The following is the transcript of Dr AR Bernard message preached on 21st September 2013:
Let me uh, speak to you apostolically and from the position of a
spiritual advisor [to] Pst Kong, Sun and CHC. This past week, on Monday
evening, I had a meeting here in Singapore that was requested by several
individuals. I was approached in the spirit of reconciliation, in the
spirit of concern for the health and future of CHC. I listened, and I
expressed the fact that I too am concerned about the health and future
of CHC. I also expressed that I understood where they were coming from
in the things that they shared. That meeting was in confidence, and the
purpose of the meeting, as it was presented to me, was to follow the
pattern of Matthew chapter 18, where it says that if you have an offence
with a brother, that you go to them. It was told to me that that first step was taken. And the next step was to bring a witness. So it presented to me for the purpose of, and the spirit of, reconciliation.
I expressed to these individuals that I met with, that 1) I will not
be used or manipulated by anyone to further their agenda. At the end of
the meeting I also expressed and warned that they should abstain from slander, that they should abstain from gossip,
because if they engage in it, then as far as I’m concerned, they
destroy their credibility in my eyes, and the credibility of anything
that they have to say.
I want you to know that just because I sat down and listened to what
they had to say, and told them that I will pray about it and get back to
them with next steps, it does not mean in any way that I endorse their
agenda, endorse their position, or endorse anything that they’re trying
to accomplish.
I listened, as a statesman, and my next step was to sit down and have a wonderful conversation with Pst Kong and Pst Sun.
So. There is a process in place for individuals who really don’t like
the way things are going at CHC. And see, I’m from New York, so we’re
very confrontational and in your face, so when you come to me, be
prepared to put the cards on the table and deal with it. But that’s me.
So I’m telling you what took place this week. And
if these individuals are sincere and legitimate, then they will take a
next step to arrange a good sit-down meeting in the spirit of
reconciliation, and really honour the leadership of this house, Pst Kong
and Sun.
So I’ll be back some time at
the beginning of next year, and I will have a follow-up announcement,
and I will let you know how this all turns out.
*crowd applauds*
When you have an issue with someone, especially with those at leadership, don’t go and talk to other people. Go to the person that you have a problem with. Thank you, I appreciate the three men I got. I’m serious, if you have a problem, you go and talk to them.
You don’t go to other people, and, and in the disguise of, well, could
you join me and pray. Because sometimes when we share things to be
prayed about, it’s actually gossip in disguise. Turn to your neighbour
and say he’s talking about somebody you know.
Scripture is very clear on how issues are supposed to be dealt with
in the house of God. And there is an honour and a respect that should
come for the leadership who is anointed by God. And even David
understood this. In spite of the conflict that he had with Saul, he
understood that the man, Saul, was anointed king and he had to respect
that and let God take His course in dealing with whatever issues are present.
Let me share a verse of scripture with you. I never walk on this, is this safe?
Let me share a passage of scripture with you. So you’re gonna get 2 sermons tonight. This is the 1st one.
In the book of James chapter 3, verse 1. And I’m reading from the
amplified bible and I hope you can put it up on the screen, the
amplified bible, because if you don’t have this particular translation, I
really want you to see it and get the flavor of it.
It’s a wonderful passage; it speaks about the responsibility of those
that would teach others. But the way that it is expressed in the
amplified bible is even more specific to the original Greek language and
it’s implications. So let’s read it in verse 1.
“Not many of you should become teachers.” And I love the deeper shade
of meaning here. “(Self constituted censures and reprovers of others),
my brethren, for you know that we teachers will be judged by a higher
standard and with greater severity than other people. Thus, we assume
the greater accountability and the more condemnation.” By what we do.
V2 “For we all often stumble and fall and offend in many things. And
if anyone does not offend in speech [never says the wrong things], he is
a fully developed character and a perfect man, able to control his
whole body and to curb his entire nature.”
Let us go to verse 17. Verse 17 speaks of the tone and spirit that
one should have when engaged in reconciliation, when engaged in dealing
with any issues that occur between brothers and sisters in the Lord.
It says this: “But the wisdom from above is first of all pure
(undefiled); then it is peace-loving, courteous (considerate, gentle).
[It is willing to] yield to reason, full of compassion and good fruits;
it is wholehearted and straightforward, impartial and unfeigned (free
from doubts, wavering, and insincerity).”
Now, I present those verses to you because that is the spirit in
which we resolve any issues between brothers and sisters, between
leadership at any level, within the church of Jesus Christ.
You are in a very, very – I’d like to say interesting, but – but
you’re in a very interesting place.
Because God did not raise up CHC or
bring you this far to leave you. He has a reason, a purpose for your
existence, and He raised up an individual, infused that individual with a
vision. They became the visionary, and of course, they became the fuel,
the energy behind the vision. And when God called Pst Kong and Sun, I
have a strong feeling He knew all about them. He knew their strengths,
He knew their weaknesses. He knew, over the years, where this ministry
would come to. And unlike people, God remains faithful. God is good even
when things are bad. God is faithful even when we are unfaithful and
make mistakes. So if anyone comes to you and has anything to say about
this leadership, or about this ministry, you test to make sure that it
is in the spirit of Godly wisdom that has been expressed in the
scripture, and that they understand the responsibility that they take
upon themselves, and they determine to reprove. Especially those that
are in leadership.
God sets boundaries for order. And God is not the author of confusion. He is a God of order. Amen?
Now, is that ok that I express this with you guys? Up in the balcony,
way up there, are we ok with this? Alright, I have a low tolerance for
foolishness, and maybe it’s because I’m getting older, I don’t know. But
the bottom-line is issues are to be dealt with upfront, on the table,
in the open, and not behind closed doors.
So we will see, maybe folks will get mad at me tonight because of what I just said. Maybe I’ll be attacked.
Maybe I’ll become famous and on the blogs. *crowd laughs* I don’t
care. Simple as that. That’s the freedom, the authority that I walk in,
in Christ. I don’t claim to be perfect. I have made my mistakes along
the way, and if I could do some things differently, oh boy, would I. And
if you wanna know the details of my mistakes, ask my wife, but I don’t
want you to ask her. But we understand what it is to be committed, to be
covenanted, and God is a God of covenant. Whether it’s between Him and
people, or between people and people in the context of serving Him.
Amen?
Now, Pst Kong, let me ask you a question. Come, come up here.
*crowd claps as Pst Kong goes on stage*
I hope you’ll invite me back to preach after all this, (inaudible).
You’ve been through a lot, and I know that for reasons of the trial,
you have to be careful what you say. You have to be careful what you can
respond to, what you can’t respond to.
Erm, because it can undermine what the attorneys of the church and
the attorneys of all the individuals are trying to accomplish. And I
think they’re trying to get you exonerated. I mean, I wouldn’t pay them
if they weren’t trying to do that.
But I wanna make sure, because I’m here, I come and go. But I wanna
make sure, so I’m asking you this publicly. You’ve had time to reflect.
You’ve had time to look back. I know you’re not perfect, so you don’t
have to tell me. I know that already. Sun told me already. *crowd
laughs*
Don’t worry about it, we have covenant, you won’t get any information from her.
But as you look back, on hindsight, would you say that – I don’t know
any other way to put this, so I’ll try to be as nice as I can – would
you say that you made some dumb mistakes?
PK: Dumb mistakes? Absolutely.
ARB: Stupid?
PK: Stupid. Doctor Cole would say asinine.
ARB: Asinine, I like that even better. Thanks for reminding me.
Would you say that there were some areas of weakness in leadership, and the decision-making that you made, over time?
PK: Yes, doctor, ya.
ARB: So you’re not pretending to be innocent of being human. You’re
not pretending to be innocent of making mistakes and unwise judgments
along the way as all leaders (points to himself) do?
PK: Absolutely not.
ARB: I just wanna make sure because I don’t want anyone to, you know,
have the impression because you stand up here and share the Word of God
continuously – which is really hard to do given circumstances that
you’re in, to be consistent with it – erm, how have you worked those
mistakes out in your relationship with the Lord?
PK: Well, doctor I, I, the only way I
know how to do it is bring all my problems, my mistakes, my oversight,
my sins, in prayer, in repentance, and say Jesus, forgive me, cleanse
me, help me never to commit those same mistakes ever again.
ARB: Have you done that?
PK: Doctor, all the time.
ARB: Again and again?
PK: Again and again. Not because I’m guilt conscious in any way, but…
yeah, 3 years is a long time to reflect on 20 over years of ministry.
ARB: Yeah, it is. It really is. Now, he is nervous right now because he has no idea what I’m going to ask him.
So I’m gonna leave it there, alright? Because these people love you,
they support you. They don’t think you’re perfect, Sun told them too.
But when you embrace a leader, you embrace not only his spirituality;
you embrace his humanity. They come together in 1 package. And there
will always be something you may disagree with, not feel good about. But
your commitment to God’s vision, and your love for that person,
transcends those weaknesses, those faults. I love you. *hugs Pst Kong
for a long time*
*Pst Kong leaves the stage*
Come on, give your pastor a round of applause. *crowd gives standing ovation*
Come on, you can do better than that.
Thank you. You see the big smile on his face when he did that? It’s
great when you have people that just love doing what they do for God.
Amen?
Some of those times in our church, when the Spirit of God moves in a
very specific and special way, I’m careful not to try to compete with
that. So what is true at home, is true here. And as I sat there and
observed for the first time, as you, the video, I felt that it would be
unwise for me to try to build on that by giving you another preaching. I
think that inherent in what we shared was a very deep and profound
message about unity, about the body of Christ, about the spirit of
reconciliation, and how things should be done.
Jesus loves us. And that may seem like a very light and even (some
word 29:18) statement, but it is the very basis of our salvation. And
the reason why Jesus is going to return to scoop us out of this world in
which we live, is not because we’ve been so good. Not because we
worship. Not because we prayed. Not because we’ve done anything to
deserve His return. What’s going to bring Him back is the same love that
brought Him the first time. And it’s that love, that great love, with
which He loves us.
Let’s all stand right now, and you need to appreciate the leadership
of this house, Pastor Kong Hee and his lovely wife, Sun. *another
standing ovation* *Pst Kong and Sun clasp their hands and bow their
heads*
Hallelujah!
(blogger's note: my favourite part coming up)
And here’s what I tell people in New York: if
you are in a church that you don’t like, and that you have a problem
with the church and its leadership, your continued attendance becomes a
testimony to your stupidity.
Because why in the world would you continue to reside in an
environment that is deemed by you to be contrary to your spiritual
growth and development? Here is a clue for you: Pray and ask God for
another church. So you can go to that church *crowd applauds*. So that
you can be an asset and not a liability. So that you can flourish in an
environment that you’re comfortable with, not an environment that you’re
contrary with.
That’s just common sense. And unfortunately, if common sense were so common, more people would have it.
Monday, September 23, 2013
Poon says sorry; pastor asks church to forgive (ST, 27 Jan 2003)
The man who made allegations about City Harvest Church’s support of pastor-singer Ho Yeow Sun’s pop career has apologised publicly.
And in five sermons over the weekend, Ho’s husband, church founder and senior pastor Reverend Kong Hee, asked the congregation to forgive the man.
Two weeks ago, Mr Roland Poon Swee Kay contacted the press to complain about what he said were improper practices by Rev Kong and his wife.
Last Friday, the 53-year-old businessman issued four apologies in The Straits Times, Lianhe Zaobao, Lianhe Wanbao and Shin Min Daily News. A fifth apology appeared in The New Paper last Saturday.
In all, they cost $33,372.06. A source close to Mr Poon said yesterday that the amount was paid by an anonymous donor who knew of the businessman’s financial difficulties.
In the half-page apology in The Straits Times, Mr Poon, a member of the church, said he had fed false information to journalists from Life! and Today via e-mail and telephone conversations.
He also retracted all previous statements he had made regarding Rev Kong, Ho and the church.
Some of his earlier remarks were aired on Channel NewsAsia on Jan 17. This was followed by a Page 1 story in Today on Jan 18, which claimed that some church members had expressed uneasiness over City Harvest’s support of Ho’s pop career.
After reading the report, Ho, 31, who was then in Taiwan, broke down in tears.
In a Life! story published last Monday, she said that she had done nothing wrong.
Her husband also denied Mr Poon’s allegations. Rev Kong said that no church funds had been used for Ho’s pop career promotion, and that it was normal practice for the church to support and celebrate the secular success of its members.
The Chinese press also picked up the story.
Ho, who has been the church’s music pastor since 1993, launched her pop career last year.
Her first album, Sun With Love, sold more than 100,000 copies last year.
She recently launched her second work, Sun*day. All proceeds from both albums are pledged to charity.
She also sang at last Friday’s MTV Asia Awards, and was nominated for Favourite Artiste – Singapore.
As a result of all the news, members of City Harvest, which is in Jurong West, say they have been under a lot of ‘unnecessary’ scrutiny.
UFM 1003 DJ Danny Yeo, 30, for one, said he had been bombarded with phone calls.
‘I tell people that I’m still attending City Harvest and that it takes more than reading headlines and newspapers to make a judgment about the church,’ he said.
Last Friday, Life! also published a response from the City Harvest management board.
The letter reiterated Rev Kong’s stand that no church funds were used to finance Ho’s pop career. It added that there was no hard-selling of her two CDs in the church and no question of a personality cult forming.
That Mr Poon’s retraction in The Straits Times appeared on the same day as the church’s reply has raised some eyebrows among observers.
However, Rev Kong and church board member Chew Eng Han explained yesterday that it was pure coincidence.
The board had already submitted its statement to the newspaper last Wednesday, before the church received a call from Mr Poon later that day.
‘He voluntarily met up with me and a few board members at Fullerton Hotel on Wednesday evening,’ said Mr Chew, 42, a general manager of an American bank.
‘There, he told us he realised his foolishness after reading the positive remarks from other members of the church in the Life! article last Monday.’
He added that Mr Poon’s turn-around came after the businessman telephoned Sri Lanka-based clergyman, Bishop Jebanayagam, for advice last week.
Mr Poon could not be reached for comment and has not been attending service since Jan 18.
A source close to him said that he had met the bishop during the latter’s visits over the past eight years.
Bishop Jebanayagam apparently told him to come clean with City Harvest if he wished to be truthful, and that he would be forgiven.
Together with Mr Chew, Mr Poon drafted the apology last Wednesday night, got it vetted by City Harvest’s lawyers last Thursday and submitted it for publication the same day.
Mr Chew said that Mr Poon also revealed that his quotes to Today were attributed to several church members, including two identified as ‘Mr Png’ and ‘Mr Lee’.
He had contacted The Straits Times variously as ‘Roland Poon’ and ‘Swee Kay’.
Mr Chew said: ‘We have already forgiven him and have also asked him to come back to church next week.’
Rev Kong asked his congregation, which numbers 14,000, during his five weekend services to forgive the businessman.
‘My wife and I have forgiven him and so has the church. We’re not going to single him out and he can remain anonymous. That’s the good thing about being in a big church,’ he said.
