Former NKF directors want to tell their side of the story

Time is GMT + 8 hours
Posted: 25 April 2006 1713 hrs
By Rita Zahara, Channel NewsAsia

SINGAPORE : Former National Kidney Foundation chief executive TT Durai and two of the board's former directors say they look forward to having their side of the story heard in court.

Besides criminal charges, they now face civil suits filed against them by the new NKF board.

Durai told Channel NewsAsia he has also appointed two separate lawyers to act for him in the criminal and civil cases.

Sant Singh of Sant Singh Partnership will act for him in the criminal suit, while Senior Counsel Chelva Rajah from Tan Rajah & Cheah will be acting for him in the civil suit at the High Court.

Also named in the civil suit are NKF former director Matilda Chua and Pharis Aboobacker, a director and shareholder in various companies which had business dealings with NKF.

Chua's lawyer, Cheah Kok Lim, declined comment.

But former NKF chairman Richard Yong and former treasurer Loo Say San were somewhat relieved, their lawyer Chia Boon Teck said.

Said Mr Chia, "Our preliminary response to the suit -- there are two sides to every coin. My clients have been wanting but have not had the appropriate occasion to share their side of the story with everyone. With this suit they are somewhat relieved that they will eventually get an opportunity to share their side of the story with everyone at the appropriate time and place." - CNA /ct

Former NKF board members, CEO back in court over criminal charges

Time is GMT + 8 hours
Posted: 25 April 2006 1707 hrs
By Rita Zahara, Channel NewsAsia

SINGAPORE : The former chief executive of the National Kidney Foundation, TT Durai, and some former board members were back in court on Tuesday.

Fifty-seven-year old Durai was among five people appearing at the Subordinate Courts for a pre-trial conference relating to criminal charges brought against them.

They were charged with deceiving the NKF and falsifying accounts, after eight months of investigations by the Corrupt Practices Investigation Bureau and the Commercial Affairs Department.

Also in court were Matilda Chua, former NKF chairman Richard Yong, and former treasurer Loo Say San.

The former assistant manager of the NKF purchasing department, Ragini Vijayalingam, who was unrepresented last time, has now appointed a lawyer.

While in chambers, the lawyers for Durai, Yong, Loo and Chua asked the prosecution for the relevant documents held by the authorities pertaining to the charges, before proceeding with the case.

But Ragini's lawyer, Harvindarjit Singh Bath of Surian & Partners, will be making representations.

Channel NewsAsia understands this means her lawyer is asking the prosecution to withdraw all 11 charges against her.

Durai and Chua face two charges each, while Yong and Loo face one count each of failing in their duties as directors. Their cases will be mentioned again on May 22. - CNA /ct

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

Prosecution if NKF makes another false employment declaration: MOM

Time is GMT + 8 hours
Posted: 21 April 2006 2350 hrs By Valarie Tan, Channel NewsAsia

SINGAPORE : The Manpower Ministry (MOM) has warned the National Kidney Foundation (NKF) that it will take action against it if the organisation makes another false declaration to the Controller of Work Permits.

Previous investigations by the MOM showed that NKF claimed to be the direct employer of five foreign workers who were employed by other companies.

The ministry has asked NKF to review its internal processes to prevent a repeat of a similar incident.

The NKF Board assures the MOM that it had put in place control procedures to do so. MOM's stern warning to NKF follows the Attorney-General's Chamber's decision not to prosecute the NKF. - CNA /ls

MOM will not press charges against NKF

Friday, April 21, 2006
Ansley Ng
ansley@newstoday.com.sg

THE National Kidney Foundation (NKF) won't be charged for illegally hiring foreign nationals under the charge of former chief executive T T Durai.

Yesterday, the Ministry of Manpower (MOM) said though there is enough evidence to file charges against the NKF for "making false declarations", it will issue the charity a "stern warning" instead. Explaining the decision, the MOM said: "The organisation is now reconstituted and the cost of answering the charges and paying the fines will have to be borne out of donor funds."

