12 September 2014 – Morning session (Sharon EIC) (MrsLightnFriends: 16th Sept 2014)

Sharon Tan, 39 years, old took the stand on 12 September for the first time since the trial began.  She joined Ekklesia ministry (City Harvest Church started from Ekklesia ministry) when she was 15 years old.

In her EIC (Examination in Chief) she said the following:
1. Serina Wee is the number 1 person in the finance department.
2. Sharon’s degree in business accounting is from RMIT, so when it comes to financial reporting standards or accounting standards, she will have to check with either Serina Wee, John Lam or maybe the auditor, Ai Fang.
3. For Chew Eng Han, she understands he was a general manager from State Street Bank and Pastor Kong introduced him as an expert in the investment field. He was appointed to be the fund manager of CHC.
4. Pastor Tan is the deputy senior pastor of the church, he is basically the second man after Pastor Kong.
5. For all the co-accused, Pastor Kong, Pastor Tan, Serina Wee, John Lam and Eng Han, she has no reason to doubt their integrity.
6. Brother Foong is a very well respected man. She understand that he is someone that the leaders will turn to whenever they need advice and he is someone who loves CHC. He understands how the church works and will always be available to give Pastor and the other leaders advices.

Xtron Bond Subscription Agreement

Deutsche Bank AG is the custodian account that was opened by CHC for the purpose of making investments.  The withdrawal of monies from the custodian account will require three signatories.

The authorized signatories to operate the account are as followed:
1. Tan Ye Peng (Pastor)
2. Suraj
3. Derek John Dunn (Pastor)
4. Aries Santoso Zulkarnain (Pastor)
5. Sharon Tan

Sharon Tan explained that she was one of the signatories to facilitate the administrative function of the finance matters. She further explained that as most of the pastors would need to fly for various speaking engagements, there would be a shortage of signatories for the usual operational payments.

Ramesh: “Tell us and you said that you thought that this was a proper transaction, what were you told about the approval that was given to the execution of this document? What did you know about the execution of this document?”

Sharon: “Your Honour, I was told by Serina that this agreement was approved by the board.”

…..

Ramesh: “Briefly, Ms Tan, can you just outline to the court how would the process of securing these signatures, Mr Zulkarnain, Mr Derek Dunn and yourself, in this particular context? How would the protocol, the process be, in terms of getting those signatures?

Sharon: “Your Honour, during that time, Serina Wee was still personally handling this investment, so I recalled that she came to me to tell me that this have been approved by the board and as well as during the July 2007 EGM. So I would need to sign this drawdown by Xtron.”

….

Ramesh: “So you would see Mr Zulkarnain’s and Mr Derek Dunn’s signature first”

Sharon: “Yes”

Ramesh: “What comfort did you draw from the fact that Mr Zulkarnain and Mr Derek had already signed on these instructions?”

Sharon: “Your Honour, when I saw the signature, Pastor Aries is one of the board members and Pastor Derek is like the CEO of the church. So I was assured that this was approved transaction.”

…..

Ramesh: “In your mind, what impression did you have as regards the legitimacy of these four transactions (drawdown of the bonds)?”

Sharon: “Your Honour, in my mind, these are legally drafted and approved by the board.”

Approval from the CHC board
 

Ramesh opened a document, which is the board meeting minutes held on 8 March 2008.
 

At paragraph 5.2 of the board minutes, Nicholas Goh requested Eng Han, who is the fund manager, to update the Board monthly on the investment status. Sharon Tan was instructed to arrange with Eng Han (Eng Han was not invited to attend this board meeting). The board discussed and instructed the investment committee to continue monitoring the investment market closely.

Ramesh: “So any investments that the church had made through Mr Chew Eng Han, it would seem from 5.2 would have to be reported to the board. Right?”

Sharon Tan: “Yes, your honour.”

At paragraph 3.1
The Board discussed about the possibility of engaging Mr Jimmy Yim, Senior Counsel, as CHC’s Church Advisor.

At paragraph 3.2
The Board considered and reviewed Mr Jimmy Yim’s resume and profile and unanimously agreed that it is beneficial for CHC to engage Mr Jimmy Yim.

At paragraph 3.3
The Board approved that CHC will contract Mr Jimmy Yim’s advisory services at $15,000 a month, starting from April 01, 2008. This will continue on a yearly basis unless terminated by either party within a written 3 months’ notice.

Apart from Mr Jimmy Yim who is described as the church’s adviser paragraph 3.4 goes on to say:
CHC will still continue to appoint Drew & Napier for general legal advisory work at a monthly retainer of $5000 before GST.

Ramesh: “Why this particular point in time formalize that relationship? If you can help us, why did the board feel the need to retain formally Mr Yim and pay him X dollars on a monthly basis?

Sharon: “From my knowledge, if I can recall accurately, it should be because the church is going into big investments as well as aiming to secure a building for the church. This is very important season of the church, so it’s important that Jimmy Yim can be engaged to seek legal advice.”

…….

Ramesh: “You see Mr Jimmy Yim being appointed formally by the board, described as “Church adviser”…… Tell us what did you think was the level of governance that the church was putting in place as regards investments, the acquisition of the property that it was going to undertake?”

Sharon: “Your Honour, I would think from this meeting that the board is very serious in the investments that they are placing with the church funds as well as the process of securing a church premise. And they want to ensure that everything will be done legally and above board.”