Appalled by the state of corporate governance

Theresa Goh was so appalled by the reports on corporate governance at CAO that she wrote to Today with 7 pointed questions. 1. Is it right For CAO not to appoint a CEO after the fiasco 3 years ago? 2. Is it decent for the Chairman to be given an above average remuneration in director's fees, assuming that he is de facto CEO? 3. Is it right for the CEO to appoint independent directors from his network? 4. Is it decent for Wang Kai Yuen to accept more than 14 directorships? 5. Is it right for David Gerald, Chairman of SIAS, to endorse CAO's governance standards, based on seemingly misleading statements given by them... 6. Is it decent for him to say 'There is no law that prevents them from taking up more positions so long as they can discharge their duties and make sure that the shareholders are not disappointed? This is the sad state of affairs of corporate governance.

I am so angry....and so helpless

I used to be the one that called the shot. I decide what people should read, should know and what I think they need not know. I set the agenda on what people should be thinking about, should be talking about or should not be thinking about. You see, I decide what is in the people's mind. And sometimes I tried to be generous and invite people to say what they want to say. Then I went through them and chose what was agreeable to me and allowed it to be said. And those that I did not like, I threw them in the waste paper basket. And they were so helpless. Some felt very frustrated as their pet topic would not be given a chance to be aired. Whew! I was that powerful. Not that I could not do the same things now. I am still doing the same things. But people are not listening to me anymore. They simply ignore me. They went to cyberspace and say whatever they want and to whoever they want. Things that I do not want them to say they keep on saying. And I can't do anything about it. They now set their own agenda. They think what they want to think and decide want they think is important and what is not. And there are things that I do not want them to talk about for good reasons but they keep talking about them, and fanning them. And I am powerless. I cannot throw them into the waste paper basket any more. Neither can I ignore them. It is they who are ignoring me. And they even criticise me. They dare to criticise me. My god! What is happening?

Is there a disconnect?

Just a few months before the Malaysian GE, UMNO did not see any disconnect with the people. UMNO believed that it was in an unassailable position, that the bumiputras would be strongly behind them and the opposition could not do anything about it. They kicked their BN partners on their arses. They kissed the keris in a threatening manner. They tore down temples and places of worship of non Muslims at will. They cut down education grant for schools for the non Malays, and they took and took, to fill up their bank accounts. They never saw it coming. They believe there was no disconnect. Is there a disconnect south of the causeway? No, no signs of any disconnect. The govt is with the people and the people all behind the govt. All the decisions and policies and explanations were well received by the people. So where got problem? The third pay rise for the ministers will be coming soon. All is well.

Corporate Governance raising its ugly head again

Lee Suet Fern resigned as independent director of CAO. She was unhappy about how decisions were made. It was more like a fait accompli according to a report in Today. And the Chairman doubles up as the CEO and paid an undisclosed sum. And 'the firm is said to be in contravention of the Corporate Governance Code, which requires that at least one third of the board of the directors are independent.' How could a public company be in violation of the Corporate Governance Code when there are so many eminent and highly honourable people in the board? Don't these people know that their actions are illegal? They are the cream of our society, the role models, the people that the public look up to. So what is at fault, the system or the people? A primary school kid will give you the answer immediately. And if Lee Suet Fern would not have resigned, the issue would not have come out in the open and everyone will be so happy continuing what they were doing without any sense of wrongdoing. Another point which I think is very wrong in our culture is that independent directors are there to make sure things are done right and legally. They are not supposed to run away when they see that things are going wrong or when things got foul with the law. Why would our world class infrastructure and system of transparency and accountability allow such things to get by without putting a stop to it? Are independent directors appointed only to collect money when things are ok and quickly runaway when things are going wrong, and thus absolve their responsibility? When will there be a major revamp of the independent directors system to make sure that everyone in the board of directors are held accountable for wrong doings? A parallel report by Esther Fung said SIAS 'did not determine any obvious flaws in CAO governance standards following concerns raised by Mrs Lee Suet Fern in her resignation letter last week.' The report also said CAO board 'comprised 4 reps from CAO's parent company, two reps from oil giant BP and 3 independent directors.' And that this is unprecedented. Now who is right?