So the Attorney-General's Chambers decided not to press criminal charges against specific persons or key officers within the organisation. The MOM did not name those they thought were responsible.

Anyone convicted of violating the Employment of Foreign Workers Act could face a maximum jail term of up to six months or a fine of up to $5,000, or both. The case is traced back to 2002 and 2004, when the old NKF applied for employment passes for workers in an IT firm to install new software in the NKF. Some of the applications were rejected.

For those rejected, the charity re-applied for them to be issued with training visit passes instead. Once approved, they worked in the charity under the guise of being interns or trainees. These findings were documented in a report by KPMG.

This development came days after Durai and former senior NKF officials — Matilda Chua, Richard Yong and Loo Say San — were hauled to court to face criminal charges.

NKF won't be prosecuted under Foreign Workers Act

Time is GMT + 8 hours
Posted: 20 April 2006 1805 hrs

SINGAPORE : The Attorney-General has decided against prosecuting the National Kidney Foundation for wrongdoings under the Employment of Foreign Workers Act and the Immigration Act.

Instead it has advised the Manpower Ministry to issue a stern warning to the charity organisation. In a statement, MOM says its investigations show there is sufficient evidence to charge the NKF for making false declarations when applying for work permits, but not enough to press criminal charges against specific persons or key officers within the organisation.

However, since the NKF has been reconstituted and the cost of answering the charges and paying the fines will have to be borne out of donor funds, the decision was made not to prosecute it.

Under the Employment of Foreign Workers Act, it is an offence to make a false declaration when applying for a work permit.

Those convicted can be fined up to S$5,000 or jailed for up to six months, or both. - CNA /ct

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.

The hidden player in NKF

NKF manager who 'ran the purchasing show' runs from the media
Wednesday • April 19, 2006
Ansley Ng
ansley@newstoday.com.sg

SHE was not a key official in the National Kidney Foundation (NKF).

So when Ragini d/o Vijayalingam stood up in Courtroom 26 to answer to charges under the Prevention of Corruption Act, members of the public and the media were curious about this hitherto unfamiliar player.

Yesterday, Ragini, an assistant manager in NKF's purchasing department, was charged on 11 counts of accepting bribes from Peng Che Chun, a general manager and director of Hygeian Medical Supplies, which equips the NKF with items such as sterile gauze swabs and sodium bicarbonate powder.

In exchange for nearly $10,000 in cash, Ragini, 43, would help Peng secure contracts to supply the charity with medical supplies, court papers showed.

She also received free seafood meals, perfume and massage sessions worth about $470 to help Peng secure future deals with the NKF.

According to the Corrupt Practices Investigation Bureau, her husband had played the middleman. It was not clear if her husband or Peng has been charged.

A former NKF employee told Today he was not surprised by the revelations. He described her as someone who "ran the whole purchasing show" for the charity in a small department of no more than three people.

When the probe into the NKF's affairs started last year, Ragini was "one of the first to be grilled by investigators", said the former staff.

"All her files were seized and she was questioned."

Unlike the other players from the old NKF who were charged yesterday, Ragini, who is on no-pay leave, was not used to media attention.

Realising that a horde of photographers and cameramen were waiting outside the Subordinate Courts for her, Ragini hid behind an unidentified male companion as she walked out.

Covering her face with her handbag and a light blue scarf, she sprinted away from the media — and her companion — and got into a white Mercedes Benz.

"Now you are like a movie star," said her companion.

Durai in court – Episode 2

Former NKF chief accused of falsifying claims, corruption
Wednesday • April 19, 2006
Ansley Ng
ansley@newstoday.com.sg

NINE months since his fall from grace after a botched defamation suit, former National Kidney Foundation (NKF) chief T T Durai was back in court — this time to face two charges under the Prevention of Corruption Act.

The 57-year-old has been accused of submitting two false invoices involving a total of $25,000 to mislead the NKF into paying for services that were never delivered.

