It is as clear as day that PSP Leong Mun Wai was fabricating arguments and pulling wool over people's eyes as he made bogus allegations against the government.
Take a look and understand.
1. 𝐈𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐢𝐬 𝐧𝐨𝐭 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐞𝐝, 𝐢𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐰𝐞𝐫𝐞 𝐭𝐨 𝐫𝐮𝐧 𝐮𝐧𝐭𝐢𝐥 𝐢𝐭 𝐞𝐧𝐝𝐬 𝐢𝐧 𝟐𝟎𝟑𝟓, under the terms of agreement, the government would pay SHPL (SportsHub Pte Ltd) a sum of $193.7 million a year.
This works out to approximately $2.32 billion from now until 2035.
That is to say, the Government's financial obligation to the PPP is $2.32 billion if there is no termination.
2. 𝐈𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐢𝐬 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐞𝐝 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐭𝐚𝐤𝐞𝐬 𝐨𝐯𝐞𝐫 𝐒𝐩𝐨𝐫𝐭𝐬𝐇𝐮𝐛, the Government would pay the PPP $1.5 billion.
Most of it is made up of the capital expenditure (around $1.2b) which the Government would have incurred if they had built the project themselves.
The Government did not spend a single cent to build SportsHub. They can't possibly take back a billion-dollar project for which they spent nothing to build and just wave goodbye to their private partners, can they? That would be daylight robbery.
Add the estimated operating costs of $800 millions for the Government to operate the project, the total costs come to $2.3 billion.
This is comparable to the amount the Government would incur if the PPP is not terminated.
"In other words, the entire transaction is 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐥𝐲 𝐧𝐞𝐮𝐭𝐫𝐚𝐥, because we are not paying SHPL more than what we would otherwise committed to under the PPP model." - Indranee Rajah
The entire transaction is financially neutral even after factoring in operating costs for the government to take over SportsHub.
Leong Mun Wai has chosen to ignore detailed explanations, and instead makes a completely baseless and false claim that the termination sum can be lower.
Leaders, whether elected or nominated, must speak with their conscience and not lie to voters without compunction. Voters have a responsibility to see that leaders uphold the sacred office of Parliament and not allow Parliamentary debates to turn into a comedy or entertainment show.
Take a look and understand.
1. 𝐈𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐢𝐬 𝐧𝐨𝐭 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐞𝐝, 𝐢𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐰𝐞𝐫𝐞 𝐭𝐨 𝐫𝐮𝐧 𝐮𝐧𝐭𝐢𝐥 𝐢𝐭 𝐞𝐧𝐝𝐬 𝐢𝐧 𝟐𝟎𝟑𝟓, under the terms of agreement, the government would pay SHPL (SportsHub Pte Ltd) a sum of $193.7 million a year.
This works out to approximately $2.32 billion from now until 2035.
That is to say, the Government's financial obligation to the PPP is $2.32 billion if there is no termination.
2. 𝐈𝐟 𝐭𝐡𝐞 𝐏𝐏𝐏 𝐢𝐬 𝐭𝐞𝐫𝐦𝐢𝐧𝐚𝐭𝐞𝐝 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐭𝐚𝐤𝐞𝐬 𝐨𝐯𝐞𝐫 𝐒𝐩𝐨𝐫𝐭𝐬𝐇𝐮𝐛, the Government would pay the PPP $1.5 billion.
Most of it is made up of the capital expenditure (around $1.2b) which the Government would have incurred if they had built the project themselves.
The Government did not spend a single cent to build SportsHub. They can't possibly take back a billion-dollar project for which they spent nothing to build and just wave goodbye to their private partners, can they? That would be daylight robbery.
Add the estimated operating costs of $800 millions for the Government to operate the project, the total costs come to $2.3 billion.
This is comparable to the amount the Government would incur if the PPP is not terminated.
"In other words, the entire transaction is 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥𝐥𝐲 𝐧𝐞𝐮𝐭𝐫𝐚𝐥, because we are not paying SHPL more than what we would otherwise committed to under the PPP model." - Indranee Rajah
The entire transaction is financially neutral even after factoring in operating costs for the government to take over SportsHub.
Leong Mun Wai has chosen to ignore detailed explanations, and instead makes a completely baseless and false claim that the termination sum can be lower.
Leaders, whether elected or nominated, must speak with their conscience and not lie to voters without compunction. Voters have a responsibility to see that leaders uphold the sacred office of Parliament and not allow Parliamentary debates to turn into a comedy or entertainment show.
PSP Leong Mun Wai sought to dent the Government’s reputation with the allegation of profligate spending.
He fabricated the argument that the Government was paying SPHL for brand name when no such payment exists.
Profligate spending? Hello, this government is a triple-A credit rated government and there are very few countries in the world that are triple-A credit rated. You don't get this rating with profligate spending.
It is ironic that LMW was the one who kept calling for more spending from our reserves.
As explained so clearly, the amount of money the Government will incur if the PPP is allowed to run to its end, and the amount of money the Government will incur taking over is about the same.
Singaporeans should really learn to be discerning and not blindly applaud people who are lying to you.
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