(as posted to FBU on 18.4.2006)
Channel News Asia (18.4.2006)
"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.
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.
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."
The irony of NKF case is that the minister was aware of potential problems at the outset back in the early years when members of the public was very unhappy with the way NKF was spending its public donations in other ways instead of on the many suffering kidney patients.
The minister could have taken action and caused an investigation and nipped the problem in the bud.
He could have caused the audit firm to look into the ratio of donation going into patient treatments with accountability and transparency.
But the minister in charge instead insisted that NKF has the right not to disclose the amount going to CEO's salaries and bonuses and other facts. Such denials only served to fuel more pent-up discontent of public.
Minister should have seen that the crux of the issue was one of using public donation for relieving the plight of the unaided suffering kidney patients.
But he went to the opposite and defended NKF and failed to cause a study of its questionable transactions.
NKF or Durai even became so enbolden as to sue the unlucky whistle blowers who had unwittingly had to perform the role of the regulator and had ended up being penalised in paying for Durai's defamation damages and legal costs which as subsequently disclosed in the SPH/NKF face-off were somewhat rather unfounded.
Do our ministers want to run charity organization in this manner? Surely if we cannot rely on minister, audit firm or regulatory authority there will be no need for the office of minister?
Who was at fault - NKF, Durai or Minister for the innumerable problems disclosed in so many charity organizations as a result of this NKF saga ?
The public has raised many issues to our ministers such as the persistent increases of fees and charges and over-obsessive accumulating of taxes into reserves. Will the ministers be looking into all these issues and problems or will they continue to make denials and put up defences of all kinds without solving problems?
Are they solving more serious problems facing the people e.g. creating jobs or lowering the cost of living.
Will our ministers try to solve all these problems after NKF instead of basking in their past initial success or calling people who complain whiners or trouble makers. Will they free up intellectual spaces and be open instead of treating people as adversaries and trying to close down blogs.
Many ministers are in the habit of slamming critics with uncalled-for remarks like "there is no such thing as free lunch", "people are whiners or quitters" and such-like.
Yet, in every swearing-in ceremony they have sworn their oath of office to serve the republic and the people with due diligence and allegiance.
What went wrong? What causes NKF? Who are their real paymasters or customers ?
Instead of trying to be confrontational, minister Khaw, could study the whole NKF episode, in the larger perspective and conduct a post mortem to improve MOH's future performances:-
(1) Ministers should be more proactive and not be so defensive in dealing with complaints or feedbacks.
(2) Do not regard people who complain or give feedbacks as adversaries.
(3) Do not try to keep defending their actions based on their past records - look to the future to win over people's support.
He could use the post mortem to reexamine past NKF-like government policies such as its tax-and-recover system aimed at creating yearly surpluses to no end. This method of running the country may impoverise not only the citizens but eventually the whole economy with the ministers slaughtering the geese that lay the golden eggs. So look again at people's inputs and seriously look into ways to solve the "20 major problems of government" as posted to FBU.
He could reexamine the HDB double-charging of lands in its supposedly low-cost housing as defined in the HDB Act and government utility company (now privatised as GLC) over-charging on networking and other fixed assets after corporatisation resulting in our high costs of living.
There must be something seriously wrong in a country where people are suffering from dropping wages and property prices of their homes and yet their transportation and utility costs are taking up 60% of their family incomes.
Ask the banks and finance companies and other financial experts, and they will tell you that any expenditure of such item exceeding 20% of household income will be deemed over the limit of affordability.
If government does not grasp the in-depth relationship between costs of living and our economic competitive, it is now time to start looking at it to create a more vibrant economy or socially cohesive country.
So let minister try to use NKF case to solve other serious problems represented by this case.
Other Asian Tigers or other smaller competitive economies like Switzerland or Finland are not suffering our type of denial syndrome and how can we learn from their more entrepreneurship which we are known to be lacking in the overall perspective.
The recent TV dialogue session shows a gulf in the thinking between MM Lee and our younger population. So this NKF can be a wake-up call to our ministers not to be over-confident about their past success as past performance does not guarantee future success.
Should our talents always be so obsessed about assumptions which did not work since the 1970s but were not admitted to this day due to the autocracy of the whole system.
It is hoped that after NKF, our ministers will learn to be less defensive and will serve the interest of Singaporeans at large and not just to defend their respective positions or past policies.
If they do not change their past mindset they will never be able to convince the younger population of their talents.
I strong urge them to drop their current defensive mindset and be more humble and diligently serve the interest of their real paymasters and customers to avoid more NKF cases.