Almost 20 photographers — and dozens of curious bystanders — waited patiently for the cast of players whose previous courtroom appearances had invoked so much drama and sparked an outcry that eventually led to the overhaul of Singapore's largest charity.

Mindful of the scrutiny, Durai and his former colleagues arrived separately and barely exchanged a word. One by one the NKF's former chief, its ex-chairman, its erstwhile treasurer and the woman once known as Durai's lieutenant faced their charges. The surprise came in the form of a little-known NKF employee, Ragini d/o Vijayalingam, being charged with accepting bribes for doling out medical supply contracts.

But all eyes were on Durai.

It was alleged that between December 2003 and January 2004, he claimed $20,000 from the NKF "with intent to deceive" — using an invoice containing a false statement — to pay interior design consultancy firm DTC Pte Ltd for its services.

The firm was supposed to provide interior design consultancy to several dialysis centres in 2003. But the jobs were never carried out.

This irregularity had been mentioned earlier in the KPMG audit report on the charity, which also pointed out that DTC is partly-owned by Mr David Tan, formerly a member of the NKF's executive committee. The report had also said that even the NKF's building department knew nothing of the services provided by DTC.

In the second charge, Durai was accused of claiming $5,000 from the charity, using an invoice containing a "materially false statement".

The money was meant to pay advertising agency Decision One International for helping the NKF headhunt a female television executive. But according to court papers, that service was also never rendered.

At the Subordinate Courts yesterday morning, a stony-faced Durai made his first public appearance after months of being dogged by criticism and public outrage over the way he managed the charity.

But when he emerged two hours later after posting bail of $50,000, Durai appeared more relaxed and smiled to photographers before leaving in a black Honda Civic, driven by his son.

Durai faces up to five years in jail and/or a maximum fine of $100,000 for each charge if found guilty.

Yesterday, the woman touted to be Durai's lieutenant in the NKF before she resigned in 2000 was also slapped with two charges under the Penal Code.

Matilda Chua Li Hoon, the director of telemarketing firm Global Net Relations (GNR), was accused of falsifying her company's accounts to cover up discounts of $300,000 given to property developers Seah Holdings for the purchase of shares from GNR. Instead, the discounts were passed off as advisory fees and the repayment of a loan.

Durai was a founding director of GNR but gave up directorship in July 2004.

If convicted, Chua, 37, faces a maximum jail term of seven years for each charge and/or an unspecified fine.

Also hauled to court yesterday were the charity's former chairman, Richard Yong Kun Da, 65, and former honorary treasurer, Loo Say San, 58. Both were accused of breaching the Companies Act for failing to "use reasonable diligence" and causing the NKF to "excessively" pay Forte Systems Inc.

In September 2001, the NKF signed a $4.29-million contract with the Chennai-based firm to provide a new enterprise resource management system. The foundation continued to pay Forte Systems — owned by Durai's friend Pharis Aboobacker — even though the company was said to have failed to deliver some services.

If guilty, both Yong and Loo could be jailed up to one year or fined up to $5,000.

But investigations, which started in September last year, were not limited to the NKF's upper echelons.

Ragini, an assistant manager in the charity's purchasing department, was slapped with 11 charges under the Prevention of Corruption Act.

Between late-2003 to July last year, Ragini, 43, was alleged to have accepted bribes from Peng Che Chun, general manager and director of Hygeian Medical Supplies.

In exchange for nearly $10,000 in cash, Ragini would help Peng secure contracts to supply the charity with medical supplies, court papers showed.

She also received free seafood meals, perfume and massage sessions worth $470 to help Peng secure future deals with the NKF.

Chua and Ragini were granted bail of $20,000 and will return to court next Tuesday, as will Yong and Loo.

Former NKF chief faces two corruption charges

Time is GMT + 8 hours
Posted: 18 April 2006 2224 hrs
By Rita Zahara, Channel NewsAsia

SINGAPORE : The former chief executive of the National Kidney Foundation, TT Durai, has been charged with intent to mislead and deceive the organisation.

