Former NKF CEO allegedly paid staff salaries and bonuses based on own decisions

SINGAPORE: Day two of the National Kidney Foundation civil trial highlighted how the former CEO paid staff salaries and bonuses based on his own decision and how he travelled overseas luxuriously.

NKF's lawyer K Shanmugam said TT Durai did not consult the executive committee on these matters, so favoured employees received high and unauthorised payouts because there was no proper remuneration policy.

For example, former board member Matilda Chua, was given a six months bonus of about $75,000, on top of the six months she was already getting, even though Durai knew she was about to resign.

NKF lawyer Mr Shanmugam said this was "uncomprehensible", noting that such a payment was very difficult to justify even in a commercial organisation.

In a charitable organisation, like NKF, he said "it cannot be justified, period."

Another example that Durai had absolute control of the charity, with no oversight - he made extensive travels and exorbitant expenses, all approved by himself.

In the courtroom, Mr Shanmugam pointed out that Durai travelled first class and stayed in luxurious hotels, even through he was then the CEO of a charity organisation.

Over a seven and a half year period, Durai charged more than $1m for hotel stays for himself and possibly for other NKF staff like Matilda Chua. Mr Shanmugam said what Durai did on those trips and how it benefited NKF, no one knows.

Mr Shanmugam also pointed out how the old NKF allegedly lost sight of its charitable objective by concentrating on fund-raising activities, instead of patients' welfare.

He said from 2001 to 2003, funds raised grew from about $59m to some $68m, but during the same period, the net amount spent on patients' dialysis and transplantation fell by nearly half from $12m to around $7m. - CNA /dt


Source: http://sg.news.yahoo.com/070110/5/singapore251481.html