Myth 179 - PAP and people disconnect

The disconnect is due mainly to the PAP government’s failure, or refusal, to understand the importance of the affective component in a government-people relationship. Indeed anything outside their sternly pragmatic, rationalist, functionalist framework is viewed as just so much unnecessary emotionalism or ideology. Catherine Lim The above quote from Catherine Lim came about after the Mas Selamat escape. Catherine concluded that the way the govt handled the issue showed that there is a disconnect between the govt and the people. It seems that what the people expected of the govt have not been met. I think this is only a single issue and is not sufficient to say that there is a disconnect. Furthermore the escape is not even crucial if a journalist's comment is to be taken seriously. So my view is that there is no disconnect. The people will likely return the govt to power in the next GE and with bigger majority. That will be the best proof that there is no disconnect between the people and the govt. And the party will go on and on. You want more proof? See, no public demonstration. And the online petition calling for Kan Seng's resignation is not even receiving any support. Neither were there a flood of letters in the ST forum page criticising the way the govt is handling the case. Case proven. Case closed.

Investigative journalism

If our journalists are running out of ideas or what to write, do a little investigative journalism on this case. Many things could be revisited. Many people could be interviewed. And we will have a great strong from another dimension.

Put frugality into practice

Why must people be made to pay for more luxurious things that they do not want? The current mindset is that if you have money, you must spend, pay for comfort or eat sharksfin even if you don't want to. This kind of prodigous thought must be abolished. Frugality is a virtue, thrift is a virtue. There is nothing wrong for people who want to save. Lily Chan-Wong Jee Choo, Acting Dep Director, HDB, replied to a Song Yee Soon who called for a revision of the $8000 income ceiling for HDB buyers. She said there are many choices available to high income earners in the resale and open market. Yes, sure. But why should these people be penalised just because they are earning more? Penalised for being more able? What if they are first time buyers? When the housing problems are almost solved, it is timely to doing away with this policy of higher income must buy bigger and more expensive flats. Why can't higher income earners choose to live in smaller flats? Why must spend everything or hang a millstone over one's neck?

Sorry not enough

Several UMNO Youth Branches are calling for Hishammuddin to resign for his keris kissing antics and causing the lost of confidence from other BN supporters. Kadar Shah Sulaiman Ninam Shah said about 90 branch and 25 divisional leaders made the call after Hishammuddin's apology and admission of his mistake. Actually Abdullah is paying for the sins of Mahathir, Hishammuddin and Khairy. The poor PM is being asked to resign for inheriting problems caused by other UMNO leaders. Now this is definitely unfair. Abdullah is a moderate leader, not an extremist. Given a chance, Abdullah could bring Malaysia forward in a more democratic way. It is time the wrongdoers be made to pay for their sins, not Abdullah.

Looking for a closure?

BN Balji wrote a piece titled, 'Looking for closure in Mas Selamat case.' Many would like a closure quickly. But many more will want to see more if the mood in cyberspace is to go by. Princess Diana's death has still yet to see a closure after so many years. And with so many questions unanswered or unsatisfactorily answered, would a closure now be acceptable? Balji answered his own question. 'That will come when fugitive is found and the issue of culture is dissected.' What does he meant by issue of culture? Actually the issue of culture today is money culture. If one is prepared to demand to be paid in millions, the expectancy of the people is equally high and unforgiving for mistakes of such a nature. Many are now obsessed by the equation of responsibility and money. The more the money, the higher the responsibility. It cannot be otherwise. We need to address this issue of money culture thoroughly in order to appease the angry people. There is no free lunch.

Addressing higher payments instead of cost

By 1 Dec the basic Medishield premium will just go up. It will just go up, like it or not, object or not. It has so been decided. And it is so cheap, $1 more a month for the young and only $40 a month for those above 80. Hey that is $480 more a year above what they are paying now. This is what happens when you have no control over your CPF or Medisave. A ruling, and your money disappears. No one is interested in addressing the cost of medical fees but on how to make you pay. How much will Medishield be expected to pay out? ICU claims from $200 to $900, surgical implants like pacemakers and hip replacement form $2,500 to $7,000. Or not happy can opt out. Can anyone afford to opt out and risk being bankrupted with this kind of medical fees? The increase premium also means that the patients are now able to afford to pay more. This also means that hospital can also afford to charge more. But no sweat. According to one reitiree who was so glad, he said he did not feel any pinch because the premium was paid by his Medisave. My 85 year old mum was even happier. She said it was free. No need to pay because CPF was paying. But for the millions of CPF account holders, millions were paid from their CPF, like it or not, use it or not. Everyone is paying in advance. So cheap.