Still, he felt that the church’s credibility – especially that of its community service here and in the region – had been unfairly undermined by the episode.
Rev Kong also said his wife remained badly shattered.
He said: ‘All she has been saying since she came back from Taiwan last week for MTV is how all her hard work has been for nothing.
‘Her success, which has been achieved through her own talent and efforts, has been unfairly discredited by the false allegations.
However, she believes that in time, the truth will dawn.’
(blogger's note: and so it will.)
And in five sermons over the weekend, Ho’s husband, church founder and senior pastor Reverend Kong Hee, asked the congregation to forgive the man.
Two weeks ago, Mr Roland Poon Swee Kay contacted the press to complain about what he said were improper practices by Rev Kong and his wife.
Last Friday, the 53-year-old businessman issued four apologies in The Straits Times, Lianhe Zaobao, Lianhe Wanbao and Shin Min Daily News. A fifth apology appeared in The New Paper last Saturday.
In all, they cost $33,372.06. A source close to Mr Poon said yesterday that the amount was paid by an anonymous donor who knew of the businessman’s financial difficulties.
In the half-page apology in The Straits Times, Mr Poon, a member of the church, said he had fed false information to journalists from Life! and Today via e-mail and telephone conversations.
He also retracted all previous statements he had made regarding Rev Kong, Ho and the church.
Some of his earlier remarks were aired on Channel NewsAsia on Jan 17. This was followed by a Page 1 story in Today on Jan 18, which claimed that some church members had expressed uneasiness over City Harvest’s support of Ho’s pop career.
After reading the report, Ho, 31, who was then in Taiwan, broke down in tears.
In a Life! story published last Monday, she said that she had done nothing wrong.
Her husband also denied Mr Poon’s allegations. Rev Kong said that no church funds had been used for Ho’s pop career promotion, and that it was normal practice for the church to support and celebrate the secular success of its members.
The Chinese press also picked up the story.
Ho, who has been the church’s music pastor since 1993, launched her pop career last year.
Her first album, Sun With Love, sold more than 100,000 copies last year.
She recently launched her second work, Sun*day. All proceeds from both albums are pledged to charity.
She also sang at last Friday’s MTV Asia Awards, and was nominated for Favourite Artiste – Singapore.
As a result of all the news, members of City Harvest, which is in Jurong West, say they have been under a lot of ‘unnecessary’ scrutiny.
UFM 1003 DJ Danny Yeo, 30, for one, said he had been bombarded with phone calls.
‘I tell people that I’m still attending City Harvest and that it takes more than reading headlines and newspapers to make a judgment about the church,’ he said.
Last Friday, Life! also published a response from the City Harvest management board.
The letter reiterated Rev Kong’s stand that no church funds were used to finance Ho’s pop career. It added that there was no hard-selling of her two CDs in the church and no question of a personality cult forming.
That Mr Poon’s retraction in The Straits Times appeared on the same day as the church’s reply has raised some eyebrows among observers.
However, Rev Kong and church board member Chew Eng Han explained yesterday that it was pure coincidence.
The board had already submitted its statement to the newspaper last Wednesday, before the church received a call from Mr Poon later that day.
‘He voluntarily met up with me and a few board members at Fullerton Hotel on Wednesday evening,’ said Mr Chew, 42, a general manager of an American bank.
‘There, he told us he realised his foolishness after reading the positive remarks from other members of the church in the Life! article last Monday.’
He added that Mr Poon’s turn-around came after the businessman telephoned Sri Lanka-based clergyman, Bishop Jebanayagam, for advice last week.
Mr Poon could not be reached for comment and has not been attending service since Jan 18.
A source close to him said that he had met the bishop during the latter’s visits over the past eight years.
Bishop Jebanayagam apparently told him to come clean with City Harvest if he wished to be truthful, and that he would be forgiven.
Together with Mr Chew, Mr Poon drafted the apology last Wednesday night, got it vetted by City Harvest’s lawyers last Thursday and submitted it for publication the same day.
Mr Chew said that Mr Poon also revealed that his quotes to Today were attributed to several church members, including two identified as ‘Mr Png’ and ‘Mr Lee’.
He had contacted The Straits Times variously as ‘Roland Poon’ and ‘Swee Kay’.
Mr Chew said: ‘We have already forgiven him and have also asked him to come back to church next week.’
Rev Kong asked his congregation, which numbers 14,000, during his five weekend services to forgive the businessman.
‘My wife and I have forgiven him and so has the church. We’re not going to single him out and he can remain anonymous. That’s the good thing about being in a big church,’ he said.
Still, he felt that the church’s credibility – especially that of its community service here and in the region – had been unfairly undermined by the episode.
Rev Kong also said his wife remained badly shattered.
He said: ‘All she has been saying since she came back from Taiwan last week for MTV is how all her hard work has been for nothing.
‘Her success, which has been achieved through her own talent and efforts, has been unfairly discredited by the false allegations.
However, she believes that in time, the truth will dawn.’
(blogger's note: and so it will.)
Simplistic breakdown of the 2 loans
Glory
Capital Loan ($45 million) was used to discharge the Galaxy loan ($50
Million).
The Galaxy loan itself was due to the purchase of 19.2% shares in Suntec Singapore.
At the time of purchase of Suntec shares in 2012, the total AnB collected was abt $130-150 Million.
The total shares cost was $97.75 Million.
There was supposed to be enough cash to buy all the shares without any bank loans.
(Because 130 > 97.75) So it has nothing to do with any shortfall in AnB fund collections.
This reason was only given to induce members to give more to cover the shortfall...which there wasn't any.
The 2 loans already incurred losses of $13 Million and will incur more front-end costs in future ( additional $13 Million for galaxy loan, NOT YET TAKING INTO ACCOUNT interests for the loan itself).
Do you continue to give when the Board is not upfront in its dealings?
just to put things into perspective,
it will take a person earning S$3,000 a month, with AWS, 334 years to earn S$13,000,000.
the thing i don't understand is, why is kong hee's god big enough to pay for JW debt free,
but somehow not big enough to pay for Suntec debt free, forcing kong to resort to loans with such exorbitant interest payments and front end fees?
did he change god? or did his god get smaller?
The Galaxy loan itself was due to the purchase of 19.2% shares in Suntec Singapore.
At the time of purchase of Suntec shares in 2012, the total AnB collected was abt $130-150 Million.
The total shares cost was $97.75 Million.
There was supposed to be enough cash to buy all the shares without any bank loans.
(Because 130 > 97.75) So it has nothing to do with any shortfall in AnB fund collections.
This reason was only given to induce members to give more to cover the shortfall...which there wasn't any.
The 2 loans already incurred losses of $13 Million and will incur more front-end costs in future ( additional $13 Million for galaxy loan, NOT YET TAKING INTO ACCOUNT interests for the loan itself).
Do you continue to give when the Board is not upfront in its dealings?
just to put things into perspective,
it will take a person earning S$3,000 a month, with AWS, 334 years to earn S$13,000,000.
the thing i don't understand is, why is kong hee's god big enough to pay for JW debt free,
but somehow not big enough to pay for Suntec debt free, forcing kong to resort to loans with such exorbitant interest payments and front end fees?
did he change god? or did his god get smaller?
Friday, September 20, 2013
Second tranche of CHC trial draws to a close (CNA, 20 Sept 2013)
SINGAPORE: The second tranche of the six City Harvest Church leaders’ trial drew to a close on Friday after the lawyers sped through their questioning of the church's former accountant.
Auditor Foong Daw Ching from accounting firm Baker Tilly took the stand for the eighth day.
When re-examined by prosecutor Mavis Chionh, he testified that the use of the church's building fund to pay for the Crossover Project is not right.
Earlier, defence lawyer Andre Maniam -- who represents Serina Wee, one of the six accused -- had raised an email from church staff Wong Foong Ming.
In that email, Miss Wong said that concerts and overseas travel expenses of singer Sun Ho should be charged to the church instead of Ms Ho's management company which is linked to the church.
This is because Ms Ho, who is the wife of church founder and accused person Kong Hee, is part of the Crossover Project -- which serves the church's mission to reach out to the secular world.
Mr Foong had agreed with Mr Maniam's argument.
However, when given the scenario that the church's building fund is meant for the purchase of church property, and asked to clarify his earlier testimony, Mr Foong said monies from the building fund cannot be used to pay for Crossover Project's expenses.
He added that payment should come from the church's general fund.
In addition, he also clarified on the advice given on bonds.
Using the analogy of a doctor, Ms Chionh asked if a doctor can give complete advice if the patient does not reveal all symptoms. Mr Foong said that from his experience, the doctor would not diagnose other problems.
Previously during cross-examination by the defence, the court heard that the accused would seek advice from Mr Foong on Xtron bonds, including the impairment of those bonds.
Xtron, which was Ms Ho's former management company, has close links to the church.
It is one of the few firms alleged by prosecution to be used by the accused as a financial vehicle to commit "round-tripping" through "sham bond investments".
Referring to various emails exchanged among the accused, the prosecutor then asked the witness if he considered it relevant to be given those information.
In particular, that Xtron was only able to redeem S$10 million of the S$31 million bonds by October 2010, according to one estimate.
To this, Mr Foong said to be given this would be "fair information" and that it was something the accused would have to share with him for him to know.
Previously, during defence counsel Kenneth Tan's questioning, Mr Foong agreed that he advised the accused to draft an investment policy and invest in bonds.
On Friday, Mr Foong clarified that he did not initiate investing church funds in bonds and private company bonds -- and that the accused were the ones who brought it up in the first place.
The court also heard of how Mr Foong agreed that not all investments made by charities, including churches, seek to yield profit.
The defence was arguing that these investments may be made to further the church's mission.
Kong and five of his deputies are facing misuse of church funds allegations.
They are said to have used some S$24 million to finance the music career of Ms Ho.
The third tranche of the trial is to start in mid-January 2014 and expected to last for more than six weeks.
The prosecution is expected to wrap up its case in that tranche, with at least five more witnesses expected to testify.
Auditor Foong Daw Ching from accounting firm Baker Tilly took the stand for the eighth day.
When re-examined by prosecutor Mavis Chionh, he testified that the use of the church's building fund to pay for the Crossover Project is not right.
Earlier, defence lawyer Andre Maniam -- who represents Serina Wee, one of the six accused -- had raised an email from church staff Wong Foong Ming.
In that email, Miss Wong said that concerts and overseas travel expenses of singer Sun Ho should be charged to the church instead of Ms Ho's management company which is linked to the church.
This is because Ms Ho, who is the wife of church founder and accused person Kong Hee, is part of the Crossover Project -- which serves the church's mission to reach out to the secular world.
Mr Foong had agreed with Mr Maniam's argument.
However, when given the scenario that the church's building fund is meant for the purchase of church property, and asked to clarify his earlier testimony, Mr Foong said monies from the building fund cannot be used to pay for Crossover Project's expenses.
He added that payment should come from the church's general fund.
In addition, he also clarified on the advice given on bonds.
Using the analogy of a doctor, Ms Chionh asked if a doctor can give complete advice if the patient does not reveal all symptoms. Mr Foong said that from his experience, the doctor would not diagnose other problems.
Previously during cross-examination by the defence, the court heard that the accused would seek advice from Mr Foong on Xtron bonds, including the impairment of those bonds.
Xtron, which was Ms Ho's former management company, has close links to the church.
It is one of the few firms alleged by prosecution to be used by the accused as a financial vehicle to commit "round-tripping" through "sham bond investments".
Referring to various emails exchanged among the accused, the prosecutor then asked the witness if he considered it relevant to be given those information.
In particular, that Xtron was only able to redeem S$10 million of the S$31 million bonds by October 2010, according to one estimate.
To this, Mr Foong said to be given this would be "fair information" and that it was something the accused would have to share with him for him to know.
Previously, during defence counsel Kenneth Tan's questioning, Mr Foong agreed that he advised the accused to draft an investment policy and invest in bonds.
On Friday, Mr Foong clarified that he did not initiate investing church funds in bonds and private company bonds -- and that the accused were the ones who brought it up in the first place.
The court also heard of how Mr Foong agreed that not all investments made by charities, including churches, seek to yield profit.
The defence was arguing that these investments may be made to further the church's mission.
Kong and five of his deputies are facing misuse of church funds allegations.
They are said to have used some S$24 million to finance the music career of Ms Ho.
The third tranche of the trial is to start in mid-January 2014 and expected to last for more than six weeks.
The prosecution is expected to wrap up its case in that tranche, with at least five more witnesses expected to testify.
City Harvest trial: Not all church projects are for profit, says defence lawyers (ST, 20 Sept 2013)
Not every investment made by charities such as churches need to yield profit. Sometimes these investments may be to further social objectives. Defence lawyers for the six accused City Harvest leaders said this in court on Friday during an on-going trial.
City Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust. They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions. Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed".
Defence lawyers said that in the same way the National Kidney Foundation, for example, invests in dialysis machines even though these depreciate in value, City Harvest invested in its Crossover Project to convert people to Christianity. The Crossover Project Crossover Project started in 2001 with the aim of using co-founder Ho Yeow Sun's secular music to evangelise.
In fact, auditor Foong Daw Ching had no objections to the use of City Harvest funds to finance Ms Ho's music albums as this furthered the church's evangelism mission, claimed Mr Michael Khoo, lawyer for former church investment manager Chew Eng Han. This approval supposedly came in a meeting in 2003 between Mr Foong and church leaders, shortly after a special audit was done following allegations that church funds were improperly used to finance Ms Ho's career. Mr Foong, however, said he could not recall this meeting.
(Editor's note: just 1 question, does this mean the defence is admitting that contrary to the many statements made, CHC funds, including those from the building fund, have been used for Sun Ho's Hollywood career, albeit to further social objectives?
You are a two-faced liar who made us, who defended you so vehemently in the past years look like fools with your outright lies, your polka dotted lies and your half truths.
Worse still, you have torn apart friendships with people whom I hold so dearly.
I am not in denial, and I am not angry anymore.
Regardless of the verdict, I forgive you, cos God knows I have done worse, even if not (yet) to this degree.)
City Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust. They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions. Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed".
Defence lawyers said that in the same way the National Kidney Foundation, for example, invests in dialysis machines even though these depreciate in value, City Harvest invested in its Crossover Project to convert people to Christianity. The Crossover Project Crossover Project started in 2001 with the aim of using co-founder Ho Yeow Sun's secular music to evangelise.
In fact, auditor Foong Daw Ching had no objections to the use of City Harvest funds to finance Ms Ho's music albums as this furthered the church's evangelism mission, claimed Mr Michael Khoo, lawyer for former church investment manager Chew Eng Han. This approval supposedly came in a meeting in 2003 between Mr Foong and church leaders, shortly after a special audit was done following allegations that church funds were improperly used to finance Ms Ho's career. Mr Foong, however, said he could not recall this meeting.