Three former board members of the old NKF were also charged, along with a former assistant manager of the NKF's purchasing department.

The charges come five months after a report by auditing firm KPMG, which revealed questionable practices by the old NKF.

It was a media scramble as Durai drove up to the Subordinate Courts.

Accompanied by his older brother, 57-year-old Durai declined to speak to reporters and marched into the courthouse to face two counts of corruption.

In the first charge, Durai is alleged to have deceived the NKF by submitting false invoices claiming that interior design consultancy services were rendered to various kidney dialysis centres in 2003.

Payment amounted to S$20,000 but no such services were provided.

The second charge alleges that Durai deceived the NKF in September 2003 by submitting another invoice for S$5,000 to a company, DecisionOne International, for consultancy work to hire a senior manager.

Again, no such services were rendered.

Durai displayed no emotion when the charges were read to him.

If convicted on each charge, he could be fined a maximum of S$100,000, or jailed for up to five years, or both.

Durai was charged along with four others connected with the old NKF.

A previously unknown figure in the NKF saga was the former assistant manager of the NKF's purchasing department, Ragini Vijayalingam.

The 43-year-old was slapped with 11 charges.

Between 2003 and 2005, she is said to have received cash and gifts amounting to more than S$10,000 from a medical supplies company for helping it to secure contracts and future business dealings with NKF.

Former board member Matilda Chua faces two fraud charges.

Accompanied by her mother to court, she is accused of having falsified the accounts of Global Net Relations, of which she was a director.

The offences, involving a total of S$300,000, are alleged to have taken place in December 2001 and December 2002.

She allegedly classified an amount of S$150,000 as an advisory fee in December 2001 to one Yee Lee Fen.

But the sum was said to have been a discount given by GNR to Seah Holdings for the purchase of 9.875 million Wizoffice.Com shares from GNR.

Then, in December 2002, Chua allegedly falsely classified S$150,000 as a loan repayment in the accounts of Global Net Relations.

For each charge, Chua could be jailed for up to seven years, fined, or both.

Bail was set at S$20,000 for Chua and Ragini; Durai, on the other hand, was ordered to post a bail of S$50,000.

Only the passports of these three accused have been impounded.

Durai, Ragini and Chua were investigated by the Corrupt Practices Investigation Bureau.

The other two accused are former NKF Board chairman Richard Yong Kun Da and treasurer Loo Say San.

Each faces one charge under the Companies Act for allegedly failing to exercise reasonable diligence as NKF directors.

According to the charge sheet, that failure caused the NKF to excessively pay Forte Systems, which is owned by Pharis Aboobacker, who is believed to be a friend of Durai.

In September 2001, the former NKF signed a S$4.29 million agreement with Forte Systems to provide a new enterprise resource management system.

The old NKF made payments, even though Forte Systems was said to have failed to deliver some services.

If found guilty, they face a maximum fine of S$5,000 or up to a year in jail.

The charges come months after a 300-page KPMG report last year highlighted questionable practices by the old NKF.

Investigations had been carried out by the Commercial Affairs Department and the Corrupt Practices Investigation Bureau.

Health Minister Khaw Boon Wan had said then that anyone found to have broken the law would be prosecuted.

The cases will be mentioned again on April 25.

In a statement, the CPIB says it will not be filing further charges against Durai, Chua and Ragini.

But it did not rule out further investigations should fresh evidence arise.

CPIB also said it may charge other individuals who may have committed various offences discovered in the course of its investigation.

Durai is represented by Christine Sekhon from Sant & Singh Partnership.

Lawyer Cheah Kok Lim from Ang & Partners will act for Chua, while lawyer Chia Boon Teck from KhattarWong will be representing Richard Yong and Loo Say San.

