SINGAPORE
- Music production firm Xtron was not an "independent commercial entity
at arm's length" from City Harvest Church, but a puppet of the church
board, prosecutors argued on Friday.
In
questioning former board member John Lam, the first of six indicted
church officials to testify, Chief Prosecutor Mavis Chionh painted a
complicit web of business ties that the church had tried to keep under
wraps - even from its own members.
Lam,
46, earlier testified that Xtron and various other entities were not
linked to the church. He also said that there were fears of public
disapproval of its Crossover Project, which was fronted by founder Kong
Hee's wife, Ms Ho Yeow Sun.
The
church had wanted to woo non-converts through Ms Ho's secular pop
music. Kong, Lam and four others are accused of siphoning about $50
million from the church's building fund into sham bonds with two firms,
including Xtron, to bankroll her career.
Xtron
was Ms Ho's artiste manager from 2003 to 2008. The for-profit company
had also leased out the Singapore Expo Hall 8 premises to the church for
services.
Yesterday,
Ms Chionh cited e-mails to show that Kong and the church board had a
hand in deciding the directors of Xtron and other "independent"
entities. People with ties to the church were chosen, she said, adding
that in Xtron's case - the duo selected were former church board members
Choong Kar Weng and Koh Siow Ngea.
Ms
Chionh asked: "If these companies are all independent of the church,
then why should Mr Kong, the pastor of the church, be in a position to
say who he wants to be made responsible for the running of the
companies?"
Lam
replied that the companies had shared "common objectives" with the
church, and the arrangement was in spirit of "cooperation and
partnership" with the church.
Ms Chionh then cited documents showing that Xtron had not charged any mark-up to the church in renting out the Expo site.
It
was co-accused Serina Wee, then finance manager of the church, who
highlighted that it "does not make business sense", according to an
e-mail read out in court. Wee had also said that Xtron must earn a
profit for it to be "deemed an arm's length transaction".
The
church's concern about bringing public attention to Xtron, a company
with no apparent ties to the church, was also questioned. Lam said the
church's ties with Xtron had to be kept discreet because Xtron was
"making a profit... We were afraid that the public would disapprove".
The hearing yesterday was characterised by many long pregnant pauses, with Lam taking his time to ponder Ms Chionh's questions.
At
one point, she said he was lying. At another, she asked: "Is there any
particular reason why you are so afraid of answering this general
question that I'm putting to you?" Lam said no.
This
came after she got a series of non-answers despite asking Lam at least
three times: "Do you agree that typically before an investor decides to
put his money in a bond, he would carry out due diligence on the
bond-issuer?"
Lam
has in his testimony maintained that it was the church's external fund
manager, Amac Capital Partners, run by another former board member and
co-accused Chew Eng Han, that held "complete and unfettered discretion"
in investing church monies. The board had no say at all, he claimed.
"The
fund manager buys and sells in order to generate a profit for the
investor, which is City Harvest Church," Lam said, explaining that if
the church board entered into the bond deals itself, it will assess if
they are financially sound.
Presiding
Judge of the State Courts See Kee Oon then interrupted, asking for an
answer to Ms Chionh's question to "try to move this along". Lam agreed
that investors would typically conduct due diligence before buying
bonds.
The trial continues on Aug 4.
Monday, July 21, 2014
Accused changes tune, says he played role in church affairs: City Harvest trial (BT: 19 July 2014)
[Singapore] ACCUSED City Harvest Church (CHC) member John Lam yesterday
admitted on the stand to having been involved in every major decision
of the church - a testimony in direct contrast to his lawyer's assertion
earlier this week that Lam just "pops out here and there".
He was also challenged on his claim that companies such as Xtron Productions (which managed Sun Ho's singing career and the church's evangelical effort, the Crossover Project) were independent from CHC; the prosecution produced several documents pointing to CHC having called the shots for these companies.
Lam is among six CHC members charged with having "dishonestly misappropriated" some S$24 million of the church's building funds to finance Ms Ho's career, and with round-tripping another S$26.6 million, using entities such as Xtron, to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan, and former finance manager and board member Serina Wee.
Lam's lawyer, Senior Counsel Kenneth Tan, had said in his opening statement on Monday that Lam had played a much smaller role than the others in the transactions in question: "All John Lam is, is a volunteer . . . he seems to pop out here and there."
But, under cross-examination by the prosecution yesterday, Lam admitted to being involved in all major decisions of the church.
Chief prosecutor Mavis Chionh produced a transcript of an extraordinary general meeting held by CHC on July 7, 2007; at that meeting, Kong had described Lam, head of the church's investment committee, as being "very qualified" and who has "been with us in every major decision we've made from Day 1".
Ms Chionh asked Lam if it was correct to say he had been with the church in every major decision made from Day 1.
"Yes, I can agree with that," Lam replied.
She showed minutes of other meetings - one in March 2010 with the church's executive members, at which he addressed accusations made against Kong; at another meeting months later, he presented audit findings to the executive members.
"When we look at (these), the history of your involvement in the church, the key appointments you have held, the responsibilities you have held, it is clear that you are not just an ordinary member who happens to 'pop in and out' of the church," Ms Chionh said.
Lam disagreed, saying: "My statement, and as my counsel has said, regarding this case, my position has always been (that I) popped in and out . . . I'm not disagreeing that I'm qualified, that I have experience, but I am an ordinary volunteer."
He also asserted that entities such as Xtron, while aligned with CHC's objectives, were independent.
But Ms Chionh put it to him: "(On Thursday), you were the one who told us that (CHC senior pastor Kong Hee) wanted the directors of all these companies listed to be responsible for the running of their company . . . If these companies are all independent of the church, why should Mr Kong, as pastor of the church, be in a position to say that he wants the directors to be made responsible for the running of the companies?"
She produced evidence showing the church's role in the running of these companies - in particular, Xtron. The court was shown a document listing individuals whom Lam, Wee, Chew and Tan Ye Peng suggested to Kong and the CHC board as being suitable directors for the "independent" companies.
She also produced another document on the agreement between Xtron and CHC on CHC's subleasing of Singapore Expo Hall 8 from Xtron, for which Xtron did not charge the church a mark-up for renting the Expo space.
"Assuming Xtron is an independent commercial entity that deals with the church at arm's length, why is it that it would not charge any mark-up on the rental of Expo?" she asked.
Lam said he believed there was a mark-up provided for in the sub-leasing agreement. Ms Chionh then produced another document: an e-mail from Wee to senior church members which said a CHC board meeting had decided CHC would pay Xtron a mark-up, "as only then will it be deemed an arm's length transaction"; the e-mail also carried Wee's calculations on how the mark-up was to be done.
"Do you have any explanation as to why, if Xtron is an independent commercial entity, . . . is Serina (Wee), the church's finance manager, proposing in this e-mail how much mark-up Xtron should charge CHC for renting the Expo premises? It doesn't make sense for the church, if it is dealing at arm's length with Xtron, a commercial entity, to say, 'Hey, I want to pay you more rent than you are now charging me. Please, can I pay you more rent?' You would expect Xtron to be the one to propose a rental mark-up. Do you agree?"
Lam, not answering the question directly, only said that CHC was prepared to pay a mark-up because it wanted Xtron to be independent.
"Mr Lam, if you have no answer to what I've been asking for the last 10 minutes, I suggest to you then that what we see here (in the e-mail) suggests that your evidence about City Harvest and Xtron being two entities that operate independently of each other and at arm's length is not true. Do you agree or disagree?"
"I disagree," Lam said.
The hearing is adjourned until Aug 4.
He was also challenged on his claim that companies such as Xtron Productions (which managed Sun Ho's singing career and the church's evangelical effort, the Crossover Project) were independent from CHC; the prosecution produced several documents pointing to CHC having called the shots for these companies.
Lam is among six CHC members charged with having "dishonestly misappropriated" some S$24 million of the church's building funds to finance Ms Ho's career, and with round-tripping another S$26.6 million, using entities such as Xtron, to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan, and former finance manager and board member Serina Wee.
Lam's lawyer, Senior Counsel Kenneth Tan, had said in his opening statement on Monday that Lam had played a much smaller role than the others in the transactions in question: "All John Lam is, is a volunteer . . . he seems to pop out here and there."
But, under cross-examination by the prosecution yesterday, Lam admitted to being involved in all major decisions of the church.
Chief prosecutor Mavis Chionh produced a transcript of an extraordinary general meeting held by CHC on July 7, 2007; at that meeting, Kong had described Lam, head of the church's investment committee, as being "very qualified" and who has "been with us in every major decision we've made from Day 1".
Ms Chionh asked Lam if it was correct to say he had been with the church in every major decision made from Day 1.
"Yes, I can agree with that," Lam replied.
She showed minutes of other meetings - one in March 2010 with the church's executive members, at which he addressed accusations made against Kong; at another meeting months later, he presented audit findings to the executive members.
"When we look at (these), the history of your involvement in the church, the key appointments you have held, the responsibilities you have held, it is clear that you are not just an ordinary member who happens to 'pop in and out' of the church," Ms Chionh said.
Lam disagreed, saying: "My statement, and as my counsel has said, regarding this case, my position has always been (that I) popped in and out . . . I'm not disagreeing that I'm qualified, that I have experience, but I am an ordinary volunteer."
He also asserted that entities such as Xtron, while aligned with CHC's objectives, were independent.
But Ms Chionh put it to him: "(On Thursday), you were the one who told us that (CHC senior pastor Kong Hee) wanted the directors of all these companies listed to be responsible for the running of their company . . . If these companies are all independent of the church, why should Mr Kong, as pastor of the church, be in a position to say that he wants the directors to be made responsible for the running of the companies?"
She produced evidence showing the church's role in the running of these companies - in particular, Xtron. The court was shown a document listing individuals whom Lam, Wee, Chew and Tan Ye Peng suggested to Kong and the CHC board as being suitable directors for the "independent" companies.
She also produced another document on the agreement between Xtron and CHC on CHC's subleasing of Singapore Expo Hall 8 from Xtron, for which Xtron did not charge the church a mark-up for renting the Expo space.
"Assuming Xtron is an independent commercial entity that deals with the church at arm's length, why is it that it would not charge any mark-up on the rental of Expo?" she asked.
Lam said he believed there was a mark-up provided for in the sub-leasing agreement. Ms Chionh then produced another document: an e-mail from Wee to senior church members which said a CHC board meeting had decided CHC would pay Xtron a mark-up, "as only then will it be deemed an arm's length transaction"; the e-mail also carried Wee's calculations on how the mark-up was to be done.
"Do you have any explanation as to why, if Xtron is an independent commercial entity, . . . is Serina (Wee), the church's finance manager, proposing in this e-mail how much mark-up Xtron should charge CHC for renting the Expo premises? It doesn't make sense for the church, if it is dealing at arm's length with Xtron, a commercial entity, to say, 'Hey, I want to pay you more rent than you are now charging me. Please, can I pay you more rent?' You would expect Xtron to be the one to propose a rental mark-up. Do you agree?"
Lam, not answering the question directly, only said that CHC was prepared to pay a mark-up because it wanted Xtron to be independent.
"Mr Lam, if you have no answer to what I've been asking for the last 10 minutes, I suggest to you then that what we see here (in the e-mail) suggests that your evidence about City Harvest and Xtron being two entities that operate independently of each other and at arm's length is not true. Do you agree or disagree?"
"I disagree," Lam said.
The hearing is adjourned until Aug 4.
Friday, July 18, 2014
Accused lied that Xtron was independent of CHC, says prosecution (Today: 19 July 2014)
SINGAPORE — He had maintained that City Harvest Church and multimedia
company Xtron Productions were independent entities, and said the views
of the head honcho at an audit firm would prevail over that of the lead
auditor for audit matters.
These two counts of evidence — given by former City Harvest Church board member John Lam Leng Hung in court — were yesterday described as lies by the prosecution in its cross-examination of Lam.
Lam, 46, one of six church leaders on trial for misusing church funds, was cross-examined by lead prosecutor Mavis Chionh. She asked him about the church’s relationship with Xtron, which managed the music career of church co-founder Ho Yeow Sun and provided audio-visual services to the church. The accused had channelled S$13 million of its building funds to Xtron through allegedly sham bonds in 2007 and 2008.
Asked why the church board was able to invite members to become directors of Xtron if it was indeed independent of the church, Lam said both had a common objective and that appointments were made with agreement and acceptance.
Producing an email in which former church finance manager Serina Wee proposed in January 2007 that the church pay a marked-up rate for renting Singapore Expo Hall 8 from Xtron, Ms Chionh asked Lam if it was reasonable for a tenant to seek higher rentals from a landlord.
“I will suggest to you … that your evidence about City Harvest and Xtron being two entities that operate independently of each other and at arm’s length is not true,” Ms Chionh said, to which Lam disagreed.
