461:" on 19 April 2004, written by senior correspondent Susan Long. This article became the subject of the dispute, and eventually the lawsuit that led to the scandal. Durai and NKF challenged the first six lines of the article, which claimed that a retired contractor (who declined to - and cannot - be named, for fear of being sued) had 'lost it' when he was asked to install "a glass-panelled shower, a pricey German toilet bowl and a (S$ 1,000) gold-plated tap" in Durai's office. The tap was said to have been replaced later with a different material.
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835:(ex-treasurer) all declared bankrupt on 16 May 2007. After selling personal properties worth $ 7.5 million, the former left Singapore without permission early on the morning of 17 May but was apprehended on 4 July 2007 in Hong Kong and extradited back to Singapore on 3 August 2007 where he was charged the next day for charges that the NKF levied on him as well as his flight (or fleeing) from Singapore hours before being declared a bankrupt. Yong said that he had left to settle some personal matters.
513:, the reserves would last three years. However, on 12 July 2005, during the trial, the court was shown how the NKF in fact spent far less on dialysis than the public had been led to believe. According to its 2003 audited financial statement, the NKF spent S$ 31.6 million that year on dialysis and transplantation. Of that amount, S$ 22.9 million came from dialysis fees it collected from patients and a further S$ 1.5 million came from other related income. This meant that the NKF was
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468:(SPH), within 24 hours. Four days after the article's publication, NKF and Durai served a writ on Long and SPH for defamation, demanding S$ 3.24 million in damages. They claimed that the six paragraphs in the article insinuated the mismanagement of donors' funds, that the installations were scaled down only due to the contractor's protests, and that it had avoided providing further details on that matter.
501:, said during the trial that the NKF had been telling Singaporeans that its reserves would not last more than three years, according to statements made by its officials. He argued that if the NKF stopped all fundraising activities and concentrated on treating kidney patients, it would still have enough money to see through its operations for 30 years, based on its expenses scheduled for 2003.
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491:. Under cross-examination, it was revealed that Durai collected a monthly salary of $ 25,000 and collected a 10-month bonus in 2002 and a 12-month bonus in both 2003 and 2004, for a total of $ 1.8 million over three years. He had access to a fleet of eight chauffeured cars and the NKF paid the taxes and maintenance costs of his personal Mercedes-Benz.
418:' first-class cabin. Both paid an undisclosed amount of damages to the NKF, and apologised. News of the suit affected Ong's cancer-suffering father, who eventually passed away in hospital. Shortly after the 2005 scandal broke, Ong mentioned to the press that he felt "fully vindicated now. I had more than a hundred calls today to wish me well."
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both 2003 and 2004. He was paid a total of nearly S$ 1.8 million in three years from 2002 to 2004. These figures were closely guarded secrets until the trial. There were many occasions when he declined a pay rise but was paid the offered increase in salary, backdated to the time he was offered the pay rise, the following year.
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The suit was heard on 8 January 2007 and on the second day of the trial, Durai conceded to all the claims made by NKF. However, the decision by the other defendants to continue will have implications to other equally liable directors and third parties (Alwyn Lim, Lawrence Chia, Kweh Soon Han and Chow
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The focus of the scandal turned to the revelation of Durai's S$ 600,000 pay, which caused widespread feelings of outrage, anger, and betrayal among the general public. Some 3,800 regular donors cancelled their contributions the day after the trial, and NKF's headquarters was vandalised with graffiti.
