Temasek's FTX investment caused financial loss and reputational damage, internal review by 'independent team' to draw lessons for future: DPM Wong

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SINGAPORE — State investment firm Temasek Holdings has initiated an internal review by an 'independent team' which will 'study and improve its processes, and to draw lessons for the future', following its investment losses from failed cryptocurrency platform FTX.

Speaking in Parliament on Wednesday , Deputy Prime Minister Lawrence Wong also said that there was no need for additional governance for Temasek and GIC, a sovereign wealth fund, as existing standards and audits are sufficient and more stringent than for regular companies.

FTX, which had been one of the largest crypto exchanges in the world, filed for bankruptcy earlier this month. It had struggled to raise billions in funds to stave off a collapse after investors tried to pull out their funds in the crypto equivalent of a bank run.all of its US$275 million investment in the company, which had also counted other major institutional investors such as Sequoia Capital as its investor." as a result of the writedown.

However he noted that there are risks involved in investing in new technology and early-stage companies, both of which are areas in which Temasek and GIC invest. “Temasek recognises this and has issued a comprehensive statement to explain its due diligence process and the circumstances leading to its investment in FTX,” he added.

Both GIC and Temasek are subject to the President’s oversight of their budgets and key appointments. Questions raised by MPs in Parliament about the performance of entities are also addressed by MOF, he said. The fact that Temasek is a private entity should not mean that it does not need to be subject to audits by the AGO, he said.

“Not all statutory boards are subject to AGO’s audits. In fact, where there are issues that come up, be it in a town council, a statutory board, or it could be in Temasek. If there are reasons, we will have no hesitation to ask the Auditor-General to go in and do a full audit,” said Mr Wong.

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That’s all?… 🙄

There is only one meaningful lesson- they put the lost $$ back with their own $$

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