(Editor's note: just 1 question, does this mean the defence is admitting that contrary to the many statements made, CHC funds, including those from the building fund, have been used for Sun Ho's Hollywood career, albeit to further social objectives?
You are a two-faced liar who made us, who defended you so vehemently in the past years look like fools with your outright lies, your polka dotted lies and your half truths.
Worse still, you have torn apart friendships with people whom I hold so dearly.
I am not in denial, and I am not angry anymore.
Regardless of the verdict, I forgive you, cos God knows I have done worse, even if not (yet) to this degree.)
Thursday, September 19, 2013
Auditors wanted related party transactions in CHC financial statements (Today, 20 Sept 2013)
SINGAPORE — Auditors had wanted City Harvest Church to report certain
related party transactions in its 2007/08 financial statements, but
there was no such disclosure in the end.
Defence lawyer Kannan Ramesh yesterday suggested to Baker Tilly auditor Foong Daw Ching — who was the firm’s managing partner at the time but not in charge of the church’s accounts — that this was done by someone with the capacity to “veto” the initial recommendation.
Baker Tilly had wanted the church to disclose its bond investment in Xtron Productions — which managed the music career of church co-founder Ho Yeow Sun — as a related party transaction in July 2008, when preparing the church’s financial statement for July 2007 to October 2008. As Xtron’s “main activity” was the production of Ms Ho’s music album, and Ms Ho is the wife of church co-founder and accused Kong Hee, the bond investment could potentially be “viewed as for personal gain”. This was according to an email with an attached spreadsheet sent by audit manager Foong Ai Fang to two of the accused who handled church accounts, Serina Wee Gek Yin and Sharon Tan Shao Yuen.
Baker Tilly — which audited both Xtron and City Harvest— also wanted the church to disclose payment of a management fee to fund manager AMAC Capital Partners, owned by member Chew Eng Han, one of the accused who has since left the church.
Mr Ramesh, who represents Sharon Tan, suggested that someone must have reversed the auditors’ earlier views by the time the accounts were signed off in March 2009.
Mr Foong replied that he could not comment.
Earlier in the day, Mr Ramesh tried to show that Baker Tilly did not raise a red flag on transactions despite being aware that the church was investing in Xtron, with the funds used for Ms Ho’s career, also known as the Crossover Project. Mr Foong agreed that the auditors would have been paying close attention to the organisations’ cash flow and bond transactions.
Neither did the auditors qualify their opinion — a qualified opinion would suggest an audit restricted in scope or uncertainties underlying assumptions in the financial statements.
Kong, Sharon Tan, Wee, Chew and two others are facing criminal charges of misappropriating S$24 million of church building funds in allegedly sham investments to fund Ms Ho’s career, then “round-tripping” another S$26.6 million to cover up the first amount.
Mr Foong, who has been on the witness stand for a week, began yesterday by telling Senior District Judge See Kee Oon “something from my heart”. He said he was hurt by the defence’s suggestions that he had tried to distance himself from advice given to City Harvest, one of Baker Tilly’s biggest church clients. He was also initially upset to find out that a meeting with accused Tan Ye Peng and John Lam Leng Hung last December — after they had been charged — was recorded, but understood “where they are coming from”. Tan Ye Peng’s lawyer, Mr N Sreenivasan, had revealed this in court on Wednesday when questioning Mr Foong.
The judge barred Mr Foong from continuing his account and directed him to resume giving evidence through the defence’s cross-examination, which continues today.
Defence lawyer Kannan Ramesh yesterday suggested to Baker Tilly auditor Foong Daw Ching — who was the firm’s managing partner at the time but not in charge of the church’s accounts — that this was done by someone with the capacity to “veto” the initial recommendation.
Baker Tilly had wanted the church to disclose its bond investment in Xtron Productions — which managed the music career of church co-founder Ho Yeow Sun — as a related party transaction in July 2008, when preparing the church’s financial statement for July 2007 to October 2008. As Xtron’s “main activity” was the production of Ms Ho’s music album, and Ms Ho is the wife of church co-founder and accused Kong Hee, the bond investment could potentially be “viewed as for personal gain”. This was according to an email with an attached spreadsheet sent by audit manager Foong Ai Fang to two of the accused who handled church accounts, Serina Wee Gek Yin and Sharon Tan Shao Yuen.
Baker Tilly — which audited both Xtron and City Harvest— also wanted the church to disclose payment of a management fee to fund manager AMAC Capital Partners, owned by member Chew Eng Han, one of the accused who has since left the church.
Mr Ramesh, who represents Sharon Tan, suggested that someone must have reversed the auditors’ earlier views by the time the accounts were signed off in March 2009.
Mr Foong replied that he could not comment.
Earlier in the day, Mr Ramesh tried to show that Baker Tilly did not raise a red flag on transactions despite being aware that the church was investing in Xtron, with the funds used for Ms Ho’s career, also known as the Crossover Project. Mr Foong agreed that the auditors would have been paying close attention to the organisations’ cash flow and bond transactions.
Neither did the auditors qualify their opinion — a qualified opinion would suggest an audit restricted in scope or uncertainties underlying assumptions in the financial statements.
Kong, Sharon Tan, Wee, Chew and two others are facing criminal charges of misappropriating S$24 million of church building funds in allegedly sham investments to fund Ms Ho’s career, then “round-tripping” another S$26.6 million to cover up the first amount.
Mr Foong, who has been on the witness stand for a week, began yesterday by telling Senior District Judge See Kee Oon “something from my heart”. He said he was hurt by the defence’s suggestions that he had tried to distance himself from advice given to City Harvest, one of Baker Tilly’s biggest church clients. He was also initially upset to find out that a meeting with accused Tan Ye Peng and John Lam Leng Hung last December — after they had been charged — was recorded, but understood “where they are coming from”. Tan Ye Peng’s lawyer, Mr N Sreenivasan, had revealed this in court on Wednesday when questioning Mr Foong.
The judge barred Mr Foong from continuing his account and directed him to resume giving evidence through the defence’s cross-examination, which continues today.
Ren Ci court case ‘troubled’ City Harvest leaders (Today, 19 Sept 2013)
SINGAPORE — News of former Ren Ci Hospital Chief Executive Ming Yi being hauled to court in July 2008 so troubled the board of City Harvest Church that it held an urgent meeting, and two of the church leaders now facing criminal charges actively sought out auditor Foong Daw Ching for advice.
This emerged in the trial of five City Harvest leaders and a former leader yesterday as the defence tried to show the accused had laid bare the church’s relationship with, and bond investment in, Xtron Productions to Mr Foong of audit firm Baker Tilly. Xtron is an audio-visual services company that also managed the career — also known as the Crossover Project — of church co-founder Kong Hee’s wife, Ms Ho Yeow Sun, from 2003 to 2008.
In a July 19, 2008, BlackBerry message produced in court by accused Tan Ye Peng’s lawyer, Senior Counsel N Sreenivasan, Kong had written: “My church board is very troubled by the recent case with the Renci monk, who was arrested for fraud, corruption and forgery. The board members are having an urgent board meeting this afternoon to discuss how Ernst & Young has implicated Renci.”
The message was addressed to “Brother Foong” but sent to Tan and another individual called “Jacq”. Kong said Tan and another accused, Serina Wee Gek Yin, wanted to meet the auditor as they were “very troubled over two areas in our corporate governance and accounting”.
In the face of multiple emails presented by Mr Sreenivasan yesterday, Mr Foong conceded that he met some of the accused on July 21, Aug 1 and sometime around Aug 12 in 2008.
In the lead-up to the July 2008 meeting, Wee and Tan had sent Mr Foong the bond service agreement with Xtron and a document detailing the church’s relationship with its fund manager, AMAC Capital Partners, and Xtron. The second document included questions such as whether the church would have to write down the bonds — purchased in August 2007 — if Xtron was unable to redeem them on maturity, and whether the transactions were legal.
Mr Foong acknowledged he advised the church on investing its building fund in bonds, but could not recall exactly when the bond discussions took place, and insisted the name “Xtron” did not come up. He had previously testified that he gave general advice and was not the partner in charge of the church’s accounts.
Mr Sreenivasan argued that Tan — who is facing 10 charges of criminal breach of trust and falsification of accounts — acted in good faith on the advice of Mr Foong and lawyers as early as 2008, to ensure transactions at the heart of the trial were done properly.
The prosecution contends the Xtron bonds were a sham and that the accused misappropriated S$24 million of church building funds to fund Ms Ho’s music career.
But Mr Foong had apparently felt the bonds not to be a sham, Mr Sreenivasan revealed in his cross-examination yesterday. They were, at most, “junk bonds” — or high-yield, non-investment grade bonds — Mr Foong had reportedly opined when Tan and another accused, John Lam Leng Hung, went to his office on Dec 28 last year, after the six had been charged.
Asked about this, Mr Foong said the opinion was based on audits of the church and Xtron.
The defence continues to cross-examine Mr Foong today.
Copyright 2013 MediaCorp Pte Ltd | All Rights Reserved
This emerged in the trial of five City Harvest leaders and a former leader yesterday as the defence tried to show the accused had laid bare the church’s relationship with, and bond investment in, Xtron Productions to Mr Foong of audit firm Baker Tilly. Xtron is an audio-visual services company that also managed the career — also known as the Crossover Project — of church co-founder Kong Hee’s wife, Ms Ho Yeow Sun, from 2003 to 2008.
In a July 19, 2008, BlackBerry message produced in court by accused Tan Ye Peng’s lawyer, Senior Counsel N Sreenivasan, Kong had written: “My church board is very troubled by the recent case with the Renci monk, who was arrested for fraud, corruption and forgery. The board members are having an urgent board meeting this afternoon to discuss how Ernst & Young has implicated Renci.”
The message was addressed to “Brother Foong” but sent to Tan and another individual called “Jacq”. Kong said Tan and another accused, Serina Wee Gek Yin, wanted to meet the auditor as they were “very troubled over two areas in our corporate governance and accounting”.
In the face of multiple emails presented by Mr Sreenivasan yesterday, Mr Foong conceded that he met some of the accused on July 21, Aug 1 and sometime around Aug 12 in 2008.
In the lead-up to the July 2008 meeting, Wee and Tan had sent Mr Foong the bond service agreement with Xtron and a document detailing the church’s relationship with its fund manager, AMAC Capital Partners, and Xtron. The second document included questions such as whether the church would have to write down the bonds — purchased in August 2007 — if Xtron was unable to redeem them on maturity, and whether the transactions were legal.
Mr Foong acknowledged he advised the church on investing its building fund in bonds, but could not recall exactly when the bond discussions took place, and insisted the name “Xtron” did not come up. He had previously testified that he gave general advice and was not the partner in charge of the church’s accounts.
Mr Sreenivasan argued that Tan — who is facing 10 charges of criminal breach of trust and falsification of accounts — acted in good faith on the advice of Mr Foong and lawyers as early as 2008, to ensure transactions at the heart of the trial were done properly.
The prosecution contends the Xtron bonds were a sham and that the accused misappropriated S$24 million of church building funds to fund Ms Ho’s music career.
But Mr Foong had apparently felt the bonds not to be a sham, Mr Sreenivasan revealed in his cross-examination yesterday. They were, at most, “junk bonds” — or high-yield, non-investment grade bonds — Mr Foong had reportedly opined when Tan and another accused, John Lam Leng Hung, went to his office on Dec 28 last year, after the six had been charged.
Asked about this, Mr Foong said the opinion was based on audits of the church and Xtron.
The defence continues to cross-examine Mr Foong today.
Copyright 2013 MediaCorp Pte Ltd | All Rights Reserved
Wednesday, September 18, 2013
City Harvest trial: Ren Ci scandal sparked panic among church leaders (ST, 18 Sept 2013)
The Ren Ci scandal sparked an internal panic within the City Harvest Church, with church leaders frantically trying to ensure that their own investments in church-linked companies were above-board, a court heard on Wednesday.
This happened in 2008, about a year after the church had invested $13 million in Xtron Productions, a music production firm that was managing City Harvest co-founder Ho Yeow Sun's singing career at the time. Several of the six church leaders accused of misusing church funds had in fact reached out to auditor Foong Daw Ching and prepared documents about the church's transactions for him to review.
This was shown through telephone logs and text messages produced by the church leaders' defence team on Wednesday. The defence also strongly suggested that Mr Foong had in fact read and discussed one particular document with the accused. This set out the church's relationship to Xtron and other companies, as well as the legal risks that the financial transactions could entail.
Mr Foong, who had earlier insisted that he did not recall seeing this document, admitted: "I would have read it and there must have been some discussion." Defence lawyers have been trying to prove that Mr Foong gave the accused detailed advice about various allegedly suspect transactions, and that church leaders had followed his advice. City Harvest founder Kong Hee, who is Ms Ho's husband, and five of his deputies are on trial for alleged misuse of $50 million in church funds.
This happened in 2008, about a year after the church had invested $13 million in Xtron Productions, a music production firm that was managing City Harvest co-founder Ho Yeow Sun's singing career at the time. Several of the six church leaders accused of misusing church funds had in fact reached out to auditor Foong Daw Ching and prepared documents about the church's transactions for him to review.
This was shown through telephone logs and text messages produced by the church leaders' defence team on Wednesday. The defence also strongly suggested that Mr Foong had in fact read and discussed one particular document with the accused. This set out the church's relationship to Xtron and other companies, as well as the legal risks that the financial transactions could entail.
Mr Foong, who had earlier insisted that he did not recall seeing this document, admitted: "I would have read it and there must have been some discussion." Defence lawyers have been trying to prove that Mr Foong gave the accused detailed advice about various allegedly suspect transactions, and that church leaders had followed his advice. City Harvest founder Kong Hee, who is Ms Ho's husband, and five of his deputies are on trial for alleged misuse of $50 million in church funds.
Auditor had 'intimate knowledge of the deals': City Harvest trial (18 Sept 2013)
Defence says he didn't raise red flags when members sought his advice
FOR 20 years, auditor Foong Daw Ching was someone the leaders of City Harvest Church looked up to.
Yet, he "broke their hearts" by denying in court this week that he gave guidance the church relied on. This included the church's financial deals, which are at the centre of the trial.
This assertion by Mr N.Sreenivasan - lawyer for deputy senior pastor Tan Ye Peng - characterised yesterday's proceedings. The defence sought to show that Mr Foong, a partner at accounting firm Baker Tilly TFW, was only trying to save his own skin by disavowing intimate knowledge of the deals. Church members had gone to Mr Foong for advice since he led the City Harvest audit in 1993 when it was a young church, and he had not raised any red flags, the defence claimed.
"They looked up to you as a person with an extremely impressive (resume), as a well-regarded accountant and a church elder," said Mr Sreenivasan. City Harvest founder Kong Hee even solemnised the wedding of Mr Foong's daughter, the court heard.
"My client is in the dock and his life is in a mess. His instruction to me is that if you had told him what was right and what was wrong, he would have followed your advice... You are breaking his heart, the way you are denying things."
