Article 4: Serious actions taken against former NKF chairman and treasurer

Hot News // Thursday, May 17, 2007

Ex-NKF's Yong, Loo get maximum fine

Ansley Ng
ansley@mediacorp.com.sg

FORMER National Kidney Foundation (NKF) chairman Richard Yong and ex-treasurer Loo Say San — who were found guilty by a court yesterday of failing to exercise due diligence over a software upgrade project for the NKF — were both slapped with the maximum fine of $5,000.

To reflect the "gravity of the matter", District Judge Jasvender Kaur also barred Yong from taking on directorship of any firm for four years, while imposing a similar ban on Loo for three years.

It was the first criminal conviction of the NKF's former board members since the charity scandal, Singapore's biggest, erupted in July 2005.

The duo's punishment should "serve as a timely reminder to all directors of the need to exercise the degree of care mandated by their position of responsibility", said Deputy Public Prosecutor Chew Chin Yee.

Yong and Loo were found guilty under the Companies Act of giving the go-ahead for $1.3 million to be paid to Forte Systems, which eventually failed to deliver the software.

Forte Systems was owned by former NKF chief T T Durai's friend, Mr Pharis Aboobacker.

Yong and Loo, together with Durai and another board member Matilda Chua, were hauled to court after they resigned amid the charity scandal.

Yong and Loo are facing claims for $100,000 each in legal costs as a result of conceding to a civil suit brought against them by the new NKF in February for a lapse in duties as board members.

Durai — charged with corruption — will return to court on May 28, while Chua — accused of share rigging — will be back on a yet-to-be disclosed date.

Yong and Loo, along with several NKF staff, had met Mr Aboobacker in Chennai, India, in November 2004 to work out details of the deal and a discount on its price.

Yong, said Judge Kaur, was an "ornament ... without any real understanding" of what was going on at the meeting, while Loo's calculation of the proposed number of hours spent on the project was not "rational" and he "was not aware of NKF's rights under the agreement".

DPP Chew said the duo should have sought the opinion of the NKF executive committee before allowing the deal.

The lawyer for both men, Mr Chia Boon Teck, said in mitigation that his clients had not "acted in bad faith or dishonestly".

Both men, who could also have been jailed for up to a year, have 10 days to appeal.

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Last year, Mr. Durai of NKF (National Kidney Foundation) was found guilty of misusing the donations from the public meant to help the suffering patients under the organisation's care. This incident took the country by storm and today, we see our government treating such issues very seriously. This is in hopes of rebuilding the citizens' faith in helping those in need.

Previously, charity organisations sought the media's help in collecting donations from the public. Mediacorp would organise shows to attract the public to call in and donate and this was extremely successful. However, the viewers have called in not just because of the performances. Rather, they sympathise with the patients and their plight and are merely taking the chance to give what they can through these opportunities.

After the NKF incident however, two major negative impacts have hit Singapore.

Firstly, when the corruption and negligence of officials at NKF was exposed, Singaporeans felt appalled and definitely, cheated. They have been donating their hard-earned money to the organisation in hopes of making a difference in just one of their lives. However, what they have actually been doing is to donate cash which ends up being misused by people for personal reasons. Since then, they have begun to lose faith in charity and many have stopped donating. It is not that they have turned. Rather, they simply do not trust the charity organisations will use the money wisely and effectively. In the long run, it is possible these citizens may turn apathetic and may no longer have space in their hearts for the needy.

Next, as a result of the loss of faith, the patients have received fewer funds from the society. The equipment is expensive to maintain and upgrade, and at times expert help and consultation may cost money too. The patients are innocent, and yet, due to irrational and self-centered actions committed by those whom they are entrusted to, they have to take the brunt of the damage.

I do not blame the people who refuse to donate. It is understandable they are wary after such an incident has occurred. It would take time for their wounds to heal before they are willing to open their hearts out again. The government has looked upon this issue gravely and have realised the severe implications such incidents can have. If history should repeat itself there would be no place for charity in Singapore. The severe penalties they have imposed are not just to punish the guilty but for deterrence as well. As a student I may not have a full grasp of the situation and I do not fully understand what has been going on within the organisation. However, I am sure that things have gone wrong and that they are trying very hard to rectify their mistakes. I truly hope the people whom we trust enough to be put in charge of charity organisations would prioritise the needy and put their needs at the centre of all their decisions.

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