The strange case of the missing $18b in ‘Contingencies Funds’

In this article in May, I pointed out that $18bn was in “Contingencies Funds” in the then latest “Fortitude Budget”.

So when I first heard about the latest $8bn in corporate welfare (OK, OK there’s trickle down to the plebs), I tot “Only $5bn left leh”.

But then I learnt

Fresh S$8b Covid-19 measures funded in part by no mid-year bonus for civil servants, lower military spending: MOF

Constructive, bation-building media

 

So it seems that the entire $13bn has already been spent, and this new $8bn in corporate welfarism is being funded by squeezing civil servants (not that they don’t deserve having less Bismati rice and chicken thighs in their iron rice bowls) and spending less on the military (Can cut meh? Tot our paper generals need every cent in their budget to keep S’pore safe?) and on the development of infrastructure?

An Adrian Tan commented on FB

Smoke and mirrors. They drew down $13bn more than they needed for contingencies: https://atans1.wordpress.com/2020/05/28/cheat-sheet-for-fortitude-budget-hali-tied-of-signing-peanuts/. Now they say the extra $8bn coming from savings. What am I missing?

 

 

Cynical Investor

Cynical Investor blogs at Thoughts of a Cynical Investor
.

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13 Responses to “The strange case of the missing $18b in ‘Contingencies Funds’”

  • Soccerbetting2:

    Reported on Straits Times :Quote -”SIA burns through half of $8.8 billion cash raised in two months

    Of the $4.4 billion, $1.1 billion was used for operating expenses, maturing fuel-hedging trades and ticket refunds.ST PHOTO: CHONG JUN LIANG
    PUBLISHED5 HOURS AGOUPDATED47 SEC AGO
    FACEBOOKWHATSAPPTWITTER
    SINGAPORE (BLOOMBERG) – Singapore Airlines (SIA) burned through half of the $8.8 billion it raised through share sales in just two months, highlighting how carrier’s expenses keep racking up even as the Covid-19 pandemic keeps planes grounded.

    Of the $4.4 billion spent since mid-June, $1.1 billion was used for operating expenses, maturing fuel-hedging trades and ticket refunds from cancelled flights due to the coronavirus pandemic, the airline said on Wednesday (Aug 19). About $2 billion was used to repay a bridge loan facility, $900 million to service debt and $200 million to buy aircraft.

    SIA raised the funds in June after the outbreak and resulting border restrictions decimated travel demand. The airline industry is unlikely to recover fully before 2024, the International Air Transport Association said last month.

    The airline also used the proceeds to repay a bridge-loan facility of about $2 billion that it had taken to cover expenses from March until the fundraising was completed.

    The proceeds spent during the two months to Aug 14 are almost equivalent to the combined net losses made by SIA, Cathay Pacific Airways and Qantas Airways in the first half. To curb costs, the Singaporean carrier has slashed salaries and put staff on unpaid leave as it operates at less than 10 per cent of capacity.

    SIA posted a first-half loss of $1.85 billion as the pandemic wiped out passenger traffic. Cathay Pacific lost HK$9.9 billion (S$1.75 billion) and Qantas A$1.96 billion (S$1.92 billion)….”Unquote .

    Response : SIA should fire off all the extra air stewardess and pilots to cut costs .SIA has too many extra pilots and staffs .If SIA cannot save,then let it go bankrupt .Don’t waste more public funds on it .

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  • xoxo:

    $106 BILLION$ DOWN THE DRAIN OR NOT QUITE?
    MONEY FOR THE ELITE$$$,bravo,hravo!
    Ah Heng ,do you think this will increase future tax burden for young sgs?
    More G$T coming.
    No worrie$,H$K will plug the gaping LOBANG WITH MORE GST.
    Meanwhile,common sgs receive $600 ,peanuts vis-vis the BIGLY SUM$ handed to Rich Elite$!

    Loong live PAP.
    THE Biggest SQUANDERER GOVT IN THE WORLD by PER CAPITA OF EXTRA COVID BUDGETS spent!!!

    Small couuntry,BIG SPENDER.
    BUT CANNOT USE RESERVES TO HELP POOR N JOBLESS CITIZENS???

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  • NotMyProblem:

    Didn’t you see smoke, mirrors, wool and cotton flying around lately?

    If you can understand what they are doing, then they have failed!!

    We have only 9% of voters just woke up in GE2020.

    All these billions of dollars are un-auditable!!!!

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  • Spend wisely:

    Hope more Singaporean jobs will be preserve with the support.
    The National reserve are hard earned money from the PG and MG .
    Hope will spend wisely to those that need it most.

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  • Harder Truths:

    Every cent is from the citizens. No civil servant or army general will lose a red cent of their pay.

    The figures are all made up anyway. If you really are able to follow the money trail it will lead back to your pocket.

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  • SINGAPOREANS FIRST ALWAYS:

    The Government does not have to spend have much to help Singaporeans on jobs if it starts cancelling the employment pass or work permit of foreigners to force them to go home. (Cancelling work visa of foreigners costs nothing since the civil servants needed to implement it are already in place.) Singaporean can hired to replace them. The economy is down so businesses need less staff. It is stupid and wasteful to give them money to retain staff and wound up being over-staffed. What is needed is to force employers to replace foreigners with Singaporeans. It is that simple.

