New NKF board files civil suit against Durai, former board
Time is GMT + 8 hours
Posted: 24 April 2006 2051 hrs
By Rita Zahara, Channel NewsAsia
SINGAPORE : Four former members of the old National Kidney Foundation board, already embroiled in a high-profile criminal law suit, are now facing a civil suit.
The new NKF board is suing its former CEO TT Durai, former chairman Richard Yong, former treasurer Loo Say San and former board member Matilda Chua over a breach of fiduciary duties.
Pharis Aboobacker, who is a friend of Durai and a business associate of Chua, is also being sued.
After checking with its lawyers as well as a Queen's Counsel, the new board said they were advised that they had good grounds to proceed with a civil suit.
In a statement, NKF's Chairman Gerard Ee said the aim of the suit was to recover the damages, including the salaries and bonuses paid to the former directors.
"The board's aim is to recover, for NKF, monies that were improperly paid out or used by the former NKF board and CEO. These are monies and contributions that donors entrusted the NKF with, and we hope to reclaim as much of it as possible," the statement said.
It is also trying to recover amounts paid to third parties for contracts which the former management had caused NKF to enter into. This includes claims linked to Aboobacker, who owns Forte Systems and Protonweb Solutions. He is a director and shareholder in various companies which had business dealings with NKF. Under the Protonweb deal, worth S$4.5 million, the old NKF made payments even though the call centre's services were delayed and there was a shortfall in the number of hours delivered. Meanwhile, Forte was said to have failed to meet contract specifications; nonetheless it received payments from the old NKF. The new NKF is also seeking compensation for the loss of goodwill and damage to its reputation arising from the conduct of the former board and CEO. Unlike criminal cases, no charges were read to the defendants.
Instead, a court document was read to the former directors outlining what they were liable for. The civil suit comes a week after the four former NKF directors were charged with offences including intending to deceive the NKF and falsifying accounts. NKF's lawyers filed the suit at the High Court, where the minimum sum sought is S$250,000. Cases for smaller sums are heard in principle at the Subordinate Courts. - CNA /ct
Posted: 24 April 2006 2051 hrs
By Rita Zahara, Channel NewsAsia
SINGAPORE : Four former members of the old National Kidney Foundation board, already embroiled in a high-profile criminal law suit, are now facing a civil suit.
The new NKF board is suing its former CEO TT Durai, former chairman Richard Yong, former treasurer Loo Say San and former board member Matilda Chua over a breach of fiduciary duties.
Pharis Aboobacker, who is a friend of Durai and a business associate of Chua, is also being sued.
After checking with its lawyers as well as a Queen's Counsel, the new board said they were advised that they had good grounds to proceed with a civil suit.
In a statement, NKF's Chairman Gerard Ee said the aim of the suit was to recover the damages, including the salaries and bonuses paid to the former directors.
"The board's aim is to recover, for NKF, monies that were improperly paid out or used by the former NKF board and CEO. These are monies and contributions that donors entrusted the NKF with, and we hope to reclaim as much of it as possible," the statement said.
It is also trying to recover amounts paid to third parties for contracts which the former management had caused NKF to enter into. This includes claims linked to Aboobacker, who owns Forte Systems and Protonweb Solutions. He is a director and shareholder in various companies which had business dealings with NKF. Under the Protonweb deal, worth S$4.5 million, the old NKF made payments even though the call centre's services were delayed and there was a shortfall in the number of hours delivered. Meanwhile, Forte was said to have failed to meet contract specifications; nonetheless it received payments from the old NKF. The new NKF is also seeking compensation for the loss of goodwill and damage to its reputation arising from the conduct of the former board and CEO. Unlike criminal cases, no charges were read to the defendants.
Instead, a court document was read to the former directors outlining what they were liable for. The civil suit comes a week after the four former NKF directors were charged with offences including intending to deceive the NKF and falsifying accounts. NKF's lawyers filed the suit at the High Court, where the minimum sum sought is S$250,000. Cases for smaller sums are heard in principle at the Subordinate Courts. - CNA /ct
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