TR EMERITUS

Written by Our Correspondent According to a report in Wall Street Journal, the Government of Singapore Investment Corp. (GIC) has incurred a paper loss of $5 billion or about S$7.2 billion dollars on its investment in Swiss bank UBS after its notes are converted to shares yesterday. While the disastrous loss made headlines worldwide, it was not reported by the Singapore media yet. In 2007, GIC acquired a 9% stake in UBS through convertible notes on a fixed coupon of 9% per annum with a two-year maturity period. It was revealed by Bloomberg a few days ago that GIC took only 3 days to make the decision to invest in UBS: “Marcel Ospel, then chairman of Zurich-based UBS, called GIC Chief Investment Officer Ng Kok Song, according to comments they made at the time. Talks began on Dec. 6, 2007, and by the evening of Dec. 9, GIC had committed to make its biggest single purchase at the time,” Bloomberg reported. [Source: Bloomberg, 1 March 2010] Deputy Chairman of GIC Dr Tony Tan said then in a statement that GIC had “confidence in the long-term growth potential of UBS’s business, particularly in the global wealth management business”. The future of UBS looks bleak as it continues to be embroiled in a protracted court case with the U.S. government over the release of confidential information of its U.S. clients who are being suspected for tax evasion.  GIC’s Chairman Lee Kuan Yew also appeared to be unfazed by the prospect of an impending UBS collapse. In an interview with Channel News Asia last year, he said: “When we invest, we are investing for 10, 15, 20 years. You may look as if you are making a big loss today, but you have not borrowed money to invest. You will ride the storm, the company recovers, your shares go up.” [Source: CNA, 6 Feb 2009] Set up in 1981 to manage Singapore's reserves, GIC has been headed ever since by Singapore's octogenarian leader Lee Kuan Yew, who is a lawyer by training. His daughter-in-law Ho Ching is the CEO of Singapore's other sovereign wealth fund Temasek Holdings. This is not the first time that GIC has suffered such a tremendous loss in its investment. A Wall Street Journal article published in September last year reported that GIC may have suffered a loss around 59 billion Singapore dollars (US$41.6 billion) in the fiscal year ended March. (read article here) In other countries, such a loss would have lawmakers calling for an independent Board of Inquiry to investigate what's wrong. The issue was never raised in the recent parliamentary "debate". Even if it is, it is highly unlikely that Singaporeans will get an answer from Finance Minister Tharman who once said that the system in Singapore is based on "trust". Till today, nobody knows how much reserves Singapore still has after the multi-billion dollars losses suffered by GIC and Temasek Holdings.  Read More →

Written by Our Correspondent A reader tipped us off that he had received a flyer from a Taiwanese PR offering up to $50,000 cash above valuation (COV) for a unit  in his estate: Such flyers are becoming more common nowadays as the inflow of foreigners continues unabated, thanks to the PAP's liberal immigration and pro-foreigner policies. PRs are allowed to purchase resale HDB flats in the open market without any restrictions though they do not qualify for HDB subsidies. After satistifying the minimal one year residency period, they are free to sell their flats without any additional levies. As such, there is an increasing number of PRs and Singaporeans who are seeing the value of HDB flats as a form of investments especially those in the prime estates. Some PRs are quite well to do and they do not mind paying over the market price for HDB flats. Lianhe Wanbao reported last year of an Indonesian PR paying $653,000 for a 4-room resale flat in Queenstown though he could well afford a condominium. The prices of HDB resale flats grew by 8.2 percent in 2009 while median COVs doubled from $12,000 to $24,000 in the last quarter alone. Though he admitted he was caught "off-guard" by the sky-rocketing prices, National Development Minister Mah Bow Tan is adamant that PRs are not responsible for the astronomical prices and COVs. During the parliamentary session this week, PAP MP Mr Inderjit Singh said that though PRs cannot buy new flats, demand by them in the resale market can push up prices and the price of new HDB flats is pegged to that of the resale market. Furthermore, the PRs who rent HDB flats also contribute to rising prices. Mr Mah replied calmly: "PRs make up “only” one in five resale flat buyers and have minimal impact on resale prices." Despite some measures introduced lately to curb property speculation, the red-hot property market still shows no signs of cooling down. Recent housing ads posted on online portals had property agents asking nearly $1 million dollars for 5-room flats which are more than 30 years old. PAP ministers are in agreement that the rising prices of flats help "generate wealth" for Singaporeans and are unwilling to acknowledge the severity of the problem. At the rate the COVs are increasing, we will soon see median COVs hitting above $50,000 pretty soon. The Taiwanese family above probably sold their private property at a profit and they look likely to make another killing after selling their HDB flats years later. That will net them enough money to retire quite comfortably in Taiwan if they decided not to take up Singapore citizenship.   