Norway’s sovereign wealth fund sacked entire team after record losses
September 1st, 2009 | 
Author: From our Correspondent
Norges Bank Investment Management (NBIM), which manages Europe’s largest sovereign wealth fund, named a new team of executives after a record 633 billion-krone loss last year wiped out gains from 12 years of investing Norway’s oil and gas revenue. (read article here)
Norway, one of the world’s largest petroleum exporters, has invested its oil wealth in a fund with a current market value of more than $350 billion. The fund has a portfolio of around 8,000 companies and offices in Oslo, London, New York and Shanghai.
While Norway’s Ministry of Finance owns the fund, its operational management is carried out by experienced financial managers in Norges Bank.
Though no blame has been levelled at the previous team, it is obvious that its members have stepped down to take responsibility for the record loss.
In contrast, there is no such manpower change in Temasek’s Board of Directors who oversaw the fund’s S$40 billion loss in its portfolio. CEO-designate Chip Goodyear left after 5 months under mysterious circumstances and the beleaguered Ho Ching is re-appointed to the post.
Temasek Holdings is technically owned by the Ministry of Finance. However, the government has indicated that it will not interfere in Temasek’s inner operations. A few members of its Board have little experience in the finance industry including Ho Ching and its Chairman S Dhanabalan.
Norway’s sovereign wealth fund has exhibited a high degree of accountability and transparency by revealing the full extent of its losses.
Its executives have also been held accountable for their misjudgement and mistakes and resign en masse as a result. Such a culture will be unthinkable in Singapore.
Despite some high-profile screw ups, Singapore’s leaders had never publicly admitted their mistakes or apologize for them. As the example of Temasek has shown, it is possible for mediocrity to be rewarded in a self-proclaimed “meritocracy” after all.
Related articles:
>> How Norway manages its sovereign wealth fund by Fang Zhi Yuan
>> Temasek’s spin doctors at Straits Times try to salvage battered image
>> Temasek outperforms? by Edmund Khor
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23 Responses to “Norway’s sovereign wealth fund sacked entire team after record losses”
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See, The Norwegians lost around 170 billion, our dear Singaporean only lost 58 billion (or more)….3 times lesser! That’s why no need to apologize! Also no need to regret! We dunno only wipe out how many years of surplus, that’s all. I mean, we don’t even know who are those financial managers working in TH anyways. If there was anyone managing the funds it’s definitely not HC! Just like WKS not his fault for MSK’s escape.
Uniquely Singapore!
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
It’s an honest mistake – let’s move on. Don’t rock the boat.
temasek also “sacked” HC but it was revealed later that it was just a wayang to placate singaporeans.
as for GIC, they are protected by “government secret” rule, so they didn’t even bother with a wayang
We are looking in the long term perspective.
This might explain why Chip Goodyear left: he wanted to sack the idiots who committed the blunders but was not allowed to because they are elites.
In the long term, after 30, 40, 50 years, when we are all dead, Temasek will turn in a nice profit.
Short term losses dun matter so long as Temasek managers get to keep their jobs & out of this world salaries.
I think we should all just forget about Temasek and GIC, these 2 SWF belongs to the famiLEE, not to Sinkaporeans.
You wont get to see anything in this lifetime, neither will your son or grand chindren get to see anything in theirs unless the famiLEE is no longer in control.
Lets forget about these SWF and concentrate on the core of the issue, the famiLEE.
Want more accountability, want more transparency? Then start voting for anything, anyone BUT the PaPies, even if its a donkey!
Business make and lose money.
You guys can’t influence me.
There isn’t such a thing as “pau chiak”.
This is life.
Marriages make or break as well.
Temasek is still strong, right?
When it makes money, you idiots didn’t clap or cheer.
Life is also make (live) or break (die).
So give and take lah.
We don’t have to go far. Singapore is paradise compared to any country in ASEAN. Given a chance the ASEANICIANS would want to migrate here.
Hope Temasek don’t lose any further.
to sam
how do you know if TH is always making money since there is always injection from MOF?
You don’t see people complaining when SIA makes money.
or lose money?
Why do you think people are complaining when TH loses money?
“See, The Norwegians lost around 170 billion, our dear Singaporean only lost 58 billion (or more)….3 times lesser!”
Haha, even those loss of Temasek Holding and GIC is a figure they want to see, and does not reflect actual loss. This is Singapore INC where the family will never tell you the actual truth as you can’t handle the brutal truth.
How else will a org that record such enormous loss and ready to jail any whistleblower and informer be honest and credible ?
To Sam on Sunday,
Sure business make and lose money – but others do the honourable thing like Norwegians. Here you get the gamut of excuses and opaque answers when citizens ask why.
I usually do not think it is respectful to put labels on those who differ from your views as `idiots’. yet `idiots’ are supposed to `give and take’.
Your admonishment to `idiotic’ ingrates -putting down other ASEAN countries saying Spore is a paradise compared to all of them – something not everyone will agree with – again the stale line that others will kill to live in this paradise. if we are `idiots’ then Spore is a fools’ paradise where we open our doors to all sorts of foreigners to displace and compete with us.
The topic is not whether Temasek is strong or not but how transparent it is and accountable for its massive billions losses. People want to know why other sovereign funds still made profits while we dug a big hole with losses in BOA, etc
So `you guys can’t influence me’ or other writers here as well.
how come all my posting are deleted?
