25 August 2014 – Afternoon session (First Half)

Assurance from the professionals?

DPP: “Mr Kong, your position is that the Xtron and Firna bonds were completely legal and above board. Correct?”

Kong: “Your Honour, both brother Foong and Jimmy Yim and also, I believe another lawyer would be Christina Ng.

DPP: “You would agree that the advice that auditors and lawyers give you, specifically Mr Foong and Mr Jimmy Yim and Ms Christina Ng, is only as good as the information that they have been given. Correct?” (good question.)

Kong replied that he told Serina, Pastor Tan and Eng Han to check with the auditors from TFW, and he specifically told them to check with Brother Foong.

Kong further testified that he would share with the auditors whatever he was not sure about and he would not withhold information from the auditors.  Likewise he would not expect Serina, Pastor Tan, Eng Han, John Lam and Sharon to withhold information that would lead the auditors or lawyers to say that the transaction would not be legal or not proper.

<… further questions and answers…>

DPP: “Wouldn’t whether something is a real transaction really depend on what is true intention of the parties entering into the transaction is?”

Kong: “Because, your Honour, I am not an expert in these areas, so I wanted Brother Foong and Jimmy to look at the whole spectrum of the transaction, from the source to the destination and to advise us accordingly.”

<… further questions and answers…>

DPP: “Mr Kong, besides the professionals that you’ve mentioned, the auditor, the lawyers and AMAC, CHC also had internal control bodies, correct?”

In Kong’s evidence, he said he relied on the internal control bodies of the church that is the investment committee, management board and audit committee.

DPP showed evidence that according to the Church Constitution, the board remains responsible each and every member, for ensuring that the church money isn’t stolen and isn’t misused.  He further questioned Kong the role of the investment committee, which is to ensure that the appointed fund manager adhered to the investment policy. Kong also agreed that the investment committee is accountable to the management board and ultimately still the board’s responsibility to ensure that the money does not disappear.

Kong said that John Lam was not part of the Crossover team. The Crossover team would be himself, Pastor Tan, Serina and Eng Han came in to help with the financing part of it.

DPP directed Kong to open the Agreed Statement Of Facts (ASOF) he adduced that John Lam was in the investment committee and church board and he was involved in the Crossover project.

DPP directed Kong to open an email.  In this email, Serina Wee asked John if it’s ok to forward to Charlie and Martin and Eng Han replied better not distribute to Charlie and John agreed.

DPP: “Do you know why, in particular, the church’s fund manager is involved in saying that the investment committee, which is supposed to supervise what he’s doing. Why he is involved in saying that they should not see the fact that AMAC has invested in Xtron?”

Kong: “Not that I could recall, your Honour.”