THE wife of the former chairman of Singapore's biggest charity yesterday pleaded guilty in a Hong Kong court to money laundering, her lawyer said.

On Shu Kio, 64, wife of Richard Yong - the former chairman of the National Kidney Foundation - admitted dealing in money which she knew was from the proceeds of a criminal offence, barrister Toby Jenkyn-Jones said. She will be sentenced next Tuesday.

The guilty plea was the latest fallout from a corruption scandal that rocked the charity and its senior officers.

Yong had earlier been convicted of illegally transferring $3.92 million to his wife-s account in Hong Kong, according to the records of Singapore's Commercial Affairs Department.

He had transferred the money in an effort to avoid paying damages ordered by a court in a case brought by the charity's new management against him for breach of duty.

On May 17 last year, he fled with his wife to Hong Kong just hours after a high court declared him bankrupt, the records showed. He was later repatriated and sentenced to jail for 15 months in September last year.

The charity's mishandling of funds was revealed after the foundation's former chief executive, Mr T.T. Durai, filed a defamation suit against The Straits Times in 2005.

The case backfired spectacularly after Mr Durai was forced to reveal his $600,000 annual salary and perks, including first-class flights paid for by donors' funds, and the upkeep of his Mercedes.

The case sparked widespread anger as around two-thirds of Singaporeans have donated to the foundation, which employs an aggressive, commission based marketing model, and which holds televised donation drives featuring celebrities.