Ms Chionh also pointed to the earlier testimonies of auditors from Baker Tilly — the church’s former audit firm — that an engagement partner’s views should prevail on audit matters.
Lam’s insistence that the managing partner’s views would prevail “is not only wrong, but is actually a lie in the face of all this evidence that we see”, she said, to which Lam disagreed.
Since the trial began, prosecutors have sought to show Xtron was controlled by the church and that the accused had hidden information from their auditors.
Lam, a chartered financial analyst and certified public accountant, agreed that he was highly regarded and trusted by the church leadership. He had held many responsibilities over the years, including chairing the church’s investment committee, but maintained he was an ordinary volunteer.
He faces three charges of criminal breach of trust relating to S$24 million of church-building funds used for allegedly sham investments in Xtron and an Indonesian glassware firm.
He is arguing that he only “popped in and out” of the transactions in question.
The trial resumes on Aug 4 with the prosecution continuing to cross-examine Lam. Church co-founder Kong Hee is expected to take the stand after Lam.
These two counts of evidence — given by former City Harvest Church board member John Lam Leng Hung in court — were yesterday described as lies by the prosecution in its cross-examination of Lam.
Lam, 46, one of six church leaders on trial for misusing church funds, was cross-examined by lead prosecutor Mavis Chionh. She asked him about the church’s relationship with Xtron, which managed the music career of church co-founder Ho Yeow Sun and provided audio-visual services to the church. The accused had channelled S$13 million of its building funds to Xtron through allegedly sham bonds in 2007 and 2008.
Asked why the church board was able to invite members to become directors of Xtron if it was indeed independent of the church, Lam said both had a common objective and that appointments were made with agreement and acceptance.
Producing an email in which former church finance manager Serina Wee proposed in January 2007 that the church pay a marked-up rate for renting Singapore Expo Hall 8 from Xtron, Ms Chionh asked Lam if it was reasonable for a tenant to seek higher rentals from a landlord.
“I will suggest to you … that your evidence about City Harvest and Xtron being two entities that operate independently of each other and at arm’s length is not true,” Ms Chionh said, to which Lam disagreed.
Ms Chionh also pointed to the earlier testimonies of auditors from Baker Tilly — the church’s former audit firm — that an engagement partner’s views should prevail on audit matters.
Lam’s insistence that the managing partner’s views would prevail “is not only wrong, but is actually a lie in the face of all this evidence that we see”, she said, to which Lam disagreed.
Since the trial began, prosecutors have sought to show Xtron was controlled by the church and that the accused had hidden information from their auditors.
Lam, a chartered financial analyst and certified public accountant, agreed that he was highly regarded and trusted by the church leadership. He had held many responsibilities over the years, including chairing the church’s investment committee, but maintained he was an ordinary volunteer.
He faces three charges of criminal breach of trust relating to S$24 million of church-building funds used for allegedly sham investments in Xtron and an Indonesian glassware firm.
He is arguing that he only “popped in and out” of the transactions in question.
The trial resumes on Aug 4 with the prosecution continuing to cross-examine Lam. Church co-founder Kong Hee is expected to take the stand after Lam.
Thursday, July 17, 2014
CITY HARVEST CHURCH TRIAL Chew again grills Lam on 'false' evidence (Today: 17 July 2014)
[SINGAPORE]
Former fellow City Harvest Church (CHC) mates locked horns in court yet
again yesterday, as former CHC board member and church-goer Chew Eng
Han continued his cross-examination of current CHC board member and
church-goer John Lam.
Chew again sought to cast doubt on Lam's testimony - including that of Chew having played a key role in CHC's major investments - by suggesting that evidence tendered by Lam was "totally false" on a number of occasions.
Chew and Lam are among the six accused of having "dishonestly misappropriated" some $24 million of CHC's Building Fund to finance Sun Ho's music career and then "round-tripping" another $26.6 million to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan and former finance manager and board member Serina Wee.
Chew, in a break from the others, quit the church in June last year; he also discharged his lawyer, Senior Counsel Michael Khoo, and is now defending himself.
In continuing his cross-examination of Lam, who is on the stand this week, Chew challenged Lam's assertions that Chew had directed several key investments made by the church - including a $21.5 million investment into bonds issued by Xtron Productions, which managed Ms Ho's career and the church's evangelical effort, the Crossover Project.
Chew pointed out that Lam had testified in court earlier this week that it was Chew who suggested to Lam that CHC take up the Xtron bonds, and that it was AMAC - the investment vehicle run by Chew that managed the church's investments - that made the ultimate investment decision.
"In your testimony, you said . . . I showed you (the Xtron bonds) were a good investment because they were principal-protected and the album sales (of Ms Ho's music albums) were expected to be good, and your testimony now (is that) you left it to my discretion to decide on whether to buy Xtron bonds or not. Is that correct?" Chew asked.
"Yes, correct," said Lam.
Chew then called up a statement made by Lam to the Commercial Affairs Department (CAD) on June 16, 2010, when Lam was interviewed by an investigation officer (IO) of the CAD. In that statement, Lam said the board of City Harvest "was involved in the evaluation of the investment"; as for the "performance appraisal for the investments, it would be just a direct meeting with the main board (of CHC) where the fund manager will present to the board for appraisal".
Chew said: "Mr Lam, I'm submitting to you that your CAD statement is totally inconsistent with the testimony that you have given in court over the past few days.
"Your testimony that it was left to AMAC to decide on purchase of Xtron bonds is totally false," Chew added.
Lam said he disagreed with Chew; he said that, at the time he was questioned by the IO, he had no access to emails or other documentation on these investments and was not totally sure of the facts, nor could he recall exactly what CHC's arrangement had been. "I had no documents before me, I was basing (my statement) purely on recollection of my memory at that time."
"So, your state of mind has changed since then?" Chew asked.
"Because now I've a chance to look at the documents and the emails and I understood what really happened," Lam replied.
The hearing continues with the prosecution's cross-examination of Lam today.
Chew again sought to cast doubt on Lam's testimony - including that of Chew having played a key role in CHC's major investments - by suggesting that evidence tendered by Lam was "totally false" on a number of occasions.
Chew and Lam are among the six accused of having "dishonestly misappropriated" some $24 million of CHC's Building Fund to finance Sun Ho's music career and then "round-tripping" another $26.6 million to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan and former finance manager and board member Serina Wee.
Chew, in a break from the others, quit the church in June last year; he also discharged his lawyer, Senior Counsel Michael Khoo, and is now defending himself.
In continuing his cross-examination of Lam, who is on the stand this week, Chew challenged Lam's assertions that Chew had directed several key investments made by the church - including a $21.5 million investment into bonds issued by Xtron Productions, which managed Ms Ho's career and the church's evangelical effort, the Crossover Project.
Chew pointed out that Lam had testified in court earlier this week that it was Chew who suggested to Lam that CHC take up the Xtron bonds, and that it was AMAC - the investment vehicle run by Chew that managed the church's investments - that made the ultimate investment decision.
"In your testimony, you said . . . I showed you (the Xtron bonds) were a good investment because they were principal-protected and the album sales (of Ms Ho's music albums) were expected to be good, and your testimony now (is that) you left it to my discretion to decide on whether to buy Xtron bonds or not. Is that correct?" Chew asked.
"Yes, correct," said Lam.
Chew then called up a statement made by Lam to the Commercial Affairs Department (CAD) on June 16, 2010, when Lam was interviewed by an investigation officer (IO) of the CAD. In that statement, Lam said the board of City Harvest "was involved in the evaluation of the investment"; as for the "performance appraisal for the investments, it would be just a direct meeting with the main board (of CHC) where the fund manager will present to the board for appraisal".
Chew said: "Mr Lam, I'm submitting to you that your CAD statement is totally inconsistent with the testimony that you have given in court over the past few days.
"Your testimony that it was left to AMAC to decide on purchase of Xtron bonds is totally false," Chew added.
Lam said he disagreed with Chew; he said that, at the time he was questioned by the IO, he had no access to emails or other documentation on these investments and was not totally sure of the facts, nor could he recall exactly what CHC's arrangement had been. "I had no documents before me, I was basing (my statement) purely on recollection of my memory at that time."
"So, your state of mind has changed since then?" Chew asked.
"Because now I've a chance to look at the documents and the emails and I understood what really happened," Lam replied.
The hearing continues with the prosecution's cross-examination of Lam today.
Volley of questions leads to outbursts Usually cool defendant riled as ex-colleague grills him (ST: 17 July 2014)
THE terse showdown between two former colleagues on the City Harvest Church board did not let up yesterday in court.
Chew Eng Han, who quit the church last year claiming he was betrayed and lied to, launched a tirade of questions that visibly upset former board member John Lam, who was taking the stand for the fourth day.
Both men are among six defendants accused of funnelling about $50 million of church building funds into two companies, including music production firm Xtron, to bankroll the secular pop music career of Ho Yeow Sun, the wife of church founder Kong Hee.
At times yesterday, 46-year-old Lam lost his cool, raising his voice and glaring at Chew, 54, who is representing himself. This was unlike the usually collected Lam, who addressed the judge in measured replies.
Chew, despite having no legal training, tried to methodically discredit Lam's earlier assertion that it was his idea to cook up the alleged sham deals that landed the six accused, including Kong, in court.
Lam had earlier testified how Chew had approached him on June 23, 2007 to say that he was quitting his job as a chief executive officer of financial service company State Street Bank, to start a boutique fund management firm.
Chew, he claimed, proposed that surplus church funds should be invested, and the money raised be used for the Crossover Project, which was meant to attract converts through Ms Ho's singing.
Lam said Chew also suggested the tie-up with Xtron, and that Indonesian tycoon and church devotee Wahju Hanafi had guaranteed he would indemnify all losses.
But Chew told the court "the meeting never happened". He produced travel documents yesterday showing that he was in Tokyo on June 23, 2007. Lam admitted he might have got the date wrong.
Chew said he founded his company, Amac Capital Partners, in April 2007. Further, with the board "optimistic" about Ms Ho - a "10-hit wonder" with five Mandarin albums and five US singles - there was no need for the personal guarantee by Mr Hanafi. He cited an e-mail to show that the Xtron bond idea originated from deputy senior pastor Tan Ye Peng. Lam disagreed.
In a heated exchange, Chew also questioned why Lam, as "an experienced board member who is also a CFA (Chartered Financial Analyst)", had not asked about the Xtron bonds which the church bought. "Don't you think you should have some sense of responsibility as a board member to inquire as to the trigger for this amount?"
Lam maintained his stance that Chew had "unfettered and complete" discretion in investments.
But Chew then cited Lam's statement to Commercial Affairs Department investigators in which he said that the church board was involved in evaluating the Xtron bonds.
Lam explained the discrepancy to the court by saying that he did not have the benefit of e-mail and documents at the time.
Later, Tan's lawyer N. Sreenivasan argued that his client was above board, and that the church has always had a huge risk appetite.
The trial is expected to continue today with the prosecution questioning Lam.
Chew Eng Han, who quit the church last year claiming he was betrayed and lied to, launched a tirade of questions that visibly upset former board member John Lam, who was taking the stand for the fourth day.
Both men are among six defendants accused of funnelling about $50 million of church building funds into two companies, including music production firm Xtron, to bankroll the secular pop music career of Ho Yeow Sun, the wife of church founder Kong Hee.
At times yesterday, 46-year-old Lam lost his cool, raising his voice and glaring at Chew, 54, who is representing himself. This was unlike the usually collected Lam, who addressed the judge in measured replies.
Chew, despite having no legal training, tried to methodically discredit Lam's earlier assertion that it was his idea to cook up the alleged sham deals that landed the six accused, including Kong, in court.
Lam had earlier testified how Chew had approached him on June 23, 2007 to say that he was quitting his job as a chief executive officer of financial service company State Street Bank, to start a boutique fund management firm.
Chew, he claimed, proposed that surplus church funds should be invested, and the money raised be used for the Crossover Project, which was meant to attract converts through Ms Ho's singing.
Lam said Chew also suggested the tie-up with Xtron, and that Indonesian tycoon and church devotee Wahju Hanafi had guaranteed he would indemnify all losses.
But Chew told the court "the meeting never happened". He produced travel documents yesterday showing that he was in Tokyo on June 23, 2007. Lam admitted he might have got the date wrong.
Chew said he founded his company, Amac Capital Partners, in April 2007. Further, with the board "optimistic" about Ms Ho - a "10-hit wonder" with five Mandarin albums and five US singles - there was no need for the personal guarantee by Mr Hanafi. He cited an e-mail to show that the Xtron bond idea originated from deputy senior pastor Tan Ye Peng. Lam disagreed.
In a heated exchange, Chew also questioned why Lam, as "an experienced board member who is also a CFA (Chartered Financial Analyst)", had not asked about the Xtron bonds which the church bought. "Don't you think you should have some sense of responsibility as a board member to inquire as to the trigger for this amount?"
