Dictator Prime Minister and also Chairman of his country’s sovereign wealth fund company GIC announced an undisclosed loss over its sale of UBS shares which he bought in 2010. According to Bloomberg, the estimated losses is about two-third of the US$11 billion initial investment in 2007. This loss, comprising of CPF money managed by the GIC, is at least US$7 billion or S$9.78 billion.
Corrupted Prime Minister Lee Hsien Loong’s GIC bail out the Swiss bank during the financial crisis in 2007 without Parliament approval on use of national reserves, and now is regretting his decision. The GIC spokesperson, GIC CEO Lim Chow Kiat, commented on the massive loss:
“Conditions have changed fundamentally since GIC invested in UBS in February 2008, as have UBS’ strategy and business. It makes sense now for GIC to reduce its ownership of UBS and to redeploy these resources elsewhere. GIC is disappointed that it lost money on the investment.”
This is the first public revelation of GIC losses after it declared undisclosed losses by an estimated S$50 billion in 2016.
The wife of Lee Hsien Loong is also screwing up Temasek Holdings’ portfolio with a S$24 billion loss in 2016.
Just earlier last week, Prime Minister Lee Hsien Loong issued a decree through the CPF Board to depress CPF interest rate at 2.5% for the 17th year – the lowest return ever for CPF and all government-backed superannuation funds. The move is crafted to lessen the CPF’s debt obligations to Singapore’s CPF account holders and shave off cash withdrawal stress from the baby boomer generation who are getting the CPF money in partial, or more accurately fractional, payments. CPF account holders who do not meet half of the S$166,000 Minimum Sum (name changed to Retirement Sum due to negative connotation) can only withdraw S$5,000 in cash upon reaching 65.
The former GIC Chairman was Lee Kuan Yew, who later passed the position to his son to prevent anyone from knowing the true assets of the CPF money and national reserves. Interestingly, Lee Hsien Loong removed his Chairman position in the GIC profile, possibly a move to avoid accusations of corruption. Nonetheless, the dictator Prime Minister weld no lesser powers that of Kim Jong Un on North Korea, with the corruption bureau reporting to him – rendering himself immune to all corruption investigation.
Singaporeans’ retirement is now in jeopardy due to the lack of cash in CPF. Poverty for elderly aged above 60 jumped a shocking 74.32% in 3 years between 2012 and 2015.