Temasek Holdings lost more than 400 million euros after selling its shares of Spanish oil company Repsol. In 4 Mar 2013, Temasek Holdings announced that they bought 5% of Repsol shares at 1.06 billion euros [Link]. Last month on 21 Jan 2016, a Spanish business report confirmed that Temasek Holdings have sold its shares for 596 million euros [Link], hence posting losses of more than 400 million euros.
This news is censored by Singapore’s business news and have gone unreported in the government-controlled media, the Singapore Press Holdings.
Temasek Holdings is a sovereign wealth fund company that borrows cheaply from the CPF at the rate of 2.5% under the Special Singapore Government Securities (SSGS) scheme. Temasek Holdings boast a 7% total shareholder return (TSR) in a 20-year-period and a 16% TSR in a 30-year-period [Link] but they do not return the profits to CPF account holders. A NUS economist has recently called for the sovereign wealth fund companies to return the profits back to CPF account holders but the advice fell on deaf ears.
The CEO of Temasek Holdings is Ho Ching, the wife of Prime Minister Lee Hsien Loong. Ho Ching has been the CEO of the country’s sovereign wealth fund company since 2002, so far, there is still no suitable talent in Singapore to take over Temasek Holdings despite the years of raining of nepotism and cronyism hurled at the Prime Minister’s wife.
In 2013, writer Roy Ngerng was sued for defamation by Prime Minister Lee Hsien Loong when an online post pointed out the conflict of interest in Ho Ching’s position as the PM’s wife and being the CEO of Temasek Holdings. Roy Ngerng has been sentenced to pay S$150,000 to Lee Hsien Loong two months ago in Dec 2015. Prime Minister Lee Hsien Loong emulate his father, the former dictator Lee Kuan Yew, and exercise media censorship and defamation lawsuits to shut critics up. Most Singaporeans live in fear and dare not openly criticize Lee Hsien Loong with the exception of overseas Singaporeans like the editor of States Times Review.
NUS economist: GIC should return profits made from CPF funds