Tuesday, August 12, 2014

I always sought professional advice, says CHC founder Kong (BT: 12 Aug 2014)

[SINGAPORE] The founder of City Harvest Church, Kong Hee, took to the stand yesterday in his own defence, saying that he trusted and always sought professional advice from the church's former lawyer and auditor before making any decisions.

Kong, along with five deputies, are facing allegations that they misused millions of the church's building fund monies to boost the music career of singer Sun Ho.

Ms Ho, who was not present in court as she has been listed as a defence witness, is Kong's wife.
Some of the accused are also alleged to have channelled the church's monies through alleged "sham bond investments" in two companies - Xtron Productions and Firna - via round-tripping.

Taking the stand for the first time, Kong recounted his relationship with the church's then auditor, Foong Daw Ching, of accounting firm Baker Tilly TFW.

Mr Foong was engaged to look through the church's books from as far back as 1993 and became not only Kong's mentor but also "confidant in financial matters".

In 1999, Kong said Mr Foong was engaged to manage his personal income tax.

Having heard how other charities like the National Kidney Foundation and Ren Ci Hospital had brushes with the law, Kong said he became "edgy" and always sought Mr Foong's advice to "maintain financial integrity" that could withstand the "strongest scrutiny" from any watchdog.

In these instances, Kong said Mr Foong would assure that he was "on top of things".

"Brother Foong would have said to me on many occasions words like, 'Kong, don't worry, everything is in good hands. I work well with your team. You just focus on your mission, focus on your health, focus on your ministry and your family. You know, if there's any problem, I would tell you, I would contact you.' So that was the assurance he has given me throughout the years, not once but on many occasions," said Kong.

Describing Mr Foong as "the man in charge" of the church's financials, Kong said the church would seek the auditor's advice on small matters like a S$5 donation to tax exemption issues and matters like using the church's building funds for rental payments.

"Unless he (Mr Foong) okays it, I would be very hesitant to proceed," said Kong.

The church founder, who turns 50 this year, also testified that the church had retained Senior Counsel Jimmy Yim of Drew & Napier for several years, in a bid to strengthen the organisation's corporate governance as it grew from a small setting to one of Singapore's mega-churches.

The checking of scripts for the church's annual general meetings was one of the things on which Kong would seek Mr Yim's and Mr Foong's advice.

When asked by his lawyer Edwin Tong whether the special audit of the church's books was communicated to the executive members, Kong said he persuaded Mr Foong to record a video declaring that no church fund was used to promote Ms Ho's career.

The special audit was commissioned in 2003, after a then-church member, Roland Poon, alleged that the church forced its members to purchase Ms Ho's music albums and that the management had used the building fund to promote her albums, among other things.

During the hearing, Kong also testified that he entrusted his deputies with the church's affairs as it grew in size, as he was overseas most of the time.

The court also heard how the church's Crossover Project, aimed at evangelising non-church goers through secular music, was successful and supported by members.

Mr Tong had said in his opening address that the crux of the prosecution's case was that the building fund monies could not be used for the Crossover Project, but he pointed out that it was a "legitimate, proper and widely supported church purpose".

Mr Tong argued that there was "no wrongful gain" in the case, "no financial loss caused to the church", and that the Xtron and Firna bonds were redeemed with interest.

Earlier in the day, prosecutor Christopher Ong raised concerns of a possible satellite litigation that might "unduly delay or disrupt the progress of the trial".

This came after the church's current lawyer, Desmond Ong, sent a warning letter, citing possibility of injunction, to one of the accused, Chew Eng Han, who was the church's investment manager.

In the letter, Mr Desmond Ong had asserted that Chew is in possession of documents over which his clients claim legal privilege. Previously, Chew said he wanted to use those documents in his cross-examination of Kong.

While the nature of the documents was not specified, the court has ordered Mr Desmond Ong to make his submissions on this in open court.

 The trial continues.

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