Friday, August 22, 2014

22 August 2014 – Afternoon Session (Part 1) (MrsLightandFriends: 22nd Aug 2014)

How Advante (Serina Wee’s company) was started?
DPP brought up an email (dated 23 Aug 2007) as an evidence to support his argument.  This is an email between Serina and Ye Peng.

The content of the email is “Can we talk to Pst Kong about getting you to start a company doing accounting services.”

And Serina replies is “I talked to him already.  He’s ok.”

<<…some questions related to this email to build up DPP case…>>

Kong said that he was the senior pastor of the church and Serina should let him know of her visions and dreams.

DPP: “If this was a case of Serina wanting to pursue her dreams and visions, do you have any idea why what Ye Peng asked her was: “Can we talk to Past Kong about getting you to start a company.” Serina Wee’s own idea to start a company, and that she’s being asked to start a company.

Kong: “Your Honour, I really don’t know why Pastor Tan wrote the way he did, but I certainly did not ask her to start her own company.”

DPP brought up another email dated before 23 Aug 2007.   In this email Serina Wee said to Pastor Tan that she has come up with a plan for a new accounting company that she felt they should set up. She goes on explaining her reason of setting up Advante.

“We need to do this is because we have been handling the accounts of the various companies and organisations and it doesn”t make sense that I’m under Xtron’s payroll fully.  ….”

The email goes on… she says that will also be economies of scale, better career path for staff, then she says:

“the new company will handle the following accounts and will charge them the folloing monthly retainer. Xtron, Attributes, CHEC, Business Breakthrough, City Care, Urban Entertaintment…..”

DPP: “Do you have any idea why she is running through this plan with Ye Peng and suggesting that she can check with John Lam and Eng Han?”

Kong: “Ye Peng, you Honour, was the deputy senior pastor of the church, and she’s a member of the church and she just wanted to be accountable to him with her suggestions.  At that point in time, John Lam was a member of the board, Eng Han could still be a member of the board.

DPP tried to get Kong to agree with him that looking at Serina’s email it appears that the accounting company being set up is really intended to create a separation between the church and organizations such as Xtron as well as to create separation even between those organizations.

Mr Tong (Kong’s lawyer) stood up and requested DPP to clarify whose intention is he asking the witness to discuss

Kong: “Your Honour, I’m not copied on this email, but just by a cursor reading of this email, it seems like Serina had her own vision to start a company, and at the same time to better service some of those entities that she mentioned in the email.

DPP brought up another email dated 8 November 2007 after Advante has incorporated.  In this email,  Serina Wee is concern about Kong sending CHC finance related emails to her and Ye Peng’s reply is they can tell Kong don’t send to her any more then delete XPL-related emails or store it in a hard disk.

In her last line of her email she mentioned about the Matilda case and NKF, that’s a reference to a scandal that affected another charity NKF.

DPP put to Kong that Advante was really another part of the plan to hide the fact that Kong’s team were channelling church funds through Xtron to fund the Crossover Project.

Kong: “I disagree, your Honour. Why do we need Advante to do that if that is true?”

DPP put to Kong that the reason why Advante was required is because Serina was known to be handling both the church and Xtron accounts, it would have made it clear that the two were related.

Kong: “I disagree, your Honour.  Before Serina started Advante, to my best knowledge, she was the church’s accountant and helping out Xtron with its accounting department.  Auditors were deaing with Serina, one person dealing with two accounts.  And they had no problem with that before she started Advante.  So if they had no problem with that, even at that time, why would there be anything sinister now that she’s starting Advante?

DPP referenced to another email dated December 2006. Kong sent to Eng Han and Ye Peng about his concerns and Eng Han replied to him and copied to Ye Peng.

In this email Eng Han proposed the following:

1. Move Xtron Staff out from CHC
2. Have a separate accountant any audit which shows the CHC and Xtron accountant is the same is going to cast doubts on whether transactions between CHC and Xtron are really commercial or are we just trying to move funds between these two entities.

DPP: “Wouldn’t you agree that this proposed change by Eng Han is exactly what was going on when Advante was formed?

Kong: “Your Honour, I believe that when Eng Han wrote his proposal to me in December 2006, Eng Han was writing from the position of having proper corporate governance.  He did mention about having a separate accountant, which was a good suggestion.  But I’m not sure if Advante was a result of this suggestion or it was because Serina all along wanted to have her own accounting.”

DDP: “I put it to you that you are lying when you deny that Advante was set up to further the separation, as part of the plan to hide the channeling of Building Fund to Xtron.”

DPP: “I put it to you that these suggestions by Mr. Chew are really designed to create the impression of legitimacy and arm’s length commercial transacting, when, in fact, the transactions between CHC and Xtron were not — particularly the bonds were not legitimate or arm’s length.

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