Xtron director says his position is a 'ministry', serves CHC (BT: 22 May 2013)

[SINGAPORE] One of Xtron Productions Pte Ltd's two directors, Koh Siow Ngea, testified yesterday that his work for the events management and production house was a "ministry" and his way of serving City Harvest Church (CHC), even while he maintained that there was no conflict of interest in his position.

Mr Koh has been a member of CHC from 1997, and was a board member from July 2007 to August 2008 - a position he relinquished when he was asked to join the board of Xtron, "so that there won't be a conflict of interest", he said.

Yet, under examination by deputy public prosecutor Christopher Ong, Mr Koh subsequently testified that CHC had the right to appoint Xtron's board members because the church was Xtron's "biggest client" and because CHC wanted someone who could "serve their vision, serve their needs".

He also quipped: "Somebody has to appoint me, right? It can't be some man on the street."

When asked why he might have been chosen, Mr Koh said: "I have a nickname. My friend calls me 'Honest Ngea'. That (says) everything. Righteous, maybe. Honest."

As for his position at Xtron being akin to a "ministry" - a position he said comes with no remuneration - Mr Koh said: "I volunteered . . . but that doesn't mean I don't protect the interests of Xtron. I don't think there (are) any conflicting interests in that. Do you remember I told you that, as the director, I can be a director of the world, where I can be harsh to the church? But I'm not, you see. So, in that sense, there's no conflict," he said.

When asked by Mr Ong why, if that was the case, he had to step down as a board member of CHC to take up the Xtron directorship, Mr Koh said: "I believe, they (CHC) are trying to be obedient to COC (Commissioner of Charities) . . . I'm not sure."

When asked if Xtron could survive without CHC - to which it provides events management, audio-visual production and real-estate management services - Mr Koh said: "Yes, Xtron is a viable business in Singapore. It's a good business. It has a niche business. Xtron is a fantastic company."

DPP Ong then pointed out that, according to Xtron's financials, CHC provided 97 per cent - or $4.9 million - of Xtron's revenue. Mr Koh retorted that, if there was no CHC, Xtron would be able to source for work elsewhere and the time currently taken up by providing services for CHC could be channelled to other clients. DPP Ong then pointed out that, for the financial year 2008, even with CHC's contribution, Xtron incurred a net loss of $9 million.

"Can you explain to the court how Xtron could be viable without the $4.8 million business from CHC, if it was already losing $9 million at the time it had CHC's business?"

Mr Koh said: "I can't comment on this portion of the accounts . . . I think, you know, even though it was signed by me, it was before (I came on board) . . . Am I right, 2007, I think?"

"No. These are the FY2008 accounts. You became a director in July 2008," DPP Ong said.

"I'm not sure what transpired all here, even though I signed it. Yeah, it's true that I signed it, but, you know, all this detail, I'm not sure," Mr Koh replied.

When quizzed about how he thought Xtron did in 2009, Mr Koh showed he was unfamiliar with how the company was doing and how much income it had earned. He later added, contradicting his earlier statement, that Xtron would always have an income stream as CHC "will always be there".

"Why are you so confident that the church will always continue to be a customer of Xtron?" DPP Ong asked.

"Because Xtron serves the church, what," Mr Koh said.

DPP Ong then touched on the $13 million bond subscription agreement that Xtron entered into with AMAC Capital Partners - a company run by Chew Eng Han, one of the six accused and Mr Koh's brother-in-law - in August 2007. The agreement was amended in August 2008, raising the maximum amount of funding to $25 million; this, along with a $10.7 million loan from Standard Chartered Bank, would allow Xtron to purchase a $17.55 million property at The Riverwalk; the bond agreement included a call option allowing CHC trustees to buy over this property from Xtron at $17.55 million.

"Whose decision was it that Riverwalk would be paid for partially by the proceeds from the bonds and then subsequently by taking out a loan for the remaining purchase price?" DPP asked.

"I'm not sure, I don't know," Mr Koh replied.

"Mr Koh, if you look at (the loan document), it's addressed to you, in fact, as managing director of Xtron. And at the last page, it's signed by you, for and on behalf of Xtron Productions Pte Ltd."

Mr Koh then said that it was CHC's decision to come up with this arrangement. He also testified that, along with CHC pastor Kong Hee, deputy senior pastor Tan Ye Peng - two of the six accused - and Chew, he gave a personal guarantee to Wahju Hanafi, an Indonesian businessman with multiple links to CHC. The guarantee was in return for Mr Hanafi personally guaranteeing to indemnify Xtron against any losses it incurs on the Crossover Project - CHC's way of evangelising through music, which includes Sun Ho's music career.

Mr Koh said that this was their way of "showing support" for Mr Hanafi, who "has really laid (down) his life for the church, suffered for the church . . . it's an honour to stand (by) him".

The defence will cross-examine Mr Koh when the hearing resumes today.