Mr Foong, however, hit back: "They know very well they come to me on an ad hoc basis... They are intelligent people. You paint (them) as though they are 21-year-olds."
The 63-year-old added that he had not led the church's audit since 1993 and insisted that he had given only informal, "general" advice to the church members since then. "Whatever (facts) they have given me, I have given them advice and that part of advice they can rely upon. If I probe, it may encroach on the auditing area and there's an audit team which needs to take over."
The defence has been trying to show that Mr Foong knew more about the allegedly suspect financial transactions than he let on. Several of the accused had said in e-mail messages that he "endorsed" or gave suggestions about the deals and disclosure requirements.
He was also sent documents such as a bond agreement contract which the State believes was a sham investment by the accused. The documents included a summary of the church's relationship with various firms that allegedly helped the six church members to misuse church funds.
Confronted with these e-mail messages, Mr Foong mostly insisted that he did not recall reading them. He said yesterday: "I am a very busy man... and I travel quite frequently."
But Kong's lawyer, Mr Edwin Tong, said to him: "I find it incredible that one of your biggest church clients is consistently sending you information, making sure you are aware of the facts, asking you question after question... and each time your answer (in court) is 'I just don't even remember reading the e-mail'."
Before the court adjourned for the day, Mr Foong was asked to produce his appointment diaries or logs from 2007 to 2010. He is expected to do so when he takes the stand again today.
zengkun@sph.com.sg
Background Story
SENIOR Counsel N. Sreenivasan represents one of the six accused, deputy pastor Tan Ye Peng. He was cross-examining auditor Foong Daw Ching who was the church's auditor between 1993 and 1994.
• MR SREENIVASAN: "You were the church's auditor in 1993. Tan Ye Peng was 21 years old in 1993, Kong Hee was in his late 20s, some of the other people in the dock may still have been in school. City Harvest Church was a very young church at that time and the first auditor or elder or senior figure in the Christian community who gave them accounting advice, acted for them, was you. They looked up to you from 1993 onwards as an auditor who was a Christian."
• MR FOONG: "They know very well they come to me on an ad hoc basis, no paper produced, nothing like that. They are intelligent people. You paint (them) as though they are 21-year-olds. They have a whole team of their own advisers and it's not as though I'm the adviser. They are all qualified people and very brilliant people."
• MR SREENIVASAN: "When it's your own skin on the line, you will be careful and make sure you don't get into trouble. But when other people ask you for advice, you don't probe, you give them general advice and they are expected to know on their own that they can't rely on your advice."
• MR FOONG: "I don't think that's fair. Whatever (facts) they have given me, I have given them advice and that part of the advice they can rely upon. If I probe, it may encroach on the auditing area and there's an audit team which needs to take over. The way you asked (makes it sound like) I'm just chin chai (Hokkien for doing things without much thought), don't care."
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust. They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million. This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The defence will continue its cross- examination of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW, today.
FOR 20 years, auditor Foong Daw Ching was someone the leaders of City Harvest Church looked up to.
Yet, he "broke their hearts" by denying in court this week that he gave guidance the church relied on. This included the church's financial deals, which are at the centre of the trial.
This assertion by Mr N.Sreenivasan - lawyer for deputy senior pastor Tan Ye Peng - characterised yesterday's proceedings. The defence sought to show that Mr Foong, a partner at accounting firm Baker Tilly TFW, was only trying to save his own skin by disavowing intimate knowledge of the deals. Church members had gone to Mr Foong for advice since he led the City Harvest audit in 1993 when it was a young church, and he had not raised any red flags, the defence claimed.
"They looked up to you as a person with an extremely impressive (resume), as a well-regarded accountant and a church elder," said Mr Sreenivasan. City Harvest founder Kong Hee even solemnised the wedding of Mr Foong's daughter, the court heard.
"My client is in the dock and his life is in a mess. His instruction to me is that if you had told him what was right and what was wrong, he would have followed your advice... You are breaking his heart, the way you are denying things."
Mr Foong, however, hit back: "They know very well they come to me on an ad hoc basis... They are intelligent people. You paint (them) as though they are 21-year-olds."
The 63-year-old added that he had not led the church's audit since 1993 and insisted that he had given only informal, "general" advice to the church members since then. "Whatever (facts) they have given me, I have given them advice and that part of advice they can rely upon. If I probe, it may encroach on the auditing area and there's an audit team which needs to take over."
The defence has been trying to show that Mr Foong knew more about the allegedly suspect financial transactions than he let on. Several of the accused had said in e-mail messages that he "endorsed" or gave suggestions about the deals and disclosure requirements.
He was also sent documents such as a bond agreement contract which the State believes was a sham investment by the accused. The documents included a summary of the church's relationship with various firms that allegedly helped the six church members to misuse church funds.
Confronted with these e-mail messages, Mr Foong mostly insisted that he did not recall reading them. He said yesterday: "I am a very busy man... and I travel quite frequently."
But Kong's lawyer, Mr Edwin Tong, said to him: "I find it incredible that one of your biggest church clients is consistently sending you information, making sure you are aware of the facts, asking you question after question... and each time your answer (in court) is 'I just don't even remember reading the e-mail'."
Before the court adjourned for the day, Mr Foong was asked to produce his appointment diaries or logs from 2007 to 2010. He is expected to do so when he takes the stand again today.
zengkun@sph.com.sg
Background Story
SENIOR Counsel N. Sreenivasan represents one of the six accused, deputy pastor Tan Ye Peng. He was cross-examining auditor Foong Daw Ching who was the church's auditor between 1993 and 1994.
• MR SREENIVASAN: "You were the church's auditor in 1993. Tan Ye Peng was 21 years old in 1993, Kong Hee was in his late 20s, some of the other people in the dock may still have been in school. City Harvest Church was a very young church at that time and the first auditor or elder or senior figure in the Christian community who gave them accounting advice, acted for them, was you. They looked up to you from 1993 onwards as an auditor who was a Christian."
• MR FOONG: "They know very well they come to me on an ad hoc basis, no paper produced, nothing like that. They are intelligent people. You paint (them) as though they are 21-year-olds. They have a whole team of their own advisers and it's not as though I'm the adviser. They are all qualified people and very brilliant people."
• MR SREENIVASAN: "When it's your own skin on the line, you will be careful and make sure you don't get into trouble. But when other people ask you for advice, you don't probe, you give them general advice and they are expected to know on their own that they can't rely on your advice."
• MR FOONG: "I don't think that's fair. Whatever (facts) they have given me, I have given them advice and that part of the advice they can rely upon. If I probe, it may encroach on the auditing area and there's an audit team which needs to take over. The way you asked (makes it sound like) I'm just chin chai (Hokkien for doing things without much thought), don't care."
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust. They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million. This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The defence will continue its cross- examination of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW, today.
Tuesday, September 17, 2013
Auditor does not recall reading emails about CHC matters (CNA, 17, Sept 2013)
The defence continued to grill auditor Foong Daw Ching as he took the stand again on Tuesday.
Mr Foong maintained he did not recall whether he read the emails sent to him by City Harvest Church leaders, and the defence lawyer suggested that Mr Foong's answers were a "convenient excuse".
SINGAPORE: The defence continued to grill auditor Foong Daw Ching as he took the stand again on Tuesday.
Edwin Tong, lawyer for City Harvest Church (CHC) founder Kong Hee, suggested that some of Mr Foong's evidence was "incredible and unbelievable".
Mr Tong had referred to emails church leaders had sent to Mr Foong in 2008, which he used as examples to show that they were seeking Mr Foong's advice.
These concerned the bond subscription agreement, the relationship between Xtron and the church, as well as whether certain transactions constituted a breach of corporate governance.
The Xtron bonds were purchased by the church in 2007.
Mr Tong also pointed out that Mr Foong -- of accounting firm Baker Tilly -- had a discussion with church leaders relating to the issue of impairment of bonds.
Mr Foong maintained he did not recall whether he read the emails, and that he had given them only "general" advice as he was not the auditor-in-charge of the church's account during that period.
He said the issues were specific and he would not interfere as he expected the audit team in charge to handle it.
This led Mr Tong to question: "One of your biggest church clients is consistently sending you information, making sure that you are aware of the facts, asking you question after question, asking you for your advice, asking you for issues which you have agreed, (including) issues of insolvency which is a serious and significant concern, and each time your answer is "I just don't even recall reading the email". Is that what you are really saying?"
Mr Tong also suggested that Mr Foong's answers were a "convenient excuse".
The six church leaders are standing trial for allegedly misusing S$24 million of the church's building fund to boost the music career of Sun Ho, Kong's wife.
Mr Tong also produced a 2006 email from which Kong had written to Mr Foong regarding concerns about his financial accounts.
In the email, Kong asked Mr Foong and another auditor about Ms Ho's remuneration -- which at the time was S$16,000 a month for her singing, and another S$16,000 for every live concert she performed in.
He asked if Ms Ho's remuneration would still be considered a related-party transaction, since she was paid totally from non-CHC sources.
Ms Ho's career was at the time managed by Xtron, though she did not play the role of director, key executive, or decision maker.
However, City Harvest’s business made up the majority of Xtron's income.
Kong had written: "I am personally very troubled by these matters as I don't wish to bring any potential reproach to the church or its various ministry. If there is simply no way out of this related party dilemma, Sun and I are even willing to resign from the Management Board of CHC, if that would help diffuse the semblance of any conflict of interest on her part."
Mr Tong said this email was an example of Kong seeking advice from Mr Foong regarding a "serious concern".
In reply, Mr Foong said he could not recall if he had given Kong any advice on the matter.
Mr Foong maintained he did not recall whether he read the emails sent to him by City Harvest Church leaders, and the defence lawyer suggested that Mr Foong's answers were a "convenient excuse".
SINGAPORE: The defence continued to grill auditor Foong Daw Ching as he took the stand again on Tuesday.
Edwin Tong, lawyer for City Harvest Church (CHC) founder Kong Hee, suggested that some of Mr Foong's evidence was "incredible and unbelievable".
Mr Tong had referred to emails church leaders had sent to Mr Foong in 2008, which he used as examples to show that they were seeking Mr Foong's advice.
These concerned the bond subscription agreement, the relationship between Xtron and the church, as well as whether certain transactions constituted a breach of corporate governance.
The Xtron bonds were purchased by the church in 2007.
Mr Tong also pointed out that Mr Foong -- of accounting firm Baker Tilly -- had a discussion with church leaders relating to the issue of impairment of bonds.
Mr Foong maintained he did not recall whether he read the emails, and that he had given them only "general" advice as he was not the auditor-in-charge of the church's account during that period.
He said the issues were specific and he would not interfere as he expected the audit team in charge to handle it.
This led Mr Tong to question: "One of your biggest church clients is consistently sending you information, making sure that you are aware of the facts, asking you question after question, asking you for your advice, asking you for issues which you have agreed, (including) issues of insolvency which is a serious and significant concern, and each time your answer is "I just don't even recall reading the email". Is that what you are really saying?"
Mr Tong also suggested that Mr Foong's answers were a "convenient excuse".
The six church leaders are standing trial for allegedly misusing S$24 million of the church's building fund to boost the music career of Sun Ho, Kong's wife.
Mr Tong also produced a 2006 email from which Kong had written to Mr Foong regarding concerns about his financial accounts.
In the email, Kong asked Mr Foong and another auditor about Ms Ho's remuneration -- which at the time was S$16,000 a month for her singing, and another S$16,000 for every live concert she performed in.
He asked if Ms Ho's remuneration would still be considered a related-party transaction, since she was paid totally from non-CHC sources.
Ms Ho's career was at the time managed by Xtron, though she did not play the role of director, key executive, or decision maker.
However, City Harvest’s business made up the majority of Xtron's income.
Kong had written: "I am personally very troubled by these matters as I don't wish to bring any potential reproach to the church or its various ministry. If there is simply no way out of this related party dilemma, Sun and I are even willing to resign from the Management Board of CHC, if that would help diffuse the semblance of any conflict of interest on her part."
Mr Tong said this email was an example of Kong seeking advice from Mr Foong regarding a "serious concern".
In reply, Mr Foong said he could not recall if he had given Kong any advice on the matter.
Auditor 'trying to hide ties with church leaders' (ST, 17 Sept 2013)
Defence says witness gave detailed advice on investments to the accused
SPARKS flew in court yesterday as the defence team for City Harvest Church leaders sought to prove auditor Foong Daw Ching was an unreliable and untruthful witness.
It tried to show that, contrary to his earlier claims, Mr Foong had a close relationship with the City Harvest leaders, which involved him giving detailed advice on investments and how to disclose them to church members.
Mr Foong, a partner with Baker Tilly TFW, fought back saying the defence was twisting his words.
Last week, he said he had given only "general" advice to the accused and never interfered with church audits which had been carried out by various Baker Tilly employees assigned to the job over the years.
Mr Foong, 63, is testifying in the case of six City Harvest leaders accused of illegally funnelling money from the church to fund Ms Ho Yeow Sun's singing career and covering it up with a series of sham investments.
But yesterday, Mr Edwin Tong, who represents City Harvest's founder Kong Hee, accused Mr Foong of being untruthful in his testimony, and said that he had, in fact, given instructions to staff on the church's audits.
He showed a series of e-mail messages from October 2007, in which an auditor expressed concern that donations to the church building fund were instead being used to pay for the rental of Singapore Expo for worship services.
Mr Foong, however, replied that the "building fund can be used for this purpose" as long as the church's board of directors agreed it was a temporary measure.
Mr Tong used this to accuse Mr Foong of "overriding" the auditor's views.
"The truth of the matter is that you are trying to distance yourself from the advice you have given to City Harvest and its staff... and you are doing that to cover up the fact that you not only personally oversaw but you advised directly... and that you controlled the views taken by Baker Tilly in relation to City Harvest," he said.
Mr Foong, who appeared visibly angry, retorted several times that he did not agree with Mr Tong's assertions.
He said Mr Tong was painting "an incomplete picture" and at one point in the cross-examination, he snapped: "Hello, hello, hello... don't put words in my mouth, learned counsel."
Mr Tong then grilled Mr Foong on his earlier testimony that he lacked sufficient knowledge to have given in-depth financial and auditing advice to City Harvest leaders.
Mr Foong had previously said he was not good with technical details and did not like reading financial agreements.
But the defence countered that Mr Foong has a "fairly sterling CV" with more than 35 years of auditing experience in Singapore and England. He had also appeared in court in Singapore several times over the past decade as an expert witness.
Mr Tong cited one example of how Mr Foong had prepared net worth reports of an individual in a legal dispute between a married couple between 2000 and 2001.
To do this, Mr Foong would have had to know valuation guidelines in accordance with national auditing standards, he said.
Mr Foong replied that when he serves as an expert witness, he is usually assisted by a group of people where he is "fed" the technical background.
He maintained he is "the weakest among the partners, as far as (knowledge of) financial instruments is concerned".
The trial continues today.