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and patron of the NKF, defended Durai, commenting that "for a person who runs a big million-dollar charitable organisation, with a few hundred million in reserves, S$ 600,000 a year is peanuts", much to the indignation of
Singaporeans. The statement was taken as an insult by many, who earn much less
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NKF volunteer Archie Ong and aero-modelling instructor
Piragasam Singaravelu, who claimed that they had seen Durai travelling in first class on airlines while making NKF business trips, were taken to court separately in 1998. Both apologised and paid damages and costs to the NKF after realising they
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Yong was sentenced to 15 months in jail for the three charges. Five separate charges were taken into consideration during the sentencing. His sentence will commence from the day that he was extradited back to
Singapore. Yong has said that he plans to appeal, but lost the appeal and had to serve out
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refused to renew the NKF's "Institution of Public
Character" (IPC) status (which allows it to collect tax-free donations), citing that subsidy figures had been inflated, staff costs had increased by 30% and a "disproportionate" amount of money was spent on fundraising. Concerns were first raised by
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in April 2004 by Gerard Chuah, the chairman of its
Children's Medical Fund board, had claimed that the NKF had 3,000 patients. Singh pointed out the number had been overstated by about 1,000. Durai said he realised there was a mistake only after the letter had been published, but had not corrected
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50,000 in damages. 48 additional workers who forwarded the same e-mail were also sued by the organisation, but the suit was later dropped in consideration that they would face possibly extenuating financial circumstances. Days since the 2007 civil suit began, there have been calls by the public to
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Durai was arrested on 17 April 2006. He was out on bail, but will stand for trial with other members of the old
National Kidney Foundation board of directors. He has also agreed to pay back S$ 4 million to the new NKF and was sentenced to 3 months jail for misleading NKF by fabricating a $ 20,000
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computers for use in Iran." Durai said that he was Bonyad's representative in
Singapore from 1990 to 1992, but decided to give that up when he became NKF's CEO. Durai admitted that in 2000 he had invested in Chua's company, Global Net Relations, but did not disclose to the NKF board that he was a
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It was also revealed that Durai had a business relationship with
Matilda Chua, a one-time employee of the NKF, who left to start her own company. Not only did he invest in her business, but the NKF also gave her telemarketing contracts, and she eventually became a member of the NKF board as well.
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Singh said that Durai had tried to give the impression in his affidavit that he was being thoughtful when he agreed to come on board as CEO in 1992 for just $ 12,000 a month even though he had been offered $ 20,000. The truth, Singh said, was that Durai had agreed to the lower pay in exchange for
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Durai was paid a monthly salary of S$ 25,000 in 2002 and received 10 months' performance bonuses (S$ 250,000) for that year, making a total of S$ 550,000 for 2002. He was paid a monthly salary of S$ 25,000 and received 12 months performance bonuses (S$ 300,000), amounting a total of S$ 600,000 in
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On 16 July 2005, SM Goh said that Mrs Goh regretted the statement. He also said to have explained and shown her several e-mails and letters he had received after the remark was made. In what SM Goh claims to be a separate matter, Mrs Goh has also resigned as patron of the NKF, despite an earlier
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Singh continued, "Mr Durai, your CV is yet another illustration of the lack of transparency with which you operate. You do not come clean on what you do, you do not tell the board what you do, how much you earn. You do not tell the board about your commercial relationship with a person who has a
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During cross-examination, Durai admitted that an overestimate had been made and not corrected. When asked why he had done nothing to correct it, Durai said, "It was an oversight. I did not think it was of material importance. The donor gives us money because of the brand of the NKF and I did not
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While Durai worked full-time as CEO of the NKF, he was also a director of a number of other companies. He was paid sums of up to S$ 25,000 a year by them, over and above his NKF remuneration package. He never told the NKF board about some of these, and did not list these directorships in his
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In 1999, NKF tracked down and again sought legal action against Tan Kiat Noi, who allegedly circulated an e-mail from her company e-mail on 5 April, claiming that "the NKF did not help the poor and needy, paid its staff unrealistically high bonuses" and discouraged members of the public from
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was engaged by the new NKF board to investigate past transactions that occurred under the former board and Durai's management. The new board eventually filed a civil lawsuit against Durai, Durai's business associates and three former board members (chairman
Richard Yong, treasurer
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that it needed about S$ 2,600 per month to support each of its 2,000 patients, a total of S$ 62.4 million per year. The charity cited those figures to bolster its argument that its reserves were not excessive. Based on its expenditure of more than S$ 60 million a year for
668:
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In 2004, the NKF made a surplus of S$ 993,677 from drug sales. Although the NKF claimed it helped its patients save over S$ 3.5 million in treatment costs, it had charged its patients a premium for certain discounted drugs, instead of passing the savings on to
811:, board member Matilda Chua) to recover monies amounting to S$ 12 million in salaries, benefits and failed contracts. The suit included legal fees incurred during the NKF defamation suit against SPH and loss of donations from donors after the scandal.