Ragini said in court that she would be appointing a lawyer soon. - CNA /ct

Durai, Yong to be charged today

Tuesday, April 18, 2006
Ansley Ng
ansley@newstoday.com.sg

FORMER National Kidney Foundation CEO TT Durai will be charged in court today, ending months of talk about whether action would be taken against him for his role in Singapore's biggest charity scandal, sources told Today.

The move comes nine months after Mr Durai and the entire NKF board resigned following intense outcry over the way they managed the foundation.

Many were upset that not enough of the donations made by the public went towards treating the patients. NKF was accused of spending excessively and its former chief executive was criticised for receiving backdated pay rises.

Mr Durai was believed to have been arrested yesterday and released on bail.

At the Subordinate Court this morning, former NKF director Matilda Chua, former chairman Richard Yong and former honorary treasurer Loo Say San will be charged as well – Mr Yong and Mr Loo for their roles in Forte Systems, a Chennai-based firm involved in botched contracts with NKF.

In September 2001, the old NKF signed a $4.29 million agreement with the company to provide a new enterprise resource management system. The deal involved payments from NKF even though Forte Systems was said to have failed to deliver some services.

The company is owned by Mr Pharis Aboobacker, a friend of Mr Durai. Mr Yong and Mr Loo are to be slapped with one charge each under the Companies Act, said the lawyer for both men, Mr Chia Boon Teck of Khattar Wong & Partners.

If guilty, both men face a jail term of up to one year or a fine of up to $5,000.

It was not clear what charges Mr Durai and Ms Chua would face.

At least seven family members and friends were with Mr Durai when Today visited his Fort Road home last night. Mr Durai declined to speak to the media.

Two weeks ago, NKF appointed law firm Allen & Gledhill to see if a civil suit could be brought up to seek recourse against the old management and board.

Former NKF CEO TT Durai charged with corruption

Time is GMT + 8 hours
Posted: 18 April 2006 1024 hrs
SINGAPORE : Former National Kidney Foundation (NKF) CEO TT Durai has been slapped with two charges of corruption.

He is accused of submitting false invoices to mislead the NKF.

One charge reads that 57-year-old Durai had, between December 2003 and January 2004, deceived the NKF into making a $20,000 payment to a company for providing interior design consultancy service for various dialysis centres in 2003.

The other alleges he deceived the NKF, in September 2003, into paying $5,000 to another company as consultancy for hiring a senior manager for NKF.

In both cases, no such services were rendered.

For each charge, Durai faces a maximum fine of $100,000 or five years in jail, or both. He is out on bail of $50,000.

A former assistant manager of the NKF's purchasing department, 43-year-old Ragini Vijayalingam, faces 11 corruption charges.

She is alleged to have received cash and gifts amounting to more than $10,000, between September 2003 and July 2005, from a medical supplies company for helping it to secure contracts and future business dealings with NKF.

Former NKF Board Member Matilda Chua, 37, faces two charges of falsifying company accounts with intent to defraud.

She is alleged to have falsified the accounts of Global Net Relations (GNR), of which she was a director, in December 2001 and December 2002.

A $300,000 discount given to a company for the purchase of shares from GNR was classified instead as advisory fees and loan repayment to two individuals.

Each offence carries a jail term of up to seven years, or fine, or both Chua is out on bail of $20,000.

The three have had their passports impounded.

Former NKF Board Chairman Richard Yong Kun Da and Treasurer Loo Say San face one charge each under the Companies' Act.

This is for failing to exercise reasonable diligence as directors of NKF.

If found guilty, they face a maximum fine of $5,000 or a jail term of one year. The Commercial Affairs Department says based on evidence, it will not be filing criminal charges against anybody else besides the two.

The cases will be mentioned again on April 25. - CNA /de/ct

Former NKF CEO TT Durai arrested, but presently out on bail

By Rita Zahara, Channel NewsAsia
Time is GMT + 8 hours
Posted: 17 April 2006 2036 hrs

Former National Kidney Foundation CEO TT Durai has been arrested and according to informed sources familiar with the case, he is expected to be charged on Tuesday.