Lam maintained his stance that Chew had "unfettered and complete" discretion in investments.
But Chew then cited Lam's statement to Commercial Affairs Department investigators in which he said that the church board was involved in evaluating the Xtron bonds.
Lam explained the discrepancy to the court by saying that he did not have the benefit of e-mail and documents at the time.
Later, Tan's lawyer N. Sreenivasan argued that his client was above board, and that the church has always had a huge risk appetite.
The trial is expected to continue today with the prosecution questioning Lam.
City Harvest ‘took big risks to achieve big objectives’ (Today: 18 July 2014)
SINGAPORE — When City Harvest Church was developing its site in
Jurong West, there was a risk that the surrounding blocks of flats could
collapse because the church would be digging eight storeys below
ground. The building would feature a column-free space for about 2,000
worshippers. With the help of experts and engineers, the feat was
accomplished in 2002.
Yesterday, the church’s former investment manager and one of six church leaders facing criminal charges for misuse of church funds, Chew Eng Han, sought to detail the church’s history of risk-taking. Chew, who discharged his lawyer in May and chose to represent himself, pointed out that City Harvest also took risks for its Crossover Project to reach out to non-Christians through co-founder Ho Yeow Sun’s secular pop music career.
It is a church that took big risks to achieve big objectives, said Chew yesterday as he grilled co-accused and former church board member John Lam Leng Hung, who was the first defence witness. Lam agreed with Chew that the purchase of bonds from two firms to support Ms Ho’s career was founded on the faith that her album would be a hit.
Prosecutors contend that the two bond investments in multimedia firm Xtron Productions, which also managed Ms Ho, and Indonesian glassware firm PT The First National Glassware (Firna) were a sham and misuse of S$24 million of church building funds.
Chew, Lam and four others, including church co-founder Kong Hee, face three to 10 each for criminal breach of trust and falsification of accounts.
During his cross-examination yesterday, Chew ripped into Lam’s testimony on the previous days that the former had suggested making the investments in Xtron and Firna.
Lam had told the court that specific investments of church funds were left to Chew’s investment firm, AMAC Capital Partners. But Chew pointed out that Lam had told the Commercial Affairs Department in 2010 that any investment would be evaluated by the church’s investment committee, which Lam was part of, and approved by the church board.
He also noted the financial and spiritual objectives of the Xtron bond investment and, under persistent questioning, Lam conceded that it was Kong who had authority over spiritual matters at the church.
Chew also grilled Lam on why he never asked who was behind the idea to raise S$13 million for the Crossover Project, to which Lam said he did not see a need to.
Contrary to what Lam had testified earlier — that Chew had told him around June 23, 2007 that he wanted to quit his job at State Street bank to manage the church’s funds — Chew produced travel records showing he was overseas at the time and suggested the conversation never took place.
He had established his firm, AMAC, months before the church had a pool of funds to invest and Chew questioned why he would quit a well-paying job to manage the church’s funds for S$20,000 a year in fees when he had, for years, been investing for the church at no charge. Lam replied that he had heard from Kong that Chew had been asked to resign by State Street and insisted he and Chew did have that conversation.
Under cross-examination by lawyers for two of the other accused, Tan Ye Peng and Serina Wee, later in the day, Lam confirmed that Wee, the church’s former finance manager, was not at several key meetings, for instance, when the board agreed to the Firna investment. He denied intending or plotting with his fellow accused to cause wrongful loss to the church.
The trial continues.
Yesterday, the church’s former investment manager and one of six church leaders facing criminal charges for misuse of church funds, Chew Eng Han, sought to detail the church’s history of risk-taking. Chew, who discharged his lawyer in May and chose to represent himself, pointed out that City Harvest also took risks for its Crossover Project to reach out to non-Christians through co-founder Ho Yeow Sun’s secular pop music career.
It is a church that took big risks to achieve big objectives, said Chew yesterday as he grilled co-accused and former church board member John Lam Leng Hung, who was the first defence witness. Lam agreed with Chew that the purchase of bonds from two firms to support Ms Ho’s career was founded on the faith that her album would be a hit.
Prosecutors contend that the two bond investments in multimedia firm Xtron Productions, which also managed Ms Ho, and Indonesian glassware firm PT The First National Glassware (Firna) were a sham and misuse of S$24 million of church building funds.
Chew, Lam and four others, including church co-founder Kong Hee, face three to 10 each for criminal breach of trust and falsification of accounts.
During his cross-examination yesterday, Chew ripped into Lam’s testimony on the previous days that the former had suggested making the investments in Xtron and Firna.
Lam had told the court that specific investments of church funds were left to Chew’s investment firm, AMAC Capital Partners. But Chew pointed out that Lam had told the Commercial Affairs Department in 2010 that any investment would be evaluated by the church’s investment committee, which Lam was part of, and approved by the church board.
He also noted the financial and spiritual objectives of the Xtron bond investment and, under persistent questioning, Lam conceded that it was Kong who had authority over spiritual matters at the church.
Chew also grilled Lam on why he never asked who was behind the idea to raise S$13 million for the Crossover Project, to which Lam said he did not see a need to.
Contrary to what Lam had testified earlier — that Chew had told him around June 23, 2007 that he wanted to quit his job at State Street bank to manage the church’s funds — Chew produced travel records showing he was overseas at the time and suggested the conversation never took place.
He had established his firm, AMAC, months before the church had a pool of funds to invest and Chew questioned why he would quit a well-paying job to manage the church’s funds for S$20,000 a year in fees when he had, for years, been investing for the church at no charge. Lam replied that he had heard from Kong that Chew had been asked to resign by State Street and insisted he and Chew did have that conversation.
Under cross-examination by lawyers for two of the other accused, Tan Ye Peng and Serina Wee, later in the day, Lam confirmed that Wee, the church’s former finance manager, was not at several key meetings, for instance, when the board agreed to the Firna investment. He denied intending or plotting with his fellow accused to cause wrongful loss to the church.
The trial continues.
CHC trial: Claims of risk-taking as accused cross swords (CNA: 17 July 2014)
SINGAPORE: Former City Harvest Church investment
manager Chew Eng Han crossed swords with co-accused John Lam for a
second day on Thursday (July 17), pointing to significant parts of Lam's
testimony which he said were not true.
Both are among the six church leaders accused of using millions of church dollars to buy sham bonds to bankroll the pop music career of Sun Ho -- wife of church founder Kong Hee.
When he took the stand on Monday (July 14), former church board member John Lam singled out Chew Eng Han as the man who suggested the church invest in the bonds.
Lam said in June 2007, Chew asked to meet him and proposed to be the church's fund manager as he was setting up his own fund management company.
On Thursday (July 17), Chew, who is conducting his own defence after discharging his lawyer, said such a meeting "never happened" and produced evidence to show he was in Japan at that time. He also pointed to emails between some of the accused to show the idea to invest in the bonds had not been conceptualised then.
In addition, Chew said it was not true that he set up his firm specifically to manage the church's funds. Emails showed that Chew had informed Kong Hee that he wanted to set up his own firm because it was his dream, and personal career decision, and had done so in April 2007.
Chew noted that this was well before the decision was made to invest in the bonds.
He also pointed out that the church's investment into Xtron bonds had a mission objective, as this would go to funding the Crossover Project and that it was Kong Hee who oversaw all spiritual matters.
"A fund manager has no expertise in spiritual matters. You cannot engage a fund manager to assess the missions benefit of the church," Chew said.
Chew said the church was told that because it was digging eight storeys below ground level for the building's auditorium, there was a risk that surrounding HDB flats could collapse. Thus, experts, technicians and engineers were called in by the church.
The auditorium also does not have any columns to support it, which is a risk -- according to Chew -- when there are some 2,000 people gathered in that room for worship on weekends.
"The danger is that you have a whole load of the building… above the ground level with its weight pressing down, all the way down eight storeys, and that's where we have 2,000 people worshipping every Saturday, Sunday, without any columns supporting it. There is some form of risk," added Chew.
In response to Chew's point that City Harvest Church has always been risk-takers, Lam said: "I already said in my evidence that I had confidence in Pastor Kong that he has never failed in any projects, any major projects so far."
This penchant for risk was also reinforced by defence counsel N Sreenivasan, who is acting for senior pastor Tan Ye Peng.
He pointed to various examples to show that the church has always "thought big, and taken the shot buoyed by their beliefs and continue to do so".
"Saying that your pastor's wife is going to be a star in the US is also something most people will not do. Believing that you are going to achieve certain things is something most of us who…make all decisions rationally do not do," said Mr Sreenivasan, adding that this could be part of the church's thought process.
Lam will be cross-examined by the prosecution on Friday (July 18). Church founder Kong Hee will take the stand in his defence when the trial resumes in August.
Both are among the six church leaders accused of using millions of church dollars to buy sham bonds to bankroll the pop music career of Sun Ho -- wife of church founder Kong Hee.
When he took the stand on Monday (July 14), former church board member John Lam singled out Chew Eng Han as the man who suggested the church invest in the bonds.
Lam said in June 2007, Chew asked to meet him and proposed to be the church's fund manager as he was setting up his own fund management company.
On Thursday (July 17), Chew, who is conducting his own defence after discharging his lawyer, said such a meeting "never happened" and produced evidence to show he was in Japan at that time. He also pointed to emails between some of the accused to show the idea to invest in the bonds had not been conceptualised then.
In addition, Chew said it was not true that he set up his firm specifically to manage the church's funds. Emails showed that Chew had informed Kong Hee that he wanted to set up his own firm because it was his dream, and personal career decision, and had done so in April 2007.
Chew noted that this was well before the decision was made to invest in the bonds.
He also pointed out that the church's investment into Xtron bonds had a mission objective, as this would go to funding the Crossover Project and that it was Kong Hee who oversaw all spiritual matters.
"A fund manager has no expertise in spiritual matters. You cannot engage a fund manager to assess the missions benefit of the church," Chew said.
- Penchant for risk -
Over the past couple of days, the point of risk-taking being inherent in the church's DNA has been brought up -- pointing to its investments, mission plans, and even the design and construction of its building in Jurong West.Chew said the church was told that because it was digging eight storeys below ground level for the building's auditorium, there was a risk that surrounding HDB flats could collapse. Thus, experts, technicians and engineers were called in by the church.
The auditorium also does not have any columns to support it, which is a risk -- according to Chew -- when there are some 2,000 people gathered in that room for worship on weekends.
"The danger is that you have a whole load of the building… above the ground level with its weight pressing down, all the way down eight storeys, and that's where we have 2,000 people worshipping every Saturday, Sunday, without any columns supporting it. There is some form of risk," added Chew.
In response to Chew's point that City Harvest Church has always been risk-takers, Lam said: "I already said in my evidence that I had confidence in Pastor Kong that he has never failed in any projects, any major projects so far."
This penchant for risk was also reinforced by defence counsel N Sreenivasan, who is acting for senior pastor Tan Ye Peng.
He pointed to various examples to show that the church has always "thought big, and taken the shot buoyed by their beliefs and continue to do so".
"Saying that your pastor's wife is going to be a star in the US is also something most people will not do. Believing that you are going to achieve certain things is something most of us who…make all decisions rationally do not do," said Mr Sreenivasan, adding that this could be part of the church's thought process.
Lam will be cross-examined by the prosecution on Friday (July 18). Church founder Kong Hee will take the stand in his defence when the trial resumes in August.
Wednesday, July 16, 2014
Ex-board member: I gave inaccurate evidence - City Harvest trial (BT: 17th July 2014)
SINGAPORE] In what was perhaps one of the more highly anticipated
moments of this long-running trial, former City Harvest Church (CHC)
member Chew Eng Han - representing himself for the first time since the
resumption of the hearing - grilled his former fellow church-goer and
board member John Lam, who was on the stand.
Among other things, Chew - who has no legal training - had Lam admit that he had given inaccurate evidence at an earlier stage of the trial.
The pair are among the six accused of having "dishonestly misappropriated" some $24 million of CHC's Building Fund to finance Sun Ho's music career and then "round-tripping" another $26.6 million to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan and former finance manager and board member Serina Wee.
Chew, in a clear break from the others, quit the church in June last year; he also discharged his lawyer, Senior Counsel Michael Khoo, and is now defending himself.
When his turn came to cross-examine Lam, he challenged the latter's assertion that it was Chew who came to Lam with the idea of setting up Xtron Productions to manage CHC's evangelical effort, the Crossover Project. Through his line of questioning, Chew accused Lam of submitting false evidence:
"Mr Lam, I'm putting it to you right now: I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job - State Street Bank at the time. I was not into entertainment, nor into concerts; I wouldn't even have had the time to think about it.
"So I put it to you that the evidence you have given to the court - that it was my idea - is false."