750:, a close friend of Durai. Neither project was successfully completed, but no action was taken against the companies. In KPMG's judgment, the terms of the contracts were "unusual" and the ExCo's disregard of the lack of performance was "extraordinary".
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Durai initially disagreed with Singh, saying that no-one could be sure patients would continue to pay their share for the treatments. However, he finally agreed that the NKF's assertion that the reserves would last only three years was 'not accurate'.
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It was revealed during the trial that the NKF had a fleet of eight cars with company drivers and Durai was one of six officers who could make use of them at any time. The office cars were also used to transport VIPs and guests of the charity. In his
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Singh suggested that the number had been inflated to create a false impression of need. In fact, according to Khaw's statement in
Parliament, the NKF's "share" of kidney patients in Singapore had dropped, from 54% in 1999 to 44% in 2003.
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Blogs and online message boards were quickly flooded with angry comments, and a second online petition requesting Mrs Goh to apologise was started. Jokes on the issue were later circulated, in particular, local satirical website
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Allegations surrounding the scandal included the false declarations on how long NKF's reserves could last, its number of patients, installation of a golden tap in Durai's private office suite, his salary, use of company cars and
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Durai said he was paid S$ 25,000 a year each as a director of Amcol Holdings between 1990 and 1996 and an Australian company, Overseas & General, "for a couple of years". He also received "some nominal sum" as a director of
414:. The former mentioned in April 1997 that the NKF "squandered monies" in a casual conversation with former chairman of NKF's finance committee Alwyn Lim, while the latter made claims that he had personally seen Mr Durai in
267:, and a 442-page report released on 19 December 2005 revealed a host of malpractices by the former NKF board and management. Durai was apprehended on 17 April 2006 and charged under the Prevention of Corruption Act by the
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In 1995, Durai's pay was increased from S$ 12,000 to S$ 18,000. The promotion was backdated six months, so he received another S$ 36,000. On top of that, Durai received a S$ 30,000 bonus "top-up" based on the revised
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freedom to earn extra income outside the NKF. Durai testified that his earnings were up to the board of directors to decide, admitting that he was unethical but arguing that he was not to blame for accepting them.
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In 1997, Durai was offered a salary of S$ 30,000 a month but he chose to accept only S$ 25,000, a S$ 7,000 increase over his previous wage. The increment was backdated 11 months, amounting to an extra S$
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describes Bonyad Marketing Industries as a "special arms trading company" that had "in addition to spare parts for Iran's U.S.-built F-4 and F-5 fighters ... been purchasing large quantities of
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Singh questioned Durai on the cars. Durai said that, as CEO, he was entitled to use any of the cars any time he wanted. He also admitted that he had used the office cars for personal use.
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Singh told him, "The position is this: While you were expected to be and paid as a full-time CEO, you were earning fees outside NKF which were not disclosed to the NKF or to the public."
225:(SPH). This sparked significant controversy, causing a massive backlash and fallout of donors to the charity; it then subsequently resulted in the resignation of chief executive officer
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In 2003, only ten cents out of every dollar raised were used for dialysis costs. In its 2004 annual report, NKF had claimed that 52 cents out of every dollar went to its beneficiaries.
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Durai said, "They were not very consequential, in my opinion." He said it was not necessary for him to disclose to the board and added that the directorships were "just appearances".
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723:, TT Durai and the NKF board resigned en masse. An interim board was appointed by the government to keep the organisation going and begin the task of restoring public confidence.
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both by the Health Ministry and NCSS two years prior. However, the former decided to intervene in January 2002 and reinstated the NKF's IPC status for a full three years.
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Singh noted that even if the NKF had to foot the entire dialysis bill of $ 31.6 million a year, its current reserves of S$ 262 million would last more than eight years.
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Singh argued that the NKF had overstated its patient numbers, and this would have given the impression to the public that more funds were needed to run its operations.
581:, Durai said that the office fleet was used by officers who had to visit NKF facilities to attend to the needs of the centres and patients. Durai also had his own
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In August 1997 and December 1998, NKF volunteer Archie Ong and aero-modelling instructor Piragasam Singaravelu respectively were hauled to court separately for
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for his personal and family use, and his wife also drove it. However, the NKF paid the car's road tax and picked up the bills for maintenance and repair.
