Friday, July 15, 2005
Two days of outrage force Durai, board to quit
Val Chua and Lee U-Wen
val@newstoday.com.sg
IN A dramatic end to his 37-year career, a defeated T T Durai finally succumbed to public pressure yesterday, quitting the chief executive officer hotseat at the National Kidney Foundation (NKF), along with its entire board of directors.
The resignations — which came in the afternoon — were accepted by Health Minister Khaw Boon Wan, who admitted that the Government had "no legal rights" to intervene in a private charity.
The fact that it still did so spoke volumes of the impact of the public outcry Singaporeans have raised over transparency issues at the country's best-known charity.
At a hastily-arranged press briefing yesterday, Mr Khaw said the NKF had approached him for "advice" on how to respond to the public anger that has seen thousands calling for Mr Durai's head.
Two priorities emerged — not disrupting dialysis services for NKF's patients, and restoring public confidence in the charity, which has been shattered.
Said Mr Khaw: "On public confidence, my advice was that the status quo will not do. They asked if they should step down so that a new board and CEO could be appointed. I told them this would certainly be very helpful."
Meanwhile, active fundraising in NKF will be suspended while the Government scouts for replacements and reviews NKF's accounting practices, funding needs, pricing and subsidy policies, said Mr Khaw.
The review — as well as the resignations — have ironically come in the wake of a defamation suit that Mr Durai and NKF had filed over a newspaper report that mentioned the air of luxury at the foundation.
The case ended, instead, with revelations about Mr Durai's annual earnings of $600,000, the cars at his disposal and suggestions of half-truths in NKF's public pronouncements.
The Government now needs to look at some of these issues of extravagance and transparency — including the unresolved question of just how long NKF's reserves can last.
"Is it as rosy as what has been painted in the media — that (the reserves) can last 40-odd years — or is it as tragic as the three years that has been presented (by the NKF)? The truth is that it could be somewhere in the middle," said Mr Khaw.
He also said that if investigations reveal criminal activities, the law will take over.
"If funds collected suddenly disappear into Swiss funds, then of course that's criminal. If that is so, we have to find out who is responsible," he said.
However, reviews may show there's nothing wrong with NKF, he said.
"I hope Singaporeans will also acknowledge that if these accusations were exaggerated and unfair to individuals, they should also come upfront and say so. I'm sure the individuals want to have a proper scrutiny and endorsement. Am I a crook, criminal or what?" he said.
Yesterday, the NKF representatives - consisting of Mr Durai, chairman Richard Yong, and vice-chairman Alwyn Lim - were mostly silent during the press conference.
Gone were their repeated insistence that "they have done no wrong" in creating a public relations nightmare.
Although Mr Durai abruptly withdrew his suit on Tuesday, the damage had already been done.
By Wednesday, red graffiti defaced NKF's headquarters as 6,800 donors pulled out and thousands more petitioned for Mr Durai to quit. As the chorus of voices grew louder, government leaders also gave their take on the fiasco.
Yesterday morning, Dr Vivian Balakrishnan said at an industry event that while the government cannot force any decisions on the NKF, it will "watch very closely" and "nudge people in the right direction".
By evening, the nudge had become and invitation to leave _ though Mr Durai would not say if the government's stand pushed his hand.
Speaking to reporters, a drained and solemn Mr Durai said: "I think it's time for a new leadership to take over. Having brought the organisation to a level like this, it's preferable for a new leadership to take it to another level. Thirty-seven years is a very long time."
But he will not leave alone.
NKF patron, Mrs Goh Chok Tong, who has thrown her support behind Mr Durai throughout the controversy, has also decided to relinquish her position.
In a statement, she said: "This has been a sad and unfortunate episode. But I hope that Singaporeans will continue to support the NKF's efforts to help kidney failure patients and their families."
The board that had backed Mr Durai has resigned too.
Over the next few days, Mr Khaw will be busy finding a new chairman for NKF. The new board, however, may consist of existing NKF directors, for "continuity" reasons.
Despite the public flak, the NKF's model of professional fund-raising was praised for its efficiency.
"It would be a loss for Singapore if we go back to the old days, if we collect a few dollars here, a few cents there," he said. In fact, after the review, NKF reserves may be diversified into other causes, he revealed.
But bigger implications may result from the NKF fiasco.
For instance, there may be closer scrutiny on other charities, and if need be, the government may tighten regulatory controls, said Mr Khaw.
