By Leong Sze Hian
MND disputes WP’s figures
I refer to the article “WP and MND still differ on town council rates” (Straits Times, May 16).
It states that while Ms Lim said FMSS’ rates are charged according to a tiered yearly increase, MND last night disputed the figures she gave.
FMSS’s three-year contract with AHTC is worth $16,752,314 in all, based on data the town council had submitted to the Housing Board, it said.
Dividing this amount by 36 months and the 57,899 residential and commercial units managed by AHTC, the managing agent rate per unit works out to $8.04 a month, said MND.
The ministry noted that at WP’s amended rate of $7.58 a month, the 3-year contract value – worked back through the same method – would only be $15,799,479.
“This is nearly $1 million less than the $16,752,314 declared to HDB. Where is the missing $1 million?” MND asked in its statement.”
Primary 6 student may have done better?
I hate to say this, but arguably, even a primary 6 student could have done the maths better.
Allow me to explain with an analogy:
Student W agrees to pay Tutor M $7.58 a month for tuition in this year, with a 5 per cent a year increase in the tuition fee for the next 2 years. So, how much will Student W have paid Tutor M for the 3 years?
If you take the WP’s figure of $7.58 in 2012 with say an increase of 5 per cent per annum for the next 2 years, you get a grand total for the three years of $16,605,433 (which is very close to the $16,752,314 WP submitted to the HDB).
2012: $7.58 x 57,899 units x 12 months = $5,266,493
2013: $7.96 (5% increase) x 57,899 x 12 = $5,530,512
2014: $8.36 (5% increase) x 57,899 x 12 = $5,808,428
Total for the 3 years = $16,605,433
The MND instead uses the $16,752,314 to divide by 36 months to derive its $8.04.
Maybe also fail English?
So, it either does not understand simple English or failed Primary 6 Math – because – “Both sides released yet another set of contrasting figures, this time homing in on the rate AHTC paid its managing a in FY 2012″ (the key words here being “in FY2012″), and ignoring the fact that “FMSS’ rates are charged according to a tiered yearly increase”.
In light of this, I would just share a joke (so don’t take it too seriously): If you fail Primary 6 Math – maybe it helps to explain why for every item you sell, you lose money!
And to borrow your words – “Where is the missing $1 million” (oops – I mean $1 billion) that you say you lose in a year?