A Hong Kong court on Monday jailed the wife of the former chairman of Singapore's biggest charity for 22 months for money laundering. On Shu Kio, wife of the former chairman of the National Kidney Foundation, Richard Yong, had previously admitted dealing in money she knew was from the proceeds of a crime.
The couple had whisked 3.9 million Singapore dollars (2.7 million US) out of Singapore to Hong Kong to avoid paying damages from another case and On had then tried to transfer the money to a Swiss bank account, the court heard. Judge Andrew Chan said he had no doubt that On was aware of what she was doing. "She came to Hong Kong simply for the purpose of committing this crime," Chan said in Hong Kong's District Court.
"The defendant derived direct, substantial benefit from this scheme, in that the family wealth (was) to be preserved." The 64-year-old, a former successful businesswoman in Singapore, was impassive in the dock as the judge handed down his sentence.
Her husband was also in court, but made no comment outside. The case was the latest fallout from a scandal about mishandling the charity's funds that rocked the institution and its senior officers. It was first revealed in 2005, when the foundation's former chief executive, T.T. Durai, filed a defamation suit against Singapore newspaper The Straits Times.
The case backfired after Durai was forced to reveal his 600,000 Singaporean dollar annual salary and perks, including first-class flights paid for by donors' funds and the upkeep of his Mercedes. He also admitted the foundation had grossly misled the public over how long its reserves of 260 million Singapore dollars would last if donations stopped, as well as how many patients it treated each year.
In the fallout, Yong was ordered to pay damages by a court after the charity's new management took action for breach of duty, government records show. To avoid paying the cash, Yong and his wife sold several houses and moved the money to the Hong Kong accounts before fleeing Singapore in May 2007, just hours after the city-state's high court had declared Yong bankrupt.
He was later repatriated and sentenced to jail for 15 months in September last year for illegally transferring the money, the records show. The National Kidney Foundation case sparked widespread anger because an estimated two-thirds of Singaporeans had donated to the charity.
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