Ex-NKF chairman Richard Yong arrested in HK

Ex-NKF chairman Richard Yong arrested in HK

FORMER National Kidney Foundation chairman Richard Yong has been arrested in Hong Kong after fleeing the country illegally and failing to hand over his assets after declaring bankruptcy.

Yong, 65, will be brought to court there on Thursday to face extradition proceedings.

The Commercial Affairs Department (CAD) said that the Hong Kong Department of Justice has confirmed that Richard Yong has been arrested by local authorities on Wednesday morning in line with Singapore's request.

Hong Kong police have also arrested Yong's wife, Ong Shu Kio, also in her 60s.

The Subordinate Courts had earlier issued a warrant for his arrest, and Yong was declared a wanted man on June 13.

The charges: Fleeing the country illegally on May 17 and failing to hand over assets as required by the Bankruptcy Act.

Yong's departure came in the wake of revelations on May 9 that he had sold three apartments for $7.5 million shortly after losing a suit the NKF had filed against him, ex-board members Loo Say San and Matilda Chua, as well as former chief T.T. Durai.

The charity's lawyers on May 11 obtained a Mareva Injunction - requiring Yong to give details of his assets, and to prevent him from disposing of them.

Three days later, the NKF filed a police report against Yong alleging that he sold his property to escape paying the $11 million he owes the charity in damages.

On May 16, Yong was convicted on criminal charges and fined the maximum $5,000 for failing to exercise due diligence and allowing for over-payment to an Indian software firm.

He was also declared a bankrupt on the same day for failing to pay nearly $1 million to the charity after losing the civil suit earlier this year. But he crossed the border into Malaysia late that night before the immigration authorities could be alerted.

Yong was supposed to have filed a Statement of Affairs -a written declaration of a bankrupt's assets and liabilities - to the OA (Official Assignee) on May 15. The statement came to the Insolvency and Public Trustee's Office, but only after it had closed for the day.

The OA is an officer of the court who administers the affairs of bankrupts.

In a statement on June 13, the Ministry of Law said that the OA had worked with relevant authorities to determine if Yong fraudulently disposed of his property.

On May 21, Yong had filed a brief affidavit from Kuala Lumpur stating that he had only $247 in a bank account and that the cash from selling his properties had gone towards repaying loans and legal fees.

The Bankruptcy Act states that it is an offence for a bankrupt to give away or transfer assets for a period of five years prior to the date of the bankruptcy order.

Those found guilty face up to three years in jail and a maximum $10,000 fine.

Bankrupts who leave the country without permission face up to two years in jail and a maximum $10,000 fine.