Kong lied to his followers, says Chew (BT: 19 Aug 2014)

Kong denies knowing about alleged bid to muddy the trail of royalties to him

[SINGAPORE] The former investment manager of City Harvest Church charged yesterday that not only had church founder Kong Hee engineered the round-tripping of royalties gifted to him by staunch supporters, he had lied to his followers time and again.

Chew Eng Han, who is defending himself against 10 allegations of criminal breach of trust and falsifying accounts, yesterday questioned Kong on his claim that there was a $500,000 deficit in a multi-purpose bank account primarily set up by Xtron Production donors to support Kong and his singer-wife Sun Ho after they were taken off the church's payroll in late 2005.

The account was also for the purposes of financing the Crossover Project, aimed at evangelising through Ms Ho's secular music.

Pointing to court documents, Chew noted that there was a refund of $222,000 in royalties from Kong to church-linked firm, Attributes Private Limited (APL), for missionary materials sold from 2006 to 2008.

In an email to APL director Choong Kar Weng, accused Serina Wee explained that although Kong had legitimate reasons for receiving royalties from APL for the sale of the items, Kong had felt "it would look bad" if this disclosure came to light.

So Wee said another way would be arranged for to compensate Kong.

Chew argued that APL put $222,000 back into the church's accounts, with which the church bought Firna bonds. Bond proceeds of the same amount then went towards paying Kong back.

The founder, on the stand for the sixth day yesterday, denied having knowledge of this direct transfer of bond proceeds to him.

The court was also told that another portion of royalties was refunded to Kong from City Harvest Kuala Lumpur, which Kong described as blessings "out of their own free will".

Kong, Chew and four deputies are battling accusations of misusing church funds to boost Ms Ho's singing career. Four of six allegedly did so through "sham bond investments" in Xtron and Firna by round-tripping.

Chew had previously been singled out as the one who structured the bonds, but yesterday, he declared that he had "created a proper set of bonds, legally documented as well as can ever be", to which Kong agreed.

Chew asked Kong: "What matters in deciding whether the bond is a sham has to do with the intention of the user of the bond proceeds, do you agree?"

Kong agreed to this, but said that the intention, in this instance, was that of the directors of Xtron and Firna.

During the hearing, Chew also tried to show his state of mind that led him to believe the Crossover Project would succeed.

He alleged that Kong created a perception that Ms Ho was a huge success, when in reality, both she and Kong knew this was "not real", and that she did not succeed on merit, but only through the support of the church.

Chew pointed out, for example, that the church had spent some $21,000 on iTunes cards so as to buy Ms Ho's single, "Fancy Free".

Kong dismissed the argument, by saying that this practice was the norm and a common marketing strategy.