Wednesday, October 1, 2014

CHC trial: 'Related party transactions' were main concern, says church finance manager (CNA: 30th Sept 2014)

SINGAPORE: Taking the stand for the 13th day, City Harvest Church finance manager Sharon Tan on Tuesday (Sep 30) reiterated that her main concern was about "related party transactions" in the church's investments. The 39-year-old said so in response to questions from her lawyer, Senior Counsel Kannan Ramesh, during re-examination.

Tan is one of six leaders charged with misusing millions of dollars of church funds to boost the career of singer Sun Ho, the wife of church founder Kong Hee. They are accused of doing so through sham bond investments in two companies, production house Xtron and glassware manufacturer Firna, and then covering them up.

On Tuesday, the court was shown an email dated May 2009, where fund manager Chew Eng Han, who is also one of the accused, had proposed a plan for the redemption of Xtron bonds.
This involved the church paying Xtron a large amount as advance rental for it to secure premises for church services and activities. The advance rental could then contribute towards redemption of the bonds.

Under the plan, part of the advance rental would also be used to buy the artiste management rights for Sun Ho from Ultimate Assets, a company owned by Indonesian businessman and church member, Wahju Hanafi.

Ho's recording and launching of secular music albums was part of the church's Crossover Project, which aimed to evangelise and influence those who would never choose to step into a church.

Tan had understood that any links between the project and the church would have to be discreet for the project to be "as secular as possible" so that it would not be jeopardised. As such, she had concerns that the advance rental from the church that was used to buy the rights from Ultimate Assets, would be seen by auditors.

Tan said that this may give rise to the issue of related party transactions, which would lead to disclosure of the links between the church and companies such as Ultimate Assets.

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