Monday, September 2, 2013

Xtron not "sham" company: City Harvest trustee (CNA, 2 Sept 2013)

SINGAPORE: More light was shed on the role of trustees of City Harvest Church as the trial of the six church leaders accused of misusing church funds continued on Monday.

Susan Ong, one of the church's trustees, took the stand and told the court that Xtron Productions was not a "sham" company.

She said Xtron, which used to manage singer Sun Ho, was not a shell company, so the bonds issued to the church were authentic.

Mdm Ong continued, saying if there were "sham bond investments", as claimed by the prosecution, church members would have found out about the fraudulent transactions.

Replying to the defence, she said accused Chew Eng Han was chosen to decide on the investments the church should make as he had the necessary expertise, as opposed to the trustees and the management board.

Thus, AMAC Capital, which is owned by Chew, was given the power by the trustees to make those decisions.

Chew, an investment manager by profession, was with the church for 17 years till he announced his decision to leave the church in June, citing differences in opinions with the leadership.

During the prosecution's questioning earlier, the court heard that AMAC Capital was not required specifically to keep church trustees informed of what it would do.

Mdm Ong also admitted that the trustees were not consulted on bond investments and personal guarantees that AMAC Capital made.

During defence's cross-examination, she further testified that the church's investment committee and management board were given the mandate to invest excess building funds.

When asked specifically by the defence if the church suffered any loss, the prosecution witness replied that there was no loss made.

Several times during the hearing, Mdm Ong attested to the character of singer Sun Ho, wife of one of the accused, Kong Hee.

She said church members knew Ms Ho was the chosen one to reach out to the secular world and said the singer was "wholesome".

Church founder Kong Hee, Chew and four others are accused of misusing S$24 million from the church's building fund to boost Ms Ho's career and using another S$26 million to cover up the initial sum.

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