Lam maintained that he had testified that Chew was the originator of the idea because it was Chew who approached him in May 2003 about having Xtron act as the artiste manager for Ms Ho. Chew argued that, since this hearing began, Lam has had sight of e-mails that showed that Chew was not the originator of the idea; the correspondence showed that others - included Kong and Tan Ye Peng - were discussing the idea before Chew came into the picture.
Chew said to Lam: "These two e-mails (exhibits), E-653, E-281, weren't they already in your hands since the trial started? So, you would have read them before you gave your statement."
Lam replied: "My statement was that, at the time, in May 2003, I had no knowledge that someone else was asking (Chew) Eng Han to tell me to set up Xtron . . . because it was Eng Han who approached me about being a director in Xtron."
To which, Chew said: "Mr Lam, I'm not asking for your recollection of May 2003. I'm asking for your recollection since the trial started - you would have access to these two e-mails, and you would have gone through them. And (I'm) asking - (having) read through those e-mails, how could you come up with the statement that it was Chew Eng Han who started Xtron?"
At which point, Chief District Judge See Kee Oon stepped in: "Mr Chew, you are basically saying that Mr Lam has given evidence which is at least inaccurate. So, do you agree with this, Mr Lam?"
At this point, Lam conceded, replying: "Your Honour, yes, I agree."
Senior Counsel N Sreenivasan, who is representing Sharon Tan, pointed out Chew's lack of legal credentials, but this has been a shortfall to which Chew has not been adverse to admitting.
When he opened his cross-examination of Lam, he had quipped: "I would just like to make a bit of a request: when the counsel in front, when you hand out new exhibits, don't forget there's a little junior counsel here. I need some of the documents too."
At another point, following an argument between the prosecution and defence counsel over a point of law, Chew said: "I don't understand what all these counsel are saying."
Among other things, Chew - who has no legal training - had Lam admit that he had given inaccurate evidence at an earlier stage of the trial.
The pair are among the six accused of having "dishonestly misappropriated" some $24 million of CHC's Building Fund to finance Sun Ho's music career and then "round-tripping" another $26.6 million to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan and former finance manager and board member Serina Wee.
Chew, in a clear break from the others, quit the church in June last year; he also discharged his lawyer, Senior Counsel Michael Khoo, and is now defending himself.
When his turn came to cross-examine Lam, he challenged the latter's assertion that it was Chew who came to Lam with the idea of setting up Xtron Productions to manage CHC's evangelical effort, the Crossover Project. Through his line of questioning, Chew accused Lam of submitting false evidence:
"Mr Lam, I'm putting it to you right now: I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job - State Street Bank at the time. I was not into entertainment, nor into concerts; I wouldn't even have had the time to think about it.
"So I put it to you that the evidence you have given to the court - that it was my idea - is false."
Lam maintained that he had testified that Chew was the originator of the idea because it was Chew who approached him in May 2003 about having Xtron act as the artiste manager for Ms Ho. Chew argued that, since this hearing began, Lam has had sight of e-mails that showed that Chew was not the originator of the idea; the correspondence showed that others - included Kong and Tan Ye Peng - were discussing the idea before Chew came into the picture.
Chew said to Lam: "These two e-mails (exhibits), E-653, E-281, weren't they already in your hands since the trial started? So, you would have read them before you gave your statement."
Lam replied: "My statement was that, at the time, in May 2003, I had no knowledge that someone else was asking (Chew) Eng Han to tell me to set up Xtron . . . because it was Eng Han who approached me about being a director in Xtron."
To which, Chew said: "Mr Lam, I'm not asking for your recollection of May 2003. I'm asking for your recollection since the trial started - you would have access to these two e-mails, and you would have gone through them. And (I'm) asking - (having) read through those e-mails, how could you come up with the statement that it was Chew Eng Han who started Xtron?"
At which point, Chief District Judge See Kee Oon stepped in: "Mr Chew, you are basically saying that Mr Lam has given evidence which is at least inaccurate. So, do you agree with this, Mr Lam?"
At this point, Lam conceded, replying: "Your Honour, yes, I agree."
Senior Counsel N Sreenivasan, who is representing Sharon Tan, pointed out Chew's lack of legal credentials, but this has been a shortfall to which Chew has not been adverse to admitting.
When he opened his cross-examination of Lam, he had quipped: "I would just like to make a bit of a request: when the counsel in front, when you hand out new exhibits, don't forget there's a little junior counsel here. I need some of the documents too."
At another point, following an argument between the prosecution and defence counsel over a point of law, Chew said: "I don't understand what all these counsel are saying."
Former friends clash in bid to discredit testimony (ST: 17 July 2014)
IT WAS a showdown yesterday between two men who used to be friends and comrades-in-arms on the City Harvest Church board.
Chew Eng Han, who oversaw its investments, mounted a feisty examination of former board member John Lam, who took the stand for a third day. Both men are among six accused on trial.
Chew, 54, was asking the questions himself as he had discharged his lawyer in May, citing a "deep personal conviction" of the need to defend himself.
He had also abruptly quit the church in June last year over deep-seated differences.
Yesterday, he was dogged in trying to discredit Lam's testimony that Chew, the church's former fund manager under Amac Capital Partners, had "complete and unfettered discretion" to make investment plans. These included the alleged sham transactions that are central to the present trial.
Lam has maintained that he only had a piecemeal idea of what was going on.
The six persons, including church founder Kong Hee, are accused of funnelling about $50 million of the church's building fund monies into alleged bogus deals with events firm Xtron Productions and glass manufacturer Firna, to bankroll the secular pop music career of Kong's wife Ho Yeow Sun.
In the one hour that Chew had before the hearing adjourned, he got Lam to admit he was wrong in his earlier testimony that it was Chew's idea in 2003 to start Xtron to manage Ms Ho's career.
Chew cited two e-mails, previously tendered in court as evidence, that showed the idea might have come instead from deputy senior pastor Tan Ye Peng. (me: oops)He said: "I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job, State Street Bank, at the time."
He asked why Lam pointed the finger at him, despite having full access to the e-mails. Lam countered that he was citing his "state of mind at the contemporaneous time" in his previous answer, but later conceded that his evidence was inaccurate.
Chew also sought to justify the investments by arguing that the church had always had an appetite for risk since it began investing its surplus funds in 1998 or 1999. To prove that his financial acumen was sound, Chew recounted how he had at the time pumped $2.2 million of church funds into one single stock - Superbowl Holdings.
While Lam said there were "some concerns" from the board, Chew said he "wasn't afraid" even when the stock plunged. The church eventually made $550,000 when it sold its stock years later.
Asked separately if it was a "dishonest act" to buy junk bonds or unrated bonds, Lam conceded it was not. Chew then cited a recent Reuters article reporting a "newly aggressive approach" by Singapore sovereign wealth fund GIC, investing in unrated Chinese bonds it would likely hold to maturity.
He said: "That's what we intended for Xtron and Firna bonds, to hold (them) to maturity."
Earlier, Lam stood by what he told investigators about Kong, when questioned by Kong's lawyer Jason Chan of his opinions. He had called Kong "a person of great integrity, one who only thinks of the church and not for personal gain".
Mr Chan later withdrew the question, after prosecutors pointed out that if evidence of Kong's good character was taken in court, the Evidence Act allowed them to call witnesses to prove otherwise.
(me: LOL)
.......................................
Notable exchanges in court
FALSE EVIDENCE?
"I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job, State Street Bank, at the time. I was not into entertainment nor into concerts. I wouldn't even have the time to think about it. So I put it to you that the evidence you have given to the court, that it was my idea, is false."
- Chew Eng Han to John Lam, who had earlier testified that it was the former who came up with the idea to set up Xtron Productions to manage the secular pop music career of church founder Kong Hee's wife Ho Yeow Sun as part of the Crossover Project
NOVICE COUNSEL
"To (counsel) in front, when you hand out new exhibits, don't forget there's a little junior counsel here."
- Chew appealing to other defence lawyers, in a light-hearted moment yesterday, to remember that he was representing himself
IN SERVICE OF CHURCH
"Since 1987, all the demands of my life have been placed on three things: my family, my job and the church. Since I joined City Harvest, I've nothing but served, given my time, my demands, sometimes to the detriment of my career and my family. I've given my money, I've not taken any money from the church. If there's any gain, I would say those are spiritual gains, they were gains of friendship. My core beliefs have always been to serve."
- Lam's passionate reply when asked if he would do anything intentionally that harms the church. Lam met Kong Hee, who was his cell group leader then, in 1987. Lam was a founding member when Kong founded City Harvest two years later
Chew Eng Han, who oversaw its investments, mounted a feisty examination of former board member John Lam, who took the stand for a third day. Both men are among six accused on trial.
Chew, 54, was asking the questions himself as he had discharged his lawyer in May, citing a "deep personal conviction" of the need to defend himself.
He had also abruptly quit the church in June last year over deep-seated differences.
Yesterday, he was dogged in trying to discredit Lam's testimony that Chew, the church's former fund manager under Amac Capital Partners, had "complete and unfettered discretion" to make investment plans. These included the alleged sham transactions that are central to the present trial.
Lam has maintained that he only had a piecemeal idea of what was going on.
The six persons, including church founder Kong Hee, are accused of funnelling about $50 million of the church's building fund monies into alleged bogus deals with events firm Xtron Productions and glass manufacturer Firna, to bankroll the secular pop music career of Kong's wife Ho Yeow Sun.
In the one hour that Chew had before the hearing adjourned, he got Lam to admit he was wrong in his earlier testimony that it was Chew's idea in 2003 to start Xtron to manage Ms Ho's career.
Chew cited two e-mails, previously tendered in court as evidence, that showed the idea might have come instead from deputy senior pastor Tan Ye Peng. (me: oops)He said: "I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job, State Street Bank, at the time."
He asked why Lam pointed the finger at him, despite having full access to the e-mails. Lam countered that he was citing his "state of mind at the contemporaneous time" in his previous answer, but later conceded that his evidence was inaccurate.
Chew also sought to justify the investments by arguing that the church had always had an appetite for risk since it began investing its surplus funds in 1998 or 1999. To prove that his financial acumen was sound, Chew recounted how he had at the time pumped $2.2 million of church funds into one single stock - Superbowl Holdings.
While Lam said there were "some concerns" from the board, Chew said he "wasn't afraid" even when the stock plunged. The church eventually made $550,000 when it sold its stock years later.
Asked separately if it was a "dishonest act" to buy junk bonds or unrated bonds, Lam conceded it was not. Chew then cited a recent Reuters article reporting a "newly aggressive approach" by Singapore sovereign wealth fund GIC, investing in unrated Chinese bonds it would likely hold to maturity.
He said: "That's what we intended for Xtron and Firna bonds, to hold (them) to maturity."
Earlier, Lam stood by what he told investigators about Kong, when questioned by Kong's lawyer Jason Chan of his opinions. He had called Kong "a person of great integrity, one who only thinks of the church and not for personal gain".
Mr Chan later withdrew the question, after prosecutors pointed out that if evidence of Kong's good character was taken in court, the Evidence Act allowed them to call witnesses to prove otherwise.
(me: LOL)
.......................................
Notable exchanges in court
FALSE EVIDENCE?
"I didn't approach you, I didn't have this grand vision of a media events company. I had a full-time job, State Street Bank, at the time. I was not into entertainment nor into concerts. I wouldn't even have the time to think about it. So I put it to you that the evidence you have given to the court, that it was my idea, is false."
- Chew Eng Han to John Lam, who had earlier testified that it was the former who came up with the idea to set up Xtron Productions to manage the secular pop music career of church founder Kong Hee's wife Ho Yeow Sun as part of the Crossover Project
NOVICE COUNSEL
"To (counsel) in front, when you hand out new exhibits, don't forget there's a little junior counsel here."
- Chew appealing to other defence lawyers, in a light-hearted moment yesterday, to remember that he was representing himself
IN SERVICE OF CHURCH
"Since 1987, all the demands of my life have been placed on three things: my family, my job and the church. Since I joined City Harvest, I've nothing but served, given my time, my demands, sometimes to the detriment of my career and my family. I've given my money, I've not taken any money from the church. If there's any gain, I would say those are spiritual gains, they were gains of friendship. My core beliefs have always been to serve."
- Lam's passionate reply when asked if he would do anything intentionally that harms the church. Lam met Kong Hee, who was his cell group leader then, in 1987. Lam was a founding member when Kong founded City Harvest two years later
CHC trial: Co-accused says investing in junk bonds not dishonest (Today: 17 July 2014)
SINGAPORE — He had recently discharged his lawyer, opting to
represent himself in the criminal trial of six City Harvest Church
leaders. He had also been singled out this week by defence witness and
co-accused John Lam Leng Hung as the person who suggested allegedly sham
bond investments in various companies.
