I had no part in failed contracts, says T T Durai
Tor Ching Li
chingli@newstoday.com.sg
The former chief executive of the National Kidney Foundation (NKF), Mr T T Durai, has denied allegations of mismanagement during his 13-year stewardship of the charity, pointing fingers at his board members and staff instead.
Mr Durai, who is one of five parties being sued by the new NKF for an estimated $12 million to recover salaries, benefits and failed IT-related contracts, filed his defence late on Wednesday.
Three ex-directors — former chairman Richard Yong, treasurer Loo Say San and Ms Matilda Chua — and Mr Durai's friend and business associate, Mr Pharis Aboo-backer, are also being sued by the NKF for breach of duty.
In the 40-page document — in which Mr Durai recounted his contributions to the NKF since he started volunteering in 1970 — it was stated there was "no impropriety" in the executive committee's decisions on salaries and benefits, and said he had deferred judgment to his board members on the IT contractual matters.
In their defence filed earlier, the three former board directors sang a different tune.
They denied any wrongdoing in their dealings at the NKF, insisting that it was Mr Durai who should be held accountable for all the day-to-day operations.
Mr Durai and the entire NKF board resigned last July after an unsuccessful defamation suit against a local newspaper threw up details of Mr Durai's salary, bonuses and benefits.
Meanwhile, Mr Aboobacker — whose IT companies Forte Systems and Protonweb Solutions had entered into contracts with the NKF worth millions and were paid despite not delivering up to specifications — was located in Chennai last week and issued a writ of summons.
If he does not turn up in Singapore, a judgement can be made against him by default.
Contrary to a 332-page KPMG audit report in December — that describes the NKF as an organisation which was run "on the ideas, whims and caprice of the chief executive", who was surrounded by a "coterie of long-serving assistants" — Mr Durai's defence pleads ignorance and non-participation in issues such as the failed IT contracts.
For example, the defence states that he "took no part in the NKF's evaluation of whether Forte was a suitable party to implement the IT system or in the decision-making process to award the contract to Forte".
In contrast to Mr Yong and Mr Loo's defence — which states that Mr Durai had recommended that the NKF outsource the setting up of an Indian call centre to Mr Aboobacker — Mr Durai claims that the decision was made by the executive committee based on their own judgement.
The NKF lawsuit contends that even though Mr Durai was not formally a director, under the Companies Act, he is liable to the charity as if he were a director as he had "engineered a structure within the NKF which subverted the proper checks and balances which should have acted to restrain excesses and misdeeds".
In an 85-page statement of claim filed in the High Court in April by NKF lawyers Allen & Gledhill, the organisation listed 15 separate "breaches of duty" committed by Mr Durai.
These include misleading the public, overstating costs, taking "improper" levels of compensation and permitting others to obtain improper payments.
But Mr Durai's defence sets out that he was "never a director of the NKF and he did not breach his duties as the CEO of the NKF".
Mr Durai is being represented by the law firm Tan, Rajah and Cheah.
New NKF's $12m claim
If the lawsuit is successful, Mr Durai, the three directors and Mr Pharis Aboobacker will be liable to pay:
• $2.1 million in salaries, bonuses and other benefits 'improperly' paid to Mr Durai
• $556,464 in legal costs incurred when Mr Durai and the old NKF brought a defamation suit against the Singapore Press Holdings
• $4.08 million for loss of donations in the form of Lifedrops income
• $5.28 million paid to three companies linked to Mr Aboobacker
chingli@newstoday.com.sg
The former chief executive of the National Kidney Foundation (NKF), Mr T T Durai, has denied allegations of mismanagement during his 13-year stewardship of the charity, pointing fingers at his board members and staff instead.
Mr Durai, who is one of five parties being sued by the new NKF for an estimated $12 million to recover salaries, benefits and failed IT-related contracts, filed his defence late on Wednesday.
Three ex-directors — former chairman Richard Yong, treasurer Loo Say San and Ms Matilda Chua — and Mr Durai's friend and business associate, Mr Pharis Aboo-backer, are also being sued by the NKF for breach of duty.
In the 40-page document — in which Mr Durai recounted his contributions to the NKF since he started volunteering in 1970 — it was stated there was "no impropriety" in the executive committee's decisions on salaries and benefits, and said he had deferred judgment to his board members on the IT contractual matters.
In their defence filed earlier, the three former board directors sang a different tune.
They denied any wrongdoing in their dealings at the NKF, insisting that it was Mr Durai who should be held accountable for all the day-to-day operations.
Mr Durai and the entire NKF board resigned last July after an unsuccessful defamation suit against a local newspaper threw up details of Mr Durai's salary, bonuses and benefits.
Meanwhile, Mr Aboobacker — whose IT companies Forte Systems and Protonweb Solutions had entered into contracts with the NKF worth millions and were paid despite not delivering up to specifications — was located in Chennai last week and issued a writ of summons.
If he does not turn up in Singapore, a judgement can be made against him by default.
Contrary to a 332-page KPMG audit report in December — that describes the NKF as an organisation which was run "on the ideas, whims and caprice of the chief executive", who was surrounded by a "coterie of long-serving assistants" — Mr Durai's defence pleads ignorance and non-participation in issues such as the failed IT contracts.
For example, the defence states that he "took no part in the NKF's evaluation of whether Forte was a suitable party to implement the IT system or in the decision-making process to award the contract to Forte".
In contrast to Mr Yong and Mr Loo's defence — which states that Mr Durai had recommended that the NKF outsource the setting up of an Indian call centre to Mr Aboobacker — Mr Durai claims that the decision was made by the executive committee based on their own judgement.
The NKF lawsuit contends that even though Mr Durai was not formally a director, under the Companies Act, he is liable to the charity as if he were a director as he had "engineered a structure within the NKF which subverted the proper checks and balances which should have acted to restrain excesses and misdeeds".
In an 85-page statement of claim filed in the High Court in April by NKF lawyers Allen & Gledhill, the organisation listed 15 separate "breaches of duty" committed by Mr Durai.
These include misleading the public, overstating costs, taking "improper" levels of compensation and permitting others to obtain improper payments.
But Mr Durai's defence sets out that he was "never a director of the NKF and he did not breach his duties as the CEO of the NKF".
Mr Durai is being represented by the law firm Tan, Rajah and Cheah.
New NKF's $12m claim
If the lawsuit is successful, Mr Durai, the three directors and Mr Pharis Aboobacker will be liable to pay:
• $2.1 million in salaries, bonuses and other benefits 'improperly' paid to Mr Durai
• $556,464 in legal costs incurred when Mr Durai and the old NKF brought a defamation suit against the Singapore Press Holdings
• $4.08 million for loss of donations in the form of Lifedrops income
• $5.28 million paid to three companies linked to Mr Aboobacker
posted by khimsiu at 12:24 PM
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