Temasek Holdings – Transparency a Perception ?
February 19th, 2010 | 
Author: By Richard Lu
Transparency International (TI) publishes an annual Corruption Perceptions Index (CPI) according to “the degree to which corruption is perceived to exist among public officials and politicians”.
Corruption is best described as “the abuse of entrusted power for private gain”. The maximum score or index is 10 and a country with a high score is “perceived” as being least corrupt. In 2009, Singapore was placed No. 3 after New Zealand and Demark with an index of 9.2.
Just in case we go away with the notion that we have arrived, readers must understand how the index is derived and why it is controversial and not accepted as an accurate measure of corruption.
Firstly, the CPI is derived from a compilation of surveys that ask businessmen and analysts, both in and outside the countries they are analyzing, their perceptions of how corrupt a country is. The index therefore relies on third-party surveys that may be potentially unreliable. Data vary widely because of the different methodologies used, the completeness of the surveys and different samples employed every year.
Secondly, the laws of each country vary and so is the enforcement process. Therefore the actual number of corruption cases in each country cannot be an accurate measure.
Thirdly, corruption happens behind the scenes and hence the difficulty in its detection.
The survey is controversial although it does not lack objectivity. TI receives criticisms over the years. The CPI authors reply to criticisms by reminding the users of the data that the CPI is meant to measure perception and not “reality”.
The results are therefore difficult to evaluate due to the constant moving of the goal posts and yardsticks used. What is important to note is that “perceptions matter in their own right, since… firms and individuals take actions based on perceptions”.
Statistics like the CPI in itself is not accurate. By looking at the index over a few years, the year-to-year changes in a country’s result and the samples and methodology used, a perception of a country’s performance can be obtained. This means that a change in perception of corruption of a country would only emerge in the index over longer periods of time.
Although the CPI is put out by Transparency International it is an irony that it does not measure the “transparency” of a government or government-linked businesses and activities e.g. GLCs, sovereign wealth funds, statutory boards. Singaporeans will never know what goes on in say the GLCs, Temasek Holdings, GIC, People’s Association, etc.
Thus we will never be told how Temasek Holdings’ CEO Ho Ching appointed this “special adviser”, the former SGX CEO Mr. Hsieh Fu Hua; why was he appointed, what are his terms of engagement, what is his remuneration, etc.
Is this a retirement job or a reward for his faithful service as CEO of SGX? Wasn’t there a head-hunt for the appointment? What makes him so eminently qualified that a position was created for him immediately after his stint as CEO of SGX? Really, to be transparent and accountable, the answers to these questions must be forthcoming and released quickly.
Temasek Holdings must ultimately belong to the people of Singapore and must be accountable to the people of Singapore. The sooner the people in charge of Temasek Holding realize this, the better. This is not a perception like the CPI but a reality. Singaporeans want and demand transparency and now. Will they (the people in charge) not see this?
By the way, we should not be shouting or crowing about the fact that we are third after New Zealand and Demark on the TI list of least corrupt countries. The Government must not bask in this fact and feel that there is no need to be transparent or accountable at all. Whilst we may least corrupt, we may also be the least transparent of countries and this perception is not a good one.
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Asiaone online
This is crap! How can the Government took the chance to increase their revenue! This is outright abuse!!! I would expect Polytechnice tuition fees for Singaporeans to be reduced while PR increased to make the difference!!! On what basis are they raising fees again? I wonder when will PAP stop being so greedy!!! Frustrated Singaporeans!!!
Philip Lim
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The first thing Temasek Holdings should be transparent about is to sack Ho Jinx for loosing so much of Singapore’s wealth. Where is the accountability ? All these losses were under her’s watch.
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With their million dollars pay check,
THAT IS OUTFRONT CORRUPTION!
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I have heard stories about Ho from someone who had worked under her, she is just a crap.
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QUOTE: Temasek Holdings must ultimately belong to the people of Singapore and must be accountable to the people of Singapore.
TR – understand that TH belongs to the MOF. Anybody out there can tell what is the truth?????????????????????????????????
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good forum article on temasek holdings leveraging both financially and on the reputation of singapore -another dubai world in the making??
Raising the stakes risky
I AM concerned about Temasek Holdings’ upward revision of its private fund-raising scope from US$5 billion (S$7 billion) to US$10 billion (‘Temasek to raise $1b in bond sale’, Feb 9).
