Pencil Shavings

Thursday, July 14, 2005

We are barking up the wrong tree

NKF (National Kidney Foundation) sued SPH (Singapore Press Holdings) for an article that alluded to $900 gold-plated taps in the personal restroom of its CEO, T.T. Durai. In the course of the proceedings, it has emerged that T.T. Durai earns $25,000 a month and gets 10 to 12 month bonus, which comes to a $600,000 annual salary. The public is outraged. Vandals paint "Liar" on the NKF sign. On day two of proceedings, NKF withdraws its suit.

But who is the judge in these cases? Who decides how much salary is too much? We function in a market that is ruled by demand and supply -- if T.T.Durai is a fundraising genius, he will be paid an appropriate fraction of whatever he raises. There are so many charities in Singapore who can only dream of his genius at raising funds. The organisation I work for has a charity arm as well -- their salary has been frozen since 2000 for an indefinite amount of time because of the lack of funds. Every year they have to do never-ending fundraising gigs to beg for money to cover their operation costs. Charity workers deserve their wages too. If you paid your CEO less, will you be able to get the necessary funds in?

On the other side of the suit is SPH. Now, who in their right minds wants to take on SPH in a legal suit? Remember SPH has monopoly over the media -- what they put on the front page of the Straits Times, the heart-wrenching letters they include in the forum page, the quotations they highlight in their shout boxes, the pictures they choose to include... Can you really fight with that? They can sway a nation's heart and mind.

Now, how much is the CEO of Straits Times making? Someone will say, this is different, NKF is a charity organisation while SPH is profit making. But SPH is a profit-making monopoly. Which is worse? As a consumer, I have a choice in either case -- I can choose whether I want to buy the morning papers or not; I can choose whether I want to call that 1-900 number to donate $5 or $10. At least part of the $5 I give to NKF would go to charity.

Take issue with corporate monopolies and oligoplies who make profit out of public goods; take issue with under the table business ethics; but at the same time, create checks and balances for public charities so that they can function, raise funds, and contribute to society in a transparent yet efficient way.

Singapore cannot survive without its charities. Go easy, please.

2 comments:

smudgi3 said...

Thank you. Thank you for being the voice of reason in this sensitive time. You have put into words what I have in my mind.

Anonymous said...

Same sentiment. it takes 2 hands to clap.