Wednesday, August 8, 2012

Value The Frugal Life

In the Sunday feature article ("At Oxley Road, we value the frugal life"), the author wrote that "the house we have lived all my life is more than 100 years old." It was odd therefore to recall that the same person was named in the purchase of two condominium units which caused much public disquiet in 1996.

It all started when the Stock Exchange of Singapore (SES) censured a publicly listed property development company called Hotel Property Ltd (HPL) for not seeking shareholders' approval for the sale of some of its condominium developments at discounted price. Dr Lee Suan Yew, Lee Kuan Yew's younger brother, was then on the board and had purchased a unit in Nassim Jade which was developed by Ong Beng Seng, Singapore property tycoon and Managing Director of HPL.

Following, Lee and his son, Lee Hsien Loong, publicly disclosed that they too had bought HPL condominium units. Other family members also shared similar interest in the HPL development. Daughter Lee Wei Ling, then medical doctor in a government hospital; sister Lee Kim Mon; two other brothers Freddy and Dennis; Kwa Kim Li, a niece of Lee; and Gloria Lee, Lee's sister-in-law, all bought condominium units  at discounted prices.

When SES issued a statement censuring HPL for the breach of regulations, it noted that some of the discounts given to directors and their relatives in respect of the Nassim Jade units were higher than those given to non-related buyers and that the publicly listed companies have a duty to obtain the best price so as to maximise the return to its shareholders. Lee Suan Yew quietly resigned as a director with HPL.

The other victim of the fallout was Tang Liang Hong, who was taken to task for commenting on the issue in Asian Weekly Magazine (Yazhou Zhoukan):
"Why wasn’t this matter handed over to the professional body like Commercial Affairs Department or Corrupt Practice Investigation Bureau? They are government departments not only rich in experience, but are also well-known for being "iron-faced with selfishness" [a Chinese phrase meaning firm and impartial]. They would be more detached and their reports would have been more convincing to the people. Koh Beng Seng and Finance Minister Richard Hu are after all not experts in this field."

According to his affidavit, Tang faced 13 defamation suits instituted against him, 3 of which brought by Lee ("SM Lee") solely, 2 by his son, ("DPM Lee"), and a further 2 by SM Lee and DPM Lee jointly. That has to be an Olympic record of sorts. No foreign nationals from PRC were involved.

47 comments:

  1. Was the chairman of SES removed or resigned after this episode? People at the coffee shop said that HPL stood for Housing Project for LEEs

    ReplyDelete
  2. Tattler, how come you still have doubts. We are a corrupt free nation. Got it?

    ReplyDelete
    Replies
    1. On August 5, Law Minister K. Shanmugam said there is corruption in Singapore, but the Corrupt Practices Investigations Bureau (CPIB) is highly effective and relies on insiders, internal audits and tip-offs to catch the culprits, like former Chief of Protocol Lim Cheng Hoe. Let's all give the CPIB a hand and send in those tip-offs!

      Delete
    2. If CPIB can even tell you that they are subjected to political will, which is the ruling party, may I ask if CPIB if this is corruption itself ? Can CPIB please investigate itself ? And the CPIB under PM which as good as lackey of the party ? Can the CPIB even bite the hand that feed it ?

      http://www.tremeritus.com/2012/06/08/what-political-will-achieves/

      When PM blatantly say that "fix opp party and buying supporter's votes". What the hell the police, CPIB and electorate department doing ? Acting blurt again and again to the insult of Singaporeans' intelligence ?

      When the old man can even lied under oath and get away scot-free, what does that tell you about our court is beholden to ? Is this a Rule of Law or Rule of Lee ?

      http://furrybrowndog.wordpress.com/2012/05/24/on-honesty-and-double-standards-of-the-pap-and-mainstream-media/


      This PAP should stop treating Singaporeans as a fool. Leopard just never change its spot.

      Delete
  3. Do you trust what you read in the Straits Times? Somebody asked this question before.

    ReplyDelete
  4. Tattler

    How amusing, you bring old war stories which upon further investigation turns out that the discounts were in the first place commercial in nature and in line with commercial norms for pre launches and further given back the discount.

    I guess that means family members to you cannot stay all in the same place or same city than.

    You can claim they are curmedgeonly but I guess that aptly applies back to quite a number here.

    ReplyDelete
    Replies
    1. Lee had already explained in parliament how a hawker selling char kuay teow would upon seeing him give two eggs instead of one, and how tailors would be falling head over heels to try to clothe him. The only mistake was made by his brother, and that's why he resigned from HPL.

