1. Prosecutor tried to establish that Kong do not need to act on Xtron directors’ approval
Reference to blackberry pin messages and email exchange between Ye Peng, Kong Hee and Eng Han.
After some questionings Kong agreed with prosecutor that the blackberry pin messages did not mention of seeking Wahju’s approval for the termination of Sun as his artiste.
Kong evidence of 12 August 2014 mentioned about he makes the decision to stop the collaboration with Wyclef. This conflicted with his evidence-in-chief that he only acts on Xtron directors’ approval.
KH answered : Your Honour, it could be an oversight, but it doesn’t mean that I did not talk to Wahju about it.
2. Prosecutor tried to establish that Kong and Ye Peng have control on income transfers from CHC to Xtron and expenses transfers from Xtron to CHC
Reference to email exchange between Ye Peng, Serina and Kong. They looked for adjustments to justify these transfers so that Xtron would be able to finance the crossover.
KH answered: “This is just a scenario planning, eventually if it’s being carried out, they would need the proper approval from the relevant board or directors.”
3. Prosecutor tried to establish that Kong was updated about the Crossover budget and related finances of Xtron.
Reference to email on Xtron cashflow that Serina Wee maintained and only addressed to Kong
KH answered to the court that he was given the cashflow for a season. Then, after that, he was not updated regularly.
4. Prosecutor tried to establish that Kong was involved in financing the Crossover Project (shortfall in Xtron’s cashflow)
Reference to email from Serina to Ye Peng. Serina mentioned about Ye Peng past discussion with Kong about the $13million inflow from Bonds issue.
The proposed or intended expenditure of the $13million Xtron bond proceed was discussed.
PP: Based on your evidence, this whole bond proposal, it was raised because of your instructions to Ye Peng and Eng Han to find a way to finance the Crossover Project. Correct?
KH: Yes, your honour
PP: When they did tell you about the proposal for Xtron bonds that Eng Han has come up with, it would have been clear to you that this was to address your instructions. Correct?
KH: Yes, your honour
….. and many other questions ….
PP: Witness, do you recall that earlier I put it to you that since you had described how you would be informed of shortages in Xtron’s cashflow and that you would work with Serina and Ye Peng to come up with solution, and also with Eng Han in relation to the bonds, that I put it to you, that meant you were actually involved in the financing of the Crossover Project? Do you recall that I put that to you?
KH: Yes, your honour, I recall the learned DPP put that to me, and I disagreed.
….. and many other questions ….
Then Prosecutor asked Kong, if he had told Ye Peng and Eng Han to look only for bank loan for Xtron and nothing else, would Ye Peng and Eng Han still have gone ahead to do the bonds?
KH said “Eng Han is a very persuasive man and is a very tenacious man. He may come back to me a few weeks later and suggest it again…”
Prosecutor put it to Kong that he was lying when he said he was not involved in the financing because he wanted to distance himself from the bond transactions which he knew to be sham and solely motivated by a desire to channel building fund under the guise of investments to the Crossover Project.
5. Prosecutor tried to establish that it was the disclosure issue that motivated the switch to Firna and eventually Ultimate Asset.
Kong did not deny but he qualified subjected to lawyers and auditor okaying the process.
6. Prosecutor tried to establish that church fund was used to produce Sun’s albums. (Roland Poon incident)
Reference 27 April 2003 CHC AGM and board minutes
PP: If you had made it clear to the EM, why couldn’t you just have gone to the 2003 AGM and said that, “You all know that last year I told you that some funds were used, but that was all and we’re not going to use any more, since they already knew?”
Kong said that perhaps with the benefit of hindsight he could have been clearer, but he was just reiterating what Brother Fong, the auditor, was announcing to the church.
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