Thursday, December 22, 2005

NKF - The KPMG Sequel

If you are looking for constructive criticism of TT Durai, Raymond Yong and the gang who ran NKF aground, you are at the right place. But don't expect me to use harsh words, as I am trying to be sensitive to the children and spouses of these now notoriously famous professionals who will no doubt have a place in Singapore's history; to the staff, partners, clients of NKF who have worked, lived, and believed wholeheartedly in the mission of NKF; and to the donors who have given from their heart for the very same mission. These must have felt a level of betrayal & humiliation beyond description, much more than the pain and anger we outsiders feel.

Like a mighty ship, NKF was a fine organization that was unfortunate to be led by a captain and sidekicks who are incompetent at best, and manipulative at worst. What do you think of an able-bodied person leading a blind beggar around to beg, then takes a big cut of the day's taking, leaving the beggar still blind and poor? That's precisely the case with Durai and gang. But, before you start splashing paint on Durai's house and shout "Cruxify him! Mummify him!"(whatever), have you wondered for a moment, did the man do anything illegal?

Thanks to the grossly imperfect man-made laws, he has done nothing illegal, it seems. Every approval & authorization was made above-board. He did not misappropriate funds, unlike Chia Teck Leng the casino man or Teo Cheng Kiat the SIA man. Well, he may have exaggerated some numbers & there may have been some conflict of interest, but looks like no one can really put him in jail for that. Whatever punishment that may be meted out to him will probably be as a slap on the wrist with a stack of Chennai-bought unused first-class airtickets. Thankfully, he doesn't have to do nude squats in front of his gold-plated tap because we are not Malaysia.

Instead of wasting our energy thinking about how to deal with him, let's think of the patients & other VWOs. Life goes on, and probably will never be the same again. Stiffer governance legislations & standards are surely in the pipeline. But before we become overzealous and push out all manners of codes of conduct and laws, think again.

1. Fund-raising: The problem is not with fund-raising per se, but with how funds are spent. No point having the 30/70 rule, when only a paltry part of the 70 percent reaches the patients, while the rest end up as first class airtickets, executive bonuses, payment for goods not delivered, etc. Make it mandatory for every company (charitable or not) to have a CGO - Chief Governance Officer who reports to an external regulatory body. It's not enough to rely on the CFO and CEO, or worst, the not-so-independent Board. Throw in a CQO - Chief Quality Officer as well, to ensure that the quality of services delivered can only improve.

2. Audit: Most of the Board of Directors at the former NKF was clearly in cahoots with TT Durai. Here's where internal and external audits have failed, big time. Well, you will think that a slack CEO and board will not be so stupid as to institute a no-nonsense internal audit squad. But surely the independent external auditors can do more?

3. Remuneration: Have clear standards on pay and perks of VWO executives, like we have for civil servants. If the presence of such restrictions will scare away potential candidates, let them be. VWOs are not for ex-corporate whims. If they cannot do without the perks and pay of the corporate world, they should stay put. VWOs are for people committed to the cause of the VWOs, who are not afraid of taking a pay cut AND making real sacrifices to render their professional services to help the underpriviliged.

4. What the CEO is made of: Know who are we hiring. As mentioned in point 3, not any whim can lead a VWO. Basic requirements for a VWO should include integrity, righteousness, and a functional moral compass. Those without such qualities need not apply. Surely a better-informed board AND a regulatory body can decide who is a choice candidate.

In closing, let's not forget to thank Mr Durai for helping us end the insanity.

Category: cf_hs

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