Lawyer Edwin Tong (foreground), seen here with his client Kong Hee and Kong's wife Ho Yeow Sun, crossed swords with auditor Foong Daw Ching on the witness stand yesterday. ST PHOTOS: AZIZ HUSSIN
twong@sph.com.sg
melodyz@sph.com.sg
Background Story
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed". This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The defence will continue its cross-examination of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW, today.
The firm or its associated companies audited Xtron and the church.
Church auditor - an expert or not?
SEVERAL terse exchanges took place in court yesterday between defence lawyer Edwin Tong, who represents City Harvest founder Kong Hee, and former church auditor Foong Daw Ching. Mr Tong tried to show that the prosecution witness has been trying to distance himself from the advice he had given to the six accused City Harvest leaders.
Exchange #1
• Mr Tong: "It is because you are trying to distance yourself that you then suddenly, despite your fairly sterling CV and many years of experience, and many appointments, and accolades, that you suddenly become, at least based on the evidence of the last four days, someone who can descend to saying that he is not very good technically as an auditor, or that you don't even like to read agreements. Can you explain that?"
• Mr Foong: "... I think the learned counsel is too presumptuous making that (statement). When I'm an expert in one case, I'm assisted by a group of people, including my consulting partner...
"I'm the weakest among the partners, as far as the financial instrument is concerned... It's not a single person effort you know."
Exchange #2
• Mr Tong: "... you have held yourself out to be and you knew that City Harvest saw you as the person having principal conduct of their work?"
• Mr Foong: "How they think about me, I do not know. But I do not agree that I have control over the audit."
Exchange #3
• Mr Tong: "I suggest to you that the evidence you have just given is not truthful."
• Mr Foong: "I disagree your Honour."
SPARKS flew in court yesterday as the defence team for City Harvest Church leaders sought to prove auditor Foong Daw Ching was an unreliable and untruthful witness.
It tried to show that, contrary to his earlier claims, Mr Foong had a close relationship with the City Harvest leaders, which involved him giving detailed advice on investments and how to disclose them to church members.
Mr Foong, a partner with Baker Tilly TFW, fought back saying the defence was twisting his words.
Last week, he said he had given only "general" advice to the accused and never interfered with church audits which had been carried out by various Baker Tilly employees assigned to the job over the years.
Mr Foong, 63, is testifying in the case of six City Harvest leaders accused of illegally funnelling money from the church to fund Ms Ho Yeow Sun's singing career and covering it up with a series of sham investments.
But yesterday, Mr Edwin Tong, who represents City Harvest's founder Kong Hee, accused Mr Foong of being untruthful in his testimony, and said that he had, in fact, given instructions to staff on the church's audits.
He showed a series of e-mail messages from October 2007, in which an auditor expressed concern that donations to the church building fund were instead being used to pay for the rental of Singapore Expo for worship services.
Mr Foong, however, replied that the "building fund can be used for this purpose" as long as the church's board of directors agreed it was a temporary measure.
Mr Tong used this to accuse Mr Foong of "overriding" the auditor's views.
"The truth of the matter is that you are trying to distance yourself from the advice you have given to City Harvest and its staff... and you are doing that to cover up the fact that you not only personally oversaw but you advised directly... and that you controlled the views taken by Baker Tilly in relation to City Harvest," he said.
Mr Foong, who appeared visibly angry, retorted several times that he did not agree with Mr Tong's assertions.
He said Mr Tong was painting "an incomplete picture" and at one point in the cross-examination, he snapped: "Hello, hello, hello... don't put words in my mouth, learned counsel."
Mr Tong then grilled Mr Foong on his earlier testimony that he lacked sufficient knowledge to have given in-depth financial and auditing advice to City Harvest leaders.
Mr Foong had previously said he was not good with technical details and did not like reading financial agreements.
But the defence countered that Mr Foong has a "fairly sterling CV" with more than 35 years of auditing experience in Singapore and England. He had also appeared in court in Singapore several times over the past decade as an expert witness.
Mr Tong cited one example of how Mr Foong had prepared net worth reports of an individual in a legal dispute between a married couple between 2000 and 2001.
To do this, Mr Foong would have had to know valuation guidelines in accordance with national auditing standards, he said.
Mr Foong replied that when he serves as an expert witness, he is usually assisted by a group of people where he is "fed" the technical background.
He maintained he is "the weakest among the partners, as far as (knowledge of) financial instruments is concerned".
The trial continues today.
Lawyer Edwin Tong (foreground), seen here with his client Kong Hee and Kong's wife Ho Yeow Sun, crossed swords with auditor Foong Daw Ching on the witness stand yesterday. ST PHOTOS: AZIZ HUSSIN
twong@sph.com.sg
melodyz@sph.com.sg
Background Story
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed". This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The defence will continue its cross-examination of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW, today.
The firm or its associated companies audited Xtron and the church.
Church auditor - an expert or not?
SEVERAL terse exchanges took place in court yesterday between defence lawyer Edwin Tong, who represents City Harvest founder Kong Hee, and former church auditor Foong Daw Ching. Mr Tong tried to show that the prosecution witness has been trying to distance himself from the advice he had given to the six accused City Harvest leaders.
Exchange #1
• Mr Tong: "It is because you are trying to distance yourself that you then suddenly, despite your fairly sterling CV and many years of experience, and many appointments, and accolades, that you suddenly become, at least based on the evidence of the last four days, someone who can descend to saying that he is not very good technically as an auditor, or that you don't even like to read agreements. Can you explain that?"
• Mr Foong: "... I think the learned counsel is too presumptuous making that (statement). When I'm an expert in one case, I'm assisted by a group of people, including my consulting partner...
"I'm the weakest among the partners, as far as the financial instrument is concerned... It's not a single person effort you know."
Exchange #2
• Mr Tong: "... you have held yourself out to be and you knew that City Harvest saw you as the person having principal conduct of their work?"
• Mr Foong: "How they think about me, I do not know. But I do not agree that I have control over the audit."
Exchange #3
• Mr Tong: "I suggest to you that the evidence you have just given is not truthful."
• Mr Foong: "I disagree your Honour."
City Harvest trial: Kong Hee offered to step down to minimise conflict of interest (ST, 17 Sept 2013)
City Harvest founder Kong Hee was once so concerned about possibly bringing harm to the church that he offered to step down from its management board, said defence lawyers on Tuesday during an ongoing criminal trial into him and five of his deputies.
Kong Hee expressed his concerns about a year before a series of investments were made, which the State believes were shams meant to funnel church funds illegally to wife, Ms Ho Yeow Sun's career. He asked auditor Foong Daw Ching in an email in 2006, whether Ms Ho receiving a salary from church-linked firm Xtron Productions would pose a problem. Xtron was managing Ms Ho's music career at the time.
"Sun is paid totally from non-CHC (City Harvest Church) sources... (but) I'm personally very troubled as I don't wish to bring any potential reproach to the church or its various ministry. If there is simply no way out... Sun and I are even willing to resign from the Management Board of CHC, if that would help diffuse the semblance of any conflict of interest on her part," he wrote.
Mr Edwin Tong, defence lawyer for Kong, also tried to show that Mr Foong the auditor knew more about the investments than he let on. Several of the six accused had written e-mails saying Mr Foong had endorsed or given advice about the investments, although Mr Foong insisted that these were inaccurate.
Mr Tong said it was "incredible" that the auditor did not seem to recall reading any of the emails he had been sent regarding the transactions, given that the church was a "major" client of the firm.
Mr Foong replied that City Harvest's audit team was led by another person at his firm whom he would have deferred to, and he had his own "heavy" portfolio of clients at the time.
Kong Hee expressed his concerns about a year before a series of investments were made, which the State believes were shams meant to funnel church funds illegally to wife, Ms Ho Yeow Sun's career. He asked auditor Foong Daw Ching in an email in 2006, whether Ms Ho receiving a salary from church-linked firm Xtron Productions would pose a problem. Xtron was managing Ms Ho's music career at the time.
"Sun is paid totally from non-CHC (City Harvest Church) sources... (but) I'm personally very troubled as I don't wish to bring any potential reproach to the church or its various ministry. If there is simply no way out... Sun and I are even willing to resign from the Management Board of CHC, if that would help diffuse the semblance of any conflict of interest on her part," he wrote.
Mr Edwin Tong, defence lawyer for Kong, also tried to show that Mr Foong the auditor knew more about the investments than he let on. Several of the six accused had written e-mails saying Mr Foong had endorsed or given advice about the investments, although Mr Foong insisted that these were inaccurate.
Mr Tong said it was "incredible" that the auditor did not seem to recall reading any of the emails he had been sent regarding the transactions, given that the church was a "major" client of the firm.
Mr Foong replied that City Harvest's audit team was led by another person at his firm whom he would have deferred to, and he had his own "heavy" portfolio of clients at the time.
Friday, September 13, 2013
Worried staff brought up Ren Ci and NKF scams (ST, 14 Sept 2013)
He told church founder Kong that fee paid to Xtron was not 'watertight'
WHAT do the National Kidney Foundation (NKF) and Ren Ci Hospital scandals have in common with financial goings-on at City Harvest Church (CHC)?
They were all mentioned in an internal e-mail, in which a church staff raised concerns about one of CHC's financial dealings, it emerged in court yesterday.
The State believes several CHC investments were a cover to misappropriate church money and funnel millions into the secular music career of Ms Ho Yeow Sun, wife of church founder Kong Hee, who is one of the six accused.
In a July 2008 e-mail to Kong, CHC employee Suraj - who goes by one name - referred to financial scandals at the NKF and Ren Ci Hospital. That was the month when Ren Ci's chief Shi Ming Yi was charged with misappropriation of funds and forgery before being found guilty and jailed.
Mr Suraj noted that the authorities "would go for the kill" when they started an investigation into a charity and "the crux" would be the charity's accounts, as was the case with Ren Ci and NKF.
"As I reflect on our accounts, I don't feel good about it," he wrote. The retainer fee to Xtron Productions, a company linked with the alleged misuse of church funds, was not "watertight", he noted.
"It's fundamentally incorrect, especially with corporate governance, to pay them when Sun is parked in the same firm," he wrote. His e-mail came a year after the accused decided to use church money to buy bonds in Xtron, which managed Ms Ho's music career from 2003 to 2008, a transaction that the State believes is a sham.
Earlier, former church auditor Foong Daw Ching denied giving church leaders the idea of omitting certain information in CHC's records. He said former church finance manager Serina Wee, one of the accused, had put words in his mouth and twisted what he told her.
The partner at accounting firm Baker Tilly TFW said he told her, for instance, that as many things were discussed during the church's general meetings, everything did not have to be recorded verbatim as long as the main points were captured.
But in a 2008 e-mail to several of the accused, Wee wrote that Mr Foong had suggested downplaying the church's relationship with Xtron.
"He advised us the following... We can talk about XPL (Xtron) to the members in the extra-ordinary general meeting but don't minute down everything. Just minute down the necessary portions so as not to show too close a relationship or control over XPL," she wrote.
She added that Mr Foong sat on the Commissioner of Charities' (COC) advisory committee. "Bro Foong mentioned he just had a talk with the Commissioner... and explained that churches are doing things very differently now as compared to the past... (and) if the COC insists on churches disclosing everything, it will be very hard for the churches to achieve their objectives."
Mr Foong said he was never on any COC advisory committee. He was, however, appointed to a committee under the Government's Accounting Standards Council. He had spoken to the Commissioner only during committee meetings.
"I don't have a private audience with the COC."
He said he had been advising CHC members informally since 1993 but had not seen them take notes. "As far as I know, I was never sent any notes or e-mail for my comment. Now I see this internal e-mail had been sent to the pastors to say that I advised. There are a lot of inaccuracies."
The trial resumes on Monday.
zengkun@sph.com.sg
twong@sph.com.sg
WORRIES ABOUT THE CHURCH'S ACCOUNTS
The crux of the issue facing them (charities under investigation) is their account which is always the case as in... NKF and now Ren Ci! As I reflect on our accounts, I don't feel good about it... For Xtron's retainer, I don't feel it's watertight!... Pastor, may I request for an evaluation of these... matters. And if possible, a review of CHC's financial relationship with all the 'harvest family'!
– City Harvest Church staff member Suraj in a 2008 e-mail to church founder Kong Hee
IMPROPER PRACTICE
Why would I, in my position, tell someone to do something that, to me, looks a bit improper?" – Former church auditor Foong Daw Ching insists he never told the church to hide certain matters which were discussed at general meetings from the minutes NO ONE CHECKED WITH HIM In any meeting, if you are taking notes or through memory... before you send to some other person... I think it's only right that you send whatever note... to the people who are involved in (the) discussion, and to get (them) to concur whether the notes reflect accurately what was discussed... I was never sent any notes or e-mail for my comment, now I see this internal e-mail had been sent... to say that I advised. There are a lot of inaccuracies in there..."
– Mr Foong on e-mail sent out by former City Harvest finance manager Serina Wee regarding advice the auditor supposedly gave her
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed". This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The trial resumes next Monday, and the prosecution is expected to wrap up its questioning of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW. The firm or its associated companies audited Xtron and the church.
WHAT do the National Kidney Foundation (NKF) and Ren Ci Hospital scandals have in common with financial goings-on at City Harvest Church (CHC)?
They were all mentioned in an internal e-mail, in which a church staff raised concerns about one of CHC's financial dealings, it emerged in court yesterday.
The State believes several CHC investments were a cover to misappropriate church money and funnel millions into the secular music career of Ms Ho Yeow Sun, wife of church founder Kong Hee, who is one of the six accused.
In a July 2008 e-mail to Kong, CHC employee Suraj - who goes by one name - referred to financial scandals at the NKF and Ren Ci Hospital. That was the month when Ren Ci's chief Shi Ming Yi was charged with misappropriation of funds and forgery before being found guilty and jailed.
Mr Suraj noted that the authorities "would go for the kill" when they started an investigation into a charity and "the crux" would be the charity's accounts, as was the case with Ren Ci and NKF.
"As I reflect on our accounts, I don't feel good about it," he wrote. The retainer fee to Xtron Productions, a company linked with the alleged misuse of church funds, was not "watertight", he noted.
"It's fundamentally incorrect, especially with corporate governance, to pay them when Sun is parked in the same firm," he wrote. His e-mail came a year after the accused decided to use church money to buy bonds in Xtron, which managed Ms Ho's music career from 2003 to 2008, a transaction that the State believes is a sham.
Earlier, former church auditor Foong Daw Ching denied giving church leaders the idea of omitting certain information in CHC's records. He said former church finance manager Serina Wee, one of the accused, had put words in his mouth and twisted what he told her.
The partner at accounting firm Baker Tilly TFW said he told her, for instance, that as many things were discussed during the church's general meetings, everything did not have to be recorded verbatim as long as the main points were captured.
But in a 2008 e-mail to several of the accused, Wee wrote that Mr Foong had suggested downplaying the church's relationship with Xtron.
