CHC trial: Suspicious financial transactions reported in 2005 (Today: 29 Jan 2014)

SINGAPORE — Suspicious financial transactions linked to City Harvest Church were first reported to the authorities in 2005, about five years before news broke that the church was being investigated by white-collar crime busters.

The latest revelation in the long-running trial emerged in court yesterday as defence lawyers grilled the Commercial Affairs Department (CAD) officer who led investigations culminating in criminal charges against six church leaders.

The reports were filed by financial institutions to the CAD’s Suspicious Transaction Reporting Office — the Republic’s financial intelligence unit aimed at detecting money laundering, terrorism financing and other criminal offences.

How the transactions involved the church, however, was not revealed as lead prosecutor Mavis Chionh strenuously argued that they were “privileged, confidential and inadmissible” under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act. The identities of the financial institutions were also not revealed.

CAD officer Kevin Han Tong Kim, who took the stand as a prosecution witness, was asked by Senior Counsel Michael Khoo, who represents the church’s former investment manager Chew Eng Han, if the first police report on a possible crime for this case was made on May 3, 2010 — three days after he was appointed lead investigator.

Mr Han replied that the earliest of a number of first information reports was lodged in 2005. Mr Khoo then asked if the 2005 report had anything to do with the charges of criminal breach of trust and falsification of accounts brought in June and July 2012 against the accused.

The defence sought to gain access to the report filed before 2010, which Ms Chionh objected to, citing laws protecting the identity of informers. The defence was on a “fishing expedition”, she added. Both sides will argue today before Chief District Judge See Kee Oon on whether the document can be admitted in court.

Earlier yesterday, defence lawyer Edwin Tong — who represents church co-founder Kong Hee — sought to show that the CAD’s seizure of documents in its investigation was not thorough.

The prosecution had made reference to a church member retracting a 2003 allegation of church funds being misused for the music career of Kong’s wife, Ms Ho Yeow Sun, in its opening statement, but CAD officers did not seize auditing firm Baker Tilly’s audit work papers for the church for its 2003 and 2004 financial years.

It appeared that investigation officers had “applied their minds to not seizing” some documents, Mr Tong remarked, triggering one of many verbal jousts with the prosecution yesterday.

Ms Chionh called the statement “gratuitous and baseless”. She later asked if Mr Tong was accusing the investigation of bias and said the defence could apply for relevant documents to be produced. He replied that he did not intend to make any application. The trial continues.