He told church founder Kong that fee paid to Xtron was not 'watertight'
WHAT do the National Kidney Foundation (NKF) and Ren Ci Hospital scandals have in common with financial goings-on at City Harvest Church (CHC)?
They were all mentioned in an internal e-mail, in which a church staff raised concerns about one of CHC's financial dealings, it emerged in court yesterday.
The State believes several CHC investments were a cover to misappropriate church money and funnel millions into the secular music career of Ms Ho Yeow Sun, wife of church founder Kong Hee, who is one of the six accused.
In a July 2008 e-mail to Kong, CHC employee Suraj - who goes by one name - referred to financial scandals at the NKF and Ren Ci Hospital. That was the month when Ren Ci's chief Shi Ming Yi was charged with misappropriation of funds and forgery before being found guilty and jailed.
Mr Suraj noted that the authorities "would go for the kill" when they started an investigation into a charity and "the crux" would be the charity's accounts, as was the case with Ren Ci and NKF.
"As I reflect on our accounts, I don't feel good about it," he wrote. The retainer fee to Xtron Productions, a company linked with the alleged misuse of church funds, was not "watertight", he noted.
"It's fundamentally incorrect, especially with corporate governance, to pay them when Sun is parked in the same firm," he wrote. His e-mail came a year after the accused decided to use church money to buy bonds in Xtron, which managed Ms Ho's music career from 2003 to 2008, a transaction that the State believes is a sham.
Earlier, former church auditor Foong Daw Ching denied giving church leaders the idea of omitting certain information in CHC's records. He said former church finance manager Serina Wee, one of the accused, had put words in his mouth and twisted what he told her.
The partner at accounting firm Baker Tilly TFW said he told her, for instance, that as many things were discussed during the church's general meetings, everything did not have to be recorded verbatim as long as the main points were captured.
But in a 2008 e-mail to several of the accused, Wee wrote that Mr Foong had suggested downplaying the church's relationship with Xtron.
"He advised us the following... We can talk about XPL (Xtron) to the members in the extra-ordinary general meeting but don't minute down everything. Just minute down the necessary portions so as not to show too close a relationship or control over XPL," she wrote.
She added that Mr Foong sat on the Commissioner of Charities' (COC) advisory committee. "Bro Foong mentioned he just had a talk with the Commissioner... and explained that churches are doing things very differently now as compared to the past... (and) if the COC insists on churches disclosing everything, it will be very hard for the churches to achieve their objectives."
Mr Foong said he was never on any COC advisory committee. He was, however, appointed to a committee under the Government's Accounting Standards Council. He had spoken to the Commissioner only during committee meetings.
"I don't have a private audience with the COC."
He said he had been advising CHC members informally since 1993 but had not seen them take notes. "As far as I know, I was never sent any notes or e-mail for my comment. Now I see this internal e-mail had been sent to the pastors to say that I advised. There are a lot of inaccuracies."
The trial resumes on Monday.
zengkun@sph.com.sg
twong@sph.com.sg
WORRIES ABOUT THE CHURCH'S ACCOUNTS
The crux of the issue facing them (charities under investigation) is their account which is always the case as in... NKF and now Ren Ci! As I reflect on our accounts, I don't feel good about it... For Xtron's retainer, I don't feel it's watertight!... Pastor, may I request for an evaluation of these... matters. And if possible, a review of CHC's financial relationship with all the 'harvest family'!
– City Harvest Church staff member Suraj in a 2008 e-mail to church founder Kong Hee
IMPROPER PRACTICE
Why would I, in my position, tell someone to do something that, to me, looks a bit improper?" – Former church auditor Foong Daw Ching insists he never told the church to hide certain matters which were discussed at general meetings from the minutes NO ONE CHECKED WITH HIM In any meeting, if you are taking notes or through memory... before you send to some other person... I think it's only right that you send whatever note... to the people who are involved in (the) discussion, and to get (them) to concur whether the notes reflect accurately what was discussed... I was never sent any notes or e-mail for my comment, now I see this internal e-mail had been sent... to say that I advised. There are a lot of inaccuracies in there..."
– Mr Foong on e-mail sent out by former City Harvest finance manager Serina Wee regarding advice the auditor supposedly gave her
About the case
CITY Harvest Church founder Kong Hee and five of his deputies are accused of criminal breach of trust.
They are alleged to have funnelled $24 million meant for the church's new building into sham bond investments in church-linked firms Firna and Xtron Productions.
Prosecutors say City Harvest accounts were then falsified to the tune of $26.6 million so the bonds appeared to have been "redeemed". This was allegedly carried out to fund the pop music career of Kong's wife, Ms Ho Yeow Sun.
The trial resumes next Monday, and the prosecution is expected to wrap up its questioning of auditor Foong Daw Ching, a partner at accounting firm Baker Tilly TFW. The firm or its associated companies audited Xtron and the church.
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