So, there was an air of anticipation in the courtroom yesterday as City Harvest’s former investment manager Chew Eng Han began conducting his own defence by cross-examining Lam.
Lam, a former church board and investment committee member, admitted that he was wrong to say the idea to form multimedia firm Xtron Productions was Chew’s, after being presented with emails indicating otherwise.
Xtron issued bonds to the church that prosecutors contend are sham. Formed in 2003, it also managed the career of pop singer Ho Yeow Sun, wife of church co-founder and accused Kong Hee.
Chew, who is facing 10 charges of criminal breach of trust and falsification of accounts, also sought to show yesterday that it was not dishonest to invest in junk bonds or those not rated by ratings agencies, which the defence contends the sham investments to be.
He cited a recent news report of Singapore’s sovereign wealth fund GIC investing in unrated bonds and tried to show that the church has always been a risk-taker. He argued that no investment — not even rated bonds — was without risk and Lam agreed with him that the church had intended to hold its bond investments with Xtron and Indonesian glassware manufacturer, PT The First National Glassware (Firna), to maturity and collect interest.
Chew, with Kong seated close beside him, was composed as he stood in the dock to question Lam. Chew was previously represented by Senior Counsel Michael Khoo.
Yesterday’s trial also saw another defence lawyer suggesting that Chew was the brains behind some transactions that form “round-tripping” charges levelled by prosecutors — relating to S$26.6 million of church funds allegedly used to cover up S$24 million earlier misappropriated to fund Ms Ho’s music career in the United States.
It was Chew who drew a diagram on a whiteboard during a church board meeting on July 18, 2009, showing how rentals paid in advance to Xtron could eventually help Firna redeem its bonds issued to the church, said Senior Counsel Kannan Ramesh, lawyer of Sharon Tan Shao Yuen, one of the co-accused.
The church was trying to acquire property at the time and its auditors were in favour of getting the Xtron and Firna bonds off the church’s financial statements.
No one at the meeting objected to what was presented, said Lam.
Lam, on the witness stand for the third day, yesterday explained why he had signed a secret letter in 2008 that put the church at risk of financial loss.
The church’s bond agreement with Firna allowed the bonds to be converted to shares in Firna. But a Firna shareholder, the father-in-law of church supporter Wahju Hanafi, had objected to it, unless the church undertook to sell those shares back to Firna for US$1, should the conversion occur.
The undertaking was made in the secret letter, which Lam signed because he did not think the church would want to convert the bonds into a stake in a private company not aligned with its core mission.
The trial continues.
So, there was an air of anticipation in the courtroom yesterday as City Harvest’s former investment manager Chew Eng Han began conducting his own defence by cross-examining Lam.
Lam, a former church board and investment committee member, admitted that he was wrong to say the idea to form multimedia firm Xtron Productions was Chew’s, after being presented with emails indicating otherwise.
Xtron issued bonds to the church that prosecutors contend are sham. Formed in 2003, it also managed the career of pop singer Ho Yeow Sun, wife of church co-founder and accused Kong Hee.
Chew, who is facing 10 charges of criminal breach of trust and falsification of accounts, also sought to show yesterday that it was not dishonest to invest in junk bonds or those not rated by ratings agencies, which the defence contends the sham investments to be.
He cited a recent news report of Singapore’s sovereign wealth fund GIC investing in unrated bonds and tried to show that the church has always been a risk-taker. He argued that no investment — not even rated bonds — was without risk and Lam agreed with him that the church had intended to hold its bond investments with Xtron and Indonesian glassware manufacturer, PT The First National Glassware (Firna), to maturity and collect interest.
Chew, with Kong seated close beside him, was composed as he stood in the dock to question Lam. Chew was previously represented by Senior Counsel Michael Khoo.
Yesterday’s trial also saw another defence lawyer suggesting that Chew was the brains behind some transactions that form “round-tripping” charges levelled by prosecutors — relating to S$26.6 million of church funds allegedly used to cover up S$24 million earlier misappropriated to fund Ms Ho’s music career in the United States.
It was Chew who drew a diagram on a whiteboard during a church board meeting on July 18, 2009, showing how rentals paid in advance to Xtron could eventually help Firna redeem its bonds issued to the church, said Senior Counsel Kannan Ramesh, lawyer of Sharon Tan Shao Yuen, one of the co-accused.
The church was trying to acquire property at the time and its auditors were in favour of getting the Xtron and Firna bonds off the church’s financial statements.
No one at the meeting objected to what was presented, said Lam.
Lam, on the witness stand for the third day, yesterday explained why he had signed a secret letter in 2008 that put the church at risk of financial loss.
The church’s bond agreement with Firna allowed the bonds to be converted to shares in Firna. But a Firna shareholder, the father-in-law of church supporter Wahju Hanafi, had objected to it, unless the church undertook to sell those shares back to Firna for US$1, should the conversion occur.
The undertaking was made in the secret letter, which Lam signed because he did not think the church would want to convert the bonds into a stake in a private company not aligned with its core mission.
The trial continues.
Doubts 'raised over projected US album sales': City Harvest trial (ST: 16 July 2014)
Ex-board member says he was also against buying Riverwalk property
A FORMER City Harvest board member, facing three counts of criminal breach of trust, yesterday said he had raised doubts about the projected American album sales of church founder Kong Hee's wife Ho Yeow Sun.
John Lam Leng Hung, 46, one of six church officials on trial, said he had told the church's former finance manager there was a need to "justify" the sales projections of Ms Ho's debut US album for 2011 and 2012, given as $16 million and $23 million respectively.
He had cited details, like the number of albums to be launched and copies sold, as well as distribution contracts and the projected sales volume in comparison to that of other pop acts, which were necessary to satisfy auditors that such future assets were realistic.
Ms Ho was the face of the mega church's Crossover Project, launched in 2002 as an "outreach strategy" to evangelise to non- converts through pop music.
The sales projections were to be included on the 2008 balance sheets of music production firm Xtron, run by a long-time church supporter, which was then managing Ms Ho's entry into the US market. For various reasons, the album was never launched.
Fellow accused Serina Wee, 37, who was providing accounting services to Xtron, had sought Lam's advice on the company's assets.
Wee, formerly a finance manager of the church, agreed in an e-mail that Lam had made pertinent points. She added that Kong had "some figures" and album discussions were still ongoing.
This was not the only instance Lam said he had doubts about the church's plans.
The court heard that he also opposed the board's decision to buy the Riverwalk property - ostensibly to expand the church's premises - for $20 million. The price was too high, and he saw no need to rush into the deal, he said in an e-mail to the board which was read out in court yesterday.
For a second day, Lam's lawyer Kenneth Tan cited multiple e-mails to show that Lam, despite being on the church investment committee, knew only bits and pieces of what was going on.
Mainly he was consulted on accounting matters, Lam maintains.
He said the man who proposed the transactions central to the current trial was fellow accused Chew Eng Han, the church's then-investment manager.
Church leaders have been accused of misappropriating millions in church funds to buy sham bonds from Xtron and another church-linked firm to fund Ms Ho's music career. The leaders are said to have used building fund monies to enter a bond subscription agreement with Xtron worth $13 million in July 2007.
This was revised upwards to $18.2 million in August 2008 to allow Xtron to buy Riverwalk, which was at the time valued at $17.55 million.
A FORMER City Harvest board member, facing three counts of criminal breach of trust, yesterday said he had raised doubts about the projected American album sales of church founder Kong Hee's wife Ho Yeow Sun.
John Lam Leng Hung, 46, one of six church officials on trial, said he had told the church's former finance manager there was a need to "justify" the sales projections of Ms Ho's debut US album for 2011 and 2012, given as $16 million and $23 million respectively.
He had cited details, like the number of albums to be launched and copies sold, as well as distribution contracts and the projected sales volume in comparison to that of other pop acts, which were necessary to satisfy auditors that such future assets were realistic.
Ms Ho was the face of the mega church's Crossover Project, launched in 2002 as an "outreach strategy" to evangelise to non- converts through pop music.
The sales projections were to be included on the 2008 balance sheets of music production firm Xtron, run by a long-time church supporter, which was then managing Ms Ho's entry into the US market. For various reasons, the album was never launched.
Fellow accused Serina Wee, 37, who was providing accounting services to Xtron, had sought Lam's advice on the company's assets.
Wee, formerly a finance manager of the church, agreed in an e-mail that Lam had made pertinent points. She added that Kong had "some figures" and album discussions were still ongoing.
This was not the only instance Lam said he had doubts about the church's plans.
The court heard that he also opposed the board's decision to buy the Riverwalk property - ostensibly to expand the church's premises - for $20 million. The price was too high, and he saw no need to rush into the deal, he said in an e-mail to the board which was read out in court yesterday.
For a second day, Lam's lawyer Kenneth Tan cited multiple e-mails to show that Lam, despite being on the church investment committee, knew only bits and pieces of what was going on.
Mainly he was consulted on accounting matters, Lam maintains.
He said the man who proposed the transactions central to the current trial was fellow accused Chew Eng Han, the church's then-investment manager.
Church leaders have been accused of misappropriating millions in church funds to buy sham bonds from Xtron and another church-linked firm to fund Ms Ho's music career. The leaders are said to have used building fund monies to enter a bond subscription agreement with Xtron worth $13 million in July 2007.
This was revised upwards to $18.2 million in August 2008 to allow Xtron to buy Riverwalk, which was at the time valued at $17.55 million.
CHC trial: Fund manager singled out again for suggesting sham bonds (Today: 16 July 2014)
SINGAPORE — City Harvest Church’s former fund manager Chew Eng Han
was again singled out yesterday as the person who had suggested the bond
investments at the heart of the criminal trial involving six church
leaders.
John Lam Leng Hung — one of the accused and the defence’s first witness — named Chew — a fellow accused who has since left the church — as the one who had proposed investing in Indonesian glassware company PT The First National Glassware (Firna).
On Monday, Lam said Chew — who managed the church’s investments through his firm AMAC Capital Partners — had suggested the church buy bonds issued by Xtron Productions, the audio-visual company that managed pop singer Ho Yeow Sun’s career. Ms Ho is the wife of church co-founder Kong Hee, another of the accused.
The accused persons allegedly misused S$24 million of the church’s building fund for sham bond investments in Xtron and Firna. A sum of S$13 million was channelled to Xtron in 2007 and 2008, while S$11 million went to Firna in 2008 and 2009. It is the prosecution’s case that most of it was used for Ms Ho’s music career in the United States, and that another S$26.6 million of church funds was misappropriated to cover up the initial sum of money.
Yesterday, Lam said Chew had in August 2008 proposed investing in Firna to the church’s investment committee. He added that Chew had said Firna was a large glass factory and worth US$46 million (S$57.2 million). It was owned by church supporter Wahju Hanafi and his father-in-law, and Chew had apparently said Mr Hanafi would provide a personal guarantee for the Firna bonds.
Lam, who faces three charges of criminal breach of trust, sought to play down his role in the transactions central to the charges. He said he was not involved in discussions on fund-raising for Ms Ho’s career, and that he was given updates on the church’s investments and purchase of property in his capacity as a board member and investment committee member.
When there was concern about impairments to be made by the church should Xtron be unable to redeem its bonds when due, Lam tapped his previous experience to work out the asset impairment. Fellow accused Serina Wee provided him with Xtron’s projected income and expenditure, he said. This included the projection of S$16 million and S$23 million in sales of Ms Ho’s US album in 2011 and 2012, respectively. Lam said he had flagged the need to justify the projections.
His lawyer, Senior Counsel Kenneth Tan, produced email to show that Lam — a chartered financial analyst and certified public accountant — was included in discussions only on an ad hoc basis, mainly when accounting issues arose, and hence was not part of any conspiracy.
The trial continues.
John Lam Leng Hung — one of the accused and the defence’s first witness — named Chew — a fellow accused who has since left the church — as the one who had proposed investing in Indonesian glassware company PT The First National Glassware (Firna).
On Monday, Lam said Chew — who managed the church’s investments through his firm AMAC Capital Partners — had suggested the church buy bonds issued by Xtron Productions, the audio-visual company that managed pop singer Ho Yeow Sun’s career. Ms Ho is the wife of church co-founder Kong Hee, another of the accused.
The accused persons allegedly misused S$24 million of the church’s building fund for sham bond investments in Xtron and Firna. A sum of S$13 million was channelled to Xtron in 2007 and 2008, while S$11 million went to Firna in 2008 and 2009. It is the prosecution’s case that most of it was used for Ms Ho’s music career in the United States, and that another S$26.6 million of church funds was misappropriated to cover up the initial sum of money.
Yesterday, Lam said Chew had in August 2008 proposed investing in Firna to the church’s investment committee. He added that Chew had said Firna was a large glass factory and worth US$46 million (S$57.2 million). It was owned by church supporter Wahju Hanafi and his father-in-law, and Chew had apparently said Mr Hanafi would provide a personal guarantee for the Firna bonds.
