Most Disgusting Way of Creative Accounting!!!

Lowclassman SG

JUST LOOK AT WHAT THEY SAID..... SHAMELESS..GOT BALLS TO REVEAL THE BUILDING COSTS FOR EACH UNIT?

IMAGINE HOW MUCH HORSE FACE MAH MADE FROM EACH UNIT..

Dec 8, 2006
HDB consistently incurs losses selling new flats

I REFER to the letter, 'No subsidy in new HDB flats, just a discount' (ST, Nov 25), by Mr Cheong Chee Mun.

Mr Cheong said that HDB acquires land for public housing at 'very low cost'. This is not correct. The land for public housing is purchased from the Singapore Land Authority at market value, based on the Chief Valuer's assessment.

= WELL SINGAPORE LAND AUTHORITY AND HDB ALSO PAP OWNED RITE? LEFT POCKET, RIGHT POCKET

The total cost of developing four- and five-room flats is higher than the example of $200,000 mentioned in the letter. The development cost is even higher in mature HDB estates where the market valuation of the land is higher. Hence, the assumption that HDB enjoys a profit of $150,000 per flat is wrong.

= DUN TALK SO MUCH, SHOW US THE PROOF. BE TRANSPARENT.

HDB has consistently incurred losses in the development and sale of new flats. It is unable to fully recover the costs of development as it sells new flats at a subsidised price. Together with the other types of housing subsidy, such as the CPF Housing Grant and the Additional CPF Housing Grant for lower-income families, the sale of subsidised new flats results in a tangible and substantive cost to the Government. Specifically, over the last five years, HDB's home-ownership programme incurred an average annual deficit of $390 million.

= OPEN UP AND WE WILL BELIEVE YOU!!! $390M?? SHOW US HOW U DERIVE AT THIS FIGURE !!!!!!

Kee Lay Cheng (Ms)
Deputy Director
(Marketing & Projects)
For Director (Estate Administration & Property)
Housing & Development Board

I cannot believe .....this what the answer!!!!! Mad

mistyblue SG

nothing is transparent.

Rock^Star SG

think this is the biggest BS that i have heard for the past 5 years. Talk is cheap….all lip service.

ShutterBug SG

I think they should RETIRE and go be Consultants to the world on economics.

Let the REAL government take over their job of REALLY caring for the people!!

Go on! You all have made your BILLIONS!

Let us all survive peacefully!!!

Lowclassman SG

HDB consistently incurs losses selling new flats

But they were able to pay windfall to their staff and retrenched them. Subsequently, HDB rehired the ex-staff again. Not only this, it became HDB Corp.

LinYu SG

what about the loan ppl takes from CPF to pay the house. the interest is more th 2 times the house.
wtf
Mad

Lowclassman SG

:::: But did the GOVERMENT incur a loss by providing "subsidy"? Most likely not as the cash cow SLA profit is much more than enough to cover the "loss" incur by HDB. ::::

You are spot on. What they do is, create 2 companies A and B. A takes all the limelight, and B remains as low profile as possible.

A "buys" land from B, pay ridiculous price such that B earns super profit. A can happily claims they still made a loss even if they sell their pigeonhole at sky high prices. In the meantime, they still try to earn some goodwill by claiming that they give u subsidy.

So in the end, A lost $400m, B earns $4b. And they trumpet A's loss loudly. What a fart!!! Mr. Green

lionnoisy SG

do some home works first,even u dunt trust PAP pdf file

in S$Thousand.....................................HDB....................... Group
............................................2005/2006 2004/2005 2005/2006 2004/2005

NET DEFICIT BEFORE
GOVERNMENT GRANT AND
TAXATION ......................(1,405,959) ......(850,156) .1,416,763) (793,946)
Government grant 11 ..........754,695 ....919,309..........754,695 ......919,309
NET (DEFICIT)/SURPLUS BEFORE
TAXATION .......................(651,264) ......69,153 ....(662,068 ) ..125,363

read here lah

2.read and think and decide if it is CREATIVE accounting!?

dragg SG

hdb made billions from selling flats.

the older flats are all sub-standard.

the walls are so uneven even the lizards are complaining.

