NERVING it may be but it should not come as a surprise that another major charity, this time Ren Ci Hospital and Medical Centre, is under investigation barely two years after the National Kidney Foundation scandal shook donor confidence. Indeed, it would be surprising if the higher governance standards and greater scrutiny instituted in the wake of the NKF affair do not continue to uncover at least the need for a closer look at more charities. They are going through a difficult but necessary transition from being largely self-regulated and loosely supervised, with weak financial controls, to a formidable regime of operating rules, audit requirements and financial reporting. The Commissioner of Charities exercises a wide range of powers, and he is expected to root out and prevent fraud. The public interest and the integrity of the charity sector are paramount.
Ren Ci's finances might or might not have passed muster previously. A Ministry of Health review has revealed 'some possible irregularities in certain financial transactions'. These activities could have taken place long before the new rules took effect, but they also could have persisted since. The ministry has appointed an accounting firm to look into the charity's books. It will announce the findings when the inquiry is completed, possibly in three months. Until then, judgment should be stayed. Jumping to conclusions does no good at a time when public confidence in charities is slowly being rebuilt. It is best to heed Health Minister Khaw Boon Wan's advice to withhold judgment until the 'firm, fair and transparent' investigation he has started has established the facts of the transactions in question.
The charity sector's move towards greater corporate accountability under statutory order started only recently. Office holders need time to change their mindset, familiarise themselves with new regulations and train staff to comply with procedures. While engendering and preserving public confidence in charitable giving is paramount, there is also a need to avoid making requirements for and duties of office so onerous as to discourage people who wish to volunteer their time and effort. In the NKF aftermath, some charities reportedly found it difficult to get people to serve on their governing boards. Not everyone is comfortable with the stress that comes with having to be vigilant against untoward legal risks. Until the sector moves completely to more effective governance under the Charities Act - and the Ren Ci inquiry has made its conclusions - the giving public would do well to keep an open mind.
