: Straits Times
: 27 Aug 2013
Music firm was not independent, says prosecution
CITY Harvest Church leaders ran the show in all but name at Xtron Productions, a music company that they allegedly used to illegally divert church funds to.
This was the picture that prosecutors tried to paint on the opening day of the second leg of the criminal trial against church founder Kong Hee and five of his deputies.
They spent the day questioning one witness, Xtron director Choong Kar Weng, and tried to show that Xtron was not the independent entity it made itself out to be, but was controlled by church leaders; and Mr Choong, a mere puppet of the leadership.
The Malaysian businessman, for instance, was not aware of e-mails from the firm's accountants showing they consulted the megachurch on decisions ranging from its accounts to staff employment.
He signed incomplete documents - which had blank portions - related to bonds eventually sold by Xtron to the church, although when asked, he said this was done as he was not based in Singapore.
He also signed off on minutes of meetings even though immigration records apparently showed he was not in the country.
Xtron was set up as a music production house and concert organiser in 2003 by two of the accused, John Lam Leng Hung and Chew Eng Han, and Chew's wife Chong Lay Choo. It is one of two companies accused of helping the megachurch to funnel church funds to bankroll the music career of singer-pastor Ho Yeow Sun, who is Kong's wife. Xtron managed Ms Ho from 2003 to 2008 and provided audio-visual and real estate services to the church.
Yesterday, Mr Choong also admitted to being unaware of Xtron's day-to-day operations, leaving the job partly to City Harvest employee Mr Suraj - who goes by one name - whom he described as a "good friend". He was usually in Singapore only once every two weeks, so he needed Mr Suraj's help, he said.
Asked whether this was a conflict of interest since City Harvest business made up a majority of the firm's income, Mr Choong said: "I've known Suraj for many years. I don't think he would do anything that will harm or is detrimental to Xtron."
Kong and five other church leaders allegedly misused $24 million of church funds to finance Ms Ho's singing ambitions, and purportedly took another $26 million to cover up the first amount. The state believes this was done partly through bonds issued by Xtron which City Harvest bought.
Asked about the bonds, Mr Choong said the firm and church were partners on the Crossover Project, which involved Ms Ho promoting Christianity through her secular pop music. Some time before the bonds were issued in 2007, the firm calculated it would need to raise an additional $13 million for the project, he said.
He said he did not know who came up with the bond idea, but "it was communicated" to him by Tan Ye Peng or Chew, who are accused of the misuse of funds. Mr Choong said the plan presented to him already had terms such as the bonds' interest rate, and he did not negotiate the terms nor seek independent legal advice on it.
"There wasn't any reason I would do that. These were people that I know, that I work with, that I trust. These are not strangers." He continues on the stand today.
zengkun@sph.com.sg
Background Story
NO REASON TO QUESTION
There wasn't any reason I would do that.
These were people that I know, that I work with, that I trust. These are not strangers.
- Xtron director Choong Kar Weng, on why he did not seek independent legal advice on the bond investment plan
Singer Ho's over $500k in bonuses, advances
POP singer Ho Yeow Sun received more than half a million in bonuses and advances, including a $30,000 birthday cash gift and an $80,000 "special performance bonus for hits in the US or the United Kingdom" in 2006.
But to divert attention from some of these extra takings, leaders of City Harvest Church allegedly doctored documents to show that sponsors had given the money to her as "personal gifts".
These details emerged on the first day of the second leg of the trial involving six church leaders accused of misusing millions of church funds. The high-profile trial had resumed after a three- month break.
Yesterday, prosecutors tried to show that Ms Ho's former management company, Xtron Productions, was a puppet company controlled by the church's leadership, including founder Kong Hee, who is her husband.
The State is accusing the six of using Xtron and another firm, Firna, to funnel $24 million of church funds into paying for Ms Ho's secular pop music career, and then misappropriating another $26 million to cover that up.
Like at the first part of the trial in May, supporters started lining up outside the Subordinate Courts from as early as 4am for a spot in the 80-seater public gallery in Court 3.