    SINGAPOREANS FIRST. ALWAYS.

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  • A Nombor:

    It’s a numbers game!

    They gamed it!

    For the majority go to the casino! Lots of numbers to roll?

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  • Billy ma:

    When you got 83 out of 93 seats in parliament, you better believe they can do what they want how they want & without any accountability or transpancy.

    They’ll shout that this is effective & efficiency to get what they want done.

    Maybe they missed out telling the citizens how much is set aside for their own performance bonus.

    And maybe quietly insert a self appraised salary increment.

    They just feel they deserve it & more.

    O ya, that PAP president will surely get her share for being so obedient.

    And to the PAP president, you are not qualified to talk about racism.
    You got where you are now because of your race.

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  • the good old days are over:

    Soccerbetting2:
    Reported on Straits Times :Quote -”SIA burns through half of $8.8 billion cash raised in two months

    Of the $4.4 billion, $1.1 billion was used for operating expenses, maturing fuel-hedging trades and ticket refunds.ST PHOTO: CHONG JUN LIANG
    PUBLISHED5 HOURS AGOUPDATED47 SEC AGO
    FACEBOOKWHATSAPPTWITTER
    SINGAPORE (BLOOMBERG) – Singapore Airlines (SIA) burned through half of the $8.8 billion it raised through share sales in just two months, highlighting how carrier’s expenses keep racking up even as the Covid-19 pandemic keeps planes grounded.

    Of the $4.4 billion spent since mid-June, $1.1 billion was used for operating expenses, maturing fuel-hedging trades and ticket refunds from cancelled flights due to the coronavirus pandemic, the airline said on Wednesday (Aug 19). About $2 billion was used to repay a bridge loan facility, $900 million to service debt and $200 million to buy aircraft.

    SIA raised the funds in June after the outbreak and resulting border restrictions decimated travel demand. The airline industry is unlikely to recover fully before 2024, the International Air Transport Association said last month.

    The airline also used the proceeds to repay a bridge-loan facility of about $2 billion that it had taken to cover expenses from March until the fundraising was completed.

    The proceeds spent during the two months to Aug 14 are almost equivalent to the combined net losses made by SIA, Cathay Pacific Airways and Qantas Airways in the first half. To curb costs, the Singaporean carrier has slashed salaries and put staff on unpaid leave as it operates at less than 10 per cent of capacity.

    SIA posted a first-half loss of $1.85 billion as the pandemic wiped out passenger traffic. Cathay Pacific lost HK$9.9 billion (S$1.75 billion) and Qantas A$1.96 billion (S$1.92 billion)….”Unquote .

    Response : SIA should fire off all the extra air stewardess and pilots to cut costs .SIA has too many extra pilots and staffs .If SIA cannot save,then let it go bankrupt .Don’t waste more public funds on it .

    over 30 years ago, when we started work, SIA was the default airline and business class was the default class.

    by the time we retired not long ago, the default is anything but SIA and if business class must NOT be SIA.

    don’t believer? ask around those in charge of corporate travel. the only exception is pap companies which still hang on to SIA and SIA suite/first class. these pap companies can do this only because making money is not the priority since their shareholders are 61% sheep.

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  • Let me ask something:

    How much did Singaporeans receive vis-a-vis companies?
    I received a dew hundred dollars.
    Where did all the money go to?
    SBS, Tower Transit (foreign company) get paid by the Singapore government to operate our public bus services.
    The government still gives them JSS and other Covid 19 pandemic benefits.
    ComfortDelgro took $66 million (please dont pofma me, ok it is about $66 million) and made only a few peanuts loss when taxi drivers and free lance drivers are taking a big hit.
    Save job, help the displaced?
    You believe PAP?
    Too bad, you have to wait another 5 years to right your (voter) mistake or otherwise. We human beings have very short memory, please just dont forget this expensive lesson.

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  • Where did the money go to?:

    Give lots of money to Ho Ching’s Temasek (indirectly) to bail out GLCs and cronies companies like PIL’s, Olam.
    How much did PAP Alvan Lim’ Keppel Marine receive?
    How much did Wong Kim Yin’s (a former Ho Ching’s colleague?) SembCorp Industry receive?

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  • Dear CI:

    What is the point of saying this?
    PAP is working so damn hard to help Singaporeans and companies tide over this pandemic, sorry I forgot to include foreign workers and talents.
    See, your investment in say DBS is still paying you good dividend, better than what the savings deposit pay ordinary people.
    Your investment in aviation industry like SIA, SATS, SIA Engineering, ST Engineering will not go bust.
    Your investment in offshore and marine will recover as long as the companies are supported by Lee-Ho family.
    Don’t be cynical please.

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  • this is the reality:

    Let us never forget this fundamental truth: the State has no source of money other than money which people earn themselves. If the State wishes to spend more it can do so only by borrowing your savings or by taxing you more. It is no good thinking that someone else will pay – that ‘someone else’ is you. There is no such thing as public money; there is only taxpayers’ money.

    Margaret Thatcher

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