Lam, who faces three charges of criminal breach of trust, sought to play down his role in the transactions central to the charges. He said he was not involved in discussions on fund-raising for Ms Ho’s career, and that he was given updates on the church’s investments and purchase of property in his capacity as a board member and investment committee member.
When there was concern about impairments to be made by the church should Xtron be unable to redeem its bonds when due, Lam tapped his previous experience to work out the asset impairment. Fellow accused Serina Wee provided him with Xtron’s projected income and expenditure, he said. This included the projection of S$16 million and S$23 million in sales of Ms Ho’s US album in 2011 and 2012, respectively. Lam said he had flagged the need to justify the projections.
His lawyer, Senior Counsel Kenneth Tan, produced email to show that Lam — a chartered financial analyst and certified public accountant — was included in discussions only on an ad hoc basis, mainly when accounting issues arose, and hence was not part of any conspiracy.
The trial continues.
City Harvest Church accused defends himself (CNA: 16 July 2014)
SINGAPORE: Former investment manager of City Harvest
Church Chew Eng Han conducted his own defence in court on Wednesday
(July 16) after discharging his lawyer two months ago.
Chew is one of six church leaders accused of misusing millions in church monies and is the only one without legal representation.
In May, Chew discharged his lawyer -- Senior Counsel Michael Khoo. He said he was doing so out of personal conviction and that he would represent himself.
Cross-examining his co-accused former church board member John Lam from the dock, Chew attempted to poke holes in his evidence. Pointing to an email from 2002, Chew said that contrary to Lam's evidence, it was not his idea to set up Xtron Productions to manage the pop music career of Sun Ho, wife of church founder Kong Hee. (i would love to see the email)
Kong and his five deputies are accused of using millions of church dollars to buy sham bonds from Xtron and Firna -- a glass manufacturer -- to bankroll her career. The court heard from Lam over the past two days that the idea for the church to invest in those bonds was proposed by Chew.
On Wednesday (July 16), defence counsel for the church's finance manager Sharon Tan, Mr Kannan Ramesh, argued that it was also Chew who proposed how these bonds could be restructured so they could be taken off the church's books.
Lawyers for the accused had previously argued that the City Harvest Church Board had acted on the advice of auditor Sim Guan Seng to "keep it simple" on matters regarding its bond investments in the two companies. Bond restructuring would have been one option to keep them off the books.
Lam said he recalled Chew drawing a diagram about this on a whiteboard during a meeting in July 2009.
In giving his defence, Chew also gave evidence of how in the late 1990s, he had invested S$2.2 million of the church's surplus funds into a single stock, which yielded returns of S$550,000 four to five years later.
Earlier in the day, Lam told the court that as a founding member of the church, he would never intentionally do anything to harm it. He went as far as to say that he had served the church sometimes even to the detriment of his family and his career.
Lam also explained why he signed a "secret letter" between the church and Firna, which is owned by Indonesian businessman and longtime church member Wahju Hanafi.
The church was given a personal guarantee from Mr Hanafi in the event the Indonesian failed to redeem the church-Firna bonds. A requirement under that agreement was that the church could convert the bonds issued by Mr Hanafi into shares in Firna if he failed to pay the church back.
But Mr Hanafi's father-in-law, who held 20 per cent of the company, was reluctant to agree as he felt it would dilute his shares in the company. As such, the secret letter was drafted which stated that the church would sell back the shares to Mr Hanafi and his father-in-law, at a nominal value of US$1, in the event the bonds were converted into shares.
Lam explained that he signed the letter because Mr Hanafi had assured Chew Eng Han that he had no intention of enforcing or using the letter, and wanted it only for the purpose of appeasing his father-in-law.
He also said the convertibility feature of the bond into shares was a "non-issue" for him, as Firna's core business did not align with CHC's missions and objectives.
Chew is one of six church leaders accused of misusing millions in church monies and is the only one without legal representation.
In May, Chew discharged his lawyer -- Senior Counsel Michael Khoo. He said he was doing so out of personal conviction and that he would represent himself.
Cross-examining his co-accused former church board member John Lam from the dock, Chew attempted to poke holes in his evidence. Pointing to an email from 2002, Chew said that contrary to Lam's evidence, it was not his idea to set up Xtron Productions to manage the pop music career of Sun Ho, wife of church founder Kong Hee. (i would love to see the email)
Kong and his five deputies are accused of using millions of church dollars to buy sham bonds from Xtron and Firna -- a glass manufacturer -- to bankroll her career. The court heard from Lam over the past two days that the idea for the church to invest in those bonds was proposed by Chew.
On Wednesday (July 16), defence counsel for the church's finance manager Sharon Tan, Mr Kannan Ramesh, argued that it was also Chew who proposed how these bonds could be restructured so they could be taken off the church's books.
Lawyers for the accused had previously argued that the City Harvest Church Board had acted on the advice of auditor Sim Guan Seng to "keep it simple" on matters regarding its bond investments in the two companies. Bond restructuring would have been one option to keep them off the books.
Lam said he recalled Chew drawing a diagram about this on a whiteboard during a meeting in July 2009.
In giving his defence, Chew also gave evidence of how in the late 1990s, he had invested S$2.2 million of the church's surplus funds into a single stock, which yielded returns of S$550,000 four to five years later.
Earlier in the day, Lam told the court that as a founding member of the church, he would never intentionally do anything to harm it. He went as far as to say that he had served the church sometimes even to the detriment of his family and his career.
Lam also explained why he signed a "secret letter" between the church and Firna, which is owned by Indonesian businessman and longtime church member Wahju Hanafi.
The church was given a personal guarantee from Mr Hanafi in the event the Indonesian failed to redeem the church-Firna bonds. A requirement under that agreement was that the church could convert the bonds issued by Mr Hanafi into shares in Firna if he failed to pay the church back.
But Mr Hanafi's father-in-law, who held 20 per cent of the company, was reluctant to agree as he felt it would dilute his shares in the company. As such, the secret letter was drafted which stated that the church would sell back the shares to Mr Hanafi and his father-in-law, at a nominal value of US$1, in the event the bonds were converted into shares.
Lam explained that he signed the letter because Mr Hanafi had assured Chew Eng Han that he had no intention of enforcing or using the letter, and wanted it only for the purpose of appeasing his father-in-law.
He also said the convertibility feature of the bond into shares was a "non-issue" for him, as Firna's core business did not align with CHC's missions and objectives.
Tuesday, July 15, 2014
5 things to know about the City Harvest trial (ST: 15 July 2014)
1) What is it about?
In a few words: Music and money. Prosecutors believe church founder Kong Hee and five others misused about $50 million of the church's money between January 2007 and October 2009.
2) Where does the music part come in?
$24 million allegedly went to support Kong's wife Ms Ho Yeow Sun's pop music career. Another $26.6 million was used to cover up the first amount through concocted deals, say prosecutors.
Defence lawyers, however, say Ms Ho's music was widely accepted within the church as a means to evangelise, so "church money was used for church purposes".
They also say that, contrary to prosecution claims, the $26.6 million was used to meet legitimate church needs.
Prosecutors believe a rental payment from the church, for example, was contrived by the accused to disguise the first misused sum, while the defence says the church needed a place for its services.
3) So what's going on with the trial now?
Prosecutors have wrapped up their case and the defence is now taking its turn. All six defendants will take the stand, starting with former church board member John Lam Leng Hung. Church founder Kong Hee will be next. Trial dates have been set aside from now until next April.
4) What evidence has been presented so far?
Prosecutors have built their case partly on a mass of e-mails and text messages written by Kong and the others. These, the prosecutors believe, show the accused intended to defraud the church and deceive its auditors.
The paper trail, for example, allegedly shows how several of the accused essentially conspired with the directors of two church-friendly companies to offer sham investments to the church. This was so they could access the money in the church's Building Fund, which had restricted uses, say prosecutors.
The defence lawyers say the prosecutors misinterpreted the communications or took them out of context.
5) Did anything scandalous happen during the trial?
Not scandalous, exactly, but there has been plenty of drama.
One of the accused, former church investment manager Chew Eng Han, quit City Harvest last June (2013) and has been keeping apart from the others in court. He has also discharged his lawyer and is now defending himself.
He wrote in a blog post that he had been tolerating "betrayal, slander, ingratitude, denial and lies, manipulation and control, greed, pride, hypocrisy, abuse of authority, practice of favoritism and different standards".
The case has also thrown a spotlight on the church's audit firm Baker Tilly TFW. It approved audit reports that included the alleged sham transactions, although employees who took the stand said information had been kept from them.
One particularly awkward moment occurred when audit manager Foong Ai Fang testified. Although she was the one responsible for the City Harvest audits' field work, she said she had no idea her brother Foong Daw Ching - the firm's former managing partner - met several of the accused and gave them advice.
Former finance manager Serina Wee, who is in the dock, has also emerged as trial's style icon. Wee recently opened a blogshop selling clothes with long-time friend and church finance manager Sharon Tan, who is also on trial.
Church's ex-board member: Investment idea not mine (ST: 15 July 2014)
Accused tries to distance himself from the others as City Harvest trial resumes
THE City Harvest Church trial resumed yesterday with one of the accused distancing himself from the others.
Former church board member John Lam Leng Hung, the first of the six defendants to take the stand, said the plans to invest church money in bonds had not come from him.
The prosecution believes $24 million was invested in sham bonds, with the money used to bankroll the secular music career of Ms Ho Yeow Sun - the wife of church founder Kong Hee. Another $26.6 million was allegedly used to cover this up.
Lam said it was fellow accused, Chew Eng Han, the church's former investment manager, who had requested a meeting with him in 2007 and then detailed the proposal to invest in the bonds.
The defence has consistently said Ms Ho's pop music career was part of a church-approved Crossover project to evangelise.
"(Chew) said to me he intended to resign from his job and was going to set up a new fund management company," Lam said. "He proposed that he be the fund manager to invest the church's surplus funds."
According to Lam, Chew suggested that music production firm Xtron Productions - then Ms Ho's manager - issue a bond which the church could invest in.
The money would then be used to finance the Crossover project, which included Ms Ho's new album.
"He said the bond could be repaid from (her) album sales," said Lam.
Questioned by his lawyer, Mr Kenneth Tan, Lam said he believed the Xtron bonds were a sound investment because Ms Ho had been "very successful" in her previous albums and he trusted Chew to have done due diligence.
Chew had also assured him that, if the new album failed, Xtron director and Indonesian businessman Wahju Hanafi - a long-time church member - would personally repay the church.
"I knew Wahju was a high-net-worth individual... and his wife also comes from a rich family, so I took comfort from those facts," Lam said.
While the prosecution had previously shown e-mail exchanges between some of the accused suggesting that Xtron had cash-flow problems, Lam said he had not seen e-mails and documents related to the firm's cash flows until the trial started.
Earlier in the day, his lawyer also sought to paint him as a "volunteer" who only helped out with the others' queries on an ad hoc basis.
Mr Tan said: "He doesn't run the Crossover and he's not involved in Xtron. He seems to pop up here and there, but that's because he's an accountant, so whenever there is an issue he is asked."
Lam also said yesterday that City Harvest board members had backed Ms Ho's music as a way to evangelise as far back as 2002.
The board members had also agreed the church's support should be discreet so young "unchurched" people - a key target of the church's outreach - would not dismiss her music as "yet another church-sponsored project".
Ms Ho, who had appeared on the first day of the trial's previous tranches, was not seen yesterday. She is expected to be called as a witness.
THE City Harvest Church trial resumed yesterday with one of the accused distancing himself from the others.
Former church board member John Lam Leng Hung, the first of the six defendants to take the stand, said the plans to invest church money in bonds had not come from him.
The prosecution believes $24 million was invested in sham bonds, with the money used to bankroll the secular music career of Ms Ho Yeow Sun - the wife of church founder Kong Hee. Another $26.6 million was allegedly used to cover this up.
Lam said it was fellow accused, Chew Eng Han, the church's former investment manager, who had requested a meeting with him in 2007 and then detailed the proposal to invest in the bonds.
The defence has consistently said Ms Ho's pop music career was part of a church-approved Crossover project to evangelise.
"(Chew) said to me he intended to resign from his job and was going to set up a new fund management company," Lam said. "He proposed that he be the fund manager to invest the church's surplus funds."
According to Lam, Chew suggested that music production firm Xtron Productions - then Ms Ho's manager - issue a bond which the church could invest in.
The money would then be used to finance the Crossover project, which included Ms Ho's new album.
"He said the bond could be repaid from (her) album sales," said Lam.
