Why No Investigation of NHB by CPeeIB???

[makapaaa]

Apr 30, 2010

NHB has strengthened valuation policy on large donations

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I THANK Dr Tan Chai Thiam for his letter, 'Cultural gifts: Time for a proper process' (April 20), and also refer to the editorial on Sunday, 'Matter of transparency'.
We agree with Dr Tan this is an unfortunate incident and must not happen again. We are very sorry for the embarrassment Mr and Mrs Tan Eng Sian and their family suffered as a result of this incident. They deserve our praise for their willingness to donate their precious collection. They did not put a price on their donation but merely accepted a valuation determined by a valuer appointed by the National Heritage Board (NHB).
In normal circumstances, we agree with Dr Tan that once the value of a donation is determined, in accordance with due process and an agreement concluded with the donor, NHB should honour the agreement. However, in this case, the Asian Civilisations Museum (ACM) board felt it had a duty to review the original valuation, after receiving a complaint and in view of the substantial tax benefit involved. I join Minister for Information, Communications and the Arts Lui Tuck Yew in thanking the outgoing members of the ACM board for their dedication and contributions.
The Sunday Times has criticised NHB for 'not acquitting itself well on the issue of transparency'. As a statutory board, NHB is bound by corporate governance procedures to release the information at the appropriate time. NHB had planned to do so in its audited accounts. There is thus no possibility of non-disclosure. NHB had planned to brief the media about developments at ACM next month. We respectfully request The Sunday Times to review its assertion that NHB has kept the public in the dark.
I want to say a word about the valuers involved in this case. Mr Peter Wee is a prominent member of the Peranakan community and a reputable dealer in Peranakan artefacts. He gave us his honest opinion. The fact that two other valuers disagreed with his valuation does not mean he was wrong. Due to the small market in Peranakan artefacts and limited number of transactions, it is not easy to arrive at their fair market value. This could explain why the three valuers came to such different conclusions. We respect the professional competence and integrity of all three valuers.
NHB has strengthened its valuation policy on large donations or acquisitions, by using several valuers instead of a single one. This enhanced system is already in place, and is endorsed by the acquisition committees across our institutions.
Professor Tommy Koh
Chairman
National Heritage Board

 

[Papsmearer]

Is it not artifact and not "artefact"?
Is it not valuators instead of "valuers"?

Tommy Koh is really disingenuous in his reply here. To me this whole thing could have been avoided if the NHB simply asked the Tans how much they paid for this collection. If the Tans said they paid only $2 million for the collection and Wee appraised it at $15 million for tax purposes, than alarm bells would have sounded, and they should have gotten another appraisal. If the second appraisal confirms Wee's $15 million dollar number, than no problem, you write him the tax receipt, and end of the story. You would have done your due dilligence, and the assumption would have been the Tan's collection appreciated in value since they bought it. If the second apprasial says its only worth $2 million or whatever the Tans paid for it, than you have to go with the lower value. If the Tans said they paid $15 million for the collection and had the receipts to prove this, than the Wee appraisal is accurate, and there is no need for any other appraisals. In either case, simply asking them how much they paid would have solved a lot of problems. Tommy Koh has to ask why a room full of directors did not think to simply ask this question. Are they all stupid?

There are 24 board members that are all members of the elite and high ranking govt. officials. People like Mrs. LKY's nephew, Lee Hsien Yang's wife, police inspectors, directors of URA, etc. These members of the elite are not going to question other elites like the Tans. Also, since they are not professionals in the art and antique world, why do they even accept these appointments. Are they planning to review all the large donations they receive for the last few years?