Related articles: >> Mah Bow Tan: PRs have minimal impact on resale flat prices >> No empirical evidence to suggest that public housing is affordable in Singapore >> When will Singapore’s property bubble burst? >> Why HDB is unable to reveal break down costs of new flats now >> HDB to consider introducing rules to curb property speculation >> HDB blames Singaporeans for not selecting flats when given the chance >> Singaporeans worried about retirement after depleting CPF to pay for over-priced HDB flats >> Mah Bow Tan acknowledged that rising HDB flat prices has sparked “fresh concerns” >> PM Lee: Govt does not have control over prices of resale flats” >> COVs of resale flats shooting through the roof >> HDB resale price index hit record high in 2009 >> Singaporean wants PRs to live in rented flats instead of buying resale flats >> Singaporeans wants PRs to be banned from selling HDB flats at a profit >> Shanmugam: Singaporeans likely culprits for driving up HDB flat prices >> Mah Bow Tan: HDB flats remain affordable >> Means testing for PRs to buy resale flats >> Immigration and public housing: should the govt or people plan ahead? >> Grace Fu: hard to predict demand for housing >> Indonesian PR bought 4-room flat at $653,000 >> Mah Bow Tan asks home buyers to be realistic >> PAP MP blames young couples who cannot get a flat for not planning ahead >> Home affordability: HDB versus the public >> Demand vs supply: so many applicants, so few flats >> Number of applicants exceed number of flats >> HDB to increase supply of flats >> Mah: don’t compare with prices in the past >> ERA: 40 per cent of HDB flat buyers are PRs  Read More →

By Richard Lu  The Judiciary   “The judiciary (also known as the judicial system or judicature) is the system of courts which interprets and applies the law in the name of the sovereign or state. The judiciary also provides a mechanism for the resolution of disputes. Under the doctrine of the separation of powers, the judiciary generally does not make law (which is the responsibility of the legislature) or enforce law (which is the responsibility of the executive), but rather interprets law and applies it to the facts of each case. This branch of government is often tasked with ensuring equal justice under law. It usually consists of a court of final appeal (called the "supreme court" or "constitutional court"), together with lower courts. The term "judiciary" is also used to refer collectively to the personnel, such as judges, magistrates and other adjudicators, who form the core of a judiciary (referred to as a "bench"), as well as the staff who keeps the system running smoothly.” ...... Wikipedia   Why is an Independent Judiciary an importance part of a liberal democracy?   In 1985, the UN General Assembly adopted the “Basic Principles on the independence of the Judiciary” at its 7th Congress.  With this, each member state is expected to guarantee the independence of the judiciary in the constitution and by law.  What does this mean?  Simply put:   ·         Judicial independence is the ability of a judge to decide a case free from pressures or inducements; ·         Institutions of the judiciary must be independent i.e. separated from the legislature and executive arms or any concentration of power; and ·         The principal role of the judiciary is to uphold the rule of law and ensure its supremacy.    If the judiciary is to be truly impartial and independent it must have special powers to keep its distance from:   ·        Political parties, ·        Government bodies, ·        Pressure and interest groups, and  ·        Be free from repercussions from all outside interferences and influences.   Basis of Judicial Independence   It is the duty of all governments and other institutions to respect and observe the independence of the judiciary on the following basis:   ·         Equality of all before the law; ·         Presumption of innocence; ·         Right to a fair and open or public hearing by a competent and impartial tribunal established by law; ·         Judiciary to decide matter before them impartially base on facts and in accordance with the law; ·         No interference whatsoever - internally or externally, with the judicial process; ·         No improper influences, inducements, pressures or threats; ·         Judicial decisions shall not be subject to revision(s); ·         Doctrine of Separation of Powers; ·         The principle is not compromised by judicial reviews, mitigation or commutation by competent authorities; and ·         Public bodies such as state departments, the military, government corporations as well as the state itself are subject to the same laws.   The executive branch often acts as the litigator and enforcer of criminal law.  It is inevitable that there are dealings between the courts and the executive branch.  The executive branch has a legitimate interest in the proper co-ordination of the justice system as a whole, but the co-operation is an administrative one only.  The government branches do not instruct the courts how to arrive at their decisions and the courts do not tell the police how to investigate or perform their duties.     Other requirements for Judicial Independence   a.       Remuneration and tenure   The term of office of judges, their independence, security, adequate remuneration, conditions of service, retirement age, pensions, etc. shall be adequately secured by law including:   ·         Removal from office; ·         Judges appointed or elected shall be guaranteed tenure until retirement age or expiry of their term; ·         A charge or complaints against a judge in his/her personal capacity shall be expeditiously heard under appropriate rules and procedures and provisions.  