Why Durai was paid that package

By Jasmine Yin, TODAY Posted: 08 August 2006 1110 hrs

SINGAPORE: A former board member of the National Kidney Foundation (NKF) has explained the rationale behind the hefty pay package given to Mr T T Durai, the controversial chief executive who stepped down last year.

Several factors were considered before the board approved the package, said former NKF remuneration committee member Associate Professor Lawrence Chia, in court papers obtained by this newspaper.

These included the level of donations the NKF was able to secure, as well as Mr Durai's "extensive and concerted efforts" in educating the public on kidney donations - especially from the local Muslim community - and in setting up an "outstanding nationwide dialysis programme" that won the charity local and international recognition.

Prof Chia has been named - along with three other former directors - a third party in a lawsuit filed by the NKF against its former chairman Richard Yong and former treasurer Loo Say San. This means that, should Mr Yong and Mr Loo be found guilty of breaching their directors' duties, Prof Chia will also be held responsible.

The other three third parties are accountant Alwyn Lim, lawyer Kweh Soon Han and businessman Chow Kok Fong, all of whom filed their defence last week.

In his defence papers, Mr Lim, who headed the finance committee and was part of the audit committee, addressed the issue of Mr Durai flying first-class and buying air tickets overseas.

He said even though the charity only paid for business class travel, senior executives "could upgrade to first class at their own cost or by utilising or redeeming" their frequent-flyer points. He had referred a Colombo travel agent to Mr Durai only after the latter - citing "substantially cheaper" airline tickets purchased in Chennai, Colombo and Bangkok - asked him to help the NKF get better rates, said Mr Lim, who has business dealings in Colombo.

The four former directors also individually sought to counter allegations that they had slept on the job and given Mr Durai a free hand to control the board.

While the former chief executive led proceedings at meetings of the executive committee, the exco "retained overall supervision" by receiving regular briefings and reports from him and other salaried staff, said Mr Kweh.

Mr Lim also sought to shift some of the blame squarely back on the former NKF management over allegations made against him.

To the claim that he be held liable for disclosing misleading figures to the public - such as the fact that its fund-raising costs did not exceed 30 per cent - Mr Lim countered that he had made such statements "based on information provided by the NKF, which in turn was based on data and statistics complied by the NKF's accounts department, the NKF's audited financial statements, and the audited accounts in respect of each fund-raising event".

Mr Lim was also blamed for a botched $3.3-million deal between the charity and Forte Systems, owned by Mr Durai's friend, Mr Pharis Aboobacker.

Together with Mr Yong, Mr Lim sat on a committee that was to assess and acquire a new software system for the charity in 2001. Mr Lim said he and Mr Yong relied on the technical expertise of the third committee member, Mr Jayaraman Krishnan, the charity's head of department of technology and systems.

Forte's quotation was accepted in the end because it was the second lowest - at $3.1 million - and the company was prepared to allow the charity to "customise or modify" the software.

Lawyer Chia Boon Teck, who acts for Mr Yong and Mr Loo, said a Queen's Counsel has been engaged to assess the merits of the NKF's claims, as well as his clients' defences and action against the four third parties. - TODAY/ra