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Probe into Ren Ci uncovers irregularities in 'a few' transactions |
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Health Ministry has referred these to the Commercial Affairs Department. |
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By Salma Khalik, Health Correspondent |
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'In order to seek greater clarity into these transactions, MOH has referred them to the Commercial Affairs Department for it assistance,' said the ministry in a statement on Monday. 'MOH will be seeking the cooperation of Ren Ci's board and staff to assist in CAD's investigation.' But patient care and day-to-day operations will continue uninterrupted, with the ministry continuing its subsidy to needy patients seeking medical treatment from the Buddhist charity. Ren Ci has been investigated by MOH since last November following the discovery of some possible irregularities in certain financial transactions involving the charity and other external organisations. Ernst & Young Associates was appointed to conduct the inquiry. The charity had extended interest-free loans, amounting to millions of dollars, to several companies. An audit turned up discrepancies between the amount recorded by the charity as loaned out and that recorded by the companies as borrowed. Health Minister Khaw Boon Wan on Monday urged the public not to 'jump to conclusions' and let CAD carry out its investigation. He told reporters on Monday at the launch of the Singapore General Hospital's first holistic lifestyle centre that he was briefed by the auditors on some of Ren Ci's financial transactions on the weekend. 'Some transactions were highlighted, which suggest some irregularities...the answers were not satisfactory - they do not give a full explanation of the irregularities,' said Mr Khaw. 'There may be wrong-doing, there may not be. The important thing is for everyone to continue maintaining an attitude of fairness.' The CAD was called in to 'get to the bottom of it' as it has the expertise that goes beyond traditional book-keeping, said the minister. 'If we leave it hanging, leave question marks, it's not fair to Ren Ci. People would then jump to their own conclusions - rightly or wrongly,' he added. Mr Khaw said the CAD probe could take 'one or two months' although the investigators 'understand the need to speed it up.' He also gave the assurance that Ren Ci funds will not be affected as its reserves 'is still healthy and will last for quite some time' - even though the charity's Institute of Public Character (IPC) status has been suspended. The Minister also took pains to stress that Ren Ci is doing good work on the ground and its corporate govenance lapses will improve under new chairman Chua Thian Poh, who took over the helm last September. He noted that Mr Chua had brought in some new members in the last few months to help him raise corporate governance standards, and there has been some restructuring of the Ren Ci board in the past few weeks. 'I was quite glad when I read that Mr Chua was appointed the chairman. He's a very experienced businessman. I am quite confident that in due course, the corporate governance lapses will be improved and standards raised.' Copyright © 2007 Singapore Press Holdings Ltd. |