Monday, July 21, 2014

Accused changes tune, says he played role in church affairs: City Harvest trial (BT: 19 July 2014)

[Singapore] ACCUSED City Harvest Church (CHC) member John Lam yesterday admitted on the stand to having been involved in every major decision of the church - a testimony in direct contrast to his lawyer's assertion earlier this week that Lam just "pops out here and there".

He was also challenged on his claim that companies such as Xtron Productions (which managed Sun Ho's singing career and the church's evangelical effort, the Crossover Project) were independent from CHC; the prosecution produced several documents pointing to CHC having called the shots for these companies.

Lam is among six CHC members charged with having "dishonestly misappropriated" some S$24 million of the church's building funds to finance Ms Ho's career, and with round-tripping another S$26.6 million, using entities such as Xtron, to cover the alleged misappropriation. The others on trial are Ms Ho's husband, senior pastor and co-founder Kong Hee, deputy senior pastor Tan Ye Peng, finance manager Sharon Tan, and former finance manager and board member Serina Wee.

Lam's lawyer, Senior Counsel Kenneth Tan, had said in his opening statement on Monday that Lam had played a much smaller role than the others in the transactions in question: "All John Lam is, is a volunteer . . . he seems to pop out here and there."

But, under cross-examination by the prosecution yesterday, Lam admitted to being involved in all major decisions of the church.

Chief prosecutor Mavis Chionh produced a transcript of an extraordinary general meeting held by CHC on July 7, 2007; at that meeting, Kong had described Lam, head of the church's investment committee, as being "very qualified" and who has "been with us in every major decision we've made from Day 1".

Ms Chionh asked Lam if it was correct to say he had been with the church in every major decision made from Day 1.

"Yes, I can agree with that," Lam replied.

She showed minutes of other meetings - one in March 2010 with the church's executive members, at which he addressed accusations made against Kong; at another meeting months later, he presented audit findings to the executive members.

"When we look at (these), the history of your involvement in the church, the key appointments you have held, the responsibilities you have held, it is clear that you are not just an ordinary member who happens to 'pop in and out' of the church," Ms Chionh said.

Lam disagreed, saying: "My statement, and as my counsel has said, regarding this case, my position has always been (that I) popped in and out . . . I'm not disagreeing that I'm qualified, that I have experience, but I am an ordinary volunteer."

He also asserted that entities such as Xtron, while aligned with CHC's objectives, were independent.

But Ms Chionh put it to him: "(On Thursday), you were the one who told us that (CHC senior pastor Kong Hee) wanted the directors of all these companies listed to be responsible for the running of their company . . . If these companies are all independent of the church, why should Mr Kong, as pastor of the church, be in a position to say that he wants the directors to be made responsible for the running of the companies?"

She produced evidence showing the church's role in the running of these companies - in particular, Xtron. The court was shown a document listing individuals whom Lam, Wee, Chew and Tan Ye Peng suggested to Kong and the CHC board as being suitable directors for the "independent" companies.

She also produced another document on the agreement between Xtron and CHC on CHC's subleasing of Singapore Expo Hall 8 from Xtron, for which Xtron did not charge the church a mark-up for renting the Expo space.

 "Assuming Xtron is an independent commercial entity that deals with the church at arm's length, why is it that it would not charge any mark-up on the rental of Expo?" she asked.

Lam said he believed there was a mark-up provided for in the sub-leasing agreement. Ms Chionh then produced another document: an e-mail from Wee to senior church members which said a CHC board meeting had decided CHC would pay Xtron a mark-up, "as only then will it be deemed an arm's length transaction"; the e-mail also carried Wee's calculations on how the mark-up was to be done.

"Do you have any explanation as to why, if Xtron is an independent commercial entity, . . . is Serina (Wee), the church's finance manager, proposing in this e-mail how much mark-up Xtron should charge CHC for renting the Expo premises? It doesn't make sense for the church, if it is dealing at arm's length with Xtron, a commercial entity, to say, 'Hey, I want to pay you more rent than you are now charging me. Please, can I pay you more rent?' You would expect Xtron to be the one to propose a rental mark-up. Do you agree?"

Lam, not answering the question directly, only said that CHC was prepared to pay a mark-up because it wanted Xtron to be independent.

"Mr Lam, if you have no answer to what I've been asking for the last 10 minutes, I suggest to you then that what we see here (in the e-mail) suggests that your evidence about City Harvest and Xtron being two entities that operate independently of each other and at arm's length is not true. Do you agree or disagree?"

"I disagree," Lam said.

The hearing is adjourned until Aug 4.

No comments:

Post a Comment