8 September 2014 – Morning Session Part 2 (Mrs Light n Friends: 9th Sept 2014)

How were the Xtron and Firna bonds redeemed?

DPP directed Kong to look at Blackberry message BB-63.

Eng Han wrote a fairly long message to Kong and Yee Peng in this blackberry message.

Dear Pastor,

Pastor Tan and I discussed the structure for doing palm oil and crude oil, cleaning up the xtron and firna bonds, and funding future crossover. Here is the summary proposal :

Palm Oil:
……
Crude Oil:
……

Redemption of xtron and firna bonds :

Xtron uses rental deposit from CHC to redeem bonds. It also sets up a crossover company (xco) which buys over the rights to Sun from Firna for a sum equal to
what Firna owes in bonds at that time. Firna redeems bonds issued to CHC. Xtron is free to do what it needs to do because it is no longer funded by CHC but has only a commercial relationship with CHC of landlord-tenant.

<< some questions and answer related to this BB msessage>>

DPP: “You said earlier that it was only in March 2010 that you learnt that the ARLA (Advance Rental Licensed Agreement) was the means by which the Xtron and Firna bonds were redeemed, would you agreed that ultimately it was not the actual borrowers, Xtron and Firna, who provided funds to redeem the bonds?”

Kong: “Yes, your Honour. But Xtron and Firna would owe legal obligations to those funds.”

<<….some questions on the redemption of the bond before maturity…>>

DPP: “Mr Kong, do you know that it was Serina Wee, Chew Eng Han, Sharon Tan and Tan Ye Peng who came up with the plans on how to redeem the bonds, the Xtron and Firna bonds, before maturity?”

Kong: “Your Honour, I was aware of the plan to use rental deposit to redeem the Xtron and Firna bonds at the end of May 2008. And it was Eng Han who wrote to me and I believe that Pastor Tan was copied in that Blackberry pin.  At the material time, I didn’t know that Sharon Tan and Serina Wee were involved.”

DPP moved on to another area.

ARLA (Advance Rental Licensed Agreement)

Kong position is that because the advance rental was fully repaid, when the ARLA was rescinded, no loss has been suffered by the church in relation to the debts that first started out as the Xtron ad Firna bonds.

DPP asked, “Can you tell us how the money was paid back, the advance rental, which was about $40m, correct?”

Kong said, “Your Honour, to the best of my knowledge, to the best of my recollection, a portion of it was being paid back through the sale of Riverwalk. Somewhere between $26m to $30m were being paid back by Wahju and by taking loans from his friends. That was to the best of my knowledge.”