Vowing to help NKF "get back to basics", Mr Khaw said: "I'm against destroying in order to rebuild. This is stupid, silly and a waste of time. Unless it's so rotten, then it's a different story. I don't think it's rotten. Good work has been done, and let us build on that strength."
val@newstoday.com.sg
IN A dramatic end to his 37-year career, a defeated T T Durai finally succumbed to public pressure yesterday, quitting the chief executive officer hotseat at the National Kidney Foundation (NKF), along with its entire board of directors.
The resignations — which came in the afternoon — were accepted by Health Minister Khaw Boon Wan, who admitted that the Government had "no legal rights" to intervene in a private charity.
The fact that it still did so spoke volumes of the impact of the public outcry Singaporeans have raised over transparency issues at the country's best-known charity.
At a hastily-arranged press briefing yesterday, Mr Khaw said the NKF had approached him for "advice" on how to respond to the public anger that has seen thousands calling for Mr Durai's head.
Two priorities emerged — not disrupting dialysis services for NKF's patients, and restoring public confidence in the charity, which has been shattered.
Said Mr Khaw: "On public confidence, my advice was that the status quo will not do. They asked if they should step down so that a new board and CEO could be appointed. I told them this would certainly be very helpful."
Meanwhile, active fundraising in NKF will be suspended while the Government scouts for replacements and reviews NKF's accounting practices, funding needs, pricing and subsidy policies, said Mr Khaw.
The review — as well as the resignations — have ironically come in the wake of a defamation suit that Mr Durai and NKF had filed over a newspaper report that mentioned the air of luxury at the foundation.
The case ended, instead, with revelations about Mr Durai's annual earnings of $600,000, the cars at his disposal and suggestions of half-truths in NKF's public pronouncements.
The Government now needs to look at some of these issues of extravagance and transparency — including the unresolved question of just how long NKF's reserves can last.
"Is it as rosy as what has been painted in the media — that (the reserves) can last 40-odd years — or is it as tragic as the three years that has been presented (by the NKF)? The truth is that it could be somewhere in the middle," said Mr Khaw.
He also said that if investigations reveal criminal activities, the law will take over.
"If funds collected suddenly disappear into Swiss funds, then of course that's criminal. If that is so, we have to find out who is responsible," he said.
However, reviews may show there's nothing wrong with NKF, he said.
"I hope Singaporeans will also acknowledge that if these accusations were exaggerated and unfair to individuals, they should also come upfront and say so. I'm sure the individuals want to have a proper scrutiny and endorsement. Am I a crook, criminal or what?" he said.
Yesterday, the NKF representatives - consisting of Mr Durai, chairman Richard Yong, and vice-chairman Alwyn Lim - were mostly silent during the press conference.
Gone were their repeated insistence that "they have done no wrong" in creating a public relations nightmare.
Although Mr Durai abruptly withdrew his suit on Tuesday, the damage had already been done.
By Wednesday, red graffiti defaced NKF's headquarters as 6,800 donors pulled out and thousands more petitioned for Mr Durai to quit. As the chorus of voices grew louder, government leaders also gave their take on the fiasco.
Yesterday morning, Dr Vivian Balakrishnan said at an industry event that while the government cannot force any decisions on the NKF, it will "watch very closely" and "nudge people in the right direction".
By evening, the nudge had become and invitation to leave _ though Mr Durai would not say if the government's stand pushed his hand.
Speaking to reporters, a drained and solemn Mr Durai said: "I think it's time for a new leadership to take over. Having brought the organisation to a level like this, it's preferable for a new leadership to take it to another level. Thirty-seven years is a very long time."
But he will not leave alone.
NKF patron, Mrs Goh Chok Tong, who has thrown her support behind Mr Durai throughout the controversy, has also decided to relinquish her position.
In a statement, she said: "This has been a sad and unfortunate episode. But I hope that Singaporeans will continue to support the NKF's efforts to help kidney failure patients and their families."
The board that had backed Mr Durai has resigned too.
Over the next few days, Mr Khaw will be busy finding a new chairman for NKF. The new board, however, may consist of existing NKF directors, for "continuity" reasons.
Despite the public flak, the NKF's model of professional fund-raising was praised for its efficiency.
"It would be a loss for Singapore if we go back to the old days, if we collect a few dollars here, a few cents there," he said. In fact, after the review, NKF reserves may be diversified into other causes, he revealed.
But bigger implications may result from the NKF fiasco.
For instance, there may be closer scrutiny on other charities, and if need be, the government may tighten regulatory controls, said Mr Khaw.
Vowing to help NKF "get back to basics", Mr Khaw said: "I'm against destroying in order to rebuild. This is stupid, silly and a waste of time. Unless it's so rotten, then it's a different story. I don't think it's rotten. Good work has been done, and let us build on that strength."