      Delete
    2. Does it mean that it is okay to get higher CD interest rate, lower mortgage loan rate, discounted new car pricing, free meals, free travel, free lodging, and insider trading? In many developed countries, they are considered corruption.

      Delete
    3. But the point here is that people who wrote publicly, sometimes to the point of pontification, need to remember to check their own backyard first.

      Delete
    4. And that's why you are so highly paid?

      So that you can forgo all these discounts.
      And pay the full price.

      Delete
    5. The discounts were approx 10% thereabouts.

      Now, for those who are wont to harp, lets see you do the same when you are offered goods not to accept any discounts from anyone even though they are in line with commercial practice.

      So no extra egg or etc as well.

      Delete
    6. Does that include the Mont Blanc pens, Ipod, tailored shirts? A law professor might argue it's even legal.

      Delete
    7. My dear PAP 50 center,
      you are either too young to watch the father and son team atck shedding tears in the telecast parliament session explaining they had never taken a bribe and that all discounts had been returned to Ong Beng Seng.

      If that were really the case the discounts were "commercial", why did HPL refused to declare it?

      And does your family buy 8 units of a super prime development if you were civil servants in 1996 all earning far lower than the million dollar pay that you undeservedly are getting now?

      At least we can say the SES was doing it job then.

      Delete
    8. The defence team for the Commissioner of CD can quote this case and say that wherever he goes, girls would fall head over heels for him and offer him free sex and BBBJ. So does the prosecution still think that it is corruption just because I pick only the 3 ladies to have sex and BBBJ with me?

      Delete
    9. "... lets see you do the same when you are offered goods not to accept any discounts from anyone ..."
      The_Onion

      Sure.
      Pay me a million dollar salary.
      And I will show you how to turn down discounts and pay the full price.

      Please don't benchmark my moral fiber against the Pro Alien Party.
      Defamation is not very nice.

      Delete
    10. True colours, very green I see, it is just about the money than and no responsibilities

      definitely a ROFL moment. Have a great day

      Delete
    11. Further,

      To the one who replied, I believe that there is such a thing called bank loans based on salaries.

      Frankly, to such, any explanation does not hold water, so those curmudgeons, you are welcome to your opinions.

      reminds me of the Taiwanese supporters of Chen Shui Bian and belief in his utopia

      Delete
    12. "The only mistake was made by his brother, and that's why he resigned from HPL."

      Does that means that some elites can even raid our reserve of billions and millions, and after been caught red-handed, resigned and move on as nothing happen anyway ?

      Why our elites so special ? Are they really God and demi-god ?

      Delete
  5. ' ... it noted that some of the discounts given to directors and their relatives in respect of the Nassim Jade units were higher than those given to non-related buyers ... "

    Hmmmmm .....

    ReplyDelete
  6. Reminds me of Malaysia's Penang current Chief Minister Lee Guan Eng, he whisper-blowed many years ago (during the 1990s) about a Malacca Chief Minister had underage sex with a girl. In the end, he was thrown into prison for defamation but the culprit went scot-free.

    Singapore can be as sleazy as Malaysia!

    ReplyDelete
  7. Peeling the onion.
    Layer by layer.

    ReplyDelete
    Replies
    1. Yup.
      Exposing the onion.
      One layer at a time.

      Delete
    2. After peeling off all its layers, you will find nothing inside it.

      Delete
    3. it gets more pungent pealing each layer and it's not a myth the onion can live on BS

      Delete
  8. I still remembered LKY explained at that time the reason for buying those units was because both he & his wife wanted a unit on the lower floor so that they can retire to when they are getting old.

    Looking back in hindsight, was retirement a mere excuse, no ?

    ReplyDelete
  9. "the house we have lived all my life is more than 100 years old.", unquote.

    It maybe a 100 years old, but, like a vintage, its' value should be worth a bomb as it sits on prime location and with huge compound. And it is heavily guarded, is it free security service or volunteer service??

    Frugal?

    ReplyDelete
    Replies
    1. the old fart is not wrong to claim he is frugal.
      afterall, his house does not have 100 rooms like sultan of brunei, for his protection only 1 garrison and not 1 batallion of gurkhas, to sniff out threats, he put in place a compact ISD instead of CIA, and not least he saved big chunk of tax-payers money by giving himself a modest salary....possible only because of foresight to ensure the spouse bring home plenty of $$ from conveyancing....LOL

      Delete
    2. wah tak boleh tahan, goes right to the MIW hearts, LOL

      frankly at least Pak harto was less greedy, he told his wife to quote just 10% (hence ibu "tien") here god knows how many percent were enuf to lure them whole family to buy at least (on paper) 8 units of the best address in town then. Oh anyone knows what happened to OBS and HPL? His wife ditched him soon after, without his father-in-law propping, what had he become?