@ Sam on Sun, 30th Aug 2009 12:00 am …greeting…
Your comment …”There isn’t such a thing as “pau chiak”.” is poignant here. Since it is so, why do TH and GIC insist on managing those money that Singapeans are the ultimate beneficial interest entitled to its use or investment choice?
Why not amend its charter and incorporate both as a legal publicly listed entities and shares in both distributed in specie to all Singaporeans WHO WOULD AT LEAST GIVE THEM
A) THE OPTION OF CONTINUIING TO MANAGE THOSE FUNDS FOR THEM
OR
B) OR CASH OUT BY WAY OF SHARE SALE JUST LIKE INVESTMENT IN ANY OTHER LISTED ENTITY AND TAKE THE PROCEEDS THEREON TO RUN AND/OR INVEST ACCORDING TO HIS PREFERRED RISK/RETURN PROFILE instead of forcibly entrusted to TH/GIC since it is, as you said “bo pau chiak”?
Fair play please!
There is a thing called “pau chiak” in Singapore.
Be a PAP member and you will definitely win.
Noted that the LOSS figure of US$60B in TH “By hc” is ONLY what IS KNOWN from Sources OUTSIDE OF SinkgaPOORe AND via the Internet too HAW!!! And so it isn’t representative of “ACTUAL” Losses in TH right???
And is the Norwegian loss IN US$ too of IN Norwegian Kroner as the latter is MUCH Smaller Than US$!!! I’ve not check and so am asking for clarity.
Also a case of Group-Accountability TOO??? So, WHAT”S LKY and PAP culture in COMPARE and In CONTRAST as well???
When Ah papa is ALL about MONEY and MORE MoNey And POWER, then what do you think hubby and that plain jane IS ALL About TOO!!!
ISN”T THIS SO OBVIOUS!!!
“Business make and lose money…”
To SAM:
- BUT the Temasek CEO will ALWAYS WIN, even when Temasek itself loses money.
”There isn’t such a thing as “pau chiak”
- Of course THERE IS such a thing! Just ask the Temasek CEO who, after losing billions of dollars, still stays on as CEO drawing high salary & “Chiak Ba Ba”!!
The comments u made are only applicable to the lesser mortals.
We are talking about the world’s highest paid ministers & their wives, who consider $500,000 “peanuts”!!
1. Ex-PM GCT’s wife = $600,000/- PEANUTS or shoul IT Be “PeeNUTS”!!!
2. “hoLY-cOw” the hc told foreign correspondence (ONLY) once that she’ll do it again upon being asked about her SINK-A-poorEANs bloody sweat AND labourious MONIES LOSSES she made in SHIN Corp.!!! – SNEAKY OR NOT as told NOT THE same to LOCAL MSM. Perhaps local MSM BNOT ALLOWED TO and got THAT “PART” BLANKED OUT!!!
3. Just like her Ah-papa-in-law who also ONLy told Foreign Talent ANG-MO correspondent on CNA BUT NOT to loacal one on another CNA progreamme when asked – “That you can’t even see the POOR In Singapore”!!! SNEAKE oR NOT???!!!
4. And what about hubby gave “Progress-Package” BEFORE 2006 GE yet lost !/3 votes to NewBies in AMK GRC!!! That “P-P” came from a S$13.5B account it seems WAS NOT accounted for in eithe The MOF or in MAS. A Mano Editor Chief got the sack for questioning that in TODAY Newspaper!!!
And YET a Guy “To Fairlayplease” in the blog about NEA’s brag here said that “victimisation in Singapore is “HAmbug”. I know he meant “hUmbug”!!! Whore betide you likeminded singaporeans who ‘tow-the-line’ of BLIND-FAITH. FOR – YOU NAD/OR children and theirs will one day come out and asked others “WHY THIS successful tiny tinny red-dot” HAS BECOME Characterless AND Cultureless. WELL – YOU FOLLOWED The Blind Leaders MOSt BLINDLY DIDN’t YOU???
So DON”T PRETEND And TELL BullSHIT Stollies to your children KAY??? IDIOTS AND FOOLS ARE JUST THAT – IDIOTS AND FOOLS in idiotic AND foolish PERSUITS – LEAD BY Idiots AND fools of course!!!
TR, is this story meant to inspire chink-dominated Singapore to fire those who are in charge with Temasek?
Get real, chinks.
This is chink-dominated Singapore where transparency, accountability, and fairness will NEVER rule.
Go back to China all of you, and leave Singapore to true democrats.
//Serene on Sat, 29th Aug 2009 10:49 am
It’s an honest mistake – let’s move on. Don’t rock the boat.//
They didn’t rock the boat and just moved on. Norway’s SWF team, I mean. Time for the Temasek team to set an example for GIC to follow.
//Sam on Sun, 30th Aug 2009 12:00 am
Business make and lose money.
You guys can’t influence me.
There isn’t such a thing as “pau chiak”.//
These people pay themselves such unholy amounts that
they are NOT ALLOWED to lose money. Losing money is only for lesser mortals earning less than immortal salaries.
If there is no pau chiak how come Hojinx pays herself
a humongous remuneration, loses money by the billions, gets to keep her job, and to top it all, wins the #5 title in the world?!?!?!?!
You can’t be influenced, but can you be convinced?