A solemn Ms Ho showed up in court, hand-in-hand with her smiling husband for the first half of the day's proceedings.
One of the accused, Chew Eng Han, a church stalwart and its investment manager who had quit in June, kept his distance from the rest. He did not speak to the other five in the dock, and stood aside from them during breaks.
The trial continues today and prosecution witness Choong Kar Weng, Xtron's director and long- time church member, is expected to take the stand again.
MELODY ZACCHEUS
melodyz@sph.com.sg
Xtron was set up as a music production house and concert organiser in 2003 by two of the accused, John Lam Leng Hung and Chew Eng Han, and Chew's wife Chong Lay Choo. It is one of two companies accused of helping the megachurch to funnel church funds to bankroll the music career of singer-pastor Ho Yeow Sun, who is Kong's wife. Xtron managed Ms Ho from 2003 to 2008 and provided audio-visual and real estate services to the church.
Yesterday, Mr Choong also admitted to being unaware of Xtron's day-to-day operations, leaving the job partly to City Harvest employee Mr Suraj - who goes by one name - whom he described as a "good friend". He was usually in Singapore only once every two weeks, so he needed Mr Suraj's help, he said.
Asked whether this was a conflict of interest since City Harvest business made up a majority of the firm's income, Mr Choong said: "I've known Suraj for many years. I don't think he would do anything that will harm or is detrimental to Xtron."
Kong and five other church leaders allegedly misused $24 million of church funds to finance Ms Ho's singing ambitions, and purportedly took another $26 million to cover up the first amount. The state believes this was done partly through bonds issued by Xtron which City Harvest bought.
Asked about the bonds, Mr Choong said the firm and church were partners on the Crossover Project, which involved Ms Ho promoting Christianity through her secular pop music. Some time before the bonds were issued in 2007, the firm calculated it would need to raise an additional $13 million for the project, he said.
He said he did not know who came up with the bond idea, but "it was communicated" to him by Tan Ye Peng or Chew, who are accused of the misuse of funds. Mr Choong said the plan presented to him already had terms such as the bonds' interest rate, and he did not negotiate the terms nor seek independent legal advice on it.
"There wasn't any reason I would do that. These were people that I know, that I work with, that I trust. These are not strangers." He continues on the stand today.
zengkun@sph.com.sg
Background Story
NO REASON TO QUESTION
There wasn't any reason I would do that.
These were people that I know, that I work with, that I trust. These are not strangers.
- Xtron director Choong Kar Weng, on why he did not seek independent legal advice on the bond investment plan
Singer Ho's over $500k in bonuses, advances
POP singer Ho Yeow Sun received more than half a million in bonuses and advances, including a $30,000 birthday cash gift and an $80,000 "special performance bonus for hits in the US or the United Kingdom" in 2006.
But to divert attention from some of these extra takings, leaders of City Harvest Church allegedly doctored documents to show that sponsors had given the money to her as "personal gifts".
These details emerged on the first day of the second leg of the trial involving six church leaders accused of misusing millions of church funds. The high-profile trial had resumed after a three- month break.
Yesterday, prosecutors tried to show that Ms Ho's former management company, Xtron Productions, was a puppet company controlled by the church's leadership, including founder Kong Hee, who is her husband.
The State is accusing the six of using Xtron and another firm, Firna, to funnel $24 million of church funds into paying for Ms Ho's secular pop music career, and then misappropriating another $26 million to cover that up.
Like at the first part of the trial in May, supporters started lining up outside the Subordinate Courts from as early as 4am for a spot in the 80-seater public gallery in Court 3.
A solemn Ms Ho showed up in court, hand-in-hand with her smiling husband for the first half of the day's proceedings.
One of the accused, Chew Eng Han, a church stalwart and its investment manager who had quit in June, kept his distance from the rest. He did not speak to the other five in the dock, and stood aside from them during breaks.
The trial continues today and prosecution witness Choong Kar Weng, Xtron's director and long- time church member, is expected to take the stand again.
MELODY ZACCHEUS
melodyz@sph.com.sg
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