WE refer to the letter, "What safeguards are there for CPF savings?" (The New Paper, 1 Mar) by Mr Chua Choon Huat, who said that the "discrepancy" in government estimates of the FY2007 Budget raised concerns about whether Central Provident Fund (CPF) money could be manipulated or misappropriated.

There is no basis for such alarm. The Government's revised estimates for the Budget have nothing to with accounting errors or omissions.

The revision reflected the exceptional GDP growth and boom in the property market in 2007, both of which exceeded forecasts that were made a year ago.

The result was stronger than expected government revenues, especially from income taxes and stamp duties.

There is, hence, no basis to suggest that CPF savings are insufficiently protected.

CPF savings are invested in Special Singapore Government Securities, hence the interest rates and principal amounts placed in all CPF accounts are guaranteed by the Singapore Government.

CPF savings can only be withdrawn by members or, on their demise, for their beneficiaries.

To ensure that the trustee duties of the CPF Board are properly carried out, its financial statements are reported to its Board of Directors quarterly, and audited by the Auditor-General's Office and presented to Parliament yearly.

Chin Sau Ho, Director,
Corporate communications & Services,
Ministry of Finance
Jean Tan, Director
Corporate communications
Ministry of Manpower