The scandal at the National Kidney Foundation (NKF), now being run by an interim board, could blemish the city-state's reputation for clean governance.

The NKF said Thursday that it had asked the Commercial Affairs Department, which probes white-collar crime, to look into problems the new board had uncovered in its first month at the charity, which helps finance dialysis treatment for kidney patients. It gave no details.

One of the first acts of the new board was to order accountancy group KPMG to review the NKF's operations, including a study of how its funds were raised and spent.

Khaw Boon Wan, health minister, said last month the KPMG audit had to examine whether “charitable funds [were] used lavishly or improperly, have there been lapses in judgment? Were any funds misappropriated?”

The disclosure of police involvement could reignite the public outcry against the NKF and former chief executive T. T. Durai, who resigned after disclosing in court he was paid up to S$600,000 (US$360,650) a year and took first-class flights.

The public anger towards the charity which had an income of S$100m in 2003 was unprecedented in the city-state, where protests of any kind are rare. During the furore the NKF premises were daubed with protest grafitti.

The controversy began when Mr Durai filed a defamation lawsuit against the Straits Times, Singapore's leading newspaper, over an article that said he had installed gold-plated taps in his office bathroom.

After two days of tough cross-examination in court, Mr Durai withdrew the lawsuit, but only after disclosing his pay and benefits.

His resignation, and that of his board, was brokered by Mr Khaw. The minister stepped in after tens of thousands of citizens signed an online petition in protest at the NKF head's revelations, calling for greater transparency.

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