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When Singh produced Durai's CV and asked if it were complete, Durai answered, 'Not exactly.' He disclosed that he had once worked for a company known as
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867:(CPF) headquarters in July 2005, wearing T-shirts emblazoned with "GIC HDB NKF CPF Transparency now!", thus demanding greater transparency from the
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featured the main antagonist Lim Lau Pek, owner of an old folk's home, who uses the majority of phone-in donations on lavish personal expenditure.
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Staff received pay increments as often as four times a year. Former director Matilda Chua's salary rose from S$ 1,300 to S$ 12,500 over nine years.
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271:. A S$ 12 million civil suit to recover funds by the new NKF board against Durai and four other former board members began on 8 January 2007.
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was commissioned by the new NKF board to study past practices. KPMG published its report in December 2005, with key findings including:
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was appointed by Khaw as interim chairman to oversee the restructuring of the NKF, and Goh Chee Leok took over the post as interim CEO.
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donating. She later also published a public apology on local broadsheets The Straits Times and Lianhe Zaobao, while paying a total of
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Eunice Tay turned over the reins to her then-chief operating officer Edmund Kwok in 2013, after steering the NKF into calmer seas.
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The Board delegated its authority to the Executive Committee, and the Executive Committee in turn delegated its authority to Durai.
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Durai told the court on 11 July 2005 that he did fly first class. For the past two years, he had been entitled to a fare equal to
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263:, has since been appointed as interim chairman of the organisation. A full independent audit on its finances was conducted by
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The NKF, including chairman Richard Yong, had maintained that senior executives flew business class for long-haul flights.
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his sentence. However, he was given permission to serve half of his jail term (five months) at home on an electronic tag.
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business class rate – the equivalent of first class on other airlines. Previously, he had paid the difference on his own.
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and 12 other defendants were sued for defamation for questioning the government's handling of the NKF scandal in the
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Durai used NKF funds to pay bills relating to his wife's Mercedes, including paying for petrol and repairing the car.
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NKF shortly issued a letter of demand for an apology, retraction, and payment of damages from the paper's publisher,
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875:(HDB) and the CPF. The protesters were arrested but later dismissed without charges, with their own countersuit for
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Kok Fong). The result of Durai conceding will make the trial shorter rather than an expected eight-week trial.
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Singh then probed him on the director's fees he had collected while he was working full-time as the NKF's CEO.
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NKF awarded contracts worth $ 3 million to Forte Systems and $ 4 million to Protonweb, second one run by
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855:, have noted that the issues at NKF would probably not have been revealed had T.T. Durai not sued the
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that the NKF had treated 1,414 patients in 1999 and 1,512 patients in 2003. A letter written to
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From May 1995 to November 2003, he encashed his leave entitlement brought in another S$ 350,000.
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were effectively fighting a losing battle against the unlimited monetary resources of the NKF.
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In 2004, Durai chalked up an average bill of S$ 32,952 per month on his corporate credit card.
607:, which he described as an Iranian charity, for S$ 7,000 a month. A December 1995 article in
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published a post featuring a parody 1 peanut bill with a value equivalent to S$ 600,000.
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Please help update this article to reflect recent events or newly available information.
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at a press conference. Durai and NKF's board of directors resigned amidst the scandal.
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NKF civil trial kicks off with focus on the way the former CEO controlled the charity
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In 2004, S$ 430,000 on movie and concert tickets were given free to "nurture" donors.
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The court was told that the NKF's reserves stood at S$ 262 million as of July 2003.
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for six of NKF's staff, including Durai, to get fresh ideas on doing charity shows.
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The organisation's signboard in front of NKFS headquarter in Kim Keat Road was
1254:"Ex-NKF patron Mrs Goh Chok Tong regrets remarks about TT Durai's pay: SM Goh"
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From September 1997 to October 2003, his overtime pay amounted to S$ 187,000.
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Durai replied, "That's correct. The NKF board gave me the liberty to do so."
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need copyediting and condensation of points. Sections need to be reorganised.
