KPMG Investigation Into NKF
The international accountancy firm KPMG investigated the business activities of NKF and issued a report on 16 December 2005 including the following conclusions:
- In 1995 Durai's pay was increased from $12,000 to $18,000. The promotion was backdated six months, so he received another $36,000. On top of that, Durai received a $30,000 bonus "top-up" based on the revised salary.
- In 1997 Durai was offered a salary of $30,000 a month but he chose to accept only $25,000, a $7,000 increase over his previous wage. The increment was backdated 11 months, amounting to an extra $77,000.
- From September 1997 to October 2003, his overtime pay amounted to $187,000.
- From May 1995 to November 2003, he encashed his leave entitlement brought in another $350,000.
- In 2004 Durai chalked up an average bill of $32,952 per month on his corporate credit card.
- In 2004 $70,000 was spent on a "study trip" to Las Vegas for six of NKF's staff, including Durai, to get fresh ideas on doing charity shows.
- In 2004 $430,000 on movie and concert tickets were given free to "nurture" donors
- Staff received pay increments as often as four times a year. Former director Matilda Chua's salary rose from $1,300 to $12,500 over nine years.
- Staff were given exit payments of up to 10 months' salary.
- Durai used NKF funds to pay bills relating to his wife's Mercedes, including paying for petrol and repairing the car.
- In 2004 NKF made a surplus of $993,677 from drug sales. Although NKF claimed it helped its patients save over $3.5 million in treatment costs, it had charged its patients a premium for certain discounted drugs, instead of passing the savings on to them.
Read more about this topic: T. T. Durai