Questioned by his lawyer, Mr Kenneth Tan, Lam said he believed the Xtron bonds were a sound investment because Ms Ho had been "very successful" in her previous albums and he trusted Chew to have done due diligence.
Chew had also assured him that, if the new album failed, Xtron director and Indonesian businessman Wahju Hanafi - a long-time church member - would personally repay the church.
"I knew Wahju was a high-net-worth individual... and his wife also comes from a rich family, so I took comfort from those facts," Lam said.
While the prosecution had previously shown e-mail exchanges between some of the accused suggesting that Xtron had cash-flow problems, Lam said he had not seen e-mails and documents related to the firm's cash flows until the trial started.
Earlier in the day, his lawyer also sought to paint him as a "volunteer" who only helped out with the others' queries on an ad hoc basis.
Mr Tan said: "He doesn't run the Crossover and he's not involved in Xtron. He seems to pop up here and there, but that's because he's an accountant, so whenever there is an issue he is asked."
Lam also said yesterday that City Harvest board members had backed Ms Ho's music as a way to evangelise as far back as 2002.
The board members had also agreed the church's support should be discreet so young "unchurched" people - a key target of the church's outreach - would not dismiss her music as "yet another church-sponsored project".
Ms Ho, who had appeared on the first day of the trial's previous tranches, was not seen yesterday. She is expected to be called as a witness.
Ex-City Harvest Church member distances himself from co-accused (CNA: 15 July 2014)
SINGAPORE: Former City Harvest Church (CHC) board
member John Lam, who took the stand for a second day, continued to
distance himself from the decisions made by his co-accused concerning
the church's bond investments.
The Court heard that his expertise as a trained accountant, was usually tapped by the others on an ad-hoc basis. However, Mr Lam told the Court he was often not kept in the loop about plans concerning the church's bond investments nor was he involved in plans on how church co-founder Sun Ho's music career would be funded.
Ms Ho, wife of CHC founder Kong Hee, fronted the church's Crossover Project as a way of evangelising through pop music.
Mr Lam is one of six church leaders accused of misusing millions of church funds to buy sham bonds from two church-linked firms, Xtron and Firna, to fund Ms Ho's music career. Xtron was managing her at the time.
Throughout the hearing on Tuesday (July 15), Mr Lam's lawyer, Senior Counsel Kenneth Tan pointed to various email and message chains that involved only the other accused persons, bringing to attention how much discussion and planning had been going on, and how little his client actually knew.
One example showed that even though Mr Lam had been asked by the others to attend a meeting with auditor Foong Daw Ching, on plans regarding the church's bond investments, he had not been copied in follow-up emails about the matter.
Another CHC member on trial, Serina Wee, the church's former finance manager who had informed Mr Kong of Mr Foong's comments after the meeting, only copied founding member and senior pastor Tan Ye Peng and former investment manager of the church Chew Eng Han in the emails.
Mr Lam also pointed out that in the case of the church investing in an Xtron bond, it was Mr Chew who proposed the church invest in a Firna bond. Firna, or PT The First National Glassware, is owned by one of the church's long-time members - Wahju Hanafi.
Mr Lam gave evidence that he disagreed with some decisions made by his fellow accused. He said there was a need to justify Xtron's projected sales for Ms Ho's then-delayed US album, through factors like how many copies needed to be sold and the income per copy.
Xtron had projected album sales of S$16 million in 2011 and S$23 million in 2012. Instead, Mr Lam was told by Ms Wee that Mr Kong would have "some figures", that discussions were still ongoing, and that no distribution contract had yet been entered into.
Mr Lam also pointed out that he had voted against purchasing a Riverwalk property for church activities, as he had not seen its indicative valuation and felt no need to rush into the decision.
The trial continues for the rest of the week.
The Court heard that his expertise as a trained accountant, was usually tapped by the others on an ad-hoc basis. However, Mr Lam told the Court he was often not kept in the loop about plans concerning the church's bond investments nor was he involved in plans on how church co-founder Sun Ho's music career would be funded.
Ms Ho, wife of CHC founder Kong Hee, fronted the church's Crossover Project as a way of evangelising through pop music.
Mr Lam is one of six church leaders accused of misusing millions of church funds to buy sham bonds from two church-linked firms, Xtron and Firna, to fund Ms Ho's music career. Xtron was managing her at the time.
Throughout the hearing on Tuesday (July 15), Mr Lam's lawyer, Senior Counsel Kenneth Tan pointed to various email and message chains that involved only the other accused persons, bringing to attention how much discussion and planning had been going on, and how little his client actually knew.
One example showed that even though Mr Lam had been asked by the others to attend a meeting with auditor Foong Daw Ching, on plans regarding the church's bond investments, he had not been copied in follow-up emails about the matter.
Another CHC member on trial, Serina Wee, the church's former finance manager who had informed Mr Kong of Mr Foong's comments after the meeting, only copied founding member and senior pastor Tan Ye Peng and former investment manager of the church Chew Eng Han in the emails.
Mr Lam also pointed out that in the case of the church investing in an Xtron bond, it was Mr Chew who proposed the church invest in a Firna bond. Firna, or PT The First National Glassware, is owned by one of the church's long-time members - Wahju Hanafi.
Mr Lam gave evidence that he disagreed with some decisions made by his fellow accused. He said there was a need to justify Xtron's projected sales for Ms Ho's then-delayed US album, through factors like how many copies needed to be sold and the income per copy.
Xtron had projected album sales of S$16 million in 2011 and S$23 million in 2012. Instead, Mr Lam was told by Ms Wee that Mr Kong would have "some figures", that discussions were still ongoing, and that no distribution contract had yet been entered into.
Mr Lam also pointed out that he had voted against purchasing a Riverwalk property for church activities, as he had not seen its indicative valuation and felt no need to rush into the decision.
The trial continues for the rest of the week.
City Harvest trial: Former board member Lam raised doubts on Ho Yeow Sun's US album (ST: 15 July 2014)
SINGAPORE
- Former City Harvest Church board member John Lam Leng Hung, 46, had
raised doubts about projected American album sales of church founder
Kong Hee's wife Ho Yeow Sun, he testified on Tuesday.
Ms Ho was the face of the megachurch's Crossover Project, which was launched in 2002 as an "outreach strategy" to evangelise to "unchurched" youth. As of 2008, there were plans to break into the US market under the management of music production firm Xtron, which is run by a long-time church supporter.
The company's balance sheets had included projected sales of Ms Ho's then-delayed debut US album to the tune of $16 million in 2011 and $23 million in 2012. Lam told the court that he felt there was a need to "justify the sales in 2011 and 2012", raising factors such as the number of albums to be launched and how many copies needed to be sold, and the sales volume as compared to other original artistes at the time.
But fellow accused and former church finance manager Serina Wee, 37, who also provided accounting services to Xtron, had said that Kong would have "some figures", and that the album was still undergoing discussions and no distribution contracts had been entered into. The album was never launched.
This was not the only instance which Lam had disagreed with the rest, the court heard yesterday, as Lam continued to distance himself from decisions made by the other accused. The court heard that he had also bucked the board's stance to purchase the Riverwalk property, which the church intended to use for worship. This was on the basis that there was "no indicative valuation" which he did not see the need to rush into.
The church's purchase of Xtron bonds is central to this trial - church leaders have been accused of misappropriating millions of church funds to buy sham bonds from Xtron and another church-linked firm to fund Ms Ho's music career.
Purportedly through its Building Fund, the church entered a bond subscription agreement with Xtron worth $13 million in July 2007. This was revised upwards to $18.2 million in August 2008 to enable Xtron to purchase Riverwalk.
The property was valued at $17.55 million.
Ms Ho was the face of the megachurch's Crossover Project, which was launched in 2002 as an "outreach strategy" to evangelise to "unchurched" youth. As of 2008, there were plans to break into the US market under the management of music production firm Xtron, which is run by a long-time church supporter.
The company's balance sheets had included projected sales of Ms Ho's then-delayed debut US album to the tune of $16 million in 2011 and $23 million in 2012. Lam told the court that he felt there was a need to "justify the sales in 2011 and 2012", raising factors such as the number of albums to be launched and how many copies needed to be sold, and the sales volume as compared to other original artistes at the time.
But fellow accused and former church finance manager Serina Wee, 37, who also provided accounting services to Xtron, had said that Kong would have "some figures", and that the album was still undergoing discussions and no distribution contracts had been entered into. The album was never launched.
This was not the only instance which Lam had disagreed with the rest, the court heard yesterday, as Lam continued to distance himself from decisions made by the other accused. The court heard that he had also bucked the board's stance to purchase the Riverwalk property, which the church intended to use for worship. This was on the basis that there was "no indicative valuation" which he did not see the need to rush into.
The church's purchase of Xtron bonds is central to this trial - church leaders have been accused of misappropriating millions of church funds to buy sham bonds from Xtron and another church-linked firm to fund Ms Ho's music career.
Purportedly through its Building Fund, the church entered a bond subscription agreement with Xtron worth $13 million in July 2007. This was revised upwards to $18.2 million in August 2008 to enable Xtron to purchase Riverwalk.
The property was valued at $17.55 million.
Fund manager blamed for alleged sham bonds in CHC trial (Today: 15 July 2014)
SINGAPORE — It was City Harvest Church’s former fund manager, Chew
Eng Han, who had suggested the church could invest in bonds issued by
the company managing the pop music career of Ms Ho Yeow Sun, said the
first of six church leaders on trial yesterday as the defence launched
its case.
The money Xtron Productions raised from issuing bonds could be used for Ms Ho’s career, also known as the Crossover Project. Chew had also said the revenue to redeem the bonds would come from the sale of her album, testified former church board member John Lam Leng Hung.
This was around June 2007, a few months after the church’s board was told more funds would be needed for Ms Ho to attempt to break into the United States market.
Lam said his impression at the time was that the coming album would be very successful, given her success in the Mandarin market and the fact that Ms Ho’s husband, church co-founder Kong Hee, was driving the project.
Lam faces three charges of criminal breach of trust relating to S$24 million of church-building funds allegedly funnelled into sham bond investments in companies, including Xtron.
The case involves another S$26.6 million that was alleged misappropriated to cover up the initial sum.
Chew, who faces 10 charges, has since left the church and will take the stand at a later date.
Lam’s lawyer, Senior Counsel Kenneth Tan, sought to show that his client was not involved in planning Ms Ho’s foray into the US or the drafting of the bond agreement with Xtron.
“He seems to pop up here and there. Whenever there’s a miserable accounting issue, he’s asked because he’s an accountant. But the prosecution’s case is that Mr John Lam was part of a plan, an unholy design to dishonestly misuse church funds to personally benefit Ms Ho,” said Mr Tan.
On the stand, Lam also said many in the church had been “traumatised” by allegations made in 2003 by a church member, Mr Roland Poon, that church funds were being misused for Ms Ho’s career.
Realising the public was sensitive to any association between her albums and the church, the church leaders tried to distance the church from the Crossover Project and had Xtron manage her career. But the church board was kept informed about these links, Lam said.
Earlier in the day, Mr Tan and lead prosecutor Mavis Chionh had tussled over the contents and admission of Lam’s conditioned statement. The defence lawyer argued that it would substantially speed up the trial — with 46 days concluded and possibly 59 days to go — and help contain “astronomical” legal costs. But Ms Chionh objected to a large part of Lam’s conditioned statement, leading to the omission of the disputed segment from Mr Tan’s examination of his client.
The trial continues.
The money Xtron Productions raised from issuing bonds could be used for Ms Ho’s career, also known as the Crossover Project. Chew had also said the revenue to redeem the bonds would come from the sale of her album, testified former church board member John Lam Leng Hung.
This was around June 2007, a few months after the church’s board was told more funds would be needed for Ms Ho to attempt to break into the United States market.
Lam said his impression at the time was that the coming album would be very successful, given her success in the Mandarin market and the fact that Ms Ho’s husband, church co-founder Kong Hee, was driving the project.
Lam faces three charges of criminal breach of trust relating to S$24 million of church-building funds allegedly funnelled into sham bond investments in companies, including Xtron.
The case involves another S$26.6 million that was alleged misappropriated to cover up the initial sum.
Chew, who faces 10 charges, has since left the church and will take the stand at a later date.
Lam’s lawyer, Senior Counsel Kenneth Tan, sought to show that his client was not involved in planning Ms Ho’s foray into the US or the drafting of the bond agreement with Xtron.
“He seems to pop up here and there. Whenever there’s a miserable accounting issue, he’s asked because he’s an accountant. But the prosecution’s case is that Mr John Lam was part of a plan, an unholy design to dishonestly misuse church funds to personally benefit Ms Ho,” said Mr Tan.
On the stand, Lam also said many in the church had been “traumatised” by allegations made in 2003 by a church member, Mr Roland Poon, that church funds were being misused for Ms Ho’s career.