972:"T. T. Durai: I should have said, I travel on first class", Bertha Henson,
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think it was so important at that point of time to correct this error."
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The case was dropped by Durai at 5 PM on the second day of the trial.
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in other institutions in Singapore. Opposition politicians, notably
1565:"Trouble at the top again for NKF, 11 years after damaging scandal"
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The trial began on 11 July 2005, with Long and SPH represented by
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Regulators wasted opportunity to prevent NKF saga: KPMG report
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1295:"2005 KPMG - A Report on the National Kidney Foundation.PDF"
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Staff were given exit payments of up to 10 months' salary.
487:, while NKF and Durai were represented by Senior Counsel
1244:, Anonymous, TalkingCock.com. Retrieved 23 December 2005
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On 14 July 2005, after a meeting with Health Minister
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President of the National Council of Social Service,
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The scandal has raised questions about the level of
427:redress the grievances of the three abovementioned
1169:"National Kidney Foundation sacks CEO Edmund Kwok"
773:In 2004, S$ 70,000 was spent on a "study trip" to
1081:"NCSS warned NKF and raised alarm back in 2001",
248:, sparked further outrage when she remarked that
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1503:"Yong crumbled in court under cross-examination"
1277:"Durai, NKF board resign amid public pressure".
957:"Why so silent, Mr Alwyn Lim?", Low Ching Ling,
643:contract with the NKF. Is that transparency?"
221:trial which it brought against Susan Long and
1597:KPMG's independent audit report into old NKFS
1066:Pay back damages in ' flew first class' suits
387:
1535:"How did Richard Yong slip through the net?"
1418:"Durai created his own fiefdom: NKF lawyers"
1358:"NKF seeks $ 12m from Durai and four others"
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195:National Kidney Foundation Singapore scandal
1125:Home is home but this office is for charity
53:Learn how and when to remove these messages
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1451:"Durai throws in towel, admits liability"
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167:Learn how and when to remove this message
149:Learn how and when to remove this message
1217:Public anger over charity chief's salary
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863:held a silent demonstration outside the
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410:when both said that T.T. Durai had been
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1027:NKF: Controversially ahead of its time?
686:Following questions about Durai's pay,
459:NKF: Controversially ahead of its time?
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699:a year or even struggle for a living.
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711:announcement to remain on the board.
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1235:"New Singapore Dollar Note Unveiled"
827:Richard Yong (the former chairman),
798:Civil suit against the old NKF board
215:National Kidney Foundation Singapore
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59:
18:
1370:from the original on 15 August 2022
13:
1449:Quah, Michelle (11 January 2007).
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436:National Council of Social Service
217:(NKF) following the collapse of a
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1585:
1545:from the original on 10 June 2007
1416:Quah, Michelle (9 January 2007).
989:Mr NKF, the court-happy combatant
869:Government Investment Corporation
818:
34:This article has multiple issues.
1463:from the original on 11 May 2022
1430:from the original on 11 May 2022
1356:Quah, Michelle (26 April 2006).
1334:from the original on 11 May 2022
1301:from the original on 6 July 2023
322:Kashmir earthquake relief effort
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504:In June 2005, the NKF had told
317:Hurricane Katrina relief effort
42:or discuss these issues on the
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358:Counter-terrorism in Singapore
16:July 2005 scandal in Singapore
1:
1592:The full chronology of events
1322:"NKF considers civil lawsuit"
1008:NKF acts against e-defamation
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530:In May 2004, Health Minister
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342:Execution of Van Tuong Nguyen
859:. Four people linked to the
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302:Avian influenza preparedness
256:600,000 a year is peanuts".
229:and its board of directors.
189:after the scandal broke out.
7:
1320:Chua, Val (12 April 2006).
1047:Action dropped, don't do it
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605:Bonyad Marketing Industries
363:Integrated resorts proposal
332:Police MRT Unit established
120:. The specific problem is:
10:
1659:
1501:Ho Lian Yi (4 June 2007).
1283:. 15 July 2005. p. 1.
888:Singapore Democratic Party
861:Singapore Democratic Party
1010:", Samantha Santa Maria,
873:Housing Development Board
731:Independent investigation
622:director of the company.