By raising funds via placement of public bonds which Temasek fully and unconditionally guarantees, Temasek is no longer only managing Singapore’s surplus funds. It has, in fact, morphed into a semi-private fund management company.
The long-term borrowing of US$10 billion will be more than 5 per cent of the current total holding value of Temasek.
Temasek is indirectly leveraging on its triple A status – which comes from Singapore’s surplus funds – to access global private funds.
Overall, Temasek’s performance has gone reasonably well, except for some major write-offs and a few recent losses from investments.
As with all investments, there are two possible outcomes, winning or losing. Should Temasek lose all of Singapore’s surplus funds, that would be sad, but Singapore would be able to painfully bear with it. On the other hand, should Temasek also lose with its borrowed money, it will not only hurt Singapore’s pockets, but may also shake the world’s confidence in Singapore as a top financial centre.
The recent Dubai debacle is one extreme example of such a possibility. Fortunately, Dubai had a rich ‘brother’, Abu Dhabi, to come to the rescue.
Singapore’s financial strength and stability is a key pillar of its economy. Should Temasek be allowed to leverage on and trade with the nation’s future?
Lim Kay Soon
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Am i right to feel that TH’s call for change of head after all this time has elapsed is basically no change of head?
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TH, GIC, PAP as government “ARE ALL TRANSPARENTLY OPAQUE”!!!
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CPI is based on PERCEPTION? so, technically, it is not an Absolute Truth but a Perception. Nothing wrong really since Corruption cannot all be detected.
So, i do not take Corruption Perception Index seriously. So, why people create such a thingie?
21st century and people base on Perception?
LOL
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I am sure TH is 100% transparent…so transparent that there is nothing left
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This is the amount as report loss… Sg please take a look. and ask how much you can get back just from interest.
50,000,000,000 + 14,000,000,000.
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You see right THROUGH IT and so DO NOT see IT at all!!!
And so it is NO DIFFERENT from trying to see THE INSIDES of OPAQUE things as you see NOTHING of IT’S at all too!!!
And so… THIS IS HOW Transparent AND Opaque TH, GIC and PAP has been since only one old aged man from the Old-Guards era stayed in power with his “halo” over the heads of renewal blood he brought into the party!!! Been some 1/4 of a century hence. TIME FOR CHANGE. Let’s take pappy’s CUE advice that the world fast change and WE NEED “to change” by CHANGING THEM in time.
But be prepared for them not to sit down as in the next GE’s “Cooling-OFF-Day” they would be do a lot to shore up all of their Political TWEAKS and SOMERSAULTS to BEAT US NAYSAYERS DOWN ONCE MORE… For claiming again they “were” chosen by ‘the people’. We all know that those whose voted for them out of GREED and FEAR… Are what are call “Shadow” or “Phantom” supporters or naysayers gripped by their same centric sense of self-preservation!!!
Heaven always has it’s own timing in dealing with such people. The consequence is sadly the good one’s are dragged into drain to suffer for their misconduct and misdeeds.
So what do you their of a stalwart incumbent who cautions about maintaining RACIAL-HARMONY can say on TV that he… “Doesn’t believe that either the Koran or the Bible has the last word about life”???
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The salaries that our ministers get would be more than corrupt officials get in other countries. So what are we talking about?
Put this up in the manifesto in the coming elections! You will be roasted for sure.
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@suggestion
From that amount we can build 10 circle lines
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With that amount, we can double the fleet of SIA by buying JLA at leilong sale and shut off all ERP gantries in Singapore for 3 years.
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TH can NEVER be a TRANSPARENT’ organisation under the famiLEE rule because there are just too much ‘DIRT UNDER THRE CARPET’. PERIOD.
The HOLE created by Meteor Ho Ching is not something within the capability of MOF or CPF can cover.
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Does anybody know of a tiny country in Asia who is investing a lot in UAE’s property?
Is ethical investing important? Norway Investment agency does it.
After watching this video, I have strong reservation it ever been in consideration at all.
http://www.youtube.com/watch?v=BVrAaiQABjE
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To be fair, the index explicitly calls itself a “perception index”. Nothing wrong with measuring perceptions, as perceptions are indeed important–perhaps even more important in some respects than the factual basis (or lack thereof) on which they are founded.
Of course, like any other statistic or index, it has its limitations. One just has to be mindful of these limitations when interpreting the measure. Ideally, we should use a combination of indices to get a fuller picture from different angles.
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