"He advised us the following... We can talk about XPL (Xtron) to the members in the extra-ordinary general meeting but don't minute down everything. Just minute down the necessary portions so as not to show too close a relationship or control over XPL," she wrote.
She added that Mr Foong sat on the Commissioner of Charities' (COC) advisory committee. "Bro Foong mentioned he just had a talk with the Commissioner... and explained that churches are doing things very differently now as compared to the past... (and) if the COC insists on churches disclosing everything, it will be very hard for the churches to achieve their objectives."
Mr Foong said he was never on any COC advisory committee. He was, however, appointed to a committee under the Government's Accounting Standards Council. He had spoken to the Commissioner only during committee meetings.
"I don't have a private audience with the COC."
He said he had been advising CHC members informally since 1993 but had not seen them take notes. "As far as I know, I was never sent any notes or e-mail for my comment. Now I see this internal e-mail had been sent to the pastors to say that I advised. There are a lot of inaccuracies."
The trial resumes on Monday.
zengkun@sph.com.sg
twong@sph.com.sg
WORRIES ABOUT THE CHURCH'S ACCOUNTS
The crux of the issue facing them (charities under investigation) is their account which is always the case as in... NKF and now Ren Ci! As I reflect on our accounts, I don't feel good about it... For Xtron's retainer, I don't feel it's watertight!... Pastor, may I request for an evaluation of these... matters. And if possible, a review of CHC's financial relationship with all the 'harvest family'!
– City Harvest Church staff member Suraj in a 2008 e-mail to church founder Kong Hee
IMPROPER PRACTICE
Why would I, in my position, tell someone to do something that, to me, looks a bit improper?" – Former church auditor Foong Daw Ching insists he never told the church to hide certain matters which were discussed at general meetings from the minutes NO ONE CHECKED WITH HIM In any meeting, if you are taking notes or through memory... before you send to some other person... I think it's only right that you send whatever note... to the people who are involved in (the) discussion, and to get (them) to concur whether the notes reflect accurately what was discussed... I was never sent any notes or e-mail for my comment, now I see this internal e-mail had been sent... to say that I advised. There are a lot of inaccuracies in there..."
– Mr Foong on e-mail sent out by former City Harvest finance manager Serina Wee regarding advice the auditor supposedly gave her
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed". This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The trial resumes next Monday, and the prosecution is expected to wrap up its questioning of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW. The firm or its associated companies audited Xtron and the church.
Thursday, September 12, 2013
City Harvest trial: Auditor says Serina Wee 'mischaracterised' his advice to church (ST, 13 Friday 2013)
An auditor testifying in the City Harvest Church trial said on Friday that certain practices described in emails written by accused Serina Wee were "improper", and mischaracterised advice he gave to the church. These include downplaying the close relationship the church had with related companies, for example by leaving out information in minutes of church meetings.
The prosecution had shown Mr Foong Daw Ching, who has advised church members, several emails that Wee had written to the other five accused listing suggestions Mr Foong purportedly gave to her about the accounting and disclosures of transactions between the church and related firms. One email in 2008 saw her describe "Bro Foong" as saying the church should not minute down everything that was explained about Xtron Productions to members at a extraordinary general meeting "so as not to show too close a relationship or control over (Xtron)".
But Mr Foong denied he had given such advice. "Why would I, in my position, tell someone to do something that looks improper? It definitely did not come from me." He added that Wee had not double-checked with him first about what he had told her before telling church leaders.
The prosecution believes the six accused had illegally funnelled church money to Xtron to fund Ms Ho Yeow Sun's secular music career.
The prosecution had shown Mr Foong Daw Ching, who has advised church members, several emails that Wee had written to the other five accused listing suggestions Mr Foong purportedly gave to her about the accounting and disclosures of transactions between the church and related firms. One email in 2008 saw her describe "Bro Foong" as saying the church should not minute down everything that was explained about Xtron Productions to members at a extraordinary general meeting "so as not to show too close a relationship or control over (Xtron)".
But Mr Foong denied he had given such advice. "Why would I, in my position, tell someone to do something that looks improper? It definitely did not come from me." He added that Wee had not double-checked with him first about what he had told her before telling church leaders.
The prosecution believes the six accused had illegally funnelled church money to Xtron to fund Ms Ho Yeow Sun's secular music career.
Auditor: CHC prepared statement for me to read (BT, 13 Sept 2013)
Foong Daw Ching says church made him read statement saying no CHC funds were used for Sun Ho's career
FOONG Daw Ching, the external auditor who made a public video saying that no City Harvest Church (CHC) funds were ever used in the promotion of Sun Ho's music career, admitted in court yesterday that the statement had been prepared by CHC, and that he had been pressured into reading it by the church.
Mr Foong, who is a co-founder of the firm now known as Baker Tilly TFW LLP, also told the court that he was not the lead audit partner for CHC's accounts at that time, even though he had said so in the video.
The video message, which was broadcast during CHC's 2003 annual general meeting (AGM) in April that year, was recorded in response to allegations made by a then-CHC member, Roland Poon, that church funds had been misused.
Mr Foong said, in the video, which was addressed to all CHC members: "I am the lead partner in charge of City Harvest Church's accounts. Having led the audit of City Harvest Church's accounts, it is my professional opinion that no church funds were ever used in the promotion of Ms Ho Yeow Sun's secular singing career and the accounts presented before this AGM are true and fair."
Mr Poon, who made the allegations in January 2003, had to retract them and print public apologies to CHC in five newspapers, costing him $33,372, according to the statement of facts agreed between the prosecution and defence.
Mr Foong admitted yesterday he was not the lead partner in charge of the church's accounts in 2003, having told the court earlier that he was the lead partner only for the first year that the church was the public accounting firm's client - between 1993 and 1994.
Mr Foong, who spent much of his day on the stand not being able to remember the incidents he was being questioned on, said the church had come to him with a prepared statement they wanted him to read.
"Who was it who asked you to read the statement, do you remember?" asked chief prosecutor Mavis Chionh.
"I can't, because the video crew came with this statement. I don't know who accompanied the video crew. And so, I can't remember who was the one who asked me to read this statement," Mr Foong said.
"Do you remember who handed you the statement?"
"Again, I can't remember."
Mr Foong said the whole process was "very rushed", as CHC wanted him to attend their AGM to present his opinion but he could not because he was preaching at his own church.
"Who wanted you to attend the City Harvest AGM to present your report?" Ms Chionh asked.
"I can't really remember," Mr Foong replied.
He did remember the church pressing him on getting the video done, and he agreed as a result.
When asked about the special audit his team did for CHC in 2003 - that is, the kind of work that was performed and how long it took - Mr Foong said: "Really, I cannot remember. All I remember is, work was done."
He also testified that CHC members would approach him for advice on transactions they intended to undertake, even after he was no longer the lead partner. When asked who from the church would come to him for advice, he said: "I really cannot remember. I think maybe (deputy senior pastor Tan) Ye Peng . . . (former finance manager) Serina (Wee) would be a likely person. And, on and off, I would say either (board member) John Lam or (former board member Chew) Eng Han will come . . . I can't remember over the recent years whether (finance manager) Sharon (Tan) was one of them . . . I really can't remember."
When questioned about the sort of advice CHC would approach him for, Mr Foong - who told the court he had been appointed to work in the Accounting Standard Council preparing accounting standards for charities - said he typically gave only very general advice to the church.
"I'm not good for details," he said. "I think the office knows that my real detailed technical knowledge is not very good."
When asked about how he advised CHC when they came to him on the bond issues that Xtron Productions intended to undertake, he said: "I can't remember what exactly I told them . . . My knowledge of financial instruments is very, very weak, so this is one area I never like to venture into because it's too technical for me to understand. So, I could only offer a very general comment . . . some idea of what they mean by 'fair value' and some idea of what is impairment and some idea of how bonds ought to be disclosed in the financial statements."
The hearing continues today.
FOONG Daw Ching, the external auditor who made a public video saying that no City Harvest Church (CHC) funds were ever used in the promotion of Sun Ho's music career, admitted in court yesterday that the statement had been prepared by CHC, and that he had been pressured into reading it by the church.
Mr Foong, who is a co-founder of the firm now known as Baker Tilly TFW LLP, also told the court that he was not the lead audit partner for CHC's accounts at that time, even though he had said so in the video.
The video message, which was broadcast during CHC's 2003 annual general meeting (AGM) in April that year, was recorded in response to allegations made by a then-CHC member, Roland Poon, that church funds had been misused.
Mr Foong said, in the video, which was addressed to all CHC members: "I am the lead partner in charge of City Harvest Church's accounts. Having led the audit of City Harvest Church's accounts, it is my professional opinion that no church funds were ever used in the promotion of Ms Ho Yeow Sun's secular singing career and the accounts presented before this AGM are true and fair."
Mr Poon, who made the allegations in January 2003, had to retract them and print public apologies to CHC in five newspapers, costing him $33,372, according to the statement of facts agreed between the prosecution and defence.
Mr Foong admitted yesterday he was not the lead partner in charge of the church's accounts in 2003, having told the court earlier that he was the lead partner only for the first year that the church was the public accounting firm's client - between 1993 and 1994.
Mr Foong, who spent much of his day on the stand not being able to remember the incidents he was being questioned on, said the church had come to him with a prepared statement they wanted him to read.
"Who was it who asked you to read the statement, do you remember?" asked chief prosecutor Mavis Chionh.
"I can't, because the video crew came with this statement. I don't know who accompanied the video crew. And so, I can't remember who was the one who asked me to read this statement," Mr Foong said.
"Do you remember who handed you the statement?"
"Again, I can't remember."
Mr Foong said the whole process was "very rushed", as CHC wanted him to attend their AGM to present his opinion but he could not because he was preaching at his own church.
"Who wanted you to attend the City Harvest AGM to present your report?" Ms Chionh asked.
"I can't really remember," Mr Foong replied.
He did remember the church pressing him on getting the video done, and he agreed as a result.
When asked about the special audit his team did for CHC in 2003 - that is, the kind of work that was performed and how long it took - Mr Foong said: "Really, I cannot remember. All I remember is, work was done."
He also testified that CHC members would approach him for advice on transactions they intended to undertake, even after he was no longer the lead partner. When asked who from the church would come to him for advice, he said: "I really cannot remember. I think maybe (deputy senior pastor Tan) Ye Peng . . . (former finance manager) Serina (Wee) would be a likely person. And, on and off, I would say either (board member) John Lam or (former board member Chew) Eng Han will come . . . I can't remember over the recent years whether (finance manager) Sharon (Tan) was one of them . . . I really can't remember."
When questioned about the sort of advice CHC would approach him for, Mr Foong - who told the court he had been appointed to work in the Accounting Standard Council preparing accounting standards for charities - said he typically gave only very general advice to the church.
"I'm not good for details," he said. "I think the office knows that my real detailed technical knowledge is not very good."
When asked about how he advised CHC when they came to him on the bond issues that Xtron Productions intended to undertake, he said: "I can't remember what exactly I told them . . . My knowledge of financial instruments is very, very weak, so this is one area I never like to venture into because it's too technical for me to understand. So, I could only offer a very general comment . . . some idea of what they mean by 'fair value' and some idea of what is impairment and some idea of how bonds ought to be disclosed in the financial statements."
The hearing continues today.
Email from Kong Hee to Justin Hertz
Dear Justin,
(Random stuff)
4. This is a personal question. There is a 40 year-old Australian singer by the name of Darlene Zschech (residing in Sydney) whom Sun has known for many years. She is more a classical, inspirational-type singer like Josh Groban, or Sarah Brightman. She is not an Asian but has been quite competitive in her attitude toward Sun in the past many years. Ever since she heard that Sun has crossovered into Hollywood and USA, Darlene has been rather intense in her demenour toward Sun. There is now a rumor circulating in the Singapore-Sydney grapevine that David Foster is collaborating with Darlene in a new album production for the US market. Question: any truth in that?
(Link to screenshot of email)
(Random stuff)
4. This is a personal question. There is a 40 year-old Australian singer by the name of Darlene Zschech (residing in Sydney) whom Sun has known for many years. She is more a classical, inspirational-type singer like Josh Groban, or Sarah Brightman. She is not an Asian but has been quite competitive in her attitude toward Sun in the past many years. Ever since she heard that Sun has crossovered into Hollywood and USA, Darlene has been rather intense in her demenour toward Sun. There is now a rumor circulating in the Singapore-Sydney grapevine that David Foster is collaborating with Darlene in a new album production for the US market. Question: any truth in that?
(Link to screenshot of email)
CHC leaders allegedly tried to conceal investments made (CNA, 12 Sept 2013)
SINGAPORE: The City Harvest Church (CHC) leaders accused of misusing church funds to finance singer Sun Ho's music career had allegedly tried to conceal the kind of investments made.
On Thursday, the prosecution sought to show this through a chain of emails dated 12 October 2007, between three of the six accused -- Chew Eng Han, Serina Wee and John Lam.
In the emails, the three discussed how they could withhold information from two parties -- the church's investment committee, as well as the church board members.
They talked about how the investment portfolio handled by Chew, who was at that time in charge of investing the church's funds, will not be seen by the board members nor the investment committee of the church.
Chew said in that email that "only the auditor will see the whole portfolio."
He added that this was "okay" as they have cleared it with the auditor, Mr Foong Daw Ching.
In the email, Chew also said: "I prefer this be kept within a small circle because of the proximity of Xtron (Productions) to Sun (Ho) and therefore to Pastor Kong (Hee). If one day someone turns away from CHC and becomes nasty, he may say all kinds of baseless things.
“The way we can do this is when you convene the committee meetings, begin to draft out the terms of the meeting given the new situation where monies are now managed externally. If the role is correctly spelt, we shouldn't have to constantly face this potential problem."
Lam then replied to the email saying: "Okay, then we go with your idea."
However, Mr Foong testified on Thursday saying he never had such a conversation with anyone from the church.
In other emails between Chew, Wee and another accused person, Tan Ye Peng, Mr Foong's name was also mentioned and he was said to have given them advice on bond transactions.
When asked, Mr Foong said he usually offers a very general comment, for example, how bonds ought to be disclosed in the financial statement.
He denied giving the accused specifics.
The prosecution is arguing that the emails were sent shortly after the first bond subscription agreement between AMAC Capital and Xtron Productions was signed in August 2007.
At that time, AMAC was headed by Chew and was tasked to invest the church's monies, while Xtron was the management company of Ms Ho, who was involved in the Crossover Project.
The Crossover Project sought to reach out to the secular world through Ms Ho's music.
The prosecution is trying to show that the accused were plotting to cover up their plans to channel money into Ms Ho's singing career.
Mr Foong, who is from accounting firm Baker Tilly, also told the court on Thursday that he did not draft the statement he made in a 2003 video.
In that video, the witness declared no church funds was used to promote Ms Ho's career and that all information presented to the church board members was "true and fair".
When questioned by lead prosecutor Mavis Chionh, Mr Foong said the church had prepared the statement and rushed him to record it.
