I read with grave dismay about the exploits of the three
Government of Singapore Investment Corporation (GIC) staff who
engaged in insider trading to avoid losses of $710,000 ('MAS files
first civil penalties suit' (ST, Oct 22) and 'Three GIC staff
guilty of insider trading' (BT, Oct 22)). In fact, I am shocked
that such actions were taken by individuals assigned with
investment responsibilities of the highest order - managing
Singapore's reserves! Their acts have surely brought shame to our
country and tarnished the Government's reputation, and we have lost
far more than the $710,000 Lim, Teng and Choo tried to save
us.
I am also deeply puzzled by how GIC, a premier investment
organization headed no less by our Prime Minister and Minister
Mentor, could possibly allow such an incident to take place. Having
stated clearly in the GIC yearbook that one of the corporation's
core values is "Integrity," and having elaborated on this as "being
unflinchingly honest," the corporation should have had effective
checks and balances to prevent such a faux pas from occurring. If
it did, then obviously more needs to be done; I hope the
disapproval publicly expressed in this letter helps make investment
professionals think twice before they engage in such disgraceful
acts.
That not one, but three(!) of GIC's professionals colluded to
perpetrate the misdeed, and that one of them was a government
scholar as well, truly leaves me confounded. That they still traded
on the information even though they were warned by the securities
salesman not to do so leaves me speechless. Surely the minds that
handle the country's savings with a "long-term focus" have the
sense to think about the long-term consequences of their
actions?
I hope that this unfortunate incident is not a prelude to others to
come; I refuse, as a Singaporean, to be associated with individuals
who would profit through dishonest means while representing my
country. This case is the first case of its kind, and it had better
be the last.
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This letter was sent into the Straits Times Forum on 22nd Oct, and
was rejected a few days after. I hope Singaporeans will take note
of the kind of individuals who are currently managing their
savings.
inspir3d.blogspot.com