Ito_^ SG

Laughing i cannot imagine..

X9_panel SG

What do you expect if the labour cost is very low in HDB sector ?
Do you believe that low cost labour can produce high quality service ?

Lowclassman SG

Originally posted by lionnoisy:
[b]do some home works first,even u dunt trust PAP pdf file

in S$Thousand.....................................HDB....................... Group
............................................2005/2006 2004/2005 2005/2006 2004/2005

NET DEFICIT BEFORE
GOVERNMENT GRANT AND
TAXATION ......................(1,405,959) ......(850,156) .1,416,763) (793,946)
Government grant 11 ..........754,695 ....919,309..........754,695 ......919,309
NET (DEFICIT)/SURPLUS BEFORE
TAXATION .......................(651,264) ......69,153 ....(662,068 ) ..125,363

read here lah

2.read and think and decide if it is CREATIVE accounting!?[/b]

What you know about accounting?

Example; let's say...
SLA or URA bought the land at S$3.00 or S$30 per sq feet twenty or thirty years ago..... now according to SLA the land cost were evaluated and cost S$450.00 per sq feet now. So SLA sold the land to HDB at S$200 or Fcukfcuk price per sq feet.
In this case, our generous and merciful govt were actually ''subsidizing'' S$250 per sq feet to us the sg citizen.
Thank you very much lor!!! or I should say fart you very much!!!

iamgoondu SG

I agreed to your statement, but looking at SLA balance sheet, their income was not really fantastic. In FY05, their income is only $80,817,000.

I am not an accountant, but if HDB paid SLA for those land, shouldn't SLA reflects those sales in its balance sheet? Perhaps HDB did not acquire any land from SLA during FY01 to FY05.

FY05 FY04 FY03 FY02 FY01
S$000 S$000 S$000 S$000 S$000
Income & Expenditure
Income 80,817 82,816 77,708 83,600 62,465
Expenditure 68,057 66,461 61,090 60,230 60,368
Operating surplus 12,760 16,355 16,618 23,370 2,097
Non-operating income (net) 1,315 1,692 132 (586) 74
Surplus before capital grant 14,075 18,047 16,750 22,784 2,172
Amortisation of capital grant 1,343 1,388 3,695
Surplus before contribution
to consolidated fund 15,418 19,435 20,455 22,784 2,172
Less: Contribution to
consolidated fund
statutory 3,084 3,888 4,498 5,013 532
special 2,500 2,500
Net surplus for the year 9,834 13,047 15,948 17,772 1,640
Capital Expenditure 4,974 7,366 3,604 4,834 17,011

http://www.sla.gov.sg/doc/new/SLA_full.pdf

dragg SG

hahaha, our typical tendering system - the job goes to the lowest bidder.

Embarassed

BillyBong SG

This is one of the weakest answers i have seen coming from a govt board.

Instead of truly explaining their profit-cost margin and the reasons why 'discounts' are offered in the form of small subsidies rather than a review of HDB flat revaluation, she basically says the original writer was 'incorrect' in his figures, period.

There wasn't even any sincere attempt to address the original question and concerns raised. It was a barely disguised 'brushing off' by claiming: hey look, you got your facts 'wrong'.

Well, where's the actual explanation?

lionnoisy SG

how much it cost to develope a new town?

Acqusitions of lands,constructions of infrastructures and HDB,site formation,
etc plus the interest incurred.

Lowclassman SG

Use your bird brain to think lah......... Mr. Green
Depend how big is the town loh....

The unit that we are paying was included with all infrastructures costs, design, electrical supply, water supply and etc. If there are 8000 units in the new town...then splits among the new 8000 unit ''owners'' loh. SO simple!!! also don't know. How to argue with people in the forum?

fymk SG

Ai yah …just ask them to open account books and get an independent auditor to look thru lor . Very simple. takes out the abacus

eyebuzz SG

it takes 56 man years... Laughing