But when pressed for a name, Mr Foong said he could not remember who drafted the statement for him to read and who wanted him to make that video.
In January 2003, then church member Roland Poon alleged that church funds were used to finance Ms Ho's career.
But he later retracted his allegations and made public apologies.
Mr Foong was then roped in to record a video declaring that Mr Poon's allegations were false.
Earlier in the day, Mr Foong also took the court through the auditing and approval processes.
Testifying for a second day, Mr Foong told the court that the church has been a client of his since 1993.
He said church representatives Tan, Wee and either Lam or Chew would seek his opinions on matters like property acquisitions and advance rental payments.
The four, along with CHC founder Kong Hee and Sharon Tan, are accused of misusing S$24 million church funds to boost the music career of Kong's wife, Ms Ho.
The trial continues.
On Thursday, the prosecution sought to show this through a chain of emails dated 12 October 2007, between three of the six accused -- Chew Eng Han, Serina Wee and John Lam.
In the emails, the three discussed how they could withhold information from two parties -- the church's investment committee, as well as the church board members.
They talked about how the investment portfolio handled by Chew, who was at that time in charge of investing the church's funds, will not be seen by the board members nor the investment committee of the church.
Chew said in that email that "only the auditor will see the whole portfolio."
He added that this was "okay" as they have cleared it with the auditor, Mr Foong Daw Ching.
In the email, Chew also said: "I prefer this be kept within a small circle because of the proximity of Xtron (Productions) to Sun (Ho) and therefore to Pastor Kong (Hee). If one day someone turns away from CHC and becomes nasty, he may say all kinds of baseless things.
“The way we can do this is when you convene the committee meetings, begin to draft out the terms of the meeting given the new situation where monies are now managed externally. If the role is correctly spelt, we shouldn't have to constantly face this potential problem."
Lam then replied to the email saying: "Okay, then we go with your idea."
However, Mr Foong testified on Thursday saying he never had such a conversation with anyone from the church.
In other emails between Chew, Wee and another accused person, Tan Ye Peng, Mr Foong's name was also mentioned and he was said to have given them advice on bond transactions.
When asked, Mr Foong said he usually offers a very general comment, for example, how bonds ought to be disclosed in the financial statement.
He denied giving the accused specifics.
The prosecution is arguing that the emails were sent shortly after the first bond subscription agreement between AMAC Capital and Xtron Productions was signed in August 2007.
At that time, AMAC was headed by Chew and was tasked to invest the church's monies, while Xtron was the management company of Ms Ho, who was involved in the Crossover Project.
The Crossover Project sought to reach out to the secular world through Ms Ho's music.
The prosecution is trying to show that the accused were plotting to cover up their plans to channel money into Ms Ho's singing career.
Mr Foong, who is from accounting firm Baker Tilly, also told the court on Thursday that he did not draft the statement he made in a 2003 video.
In that video, the witness declared no church funds was used to promote Ms Ho's career and that all information presented to the church board members was "true and fair".
When questioned by lead prosecutor Mavis Chionh, Mr Foong said the church had prepared the statement and rushed him to record it.
But when pressed for a name, Mr Foong said he could not remember who drafted the statement for him to read and who wanted him to make that video.
In January 2003, then church member Roland Poon alleged that church funds were used to finance Ms Ho's career.
But he later retracted his allegations and made public apologies.
Mr Foong was then roped in to record a video declaring that Mr Poon's allegations were false.
Earlier in the day, Mr Foong also took the court through the auditing and approval processes.
Testifying for a second day, Mr Foong told the court that the church has been a client of his since 1993.
He said church representatives Tan, Wee and either Lam or Chew would seek his opinions on matters like property acquisitions and advance rental payments.
The four, along with CHC founder Kong Hee and Sharon Tan, are accused of misusing S$24 million church funds to boost the music career of Kong's wife, Ms Ho.
The trial continues.
CITY HARVEST CHURCH CASE Hanafi: I don't care how CHC spends money (BT, 11 Sept 2013)
[SINGAPORE] Indonesian businessman and City Harvest Church (CHC) member Wahju Hanafi said yesterday that he doesn't know, and doesn't want to know, how the church spends his or other people's donations, to avoid being "disappointed".
He also gave an entirely different explanation, from the two he tendered earlier, as to why the church was in a hurry to redeem $11.5 million in bonds that his company, The First National Glassware (Firna), had issued to Xtron Productions.
Mr Hanafi, who is into his second week on the stand, likened the church's spending of donations to "kids (being) given money by their father". "They will use it very easily, unlike me, as a parent, who makes the money, every dollar, every penny of it," he told the court yesterday.
"They (the CHC pastors) might go on . . . whatever class of airfare they go on. I don't care. I mean, I still go on economy class. I don't care what the pastors or the church use because, otherwise, we will be disappointed, and then we might not receive the teaching from the pastors, because we already have this disappointment in our hearts."
He added that the way CHC approaches the spending of money would be different from his, as its purpose is to "win souls".
"(The church spends on) buying gifts for all the children . . . I remember my kids always come back with something . . . at the end of the day, they (the church) attract a lot of young people . . . my kids were begging us to (take them to) church every Sunday, because they know they will get something.
"The church is really using the money to bless and to win souls . . . it's like a package . . . we used to go to the kopitiam for a coffee, but today we are willing to pay $500-600 to go to Starbucks, just because they have Internet, good surroundings, and all that. We try to make our church like a whole package," he said.
He was then told off by Deputy Public Prosecutor Tan Kiat Pheng, for straying from the focus of the question: "I (gave) you the opportunity to explain. But you must stay focused, listen to the question and answer the question. Not ramble on and on to achieve whatever agenda you have."
Later in the day, DPP Tan again said he felt Mr Hanafi was not paying attention to his questions: "Please, if you don't want to stay here longer, you had better focus."
Mr Hanafi: "I'm being paid to stay here. If you want to spend more government money, that is your choice."
"As long as it takes for us to get the truth out of you," DPP Tan retorted.
DPP Tan also brought to Mr Hanafi's attention that he had given the court two different explanations for why CHC wanted to redeem the $11.5 million in bonds that Firna had issued to Xtron, which had managed Sun Ho's career, in December 2009.
Mr Hanafi had testified last week that the church was keen to unravel the bond issue ahead of time because it had received a threat from an anonymous person in March 2010 "to open up all our connection with Xtron and Sun (Ho's music) project, etc".
The next day, he agreed with Senior Counsel N Sreenivasan when the latter said that his client, CHC deputy senior pastor Tan Ye Peng, had told him that CHC was in a hurry to get the bonds redeemed because it wanted to buy an interest in Suntec City. To fund that acquisition, CHC needed to get back the advance rental from Xtron, and Xtron (to pay back that rental) had to get back the money it lent to Firna for the bond issue.
"Which version is the right version regarding the redemption of the Xtron Firna bond?" DPP Tan asked.
"Well, there's only one version from me," Mr Hanafi said. "After (news of) our case (the six CHC members charged in court) came out, I felt I can borrow the money from the bank (borrow commercially), and I rather replace all that money with the loan from the bank - to prove to the authorities that I don't have to rely on the money of the church or Xtron or whatever it is."
"You are giving a third version now," DPP Tan said.
"There's only one version . . . That I redeemed the bond because I wanted to pay back and I can afford to borrow from the bank."
"Then why didn't you wait for (the bond) to mature before you paid back? Why didn't you tell this court (earlier) that you want to show your muscle?" DPP Tan pressed.
"Well, I was not asked if I wanted to show my muscle, so I didn't answer that," Mr Hanafi replied.
The defence, in its cross-examination earlier in the day, tried to show that its clients were not involved in the relevant transactions. Mr Hanafi, under questioning by Edwin Tong, who represents CHC pastor Kong Hee, said Kong was not involved in the financing arrangements for Xtron or in any of the drawdowns of the bond issues. Under questioning by SC Andre Maniam, who represents ex-CHC finance manager Serina Wee, Mr Hanafi testified that Wee was not involved in Xtron's financing arrangements and that her involvement was mainly administrative.
He also gave an entirely different explanation, from the two he tendered earlier, as to why the church was in a hurry to redeem $11.5 million in bonds that his company, The First National Glassware (Firna), had issued to Xtron Productions.
Mr Hanafi, who is into his second week on the stand, likened the church's spending of donations to "kids (being) given money by their father". "They will use it very easily, unlike me, as a parent, who makes the money, every dollar, every penny of it," he told the court yesterday.
"They (the CHC pastors) might go on . . . whatever class of airfare they go on. I don't care. I mean, I still go on economy class. I don't care what the pastors or the church use because, otherwise, we will be disappointed, and then we might not receive the teaching from the pastors, because we already have this disappointment in our hearts."
He added that the way CHC approaches the spending of money would be different from his, as its purpose is to "win souls".
"(The church spends on) buying gifts for all the children . . . I remember my kids always come back with something . . . at the end of the day, they (the church) attract a lot of young people . . . my kids were begging us to (take them to) church every Sunday, because they know they will get something.
"The church is really using the money to bless and to win souls . . . it's like a package . . . we used to go to the kopitiam for a coffee, but today we are willing to pay $500-600 to go to Starbucks, just because they have Internet, good surroundings, and all that. We try to make our church like a whole package," he said.
He was then told off by Deputy Public Prosecutor Tan Kiat Pheng, for straying from the focus of the question: "I (gave) you the opportunity to explain. But you must stay focused, listen to the question and answer the question. Not ramble on and on to achieve whatever agenda you have."
Later in the day, DPP Tan again said he felt Mr Hanafi was not paying attention to his questions: "Please, if you don't want to stay here longer, you had better focus."
Mr Hanafi: "I'm being paid to stay here. If you want to spend more government money, that is your choice."
"As long as it takes for us to get the truth out of you," DPP Tan retorted.
DPP Tan also brought to Mr Hanafi's attention that he had given the court two different explanations for why CHC wanted to redeem the $11.5 million in bonds that Firna had issued to Xtron, which had managed Sun Ho's career, in December 2009.
Mr Hanafi had testified last week that the church was keen to unravel the bond issue ahead of time because it had received a threat from an anonymous person in March 2010 "to open up all our connection with Xtron and Sun (Ho's music) project, etc".
The next day, he agreed with Senior Counsel N Sreenivasan when the latter said that his client, CHC deputy senior pastor Tan Ye Peng, had told him that CHC was in a hurry to get the bonds redeemed because it wanted to buy an interest in Suntec City. To fund that acquisition, CHC needed to get back the advance rental from Xtron, and Xtron (to pay back that rental) had to get back the money it lent to Firna for the bond issue.
"Which version is the right version regarding the redemption of the Xtron Firna bond?" DPP Tan asked.
"Well, there's only one version from me," Mr Hanafi said. "After (news of) our case (the six CHC members charged in court) came out, I felt I can borrow the money from the bank (borrow commercially), and I rather replace all that money with the loan from the bank - to prove to the authorities that I don't have to rely on the money of the church or Xtron or whatever it is."
"You are giving a third version now," DPP Tan said.
"There's only one version . . . That I redeemed the bond because I wanted to pay back and I can afford to borrow from the bank."
"Then why didn't you wait for (the bond) to mature before you paid back? Why didn't you tell this court (earlier) that you want to show your muscle?" DPP Tan pressed.
"Well, I was not asked if I wanted to show my muscle, so I didn't answer that," Mr Hanafi replied.
The defence, in its cross-examination earlier in the day, tried to show that its clients were not involved in the relevant transactions. Mr Hanafi, under questioning by Edwin Tong, who represents CHC pastor Kong Hee, said Kong was not involved in the financing arrangements for Xtron or in any of the drawdowns of the bond issues. Under questioning by SC Andre Maniam, who represents ex-CHC finance manager Serina Wee, Mr Hanafi testified that Wee was not involved in Xtron's financing arrangements and that her involvement was mainly administrative.
City Harvest trial: Auditor advised church to buy property under its own name (ST, 12 Sept 2013)
Auditor Foong Daw Ching said City Harvest Church members had approached him over the years for advice on the church buying properties, investing in bonds and financial transactions which may require disclosure of any prior relationship between the two transacting parties.
For example, when City Harvest was considering buying a property through a nominee company, he told the church it could do so under its own name as the New Creation Church had set a precedent for this.
Accused Serina Wee said in an email that he gave her advice, including how City Harvest should "not paint the picture that (the church) has full control but only some control over Xtron", which is a church-linked firm that allegedly helped the accused church members to misuse funds.
However, Mr Foong, a partner at accounting firm Baker Tilly which audits the church, said his advice was usually very general as he was not the church's "engagement partner" or point person at the firm. He was only the church's engagement partner for one year in 1993 before other Baker Tilly auditors took over the role. Shown an email he had sent in 2006 describing himself as City Harvest's "consultant partner", he said it was not an official title and he had made it up to give City Harvest members "comfort" that they could approach him at any time.
For example, when City Harvest was considering buying a property through a nominee company, he told the church it could do so under its own name as the New Creation Church had set a precedent for this.
Accused Serina Wee said in an email that he gave her advice, including how City Harvest should "not paint the picture that (the church) has full control but only some control over Xtron", which is a church-linked firm that allegedly helped the accused church members to misuse funds.
However, Mr Foong, a partner at accounting firm Baker Tilly which audits the church, said his advice was usually very general as he was not the church's "engagement partner" or point person at the firm. He was only the church's engagement partner for one year in 1993 before other Baker Tilly auditors took over the role. Shown an email he had sent in 2006 describing himself as City Harvest's "consultant partner", he said it was not an official title and he had made it up to give City Harvest members "comfort" that they could approach him at any time.
Wednesday, September 11, 2013
Document 'suggests witness not truthful': City Harvest trial (ST, 11 Sept 2013)
He claimed he can't recall letter found in his father-in-law's home
IT WAS a scheme which seemed to show that City Harvest Church's $11 million investment in glassware company Firna was nothing more than a sham.
But when the company owner Wahju Hanafi claimed he was unaware of this plan until much later, the prosecution produced a document seized from his father-in-law's home which suggested he was not truthful.
This was just one of several inconsistencies which the State tried to expose yesterday as it turned on prosecution witness Mr Hanafi in the trial of church founder Kong Hee and five of his deputies over the alleged misuse of $50 million in church funds.
Part of this money was allegedly used to fund the music career of Kong's wife Ho Yeow Sun.
Since last Friday, Mr Hanafi agreed with defence lawyers that several of the church's allegedly suspect transactions were above board. One key transaction involved the church's investment in Firna bonds. The agreement in 2008 gave the church the right to convert the bonds to 40 per cent of the Indonesian company.
A letter signed by John Lam Leng Hung, one of the accused, promised to sell back the shares at just US$1 (S$1.30) if this happened.
The prosecution believes this assurance, which weakened the church's financial position, was used to persuade Mr Hanafi's father-in-law, who part-owned Firna then, to agree to the bond sale.
