Probe into
Ren Ci uncovers irregularities in 'a few' transactions
Health Ministry has referred these to the Commercial Affairs
Department.
By Salma Khalik, Health Correspondent
THE Health Ministry probe into Ren Ci Hospital and Medicare
Centre took a more serious turn on Monday, when the Commercial
Affairs Department (CAD) was called in after 'a few financial
transactions could not be satisfactorily explained.'
'In order to seek greater clarity into these transactions, MOH
has referred them to the Commercial Affairs Department for it
assistance,' said the ministry in a statement on Monday.
'MOH will be seeking the cooperation of Ren Ci's board and staff
to assist in CAD's investigation.'
But patient care and day-to-day operations will continue
uninterrupted, with the ministry continuing its subsidy to needy
patients seeking medical treatment from the Buddhist charity.
Ren Ci has been investigated by MOH since last November
following the discovery of some possible irregularities in certain
financial transactions involving the charity and other external
organisations.
Ernst & Young Associates was appointed to conduct the
inquiry.
The charity had extended interest-free loans, amounting to
millions of dollars, to several companies.
An audit turned up discrepancies between the amount recorded by
the charity as loaned out and that recorded by the companies as
borrowed.
Health Minister Khaw Boon Wan on Monday urged the public not to
'jump to conclusions' and let CAD carry out its investigation.
He told reporters on Monday at the launch of the Singapore
General Hospital's first holistic lifestyle centre that he was
briefed by the auditors on some of Ren Ci's financial transactions
on the weekend.
'Some transactions were highlighted, which suggest some
irregularities...the answers were not satisfactory - they do not
give a full explanation of the irregularities,' said Mr Khaw.
'There may be wrong-doing, there may not be. The important thing
is for everyone to continue maintaining an attitude of
fairness.'
The CAD was called in to 'get to the bottom of it' as it has the
expertise that goes beyond traditional book-keeping, said the
minister.
'If we leave it hanging, leave question marks, it's not fair to
Ren Ci. People would then jump to their own conclusions - rightly
or wrongly,' he added.
Mr Khaw said the CAD probe could take 'one or two months'
although the investigators 'understand the need to speed it
up.'
He also gave the assurance that Ren Ci funds will not be
affected as its reserves 'is still healthy and will last for quite
some time' - even though the charity's Institute of Public
Character (IPC) status has been suspended.
The Minister also took pains to stress that Ren Ci is doing good
work on the ground and its corporate govenance lapses will improve
under new chairman Chua Thian Poh, who took over the helm last
September.
He noted that Mr Chua had brought in some new members in the
last few months to help him raise corporate governance standards,
and there has been some restructuring of the Ren Ci board in the
past few weeks.
'I was quite glad when I read that Mr Chua was appointed the
chairman. He's a very experienced businessman. I am quite confident
that in due course, the corporate governance lapses will be
improved and standards raised.'
Copyright © 2007 Singapore Press Holdings Ltd.