The judge in question shall have the right to a fair hearing; and ·         Judges shall be subject to suspension or removal if found unfit to discharge their duties.   b.      Open court requirement   Perhaps the most important safeguard for an independent judiciary is the ‘open court’ principle where justice is dispensed ‘in open court’’. With the ‘open court principle’, justice will not only be done, but will also “be seen to be done.”  ‘Seeing’ in this context enables the public to have access to trials and to reports of those trials and the actual reasons for the judicial decisions.   ·         Every member of the public has a right to enter any court at any time as a trial is in progress;  ·         The public has the right to be present to witness how justice is being dispensed in their courts; ·         The public can access if their judges are acting independently and in accordance with the law; ·         The press has the right to attend hearing and communicate to the public court proceedings; ·         The courts may restrict dissemination of information to ensure a ‘fair trial’; and ·         The courts give full recorded reasons for its decisions for the benefit of all and for public record.   c.      Requirement to communicating the Law to the People   It is difficult sometimes to explain the law and the legal system to the public. Those who are involved in the system, judges, lawyers, prosecutors, police and correctional institutuion personnel, must all reach out to make such explanations  d.      Judicial Appointment Process   To have a superior judiciary, greatest care must be taken at the initial stage and in the selection or appointment process:   ·         Persons selected for judicial appointment shall be of integrity and ability with appropriate training or qualifications; ·         In the selection of judges, there shall be no discrimination on the grounds of race, colour, sex, religion, political orientation, national or social origin, property or birth or status; ·         That a candidate for judicial office must be a national of the country concerned shall not be considered discriminatory; ·         There shall be safeguard against judicial appointments for improper motives; ·         The judicial function is often a creative one and it is necessary to recruit highly trained, competent, ethical and intelligent men and women,   reflective of the society they serve; ·         The need to remunerate them appropriately and with substantial salaries reflective of the society they serve; ·         This element of creativity, the special adjudicative function that judges play and their role in society makes their job of particular importance to a balanced society; ·         This is even more so if their reasons and decisions become precedents because of the effect these decisions will have on subsequent cases and the development of the law; and ·         Because of the significance of the initial selection process, it may be useful to review various judicial selection processes in place in a number of jurisdictions.   e.      Common Law Systems   ·         The body of law based on precedents i.e. on the prior decisions of judges; ·         Statute law legislated by the state plays a significant role and so does the law made by judges (called the common law); ·         Common law is made as judges decide cases and state the rationale for their decisions; ·         The accumulation of principles goes into a body of law that evolves to meet social changes and expectations; and ·         In a common law system, statute law (including constitutional law) predominates over common law.   f.        Civil Law Justice Systems (not applicable to Singapore) ·         Most of the judicial systems of major industrialized nations do not operate on the common law system, but rather in a legal system sometimes referred to as the civil law; ·         In this system the legally trained individual follows a career path into the judiciary, frequently directly from law school; ·         Typically the judicial personnel participates initially in some level of service in the judicial administrative branch, progresses to lower levels of judicial service, and then is promoted to higher levels; ·         Judicial structure is more hierarchical and specialization is possible; and ·         A judge’s progress depends on the performance assessments of his or her superiors.   ·         Elective Judicial Appointment (not applicable to Singapore) In the United States, many state judges are elected.   g.      Judicial Associations   Judges are free to form and join associations of judges or other organizations to represent their interests, promote professionalism and to protect their judicial independence.  Quoting the late Justice Thurgood Marshall of the US Supreme Court:   “We must never forget that the only real source of power that we as judges can tap is the respect of the people.”   DISCLAIMER: The writer is not a legally trained person but one who may be considered as “better read”.  The sources of the information are from text found in books, articles and in the Internet.  It is the writer’s aim to promote discussions.  The writer recognizes the subject is a difficult one and certain portions of the article may require further detailed explanations.  The article is deliberately kept short in the hope that it would informative and stimulate interest.  He apologizes if parts of the article are found wanting.  Read More →