Mr Hanafi maintained that he did not see the letter until a year after the bond agreement. But prosecutors told Mr Hanafi that the police had seized a copy of the letter, dated before the time of the agreement, from his father-in-law's home here, where Mr Hanafi had stayed while he was in town.
On whether he saw this copy, Mr Hanafi, 53, said: "I don't remember. It could have been my wife who received it, my maid - we have three maids at home."
He also gave a third and new reason as to why in 2010, he repaid church-linked Xtron Productions soon after it invested in a separate tranche of Firna bonds. "I wanted to show people I had the muscle to pay (the money) back," he said yesterday.
But last week, Mr Hanafi agreed with the defence when it suggested that the church needed the money to buy a stake in Suntec Singapore.
Meanwhile, in a 2010 e-mail to his wife, he revealed that Xtron needed the money back quickly as "an anonymous person" had sent a letter to the church threatening "to open up all our connection with Xtron and Sun (Ho's music) project".
Earlier yesterday, defence lawyers argued that church leaders worked out the numbers before investing in Ms Ho's career via her management agency Xtron. It was noted how church leaders came up with a "worst-case scenario" where her album revenues were only a third of what was projected. This would result in a shortfall of $3.4 million in the church's coffers, which Mr Hanafi, an Xtron director at the time, said yesterday could easily be repaid.
Mr Hanafi also said Kong was not involved in the five drawdowns of a $13 million loan from the church to Xtron. He added that Serina Wee, another of the accused, performed only administrative duties and was not intimately involved with financial decisions involving Xtron.
About this case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed".
This was allegedly carried out to fund the pop music career of Kong's wife Ho Yeow Sun.
The prosecution is expected to wrap up its re-examination of former Xtron director Wahju Hanafi today, and start its examination of auditor Foong Daw Ching from accounting firm Baker Tilly.
Background Story
OFFERING THE PACKAGE
We used to go to kopi tiam and pay 70cents and $1 for a coffee but today we are willing to pay $5, $6 to go to Starbucks, (because) they have Internet, good surroundings... That is how we try to make our church, to make it like the whole package. Today, if any of you would come to our service where we just renovated the Suntec (premises), I don't know how much money they used, but, man, I say it's fantastic. It is just a great stage and the whole atmosphere in the church... this is the package that we try to offer to the young people.
- Mr Wahju Hanafi, on how the church spends to "win souls"
I want to show people my muscle, that I have the muscle to pay this one back. I have the properties and the business that can sustain my own, commercially.
- Mr Hanafi, on why he decided to take out a bank loan in 2010 to redeem the Xtron-Firna bonds before they matured
IT WAS a scheme which seemed to show that City Harvest Church's $11 million investment in glassware company Firna was nothing more than a sham.
But when the company owner Wahju Hanafi claimed he was unaware of this plan until much later, the prosecution produced a document seized from his father-in-law's home which suggested he was not truthful.
This was just one of several inconsistencies which the State tried to expose yesterday as it turned on prosecution witness Mr Hanafi in the trial of church founder Kong Hee and five of his deputies over the alleged misuse of $50 million in church funds.
Part of this money was allegedly used to fund the music career of Kong's wife Ho Yeow Sun.
Since last Friday, Mr Hanafi agreed with defence lawyers that several of the church's allegedly suspect transactions were above board. One key transaction involved the church's investment in Firna bonds. The agreement in 2008 gave the church the right to convert the bonds to 40 per cent of the Indonesian company.
A letter signed by John Lam Leng Hung, one of the accused, promised to sell back the shares at just US$1 (S$1.30) if this happened.
The prosecution believes this assurance, which weakened the church's financial position, was used to persuade Mr Hanafi's father-in-law, who part-owned Firna then, to agree to the bond sale.
Mr Hanafi maintained that he did not see the letter until a year after the bond agreement. But prosecutors told Mr Hanafi that the police had seized a copy of the letter, dated before the time of the agreement, from his father-in-law's home here, where Mr Hanafi had stayed while he was in town.
On whether he saw this copy, Mr Hanafi, 53, said: "I don't remember. It could have been my wife who received it, my maid - we have three maids at home."
He also gave a third and new reason as to why in 2010, he repaid church-linked Xtron Productions soon after it invested in a separate tranche of Firna bonds. "I wanted to show people I had the muscle to pay (the money) back," he said yesterday.
But last week, Mr Hanafi agreed with the defence when it suggested that the church needed the money to buy a stake in Suntec Singapore.
Meanwhile, in a 2010 e-mail to his wife, he revealed that Xtron needed the money back quickly as "an anonymous person" had sent a letter to the church threatening "to open up all our connection with Xtron and Sun (Ho's music) project".
Earlier yesterday, defence lawyers argued that church leaders worked out the numbers before investing in Ms Ho's career via her management agency Xtron. It was noted how church leaders came up with a "worst-case scenario" where her album revenues were only a third of what was projected. This would result in a shortfall of $3.4 million in the church's coffers, which Mr Hanafi, an Xtron director at the time, said yesterday could easily be repaid.
Mr Hanafi also said Kong was not involved in the five drawdowns of a $13 million loan from the church to Xtron. He added that Serina Wee, another of the accused, performed only administrative duties and was not intimately involved with financial decisions involving Xtron.
About this case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed".
This was allegedly carried out to fund the pop music career of Kong's wife Ho Yeow Sun.
The prosecution is expected to wrap up its re-examination of former Xtron director Wahju Hanafi today, and start its examination of auditor Foong Daw Ching from accounting firm Baker Tilly.
Background Story
OFFERING THE PACKAGE
We used to go to kopi tiam and pay 70cents and $1 for a coffee but today we are willing to pay $5, $6 to go to Starbucks, (because) they have Internet, good surroundings... That is how we try to make our church, to make it like the whole package. Today, if any of you would come to our service where we just renovated the Suntec (premises), I don't know how much money they used, but, man, I say it's fantastic. It is just a great stage and the whole atmosphere in the church... this is the package that we try to offer to the young people.
- Mr Wahju Hanafi, on how the church spends to "win souls"
I want to show people my muscle, that I have the muscle to pay this one back. I have the properties and the business that can sustain my own, commercially.
- Mr Hanafi, on why he decided to take out a bank loan in 2010 to redeem the Xtron-Firna bonds before they matured
Tuesday, September 10, 2013
City Harvest trial: Serina Wee, Kong Hee involved in financing Crossover Project: DPP (ST, 11 Sept 2013)
The prosecution for the ongoing City Harvest Church (CHC) trial sought to prove on Wednesday morning that former CHC finance manager Serina Wee and founding pastor Kong Hee were more involved in the financing decisions of the Crossover Project than alleged by witness Mr Wahju Hanafi.
Mr Hanafi had earlier testified that Kong was more involved in the "vision and mission" of the church, while Wee merely performed an administrative and budgeting role. The Indonesian businessman owns or was a director of companies involved with the alleged sham transactions to fund the Crossover Project, which was aimed at evangelising through Kong's pop-star wife Ho Yeow Sun's secular music career.
Deputy Public Prosecutor Tan Kiat Pheng referred to several emails in which Wee had given specific instructions to Mr Hanafi on transfers between various bank account for the project. But he insisted that she did not deal directly with the banks on his behalf. He said: "There are no direct emails between Serina and the banks, it is just her giving instruction to me, so it sounds to me more administrative."
DPP Tan also referred to discrepancies in Mr Hanafi's testimony about Kong. While he had said Kong was not involved in the financial transactions, he had also said Kong had "expressed... how we are going to finance (the project) as well." Mr Hanafi replied that this was the "beginning stage" around 2002 to 2004, when Mr Hanafi had told Kong he wished to directly sponsor or indirectly pay for the project costs.
Mr Hanafi had earlier testified that Kong was more involved in the "vision and mission" of the church, while Wee merely performed an administrative and budgeting role. The Indonesian businessman owns or was a director of companies involved with the alleged sham transactions to fund the Crossover Project, which was aimed at evangelising through Kong's pop-star wife Ho Yeow Sun's secular music career.
Deputy Public Prosecutor Tan Kiat Pheng referred to several emails in which Wee had given specific instructions to Mr Hanafi on transfers between various bank account for the project. But he insisted that she did not deal directly with the banks on his behalf. He said: "There are no direct emails between Serina and the banks, it is just her giving instruction to me, so it sounds to me more administrative."
DPP Tan also referred to discrepancies in Mr Hanafi's testimony about Kong. While he had said Kong was not involved in the financial transactions, he had also said Kong had "expressed... how we are going to finance (the project) as well." Mr Hanafi replied that this was the "beginning stage" around 2002 to 2004, when Mr Hanafi had told Kong he wished to directly sponsor or indirectly pay for the project costs.
Prosecution resumes questioning of key witness in CHC trial (CNA, 11 Sept 2013)
SINGAPORE: At the trial of the six leaders of City Harvest Church on Wednesday morning, the prosecution resumed its re-examination of its key witness.
Indonesian businessman Wahju Hanafi was grilled by prosecutor Tan Kiat Pheng on the discrepancies that crept up in his evidence in court over the past week.
In particular, the prosecutor questioned Mr Hanafi on why he agreed with the defence that church founder Kong Hee had been scrutinising the budget for the Crossover Project, that his wife is part of.
On September 9, lawyer Edwin Tong sought to show Kong had put much effort and thought into planning the music career of his wife, Ms Sun Ho.
Mr Tong also tried to make the point that Kong had been careful with the budget for Ms Ho's English album and tried to control it.
On Wednesday, the prosecution argued that this was not the case.
In a February 2005 email from Kong to American music producer, Justin Herz, the accused instructed Mr Herz to "plan as if 'the sky is the limit'" and then work out how they are going to get funds for the project.
This prompted an immediate objection from Mr Tong, who said the document should not be introduced in court.
The district judge allowed the move.
Kong and five of his deputies are accused of misusing S$24 million church funds to finance his wife's music career.
Indonesian businessman Wahju Hanafi was grilled by prosecutor Tan Kiat Pheng on the discrepancies that crept up in his evidence in court over the past week.
In particular, the prosecutor questioned Mr Hanafi on why he agreed with the defence that church founder Kong Hee had been scrutinising the budget for the Crossover Project, that his wife is part of.
On September 9, lawyer Edwin Tong sought to show Kong had put much effort and thought into planning the music career of his wife, Ms Sun Ho.
Mr Tong also tried to make the point that Kong had been careful with the budget for Ms Ho's English album and tried to control it.
On Wednesday, the prosecution argued that this was not the case.
In a February 2005 email from Kong to American music producer, Justin Herz, the accused instructed Mr Herz to "plan as if 'the sky is the limit'" and then work out how they are going to get funds for the project.
This prompted an immediate objection from Mr Tong, who said the document should not be introduced in court.
The district judge allowed the move.
Kong and five of his deputies are accused of misusing S$24 million church funds to finance his wife's music career.
Monday, September 9, 2013
Defence in CHC trial seeks to establish financial transactions are legitimate (CNA, 9 Sept 2013)
SINGAPORE: The trial of the six City Harvest Church leaders accused of misusing church funds continued on Monday with the defence seeking to establish that the various financial transactions in question were common and legitimate.
Defence counsel Kannan Ramesh went through the finances of glassware company, Firna, which is owned by prosecution witness Wahju Hanafi.
The Indonesian businessman testified that Firna's finances were in relatively good shape from 2007 to 2010.
In 2008, Firna had issued bonds to the church to raise capital.
Mr Ramesh pointed out to Mr Hanafi that it was only logical to restructure the debts if the church wanted Firna to redeem the bonds before the agreed three years, to which Mr Hanafi agreed.
The lawyer also sought to show that the personal guarantee undertaken by church founder Kong Hee, Tan Ye Peng, Chew Eng Han and former Xtron Productions director Koh Siow Ngea, in favour of Mr Hanafi, was done as "a show of support" between friends.
Kong, Tan, Chew and three others allegedly misused S$24 million church funds to boost the career of Kong's wife, singer Sun Ho.
Four of the six accused are said to have falsified accounts to cover up the misuse through round-tripping of sham bond investments.
Defence counsel Kannan Ramesh went through the finances of glassware company, Firna, which is owned by prosecution witness Wahju Hanafi.
The Indonesian businessman testified that Firna's finances were in relatively good shape from 2007 to 2010.
In 2008, Firna had issued bonds to the church to raise capital.
Mr Ramesh pointed out to Mr Hanafi that it was only logical to restructure the debts if the church wanted Firna to redeem the bonds before the agreed three years, to which Mr Hanafi agreed.
The lawyer also sought to show that the personal guarantee undertaken by church founder Kong Hee, Tan Ye Peng, Chew Eng Han and former Xtron Productions director Koh Siow Ngea, in favour of Mr Hanafi, was done as "a show of support" between friends.
Kong, Tan, Chew and three others allegedly misused S$24 million church funds to boost the career of Kong's wife, singer Sun Ho.
Four of the six accused are said to have falsified accounts to cover up the misuse through round-tripping of sham bond investments.
City Harvest trial: Church's loan to Firna made sense and was safe, says defence (ST, 9 Sept 2013)
City Harvest was never at any risk of losing the money it had loaned to a company, and the financial transactions were reasonable and legitimate. Defence lawyers said this on Monday as they tried to explain the allegedly suspicious loan given by the church to glassware manufacturer Firna.
The loan was given in 2008 after the financial crisis had started. It made sense for the church to invest in Firna's bonds - which are loans that guarantee a fixed return - rather than the turbulent financial market. It also made sense for Firna to borrow money from the church as its terms were better than those offered by the troubled banks, defence lawyers said.
Firna needed the money at the time because it had cash flow issues, but its financial statements showed that it had more than enough assets to repay the loans. It had also grown 40 per cent from 2006 to 2007 and 48.6 per cent from 2007 to 2008, which showed its good financial health, the defence added. This meant the church was never at any risk of losing its investment.
The prosecution believes these and other bonds were nothing more than sham investments meant to funnel church funds illegally to finance City Harvest co-founder Ho Yeow Sun's pop music career. Ms Ho's husband and co-founder Kong Hee and five of his deputies were charged last year with misusing about $50 million of church funds to finance Ms Ho's career and to cover this up.
The loan was given in 2008 after the financial crisis had started. It made sense for the church to invest in Firna's bonds - which are loans that guarantee a fixed return - rather than the turbulent financial market. It also made sense for Firna to borrow money from the church as its terms were better than those offered by the troubled banks, defence lawyers said.
Firna needed the money at the time because it had cash flow issues, but its financial statements showed that it had more than enough assets to repay the loans. It had also grown 40 per cent from 2006 to 2007 and 48.6 per cent from 2007 to 2008, which showed its good financial health, the defence added. This meant the church was never at any risk of losing its investment.
The prosecution believes these and other bonds were nothing more than sham investments meant to funnel church funds illegally to finance City Harvest co-founder Ho Yeow Sun's pop music career. Ms Ho's husband and co-founder Kong Hee and five of his deputies were charged last year with misusing about $50 million of church funds to finance Ms Ho's career and to cover this up.
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