He is now out on bail.

Several directors and key management personnel in the former NKF Board will also be hauled to court on Tuesday.

Lawyer Chia Boon Teck, acting for former NKF chairman Richard Yong, told Channel NewsAsia his client will be charged in court on Tuesday.

NKF's former treasurer, Loo Say San will also be levelled with charges under the Companies Act.

They each face one charge in connection with US-registered, Chennai-based company, Forte Systems.

In September 2001, the former NKF signed a S$4.29 million agreement with Forte Systems to provide a new enterprise resource management system.

The deal involved payments from NKF even though Forte Systems was said to have failed to deliver some services.

The company was owned by Pharis Aboobacker, who's believed to be a friend of TT Durai.

Yong and Loo were summoned to the Commercial Affairs Department on Monday afternoon to collect the charges, but were not put under arrest.

Other lawyers say T T Durai, former Board member Matilda Chua and an unknown third party were dealt with separately by the Corrupt Practices Investigation Bureau.

This comes months after the 300-page KPMG report late last year which uncovered some questionable practices by the old NKF and the Health Minister had said then that anyone found to have broken the law will be prosecuted. - CNA/ch

Eunice Tay likely to be new NKF CEO

Thursday • April 13, 2006
Jasmine Yin
jasmine.yin@newstoday.com.sg

AFTER months of keeping mum, the National Kidney Foundation (NKF) will soon announce a new permanent chief executive officer to take over from Prof Goh Chee Leok.

The incoming CEO is likely to be the National Neuroscience Institute's (NNI) current chief operating officer Eunice Tay, who has tendered her resignation and will serve her last day today, according to The Business Times.

An NNI spokesperson confirmed that Mrs Tay has resigned from the NNI, which is a specialist centre that treats people with diseases of the nervous system.

The NKF board is believed to have picked Mrs Tay because of her management experience and background in the medical sector.

Prior to her appointment as NNI chief in June 2004, Mrs Tay had worked as a legal officer at Tan Tock Seng Hospital and oversaw its volunteer programmes.

A press conference to announce the new chief has been called for next Monday, but no other details were released. NKF chairman Gerard Ee declined to comment when contacted.

Prof Goh, who was seconded from the National Skin Centre last July, had said that he would like to step down for reasons of health.

The new head will come in at a time when the NKF board is pursuing possible legal action against the former board of directors and ex-CEO TT Durai, over management lapses and transparency issues.

NKF to introduce new CEO next Monday

By Julia Ng, Channel NewsAsia
Time is GMT + 8 hours
Posted: 12 April 2006 2022 hrs

SINGAPORE : The National Kidney Foundation (NKF) says it is introducing its new permanent CEO next Monday.

The candidate is likely to be Chief Operating Officer Eunice Tay of the National Neuroscience Institute (NNI).

NNI told Channel NewsAsia that Mrs Tay has tendered her resignation and her last day at NNI is on April 13.

Mrs Tay was a legal officer at Tan Tock Seng Hospital before joining NNI.

Her management experience in the medical sector is believed to be what makes her a suitable replacement for Professor Goh Chee Leok.

Last July, Health Minister Khaw Boon Wan seconded Professor Goh from the National Skin Centre, where he was the Medical Director, to help NKF's interim Chairman Gerard Ee clean up the organisation.

Prof Goh's immediate priority was to review the subsidy selection criteria for dialysis patients.

This he did, by the end of last year.

Since then, he had made known his wish to return to his clinical practice once NKF has found its permanent CEO. - CNA/de

NKF considers civil lawsuit action against former directors being explored

Wednesday • April 12, 2006
Val Chua
Assistant News Editor
val@newstoday.com.sg

CRIMINAL action against the former management team of the National Kidney Foundation (NKF) may still be a question mark, but a separate civil suit is apparently in the works.

