Thursday, January 11, 2007

Not over yet for TT Durai

By Loh Chee Kong, TODAY Posted: 11 January 2007 0942 hrs

He ran the National Kidney Foundation (NKF) like a fiefdom, but for the second time in successive court appearances, Mr T T Durai could not take the heat.

This time, he did not even bother to take the witness stand or subject himself to another grilling. A strident opening statement by the NKF's Senior Counsel K Shanmugam that stretched across two days — Mr Durai could bear to sit through only one-and-a-half days of it — was all the pain that the former charity chief could endure.

At 5.30pm on Wednesday, after another Durai no-show, endless adjournments and wild rumours, Mr Shanmugam told the court what some of the lawyers involved in the case had known as early as 8.30am: Mr Durai had caved in, conceding the NKF's civil suit against him.

Mr Shanmugam could not resist taking a final dig at Mr Durai. "Sir, when I asked for Your Honour's indulgence to do a longer-than-usual opening, I was promising in return a shortening of the trial. Sir, I think I had been more prescient than I expected.

"We are happy to tell Your Honour, as we indicated in chambers, that the first defendant, Mr T T Durai, is consenting to judgment and has agreed to pay costs on the statement of claim as amended."

To this, Mr Durai's lawyer, Senior Counsel Chelva Rajah, merely stood up and said: "Agreed."

In other words, only the damages that Mr Durai must pay needs to be established. The NKF had demanded some $12 million from Mr Durai and his associates — including former NKF functionaries such as Mr Richard Yong, Mr Loo Say San and Ms Matilda Chua — for the losses they caused the organisation.

Though he did not show up in court, Mr Durai picked up the phone on Wednesday evening when TODAY called him. After this reporter identified himself, Mr Durai said in a calm, crisp voice: "Hold on, please." He then passed the phone to his son, who said: "He doesn't want to comment. I really don't think he wants to answer anything."

But if the former NKF chief had hoped to slip out of the public glare and away from courtrooms, he could be in for a shock. Mr Yong, Mr Loo and Ms Chua appeared determined to fight on.

Lawyer Chia Boon Teck, who was acting for Mr Yong and Mr Loo, told reporters: "If he intended to remove himself from the spotlight, he may find himself back at square one. There's nothing to stop us from calling him back to court as a witness."

It is not a position that Mr Durai will enjoy. In July 2005, when he sued Singapore Press Holdings over a news report that alleged that the NKF had gold taps in its bathrooms, Mr Durai took the stand in an effort to claim substantial damages. Instead, he was put through the wringer by SPH lawyer Davinder Singh, who asked him about his large salary, fat bonuses, first-class travel and expensive hotel stays, eventually forcing Durai to withdraw the suit and step down from the NKF.

Still, his latest retreat took most people by surprise and raised the question: Why?

"I had not expected it," admitted Mr Shanmugam. "I've just done my opening statement. I've not called in my witnesses nor led any evidence."

Still, he felt that the case he had put forward in his opening statement must have been "compelling" enough for Durai to concede.

Over two days, he spoke of how Durai spent more than $1 million over seven years on hotel stays alone; he talked of the slush fund that was set up to get around restrictions on fundraising; he revealed how donors' money was wasted on botched IT deals agreed to between Durai and his friends. Mr Shanmugam also stressed on how the former NKF chief rewarded his favourites, like ex-director Matilda Chua, extravagantly with 12-month bonuses. He indicated that he had retrieved evidence that Durai had tried to destroy on his computer.

One observer felt that if all this were brought into the open, through witnesses and cross-examination, it would probably have embarrassed Durai further and hurt his family.

Said a lawyer following the case: "One reason why people capitulate is that they may suffer more damage to their reputations. There is also the issue of cost. The longer a case drags, the more costs you may have to end up paying if you lose."

Mr Chia, meanwhile, said he was "surprised and disappointed" with Durai's decision. It could weaken the position of the remaining defendants who are accused of colluding with Durai.

Said Mr Chia: "We just have to fill the void left by Durai. Some issues that only Durai could have answered, we must now think of who else we can get to answer them." Failing that, Durai could be brought back to the stand.

Even if he isn't, he still faces a criminal trial, along with Yong, Loo and Chua, for their role in the NKF saga.

Meanwhile, the civil suit will resume on Friday, even without its central figure. The judge has given the other defendants a day off to reorganise their defences. — with additional reporting by Ansley Ng - TODAY/st

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