SINGAPORE - Singapore on Wednesday announced a special audit of
the country's largest charity, and an entire new board of
directors, after a rare public outcry over allegations that the
group conspired to mislead the public and mask its assets.
The National Kidney Foundation's new board has assigned accounting
firm KPMG to conduct an independent audit of the foundation's
finances, said Health Minister Khaw Boon Wan.
The foundation - long a favourite charity for many Singaporeans -
has reserves of $260 million (US$156 million).
In Parliament on Wednesday, Mr Khaw said the foundation's board of
directors has taken on a new chairman and seven new members, days
after the former board quit.
Mr Khaw said the new members 'need to specifically ask the
questions which Singaporeans have been asking: Have there been
lapses in judgement? Are there misleading claims? Are there
errors?'
He stressed that the foundation is an independent body, and said
its board had asked him to intermediate in the crisis. He did not
say whether the foundation's former board would face any criminal
charges.
Mr Khaw said the board is searching for a new chief executive to
replace TT Durai, who resigned after his lavish pay and perks were
revealed.
The scandal came to light after Mr Durai sued Singapore's Straits
Times newspaper for libel, claiming it had implied the foundation
had misused funds when the paper reported last year that
gold-plated water taps were installed in Mr Durai's office
suite.
The suit backfired. Singaporeans were outraged by revelations in
court - including Mr Durai's $25,000 monthly salary, and his use of
several Mercedes-Benz vehicles.
The Straits Times' lawyer got Mr Durai to admit in court that the
foundation had overstated the number of Singapore's kidney dialysis
patients by a thousand, in an apparent effort to get more money for
the foundation than it needed.
Mr Durai said the error was unintentional.
About 40,000 people lent their names to an Internet petition
demanding Mr Durai's resignation. Vandals sprayed angry graffiti on
the foundation's headquarters, and rotten eggs were hurled at one
of its 21 dialysis centres.
