amount of sinking funds available for investment may vary.
Furthermore, each have their own schedules for long—term maintenance works, which will affect the investment timeframe.
Mr Teo said: “You must be unanimous that yes, we all go, we all come out at the same time. So it’s not so easy to coordinate. If we put in different amounts, let’s say I put in S$5 million and you put in S$30 million, who has the say in terms of whether we should liquidate the fund or not?"
Residents also felt that the councils should enforce penalties such as fines and high interest rates on those who do not pay their service and conservancy charges without good reason.
Some suggested for instance, the fines and high interest rates be imposed, similar to private condominiums.
The annual Town Council Management Report, to be out next year, will assess town councils on level of estate cleanliness, maintenance of amenities and financial management. — CNA/vm
