Former NKF CEO T T Durai charged in court today

He gives grim smile for cameras
By Ng Hui Hui
April 19, 2006

T T Durai stepping out of a Kia Rio as he arrives at the Subordinate Courts this morning while photographers snap away. --MOHD ISHAK

HE walked into court, confident and ready to do battle less than a year ago.

This morning, he was back in court, this time with a dark cloud hanging over his head.

Former National Kidney Foundation (NKF) chief T T Durai had sued the Singapore Press Holdings (SPH) and its senior writer, Ms Susan Long, in July last year for alleged defamation.
This time round, he was the one facing charges brought against him by the Corrupt Practices Investigation Bureau (CPIB).

Criminal investigations into the management and finances of the old NKF were launched last August after Durai withdrew his suit against SPH amid a storm of controversy. (See report on facing page.)

This morning, Durai left his Fort Road rented bungalow for the Subordinate Courts to face the first of the charges emerging from the multi-agency probe.

Accompanied by two unidentified men, he appeared calm and composed.

When he arrived at the courts at 8.45am, he found a group of more than 20 news photographers and reporters waiting.

Durai was charged with two counts of 'knowingly' using an invoice that contained a false statement to deceive NKF as CEO of the charity.

The first charge was for the amount of $5,000, the second for $20,000.

If found guilty, he can be fined a maximum of $100,000 or be jailed up to 5 years, or both.

His case will be up for mention again on 25 Apr. Bail was set at $50,000.

Durai was arrested yesterday and it is understood that his wife posted police bail for his release.

He was called to the CPIB headquarters at 9am yesterday to have the charges read to him.

Former NKF board member Matilda Chua was also charged.

As director of Global Net Relations, Chua was charged with two counts of falsifying the company's account with intent to defraud it of $150,000 on two occasions.

If found guilty, she faces up to seven years' jail and/or a fine. Her case is also up for mention again on 25 Apr. Bail was set at $20,000.

Two key former NKF board members are also expected to be hauled to court to face charges brought against them by the Commercial Affairs Department today.

Former NKF chairman Richard Yong, 65, will be charged in court for breaching his director's duties under the Companies Act.

He is accused of failing to use reasonable diligence as a director, by causing NKF to pay Forte Systems excessively when the company made a claim for additional work done in a software project.

He allegedly did this on 2 Dec 2004.

Loo Say San, 58, NKF's former treasurer, has also been accused of breaching his director's duties in the same way as Yong.

If convicted, they face a fine of up to $5,000 or a maximum of one year in jail.

They are both represented by Mr Chia Boon Teck from KhattarWong.

Auditors KPMG had found that NKF paid $3.3 million to Forte despite no work or substandard quality.

Forte is owned by Indian national Pharis Aboobacker, a friend of Durai's.

Apart from the CPIB and CAD, the Manpower Ministry (MOM) has also taken an interest in the findings of the six-month long investigations into the old NKF's affairs.

The ministry is said to be in discussion with the Attorney-General's Chambers about charges against Durai and the old NKF for illegal employment of foreigners, reported The Straits Times.

It is not known if formal charges will be filed. The alleged hiring offence had surfaced during KPMG's extensive audit.

NKF chairman Gerard Ee told The New Paper this morning that he did not know Durai was due to be charged until he was contacted by reporters last night.

It was earlier reported that the NKF had hired law firm Allen & Gledhill to investigate if the new board has grounds for action against the former directors.

Asked if he intended to continue with this course of action, Mr Ee said: 'We have appointed legal counsel, and any views on this will have to come from them.'

He declined to comment on Durai's court case.- Additional reporting by Karen Wong and Tan Hsien Chong

HOW THE NKF saga unfolded

19 Apr 2004: The Straits Times publishes journalist Susan Long's report, titled The NKF: Controversially ahead of its time?

22 Apr: NKF sues Singapore Press Holdings (SPH) and Ms Long for defamation.

11 Jul 2005: The trial begins. Durai's $600,000 annual salary is revealed as well as other facts, like his first-class air travel.

12 Jul: Durai drops the suit against SPH.

14 Jul: Durai and the NKF board resign.

16 Jul: Mr Gerard Ee, president of the National Council of Social Service, is announced as NKF's interim chairman and CEO. He takes over on 18 Jul.

20 Jul: New interim NKF board unveiled.

25 Jul: Senior consultant dermatologist Professor Goh Chee Leok takes over as interim CEO.

18 Aug: Interim NKF board calls in the police to investigate ''certain matters of grave concern'' involving how the old NKF was run.

19 Dec: KPMG releases 322-page report on the old NKF.

21 Dec: Health Minister Khaw Boon Wan says that the Ministry of Manpower (MOM) has completed its investigations and he ''will be pressing for charges to be made''.

25 Jan 2006: Durai and former chairman Richard Yong are seen entering the Corrupt Practices Investigation Bureau (CPIB).

11 Apr: The Business Times reports that the NKF has hired law firm Allen & Gledhill to look into possible legal recourse against the former board of directors.

Yesterday: Durai is arrested and called to CPIB to have charges read to him. Well-known medical administrator Mrs Eunice Tay takes over as NKF's new CEO.

Today: Durai and former board member Matilda Chua are charged in court. Yong and former NKF treasurer Loo Say San are also expected to be charged.