| Agence
France Presse July 15, 2005 SINGAPORE SINGAPORE'S biggest and richest charity was under government investigation on Friday, July 15, after its chief executive and board resigned amid a scandal over the alleged misuse of donors' funds. The National Kidney Foundation's chief executive, T.T. Durai, has been the focus of intense public outrage all week after he was forced to reveal in court his annual salary of around S$600,000 (US$350,000). In defamation proceedings he instigated against the Straits Times newspaper that spectacularly backfired, Durai also reluctantly admitted donors' money was used to fly him first class and pay for the upkeep of his Mercedes Benz. Durai further conceded the foundation's reserves of $260 million could continue to pay for patients' care for decades if donations' stopped, not the three years the organisation had previously claimed publicly. The revelations sparked widespread community anger as an estimated two thirds of Singapore's population have donated to the foundation, which employs an aggressive, commission-based marketing model. "This is all about transparency and accountability," 20-year-old Lawrence Tan, who started an online petition calling for Durai to step down that quickly garnered 40,000 petitions, told AFP on Friday. The petition and intense media focus culminated in government intervention, which led to the resignations of Durai and the board on Thursday night. Prominent lawyer Tan Choo Leng, the wife of former prime minister and current Senior Minister Goh Chok Tong, also stepped down as patron of the foundation after being criticised for publicly defending Durai's salary. Although the foundation is an independent body, Health Minister Khaw Boon Wan told Durai and board chairman Richard Yong, both of whom had not wanted to step down, in a meeting on Thursday they should resign. "My advice was that the status quo will not do," Khaw said, adding public confidence in the foundation had been "shattered". "They asked if they should step down so that a new board and CEO could be appointed. I told them this would be very helpful." Khaw said the Health Ministry would undertake a review of the foundation's practices, funding needs, pricing and salaries, although he called on the public not to abandon their long association with the organisation. "I am against destroying in order to rebuild because that is a stupid, silly waste of time. Unless it's so rotten, then that's a different story. I don't think it (the foundation) is rotten," he said. Khaw said that, for the time being, investigations would remain with the government but the police would be called in if criminal activities were detected. Police said on Friday the case had yet to be referred to them. Prime Minister Lee Hsien Loong, travelling in the United States on an official trip, welcomed the resignations and said he would make a statement to parliament on Monday on the issue. Durai, who had repeatedly asserted in court that he and the foundation had behaved honourably, avoided mentioning his salary or perks in brief comments to reporters following his resignation. "I think it's time for a new leadership to take over. Having brought this organisation to a level like this, it's preferable for a new leadership to take it to another level," he said. The Health Ministry late on Friday announced the president of the National Council of Social Service, Gerard Ee, would take over as the foundation's interim chairman. In another blow for Durai, Singapore Press Holdings, the publisher of
the Straits Times, said the court had ordered him to pay the media
organisation's legal costs for the defamation proceedings. |
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