HINDU ENDOWMENTS (AMENDMENT) BILL

HINDU ENDOWMENTS (AMENDMENT) BILL: Order for Second Reading read.

The Minister for Community Development, Youth and Sports (Dr Vivian Balakrishnan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

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HEA and previous amendments to HEA

The Hindu Endowments Act (Chapter 364) has its beginnings in the Mohammedan and Hindu Endowments Ordinance of the Straits Settlements (Ordinance 17 of 1905). Subsequently, the Hindu Endowments Act (Act 30 of 1968) provided for the Hindu Endowments Board to take over, in May 1969, the administration of Hindu religious and charitable endowments – notably the Sri Mariamman Temple (at South Bridge Road), the Sri Srinivasa Perumal Temple (at Serangoon Road), the Sri Vairavimada Kaliamman Temple (in Toa Payoh) and the Sri Sivan Temple (in Geylang). These temples have previously been vested in the original Muslim and Hindu Endowments Board.

The Act was last substantially amended in 1993 to empower the Hindu Endowments Board to acquire property and to mortgage its property in order to raise funds to redevelop the property either solely or in a joint venture.

Proposed amendments

Sir, the proposed amendments to the Hindu Endowments Act have three main objectives: (i) to broaden the powers of the Hindu Endowments Board; (ii) to update the penalties for non-compliance with any requisition or order of the Board, and; (iii) to protect the members of the Board, the Secretary of the Board and any person acting under the direction of the Board from personal liability. In addition, the Bill also incorporates several minor and consequential amendments.

My Ministry, together with the Hindu Endowments Board, has embarked in the past two years on a series of public consultation efforts, including dialogue with key leaders from the Hindu and Indian organisations on these proposals. We have received broad-based support

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and, where possible, we have also incorporated their suggestions into the amendments which you see in the Bill before you. Allow me to briefly describe the key features of the Bill.

Powers and functions of Board

Sir, since the last amendments 17 years ago, there has been a healthy growth in the Hindu population in Singapore. Hindu religious organisations have been more active in promoting a broad range of educational, cultural, social and welfare activities for their devotees and for the larger community in Singapore. In line with our multi-racial and multi-religious society, the Board and the Hindu temples have also been actively involved in interfaith efforts.

The amendments will give the Board wider scope to be involved in activities that are not purely temple-related but, nevertheless, of importance to the Hindu community at large.

As a trusted and knowledgeable body within the community, the Hindu Endowments Board is well-placed to perform these additional roles. It is therefore timely, Sir, to repeal and re-enact section 21 of the Act to provide the Board with the broader mandate to also expend its income to conduct social, cultural and educational activities which are determined by the Board to be for the public benefit. As is established in the common law, the term, "public benefit" does not require every single member of the public to benefit but can be confined to a section of the public, so long as that section of the public is sufficiently large or open in nature having regard to the charitable purposes that are to be carried out. For example, in the case of the "Ashram" – which is a halfway house run by Hindu Endowments Board (HEB) – although it benefits a section of the public

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mainly, former drug addicts and its clients, in fact, include non-Hindus. This "Ashram" ultimately benefits society as a whole.

Power to form company, etc

The current Act provides for the Hindu Endowments Board to enter into a partnership to develop any property vested or acquired by the Board. This clause was added during the 1993 amendments to enable the Board to redevelop its property at Little India. That clause, however, is not wide enough to cover other areas of activities which the Board may, from time to time, find it necessary to pursue either through a joint venture or through incorporate companies.

I therefore propose to introduce a new section 17A which will expand the powers of the Board, to allow it to form companies directly or enter into joint ventures which are not confined to property development.

Updating of penalties for non-compliance

The third amendment deals with the penalties for non-compliance. Under the Act, the Board actually has a fair degree of investigative authority over other Hindu endowments in Singapore. To give teeth to these powers, section 24 acts as a penal provision which deals with persons who fail to cooperate with the Board. This penalty was last revised in 1952, and is now clearly inadequate.

The proposed revision of penalties in section 24 takes reference from the Charities Act as most Hindu endowments are also charities, in any case. To make the penalty consistent with provisions in the Charities Act, the maximum penalty will now be revised upwards from the present $400 to $5,000, while the fine for continuing non-cooperation will be reduced from the current $100 per day to $50 per day.

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Protection from personal liability

Sir, the last amendment proposes for a new section 34A to remove personal liability for Board members except in cases of gross negligence. As trustees of the endowments administered by the Hindu Endowments Board, members of the Board can be held personally accountable if endowment funds are expended for purposes that are not authorised.

However, Sir, members of the Board are volunteers. This proposed change aims to protect these volunteers if they have acted in good faith in executing their functions and duties. Their fiduciary responsibilities, however, will continue to apply to all Board members.

Sir, to conclude, the Hindu Endowments Board must continue to evolve in its role in order to stay relevant in today’s society. The key amendments in this Bill will further help the Board and its leadership rise to meet the new challenges and fulfil its expanded roles in the future.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mr Vivian Balakrishnan].

Bill considered in Committee; reported without amendment; read a Third time and passed.

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