Realising the public was sensitive to any association between her albums and the church, the church leaders tried to distance the church from the Crossover Project and had Xtron manage her career. But the church board was kept informed about these links, Lam said.
Earlier in the day, Mr Tan and lead prosecutor Mavis Chionh had tussled over the contents and admission of Lam’s conditioned statement. The defence lawyer argued that it would substantially speed up the trial — with 46 days concluded and possibly 59 days to go — and help contain “astronomical” legal costs. But Ms Chionh objected to a large part of Lam’s conditioned statement, leading to the omission of the disputed segment from Mr Tan’s examination of his client.
The trial continues.
Monday, July 14, 2014
6 accused in City Harvest trial back in court today (ST: 14 July 2014)
CITY Harvest Church founder Kong Hee and his five deputies will return
to court today, as the highly watched criminal trial against them
resumes.
The six accused from the mega church – which celebrates its 25th anniversary next weekend – are expected to finally testify under oath.
They are likely to take the witness stand in the following order: former board member John Lam Leng Hung, 46; Kong, 49; finance manager Sharon Tan Shao Yuen, 38; former treasurer Chew Eng Han, 54; deputy senior pastor Tan Ye Peng, 41; and former finance manager Serina Wee Gek Yin, 37.
The Straits Times understands that Lam will call one witness – a church board member – while Chew has a list of 10 witnesses, including church staff and Kong's secular pop music singer wife, Ms Ho Yeow Sun.
The protracted trial started in May 15 last year and, over 42 days of hearings, has heard evidence from 14 prosecution witnesses.
The trial is now expected to last until next April, instead of this September as previously indicated. It will run from today until Friday, and then from Aug 4 to 29. Sept 8 to 30 have also been set aside for hearings.
The six are accused of various counts of criminal breach of trust and falsifying accounts by misappropriating $24 million in sham bond investments, and "round- tripping" another $26.6 million to cover it up. The funds are said to have been used to bankroll Ms Ho's pop music career.
Defence lawyers had earlier failed to convince Presiding Judge of the State Courts See Kee Oon to throw out the case on the basis of insufficient evidence built up by the prosecution, for each of the charges against their clients.
The main thrust of the defence case thus far is that the accused have never acted with any dishonest intent, nor harboured any intention to mislead or conceal any information. They have also argued that the church has not suffered any monetary losses from the investments, with the bonds having been repaid with interest.
One person to watch would be Chew who discharged his lawyer, Senior Counsel Michael Khoo, in May and will be defending himself for the rest of the trial. Chew also quit the church abruptly in June last year, prompted by what he said was "a collision of primarily spiritual and moral principles".
The six accused from the mega church – which celebrates its 25th anniversary next weekend – are expected to finally testify under oath.
They are likely to take the witness stand in the following order: former board member John Lam Leng Hung, 46; Kong, 49; finance manager Sharon Tan Shao Yuen, 38; former treasurer Chew Eng Han, 54; deputy senior pastor Tan Ye Peng, 41; and former finance manager Serina Wee Gek Yin, 37.
The Straits Times understands that Lam will call one witness – a church board member – while Chew has a list of 10 witnesses, including church staff and Kong's secular pop music singer wife, Ms Ho Yeow Sun.
The protracted trial started in May 15 last year and, over 42 days of hearings, has heard evidence from 14 prosecution witnesses.
The trial is now expected to last until next April, instead of this September as previously indicated. It will run from today until Friday, and then from Aug 4 to 29. Sept 8 to 30 have also been set aside for hearings.
The six are accused of various counts of criminal breach of trust and falsifying accounts by misappropriating $24 million in sham bond investments, and "round- tripping" another $26.6 million to cover it up. The funds are said to have been used to bankroll Ms Ho's pop music career.
Defence lawyers had earlier failed to convince Presiding Judge of the State Courts See Kee Oon to throw out the case on the basis of insufficient evidence built up by the prosecution, for each of the charges against their clients.
The main thrust of the defence case thus far is that the accused have never acted with any dishonest intent, nor harboured any intention to mislead or conceal any information. They have also argued that the church has not suffered any monetary losses from the investments, with the bonds having been repaid with interest.
One person to watch would be Chew who discharged his lawyer, Senior Counsel Michael Khoo, in May and will be defending himself for the rest of the trial. Chew also quit the church abruptly in June last year, prompted by what he said was "a collision of primarily spiritual and moral principles".
City Harvest trial: Church board backed Ho Yeow Sun's music career, says accused (ST: 14 July 2014)
SINGAPORE - City Harvest Church board members had backed the secular music career of Ms Ho Yeow Sun as a way to evangelise as far back as 2002, said one of the accused in the City Harvest trial on Monday as it resumed with the defence taking its turn.
The accused, former church board member John Lam Leng Hung, said the church had decided to reach out to young "unchurched" people through Ms Ho's music as it saw the entertainment industry "held sway" over them.
The board members also agreed that the church's backing of Ms Ho should be discreet so that the young people would not dismiss her music as "yet another church-sponsored project".
This need for discretion was reinforced in 2003, "when many of us were traumatised" by allegations of a former church member that the church was using members' money to support Ms Ho, he said.
"Even Christians from other churches couldn't understand how a church could be supporting what to them was a secular project. We knew that if the project was to continue, it cannot be seen that the church is actively supporting Sun," said Lam.
All six accused, including church founder Kong Hee, will testify. Kong's wife Ms Ho had appeared at the State Courts on the first day of each of the trial's previous tranches, but was not present on Monday when the trial resumed.
She is expected to be called as a witness.
The accused, former church board member John Lam Leng Hung, said the church had decided to reach out to young "unchurched" people through Ms Ho's music as it saw the entertainment industry "held sway" over them.
The board members also agreed that the church's backing of Ms Ho should be discreet so that the young people would not dismiss her music as "yet another church-sponsored project".
This need for discretion was reinforced in 2003, "when many of us were traumatised" by allegations of a former church member that the church was using members' money to support Ms Ho, he said.
"Even Christians from other churches couldn't understand how a church could be supporting what to them was a secular project. We knew that if the project was to continue, it cannot be seen that the church is actively supporting Sun," said Lam.
All six accused, including church founder Kong Hee, will testify. Kong's wife Ms Ho had appeared at the State Courts on the first day of each of the trial's previous tranches, but was not present on Monday when the trial resumed.
She is expected to be called as a witness.
CHC trial: Defence begins with first accused taking witness stand (Today: 14 July 2014)
SINGAPORE — Six City Harvest Church leaders on trial for criminal breach of trust and falsification of accounts kicked off their defence today (July 14) with the first accused, former church board member John Lam Leng Hung, taking the stand.
Lam spoke about arrangements back in 2002 and 2003 to have a newly formed company, Xtron Productions, manage the pop music career of Ms Ho Yeow Sun, wife of church co-founder and one of the accused, Kong Hee.
Allegations in 2003 by a church member, Mr Roland Poon, that the church was supporting Ms Ho’s secular career had traumatised many in the church, said Lam.
They did not know there would be such public objection, even from Christians from other churches, he said.
Lam took the stand as the first defence witness at nearly noon, after his lawyer, Senior Counsel Kenneth Tan, and prosecutors tussled over the contents and admission of his conditioned statement, which resulted in portions of it removed.
City Harvest trial resumes with 'Crossover' project in the spotlight (CNA: 14 July 2014)
SINGAPORE: The trial involving City Harvest Church founder Kong Hee and his five deputies resumed on Monday (July 14), with former church board member John Lam taking the stand.
Lam - one of the accused and the first to testify for the defence - was questioned about the church's Crossover project, meant to further the secular music career of Kong's wife, church co-founder Sun Ho.
The six are accused of channelling S$24 million in church building funds into sham bond investments primarily for her music career, and subsequently misappropriating another S$26.6 million to cover up the initial alleged sum.
Lam explained the genesis of the Crossover project and why it was important that it not be viewed as a church-backed endeavour, as that would defeat the objective of the project.
"The Crossover Project is about Sun being a commercial success, because by doing that, she would reach a segment of people the church didn't previously have access to," he said, referring to youth who could not connect with church because they did not find it relevant.
"Their values and preferences are influenced by pop culture ... that and the entertainment industry hold more sway."
Lam said that the board was always kept fully aware of the developments in Sun's career.
Earlier, Lam's lawyer Kenneth Tan had argued for his client's conditioned statement to be tendered in the court as his evidence-in-chief to speed up the hearing "substantially".
But this did not go through, after the prosecution objected to large parts of the statement related to the charges Lam faces.
Lam - one of the accused and the first to testify for the defence - was questioned about the church's Crossover project, meant to further the secular music career of Kong's wife, church co-founder Sun Ho.
The six are accused of channelling S$24 million in church building funds into sham bond investments primarily for her music career, and subsequently misappropriating another S$26.6 million to cover up the initial alleged sum.
Lam explained the genesis of the Crossover project and why it was important that it not be viewed as a church-backed endeavour, as that would defeat the objective of the project.
"The Crossover Project is about Sun being a commercial success, because by doing that, she would reach a segment of people the church didn't previously have access to," he said, referring to youth who could not connect with church because they did not find it relevant.
"Their values and preferences are influenced by pop culture ... that and the entertainment industry hold more sway."
Lam said that the board was always kept fully aware of the developments in Sun's career.
Earlier, Lam's lawyer Kenneth Tan had argued for his client's conditioned statement to be tendered in the court as his evidence-in-chief to speed up the hearing "substantially".
But this did not go through, after the prosecution objected to large parts of the statement related to the charges Lam faces.
Sunday, July 13, 2014
City Harvest Church trial to resume Monday (CNA: 13 July 2014)
SINGAPORE: The trial involving the City Harvest Church founder Kong Hee and his five deputies resumes on Monday (July 14).
The fourth leg of the trial will stretch for a week, and the first of the six church leaders is expected to take the stand.
The City Harvest Church trial is shaping up to be one of the longest-running criminal trials.
In 2012, Kong Hee and his five deputies were charged with misusing S$24 million of church funds to finance his wife Sun Ho's music career.
Four of them were also accused of misappropriating S$26 million to cover up the first sum.
The trial began in May last year, and the prosecution wrapped up its case after 42 days over a nine-month period.
In May this year, Presiding Judge of the State Courts See Kee Oon decided that the six church leaders have a case to answer after hearing the prosecution's evidence.
The Judge accepted there was a plan to move money from the church's Building Fund to Xtron Productions and glassware firm Firna (PT The First National Glassware) for the purpose of funding Ms Ho's singing career.
The court also accepted there was evidence to show the monies were moved from the church to the various firms to generate a false appearance that the church's investments were redeemed.
The Judge said the six had been dishonest in the use of the money.
The trial's fourth leg will likely see former church board member John Lam take the stand. The other five have also indicated they will testify in their defence.
Channel NewsAsia understands defence lawyers are likely to argue that the six accused never acted with dishonest intent, and there was no intent to mislead or conceal information.
Another point they will likely make is that the bonds entered into were genuine investments and transactions with no monetary loss to the church, and that the transactions had been checked with lawyers and auditors to ensure their legitimacy.
After this week, the trial will be adjourned till August, when it will resume for most of the month and carry on into September.
It is understood that among the witnesses the defence intends to call are staff of the City Harvest Church as well as Kong's wife, Ms Ho.
The fourth leg of the trial will stretch for a week, and the first of the six church leaders is expected to take the stand.
The City Harvest Church trial is shaping up to be one of the longest-running criminal trials.
In 2012, Kong Hee and his five deputies were charged with misusing S$24 million of church funds to finance his wife Sun Ho's music career.
Four of them were also accused of misappropriating S$26 million to cover up the first sum.
The trial began in May last year, and the prosecution wrapped up its case after 42 days over a nine-month period.
In May this year, Presiding Judge of the State Courts See Kee Oon decided that the six church leaders have a case to answer after hearing the prosecution's evidence.
The Judge accepted there was a plan to move money from the church's Building Fund to Xtron Productions and glassware firm Firna (PT The First National Glassware) for the purpose of funding Ms Ho's singing career.
The court also accepted there was evidence to show the monies were moved from the church to the various firms to generate a false appearance that the church's investments were redeemed.
The Judge said the six had been dishonest in the use of the money.
The trial's fourth leg will likely see former church board member John Lam take the stand. The other five have also indicated they will testify in their defence.
Channel NewsAsia understands defence lawyers are likely to argue that the six accused never acted with dishonest intent, and there was no intent to mislead or conceal information.
Another point they will likely make is that the bonds entered into were genuine investments and transactions with no monetary loss to the church, and that the transactions had been checked with lawyers and auditors to ensure their legitimacy.
After this week, the trial will be adjourned till August, when it will resume for most of the month and carry on into September.
It is understood that among the witnesses the defence intends to call are staff of the City Harvest Church as well as Kong's wife, Ms Ho.
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