Former National Kidney Foundation CEO TT Durai has been arrested
and according to informed sources familiar with the case, he is
expected to be charged on Tuesday.
He is now out on bail.
Several directors and key management personnel in the former NKF
Board will also be hauled to court on Tuesday.
Lawyer Chia Boon Teck, acting for former NKF chairman Richard Yong,
told Channel NewsAsia his client will be charged in court on
Tuesday.
NKF's former treasurer, Loo Say San will also be levelled with
charges under the Companies Act.
They each face one charge in connection with US-registered,
Chennai-based company, Forte Systems.
In September 2001, the former NKF signed a S$4.29 million agreement
with Forte Systems to provide a new enterprise resource management
system.
The deal involved payments from NKF even though Forte Systems was
said to have failed to deliver some services.
Both companies were owned by Pharis Aboobacker, who's believed to
be a friend of TT Durai.
Yong and Loo were summoned to the Commercial Affairs Department on
Monday afternoon to collect the charges, but were not put under
arrest.
Other lawyers say T T Durai, former Board member Matilda Chua and
an unknown third party were dealt with separately by the Corrupt
Practices Investigation Bureau.
This comes months after the 300-page KPMG report late last year
which uncovered some questionable practices by the old NKF and the
Health Minister had said then that anyone found to have broken the
law will be prosecuted. - CNA/ch