‘Severe mismanagement’ at Sri Veeramakaliamman temple, 3 key officials implicated

SINGAPORE — The Commissioner of Charities (COC) has uncovered lapses in the management of a prominent Hindu temple, and has moved to suspend two out of three key office bearers who are implicated in the investigations.

In a media statement on Monday (April 30), the COC said that, between Jan 1, 2011 and July 31, 2014, there were multiple instances of "severe mismanagement" in the administration of the Sri Veeramakaliamman temple, which obtained charity status in 1988.

It listed three key office bearers — former chairman R Selvaraju, former trustee and current chairman Sivakadacham, as well as temple trustee and secretary of the temple's management committee Ratha Krishnan Selvakumar — as people who are involved.

Investigations by the Commercial Affairs Department are also ongoing into the temple's financial affairs, the COC added.

An inquiry by the COC found that the temple issued uncrossed cheques, and allowed these cheques to be exchanged for cash in the temple's premises.

It found that between Jan 1, 2011 and July 31, 2014, more than S$1.5 million in uncrossed cheques were issued by the three key office bearers, with about 45 of them not issued to the names of its intended recipients.

The inquiry also revealed "serious issues" of conflict of interest. The temple had reimbursed Selvakumar for SIM card purchases made from Selvakumar's personal business, which amounted to more than S$2,800.

Selvakumar also approved transactions of more than S$750,000 with two vendors owned by his relative, it added.

In addition, Selvakumar obtained loans of S$350,000 in the temple's name, without the approval of the temple's management committee, or written loan agreements with the lenders.

The COC said the temple's loans and disbursements were not properly accounted for in its records.

"There were no documented policies and procedures within the (temple's) finance function to provide guidance to the management committee members and employees on how their duties were to be discharged," it added.

The COC has suspended Sivakadacham from his duties with immediate effect. He will be prohibited from taking part, or being involved in the temple's management, nor can he represent the temple on any matters.

The COC has also removed Selvakumar from his positions in the temple as he was previously convicted of offences involving elements of dishonesty, which disqualifies him from acting in a capacity of a governing board member.

It did not take any action against former chairman R Selvaraju, as he is no longer a governing board member, trustee, key officer, employee or agent of the temple since November 2016.

"The COC will not hesitate to take action against Selvaraju should he resume any office in the Charity," said the COC.

Three additional governing board members will also be appointed to the temple, with the aim of putting in place proper governance practices, and internal controls within the temple.

The COC initiated the inquiry on Aug 22 last year, after it received feedback on the management of the temple.

Asked if any of the office holders have been arrested, the police said it is “inappropriate to comment on an ongoing investigation”.

Temple volunteers were tight lipped when TODAY visited the temple on Monday. However, one volunteer , who did not wish to be named, said he was "aware of what is going on" but did not wish to comment on it. "I'm just here to meditate ... Let nature take its course."

Though some worshippers said they were taken by surprise and saddened by the news, most of them said it would not stop them from visiting the temple.

“While there is a sense of mistrust , we come here because we want to pray to the Gods. We hope the new management will be better and there will be more transparency and the funds will be put to good use,” said a 28-year-old worshipper who would only give her name as Nidhi.

The Indian national used to visit the temple at least once a month, when she was working in the Republic, but has since relocated to Jakarta for work, and happened to be visiting on Monday.

Another worshipper who gave his name only as Prakesh said he will continue worshipping at the temple as usual as “it’s between him and his faith”. The 20-year-old visits the temple at least once a month and has been helping out at a nearby shop while waiting to enter university.

Sri Veeramakaliamman Temple's income for the year ended June 30, 2014 amounted to about S$1.6 million, with expenses hitting some S$1.2 million, according to its financial statements.

EXAMPLES OF MISMANAGEMENT AT SRI VEERAMAKALIAMMAN TEMPLE

1. Duplicated payments for invoices issued by vendors. The inquiry revealed that they had erroneously effected multiple duplicated payments resulting in overpayment of its vendors.
    
2. Prevalent use of uncrossed cheques. Between Jan 1, 2014 and July 31, 2014, the temple issued at least 823 uncrossed cheques totaling more than S$1.5 million. There were 45 transactions in excess of S$227,000 where the uncrossed cheques were not issued to the names of the intended recipients of the proceeds and no supporting documents were maintained to substantiate that the intended payees eventually received the cash.
    
3. Loans and disbursements of proceeds unaccounted for. The inquiry revealed that Selvakumar had, on behalf of the temple, obtained loans without approval totalling S$350,000, and without written loan agreements with the lenders. According to the temple, the amount was to pay for tokens of appreciation to beneficiaries who helped at the temple's consecration ceremony in 2014.
    
4. Cash advances unaccounted for. The inquiry found instances where Selvaumar received cash advances amounting to S$18,000 via uncrossed cheques issued by the temple, and there were no supporting receipts to substantiate that its funds were legitimately used.
    
5. Conflicts of interest. The temple entered into substantial transactions with two vendors, owned by Selvakumar's relative, for which the estimated transaction value was collectively in excess of S$750,000. It also reimbursed Selvakumar for purchases of SIM cards from his business amounting to S$2,824.
    
6. Unauthorised offsetting of staff loans. There were no financial controls in place to monitor staff loans and prevent manipulation of the accounting records through unauthorised journal entries. In one instance, unauthorised journal entries were entered into the temple's accounting system to remove staff loans totaling S$10,000. As a result, its assets were reduced by S$10,000 with a corresponding increase in salary expenses.
    
7. Questionable transactions with intermediaries. There were many instances where the temple had engaged the services of individuals as intermediaries to purchase supplies and precious metals from overseas suppliers on its behalf. It disbursed a total amount of S$314,250 to the intermediaries.