The new agenda

Worst recession is coming, tighten belt, prepare for more retrenchment. And the new catchphrase is frugality. The Ah Sohs have been interviewed and appeared on TV talking about cutting down on their expenses, checking prices and go for the cheapest food stuff. Everyone is worried and is saving every cent they could. What, a few months back we were clapping and cheering that we are living in our golden years. Or was it a golden mirage? Why everything is so gloomy and dark? Don't be deceived by such thoughts. Many are still buying the new Ferrari or Lamborghini or the new pleasure boat just because it is a new model. And they already have a few in their garages or in the marina clubs. Many are living the Swiss standard of living and all these little increases in petrol or rice is of no significance. It only affects the Ah Peks and Ah Sohs in the hardlands. While we should be happy for those who are having a good time, lets do something for these hardlanders when living is really going to get worst. What is the point of saving a few cents or a few dollars when one admission into a hospital could wipe out their life savings? Why still insist that people must pay for the most expensive wards that they are deemed to be able to afford? Lets be frugal. Frugality is good. Lets put it into practice. People who want to save every cent must be encouraged to do so. Provide more C wards and do away with the mean thing.

Defending Kan Seng

The divide between cyberspace and msm is stark. One is outright in demanding that Kan Seng accepts full responsibility and resign. The other is saying that he should not take the blame and should stay on, be given a second chance. I just did a straw poll on ST readers and 78% supported Kan Seng to stay on. 11% said he should do the honourable thing to resign. And 11% said someone should resign but not necessary Kan Seng. My straw poll is from the comments of 9 people appearing in the ST. Take it with a pinch of salt. What about the kopitiams and the private talks? Generally many were very cynical about the whole affair and their stand, though not saying much, is more for someone high up to take the rap. What is surprising is that in Parliament seatings, no one spoke out in defence of Kan Seng except for Hsien Loong. Other than those who asked uncomfortable questions, the rest were just too shock to take a stand. From ministers to MPs, their position as to whether Kan Seng should or should not resign was a complete silence. Perhaps some of you may read somewhere that there were MPs or Ministers who spoke out for Kan Seng. No one seems to be able to 'cho swee swee' and come out with an amicable position to please the public outrage, I mean the internet outrage, and at the same time leaving Kan Seng where he is. The position of msm at this point, when the heat is at its worst, to come out with a stand like Chua Lee Hoong, only helped to antagonise those who want to see Kan Seng's resignation. It is better to let the heat subside a little, when tempers are less likely to flare before saying something to the contrary. Sometimes not saying anything is better than adding fuel to the fire.

Hishamuddin apologises

After one and a half months of soul searching, think he found his soul, Hishamuddin apologised for his antics in keris kissing. He could not believe that kissing a keris can be so deadly, that it will cause the downfall of UMNO. He explained that his apology to the non Malays, 'for being frightened of a symbol, which was not my intention.' And to the Malays, 'for not being able to defend a heritage symbol.' So the reason for the kissing of the keris was only to defend a heritage symbol and nothing else. And when asked if he will kiss the keris again, he said he could not guarantee that he would not do it again. Next week 100 Malay organisations will hold a conference to defend Malay rights in Johore Bahru.

We cannot raise your salary

I mean we cannot raise the workers' salary to meet the rising cost of living. Everything is going up but your salary cannot go up. We will lose our competitiveness. The no jobs how? And your problem? What's your problem? Oh, money not enough. Then you should think of ways to make money enough. Buy cheaper stuff, tighten belt, eat lesser, spend lesser, stay at home, don't bathe and save water. Or learn from Redbean, eat instant noodles and 3 in 1, housebrand is better and cheaper.

Diversity is bad at national level

I notice this interesting quote in the ST this morning. 'The incongruity of posting an apology in Chinese to viewers of a wholly Tamil programme appears to have been lost on the service provider.' Narayana Narayana was reacting to Starhub's apology in English and a translation in Chinese for a breakdown of a Tamil programme in SunTV Channel 29. I agree that Tamil do not read Chinese and it is nonsensical to use a Chinese translation for this. Of course the stubborn would argue that some Chinese also watch Tamil programme. The point I am pushing is that in the future, any breakdown of programme in Channel 8 will be accompanied by apologies in Hokien,Cantonese, Hakka, Teochew etc etc. if we are not careful. And as we bring in more foreigners, they too will demand to be recognised. This is the problem that we must be careful not to for into. It would be better to have lesser differences and seek a common ground than to accentuate our differences and pander to ethnic and racial emotions and sympathies. It will lead to greater problems in the future. We must put an end to all the calls to cater for all the differences of ethnic groups. Staying on with 4 official languages is already too much of a problem. Anything more is like opening a can of worms. Just keep such interests within talking cock sessions at home or in private. The individuals can do what they want at their own time and expenses. The state shall not be a party for such digression.

