Source:
http://health.asiaone.com/Health/News/Story/A1Story20080219-50322.html
Tue, Feb 19, 2008
The Straits Times
Tue, Feb 19, 2008
The Straits Times
CAD called in to probe Ren Ci's finances
THE probe into Ren Ci Hospital's finances has taken a more
serious turn, with Singapore's white-collar crime busters called in
to look at questionable transactions in its books.
The Buddhist charity, the second largest under the purview of
the Ministry of Health (MOH), was unable to explain some of its
deals satisfactorily, Health Minister Khaw Boon Wan told reporters
yesterday.
'There may be wrongdoing, there may not be. I do not know,' he
said, urging patience while the Commercial Affairs Department (CAD)
does its work.'It is important to let the investigators do their
job. Let's not speculate or jump to conclusions because that would
not be fair to Ren Ci and the individuals involved.'
He hoped that the CAD would complete its probe in 'a few weeks'.
Officers from the agency carted off at least 20 boxes of documents
from the charity's office in Buangkok View early yesterday.
Ren Ci will continue caring for its 120 nursing-home patients
and 300 chronically ill individuals.
The charity and its chief, Buddhist monk Venerable Shi Ming Yi,
have been facing questions for the past year, since the ministry
started auditing the largest charities under its charge.
Last February, the monk was told he could not hold the posts of
chief executive and chairman concurrently as that was contrary to
good corporate governance practices.
Prominent businessman Chua Thian Poh, head of property developer
Ho Bee Group, took over as chairman last September. Venerable Ming
Yi became the honorary chief executive.
Then, last November, the Health Ministry announced an inquiry
into Ren Ci's finances, citing 'possible irregularities'.
It did not give details, but it appeared Ren Ci had given
interest-free loans to several companies, including a few Venerable
Ming Yi had a share in.
There were also discrepancies between what was loaned out in Ren
Ci's accounts and what was reflected in the borrowers' books.
Venerable Ming Yi, who is also abbot of the Foo Hai Ch'an
Monastery in Geylang East, initially brushed away news of the
probe, telling reporters that the shortfall in the charity's
accounts amounted to no more than $200,000 to $300,000.
But a ministry spokesman responded immediately, saying the issue
was not the sum involved but the original transactions
themselves.
With the launch of investigations, Ren Ci lost the right to
grant its supporters tax-exemption for donations.
It was well known for its televised annual fund-raisers that
featured stunts by Venerable Ming Yi and celebrities, which raked
in millions of dollars.
The shows have usually been held in January, but this year's has
been postponed indefinitely.
Yesterday, Mr Khaw noted that the charity will still have access
to Government subsidies and its own reserves to fund its work.
Its accumulated reserves of $33.5 million are enough to last six
years. In 2006, it received $9 million in subsidies.
Contacted yesterday, the charity's chairman, Mr Chua, told The
Straits Times that he planned to improve the charity's 'credibility
and sustainability' by bringing in new blood, among other
things.
He has roped in Mr Seah Moon Ming, president of Singapore
Technologies Electronics, to head the committee on corporate
governance, while Mr Tan Huay Lim, a partner with audit firm KPMG,
now leads its audit committee.
The charity still has its supporters. Before the Chinese New
Year, businessman Oei Hong Leong donated $306,000 to cover sums
owed by Bodhicherie Food, a company in which Venerable Ming Yi had
a stake.
It ran a vegetarian restaurant, which has since closed down.
