atans1

Temasek: Meritocracy at work?

In Corporate governance, Temasek, Vietnam on 02/04/2012 at 6:28 am

So the S’porean MD of Singapore Technologies Telemedia (ST Telemedia), a 100%-owned unit of Temasek, Lee Theng Kiat, is now a president of Temasek, and its general counsel. He is in exalted company as one of the other two presidents was once a contender to be CEO of BoA. http://www.bloomberg.com/news/2012-03-30/temasek-hires-st-telemedia-s-lee-as-president-general-counsel.html

But it was also reported last week by the wires  that Eircom applied for court protection as expected last to allow it to restructure its 3.75 billion euro (S$6.29 billion) debt, a move it said was “necessary and unavoidable”.

The application follows the company’s agreement to support a proposal under which most senior lenders take control of the company from current majority shareholder ST Telemedia and cut its debt by 40 to 50%.

ST Telemedia bought 65% of Eircom in 2009 for 140 million euros in cash and shares. An employee share trust owns the other 35%. Eircom has 4.1 billion euros of gross debt and more than 300 million euros of cash on its balance sheet, giving net debt of around 3.75 billion euros.http://www.reuters.com/article/2012/03/29/us-eircom-idUSBRE82S14R20120329?rpc=401&feedType=RSS&feedName=technologyNews&rpc=401

Lee was the MD of ST Telemedia when Eircom was purchased.

Well the Communist Party and Government in Vietnam are not so forgiving of executives who goof. Nine top officials have been given tough jail sentences for their role in the near-bankruptcy of one of Vietnam’s largest state-owned companies. Err they  were convicted of being directly responsible for a loss of US$43m http://www.bbc.co.uk/news/world-asia-17561109. Peanuts when compared to Euros 140m.

BTW, came across this comment about Merrill Lynch recently, “From July 2007 to July 2008, a total of [US]$19.2 billion vaporized – or [US}$52 million in losses per day!” For the record, Temasek bot into ML in December 2007 and in late July 2008.http://moneymorning.com/2008/07/29/merrill-lynch/

Temasek’s loss ran into billions of US dollars http://online.wsj.com/article/SB124236495798923123.html. The Vietnamese officials would have been hung, drawn and quatered if they had been held responsible for such a loss. Nothing happened to Temasek officials.

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  1. At this rate, PAP will only be kicked out after they have lost all your money.

  2. The last time they lost billions, the current CEO was nearly replaced only to be retained when they later found out that the intended new CEO was not that suitable. But nobody really knew the real reasons behind it and many suspected it was actual a wayang.

    Now with that kind of mounting debt is just as bad as losing billions. And what kind of meritocracy would that be if the current CEO is not fired ? And is our PM really that dumb and clueless as to what is really meant by ‘meritocracy’ or ‘conflict of interests’ ?

  3. Meritocracy, the Singapore model, is at work not only in Temasek. You see it all around Singapore, including the Cabinet, which if opened, will spill out a cemetery of skeletons.

  4. Try as they might, the rate of loses cannot be stemmed.

    They will probably lose all anyway,but we will never ever know the truth.
    And since we will never ever know the truth, they will get voted in again & again.

    The train gathers ever more speed… and no one can disembark!

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