Mas escape nothing crucial

Chua Lee Hoong's article this morning said that there were more crucial issues than the escape. So let's move on and stop bugging Kan Seng. She took to task all the abuses and indiscriminate and unwarranted calls in cyberspace for Kan Seng to resign. And this is how she justified her stand. The buck must stop somewhere, otherwise we will have no ministers left in no time. I must agree on this if the frequency of mistakes is going to grow. Or I can disagree as the ministers and all the supertalents will not allow mistakes like this to happen. 'But the Mas Selamat escape? What loss has there been, except that of face - mostly?' I never thought that people are seeing this from the angle of losing face. And no loss? Would the loss of a dangerous terrorist that wanted to bomb an SIA plane be something? According to Chua Lee Hoong, Mas is not a homicidal maniac, and would not be a danger to the Singapore public. OK I agree. Then he should not be in the detention centre in the first place. And there is no need to mount an island wide search for more than a month. How many manhours were involved, the cost of mounting the search and the collateral damage of inconveniencing people and businesses and the loss of businesses. The best part of her article is this para. 'The escape has been a big stain on the reputation of the MHA. But it has been a lesser stain on the reputation of Singapore. We hold ourselves as more infallible than the world holds us. If you talk to businessmen and investors, the escape has been no more than an interesting interlude, with no impact on their business decisions.' This I fully agree with her. It is so interesting and amusing. Now why is everyone getting so excited about this interesting interlude and went to Parliament to challenge Kan Seng, and so many red faces? I must call for an immediate stand down to all the searches and all the nonsense appearing in cyberspace. Should anyone blame the msm for making a mole hill out of this interesting and not crucial interlude?

An interesting discovery on the mysterious escape

One interesting point that I gather from yesterday's article by Teh Joo Lin and Chong Chee Kin is that they did not know which route he took to escape. There was no evidence in the scene to confirm anything. According to American crime scene expert Gary Rini, 'endless possibilities of forensic evidence could remain at a scene, including hair, fibres, fingerprints, DNA and footprints.' And he 'was puzzled by the lack of forensic evidence but said that the question was how soon the team had been called in.' So did he or did he not escaped? Or how did he escape? The CCTV, the silent sentinel could not say anything. The escape may be answered by the discovery of his baju kurung in the forest. So Mas Selamat first took out his pants, then his baju kurung. He must be running around naked. Could he be wearing two layers of clothing and the gurkhas or any of the officers could not notice this? Just try to put on two shirts and two pants and you will get an obvious answer immediately. Is this an exercise to test the gullibility of Singaporeans?

The fear of the uncertain future

'A Malaysian friend from the state of Selangor just told me that he had been pleasantly surprised at the way that the general elections had turned out. ”For years we were told that if the opposition came into power, there would be chaos and bloodshed, that they’re troublemakers,” he said. For fear of instability, he – and his family – had always voted for the governing alliance – Barisan Nasional (BN) – including in the most recent election. He had done so despite realising that BN was doing a lousy job, he added. “Fear of trouble made us shun the opposition. Now we know better.” The picture in the immediate aftermath has turned out surprisingly well. No one, of course, can predict the future, ....' The above are extracts from an article by Seah Chiang Nee in www.littlespeck.com. He was discussing the recent Malaysian GE and its aftermath. Singaporeans have also been told of a similar situation should the opposition wins and form a new govt. There will be trouble, investors will flee because of the uncertainties, instability will take over, Singapore women folks will become maids in other countries. And of course the unspoken, the opposition will be bad govt and will squander the countries savings away, ie our CPF savings. So the only right thing to do for kiasu and kiasi Singaporeans is to vote for the same party and govt to ensure continuity, stability and prosperity,...and no trouble.

Notable quote by Chua Mui Hoong

'Sometimes...the harder course is to face down the calls to resign, stay put - and win the war.' Chua Mui Hoong Chua Mui Hoong mentioned the above quote when comparing British Defence Secretaty Joh Nott who offered to resign during the Falkland War, actually recolonisation of the Falklands, with the call for Kan Seng to resign. All CEOs who are getting multi million dollar salary should frame this up and hang it in their offices just in case. It is a good piece of pragmatic advice.

Move over Mas Selamat

The most search name in cyberspace is now Wong Kan Seng. The name has knocked Mas Selamat to second place. And printing firms have been receiving orders to print photos of Wong Kan Seng onto T shirts and mugs for sale. We now have another cult personality that is bigger than mediacorp stars.