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WORK IN PROGRESS: The new hospital will be ready by September, said the charity, although a signboard at the site stated its due date of completion as the first quarter of this year. -- ST PHOTO: EDWIN KOO
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REN Ci Hospital, already mired in an ongoing police investigation, has been dealt yet another blow.
The charity has lost the right to collect tax-exempt donations for its new hospital in Irrawaddy Road, next to Tan Tock Seng Hospital.
Its new hospital building fund's Institution of Public Character (IPC) status, which allows it to collect tax-exempt donations, expired in March and was not renewed by the Health Ministry (MOH).
The ministry said that this is because Ren Ci, one of Singapore's largest charities, is being investigated by the Commercial Affairs Department (CAD) for financial irregularities.
Industry watchers say the loss of its IPC status is a significant blow to the new hospital's fund-raising efforts, as big donors usually ask if they can get tax exemptions before giving.
However, Ren Ci's chairman Chua Thian Poh told The Straits Times that completion of the 15-storey hospital will not be affected by the loss of the IPC status.
Without giving further details, Mr Chua said: 'Our contractors tell us the new hospital will be finished by the end of September.'
An MOH spokesman said Ren Ci had not indicated to the ministry that there will be any delays to the completion date of the hospital.
A notice board outside the hospital's construction site, though, put the expected completion date as the first quarter of this year.
Ren Ci currently has two medical facilities - one at Buangkok View and the other at Jalan Tan Tock Seng - with a total of over 400 beds.
As of October 2006, it was reported that Ren Ci was still $4 million short of its fund-raising target for its third hospital.
It is not known if the $4 million has been raised, as the hospital did not reply to The Straits Times' questions, citing the ongoing police probe as the reason.
MOH is funding $21.04 million of the hospital's construction costs, which come up to $30.8 million, according to previous reports.
A subcontractor, who declined to be named, said they are now working overtime to get the building up by the end of September.
Ren Ci's troubles started last November when MOH started a probe into the charity's accounts, after discovering possible financial irregularities.
At the heart of the probe are questionable loans made by Ren Ci, amounting to several million dollars.
Some of these loans were given to companies with links to Ren Ci's founder, Venerable Ming Yi.
There were discrepancies between what was loaned out in Ren Ci's accounts and what was reflected in the borrowers' books.
The hospital also lost its first IPC status then.
MOH told The Straits Times that Ren Ci used to have one IPC status for its general fund and another for the building fund for its new hospital.
Venerable Ming Yi went on leave the day Health Minister Khaw Boon Wan made public that MOH had turned the case over to the CAD in February.
Yesterday, the monk did not answer calls from The Straits Times.
The police would not say when they would wrap up their investigations into Ren Ci.
theresat@sph.com.sg
jermync@sph.com.sg
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