The recovering charity — which was embroiled in a saga that forced new regulations on the industry — appointed law firm Allen & Gledhill (A&G) last week to look into possible legal recourse against the NKF's former top hats, according to a report in The Business Times.

The top law firm was appointed after the NKF sought proposals from five firms, said Mr Gerard Ee, the chairman of NKF's new board.

The move comes about four months after independent auditors KPMG issued a damning report on ex-CEO T T Durai and the former board of directors — led by then-chairman Richard Yong — for their roles in Singapore's biggest charity scandal.

A "sizeable" A&G team — led by Senior Counsel K Shanmugam — will use the KPMG report as a basis to pursue possible legal action against the individuals, said Mr Ee.

"They will go through all the documents — not just the KMPG report — and give their advice on who are the individuals and what is the scope.

"It's still open-ended at this stage. What we are enthusiastic about, the lawyers may say 'no point'. But they may see something that we, as laymen, don't," he told Today.

Lawyers have previously said it would be hard for the authorities to pin down criminal wrongdoing based on the KPMG report, although it had unveiled outrageous excesses of the old Durai administration. Criminal investigations by the Commercial Affairs Department are ongoing.

A civil suit initiated by the new board may be plausible, however, based on management lapses and a lack of transparency in the way contracts were awarded, said legal experts.

In particular, two botched contracts — worth a total of $7.5 million — were under scrutiny. Forte Systems and Protonweb — owned by Mr Durai's friend Pharis Aboobacker — had received payments from the NKF even though they had failed to deliver some services. Mr Ee had said in the past that the NKF would pursue legal means to recover these monies.

Yesterday, he hinted that the civil suit — if any — may involve more than just the two botched contracts.

"The lawyers will look at everything. It's not limited to these two contracts," he said, adding that some recommendations by A&G will come up in the next few weeks, in "May or June".

Taking pains to de-link the criminal investigations from the possible civil lawsuit, he also said that the board was not looking into criminal matters, but rather management issues: "The board only looks at civil actions, the criminal part is dealt with by the authorities."

Possible civil suit against former NKF board in the works: NKF

By Rita Zahara, Channel NewsAsia
Time is GMT + 8 hours
Posted: 11 April 2006 2136 hrs

A possible civil suit against the board of directors of the former National Kidney Foundation appears to be in the works, now that Allen & Gledhill, one of Singapore's leading law firms, has been appointed to act for the NKF.

The NKF says that it is serious in taking its former board of directors to task, if there has been any legal wrongdoing.

NKF Chairman Gerard Ee said: "We have asked (Allen & Gledhill) to look into matters and to advise the board as to what's doable and what's not doable. If there is something that they advise that is doable, then of course we will weigh against possible cost and the potential outcome and then to decide whether or not to act on their advice."

NKF may have to write off S$6.3 million, about half of which was paid to Forte Systems.

Another accounting inconsistency is the Protonweb Solutions deal, worth S$4.5 million.

The old NKF paid both firms, even though both had failed to deliver their services.

Lawyers Channel NewsAsia spoke to outlined some of the likely scenarios for a civil suit.

Lawyer David Rasif said: "Just based on the report, there appears to be three distinct claims. The first, of course, would be against Forte Systems by NKF. The second (is) a claim by NKF against possibly Protonweb. And the third, of course, is a claim against the CEO and the board of directors ... if they find, for example, that they have not exercised and discharged their duties according to the standard that the law requires, that it is actionable against them personally."

Channel NewsAsia understands Allen & Gledhill was chosen out of four other law firms.

Its team of lawyers, led by Senior Counsel K Shanmugam, has already begun looking at contracts entered into by the old NKF board.

At present, investigators looking into the case, such as the Commercial Affairs Department and Corrupt Practices Investigation Bureau, remain tight-lipped.

Therefore, lawyers Channel NewsAsia spoke to say it is too soon to say if former CEO TT Durai and his former colleagues will face any criminal sanctions. - CNA/ir/ct