73:This article needs to be
802:In April 2006, law firm
517:by only S$ 7.2 million.
466:Singapore Press Holdings
457:published an editorial "
368:Singapore Flyer proposal
223:Singapore Press Holdings
1633:Healthcare in Singapore
1398:10 January 2007 at the
1148:14 January 2007 at the
907:Phua Chu Kang The Movie
1072:Forum, 13 January 2007
879:dismissed with costs.
865:Central Provident Fund
843:Long-term consequences
679:
610:The American Spectator
448:Allegations in article
235:first-class air travel
190:
1599:(PDF document, 4.4MB)
1259:31 March 2006 at the
1240:17 March 2006 at the
1103:5 August 2007 at the
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337:Presidential election
184:
1628:Singaporean case law
1175:on 22 September 2017
804:Allen & Gledhill
674:and Health Minister
237:. Former NKF patron
197:, also known as the
131:improve this article
122:Content copied from
116:to meet Knowledge's
1638:Hoaxes in Singapore
1613:Trials in Singapore
1515:on 23 December 2007
1127:", Low Ching Ling,
935:Accounting scandals
715:Government response
275:Initial accusations
1485:", Bertha Henson,
1456:The Business Times
1423:The Business Times
1363:The Business Times
1280:The Business Times
1263:, Wong Siew Ying,
1133:, 26 December 2005
1111:, 19 December 2005
1087:, 22 December 2005
963:, 24 December 2005
901:In popular culture
882:On 21 April 2006,
877:unlawful detention
831:(ex-director) and
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571:Singapore Airlines
416:Singapore Airlines
412:flying first class
312:Murder of Huang Na
209:, was a July 2005
191:
1618:2005 in Singapore
1491:, 11 January 2007
1488:The Straits Times
1155:The Straits Times
1084:The Straits Times
1070:The Straits Times
1068:", Lau Guan Kim,
1049:", Ng Wan Ching,
1031:The Straits Times
975:The Straits Times
930:Corporate scandal
748:Pharis Aboobacker
583:Mercedes-Benz 200
540:The Straits Times
506:The Straits Times
454:The Straits Times
404:
403:
297:117th IOC Session
283:Singapore in 2005
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118:quality standards
109:This article may
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1643:Charity scandals
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1539:Channel NewsAsia
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1511:. Archived from
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1406:, 8 January 2007
1404:Channel NewsAsia
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1029:", Susan Long,
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925:Corporate abuse
920:Chilling effect
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615:Hewlett-Packard
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1572:. Retrieved
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1513:the original
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1432:. Retrieved
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650:Case dropped
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871:(GIC), the
833:Loo Say San
809:Loo Say San
619:SparcServer
252:'s pay of "
203:NKF scandal
133:if you can.
124:T. T. Durai
1607:Categories
1016:, May 1999
946:References
690:, wife of
536:Parliament
443:NKF v. SPH
408:defamation
241:, wife of
219:defamation
213:involving
187:vandalised
39:improve it
1574:28 August
1305:4 October
824:invoice.
775:Las Vegas
725:Gerard Ee
672:T.T Durai
658:Aftermath
631:MediaCorp
579:affidavit
534:informed
261:Gerard Ee
250:T.T Durai
227:T.T Durai
45:talk page
1543:Archived
1461:Archived
1428:Archived
1396:Archived
1368:Archived
1332:Archived
1299:Archived
1257:Archived
1238:Archived
1179:11 March
1146:Archived
1101:Archived
914:See also
617:and Sun
511:dialysis
199:NKF saga
139:May 2022
111:require
1549:10 June
1519:10 June
758:77,000.
754:salary.
211:scandal
113:cleanup
75:updated
1467:12 May
1434:12 May
1374:12 May
1338:12 May
596:(CV).
350:Others
289:Events
269:Police
1569:TODAY
1327:Today
793:them.
694:(SM)
205:, or
1576:2023
1551:2007
1521:2007
1469:2022
1436:2022
1376:2022
1340:2022
1307:2016
1181:2019
737:KPMG
543:it.
480:and
265:KPMG
193:The
424:S$
254:S$
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1348:^
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