1) Before=KPMG found that the former NKF Board delegated all powers to the Executive Committee, which in turn delegated most, if not all, powers to the former Chief Executive Officer, Mr TT Durai. The Board was largely an ineffective one, which resulted in the concentration of power and authority in Mr TT Durai.
2) After= The new NKF Board consists of a panel of eminent professionals who are experts in their respective fields. Their roles and responsibilities are clearly spelt out and well delineated from the executive management and staff. The Board has also formed 7 committees in charge of specific areas: Audit Committee, Finance Committee, Legal/Governance Committee, HR/Remuneration Committee, Investment Committee, Nomination Committee and Medical Committee.
3) Before=Under the former NKF management, the NKF did not have a formal remuneration policy nor a comprehensive HR policy on staff benefits, which led to the apparent arbitrary determination and awarding of promotions, salary increment, performance bonus and other discretionary payments.
4) After = Now, the NKF has new HR policies that contain clear guidelines covering all aspects of staff benefits and entitlements as well as HR processes. Some of these polices are already in force while others, like the new salary policy, will be introduced from 1 Jan 2006. When the salary policy is implemented, the NKF will have a clear salary and grade structure and therefore a progression path for its staff. It will define salary ranges, annual increments, performance payments and there will be defined processes.
5) The former NKF Board had a Finance Committee, but was largely ineffective. KPMG found numerous breaches of stated purchasing policy and noted inadequacies in finance and accounting controls.
3.3.2. The new NKF Board has put in place a clear finance policy...