      Delete
  10. Kuan Yew can hardly have had plans to retire to the flat, since he has made it very clear he has no plans to retire - at all. That the best way to keep the mind in working order is to keep on working.

    And he hasn't retired has he?

    Has he even made any plans or effort to Move into the place, as he said he eventually planned to? It's been about 16 years since he bought it. He's 87, what would he be waiting for, even if retirement has been crossed out?

    Odd that he would buy a low floor, rather than something that would allow him to enjoy the view of a country he and his team worked like the dickens to make something of, when mobility becomes an issue. Was he expecting the lifts to break down, like in an HDB block?

    ReplyDelete
    Replies
    1. elementary Dr Watson.
      low floor facilitates quicker evacuation in case some arsonist beat the security system, also much easier for the paramedics to transport him.
      of course nothing like both situations happening at the same time just to test my theory.

      Delete
  11. Some Sunday times contributors are not worth reading.

    Stories are written as though the paper is some personal diary. Interesting only to the writer.

    But thanks for sharing the feeling.. I concur.

    ReplyDelete
  12. "... lets see you do the same when you are offered goods not to accept any discounts from anyone ..."
    The_Onion

    Let's see.
    A university lecturer and a student.
    Two consenting adults.
    But probably not a good idea for a lecturer to engage in a sexual relationship with a student.

    So let's consider.
    A politician and a property developer.
    Two consenting adults.
    Should the politician accept a discount ...?

    What do you think?

    ReplyDelete
    Replies
    1. Excellent rebuttal to the "Pro-Alien Party Onion's" comment. Educated but chose to be blatantly obtuse.

      Delete
    2. I am duty bound to agree that theonion is blatantly pro-PAP.he has to change.

      Delete
    3. WDUT?
      Are you.........?

      Delete
  13. Tend to agree with Theonion in his/her comments here.
    Offer can be made in goodwill as well as commercial practice.
    An extra egg added onto to 'char kuay tiao' or 'mee siam' should never be construed as any wrong doing on the 'offeror' or the receiver.

    ReplyDelete
    Replies
    1. Right.
      So a university student can serve up her assignment with an extra egg or two on the side.

      Delete
    2. Chicken egg is ok. Not eggs that need fertilising.

      Delete
    3. "Offer can be made in goodwill as well as commercial practice."

      We are running a government.
      Not a business.

      Delete
    4. I'm a poly lecherer.
      I love homework.
      With extra ass of spring chicken.

      Delete
  14. Donating all the discounts gained to charity and quietly claim income tax back two times. Brilliant! I donate 100K to charity and claim back 200K in taxes. Any idea to refute this story? What do you think?

    ReplyDelete
    Replies
    1. Dr Richard Hu, then the Minister for Finance, recommended to Prime Minister Goh Chok Tong that Lee and his son should consider giving back the money they received for the discounts. Thinking that may ease public disquiet, the Lees agreed. But the move backfired, people started asking why the Lees were returning the money if they did nothing wrong. To make matters worse, Goh Chok Tong refused to accept the money and instructed the Accountant-General to return it back to the Lees. Goh did not want the Government to be involved with the money which might bring complications later on.

      Delete
  15. Politicians are also humans, they are sometimes customers to businesses, friends of business people.
    Can their business friends treat them as friends, can the business people decline payment by government officials as friends or on goodwill? Or those who declined the payments must be charged for bribing for giving one extra egg or bigger portion?
    Government officials have to be excluded from discount rate within market practice?

    Please have a sense of proportion. Unless there is evidence to show that the goodwill or discount offered got the business people un-deserved privilege and or reward, politicians should not be treated differently from the people in social and commercial practices.

    ReplyDelete
    Replies
    1. And yet you benchmark yourself to the highest salaries in the land.

      But when it comes to poor families.
      Increase welfare payments by $30/month.
      $1/day to feed a family.
      Debate long and hard in parliament.
      What you want? 3 meals in a hawker centre, food court or restaurant?

      Your ideas should also be debated long and hard in parliament.
      We don't want to breed a subsidy mentality amongst our politicians.

      Delete
    2. "3 stooges inside a polling station can be deemed as not within 200 metres of the polling station" should also be debated long and hard....and does this man with such logic deserve higher office ?

      Delete
  16. "Can their business friends treat them as friends, can the business people decline payment by government officials as friends or on goodwill?"


    MOHH official quits after failing to declare conflict of interest

    SOURCE:
    http://www.straitstimes.com/breaking-news/singapore/story/mohh-official-quits-after-failing-declare-conflict-interest


    What do you think?

    ReplyDelete