Monday, January 26, 2015

City Harvest trial: 'Story cooked up' by Kong Hee & Co untrue, arguesex-fund manager (CNA: 26 Jan 2015)

SINGAPORE: Mr Chew Eng Han - the former investment manager for City Harvest Church - took the stand on Monday (Jan 26), as the high-profile trial also involving five other church leaders resumed.

The six are accused of misusing millions of dollars from the church fund to buy sham bonds from two church-linked firms, with the aim of bankrolling the secular music career of founder Kong Hee's wife, Sun Ho.

Chew is the fourth accused person to give evidence, and is the only one defending himself.

Speaking in court, he said he broke away from the church in 2013 as he believed that his co-accused had chosen the "most convenient way" of defending themselves. He said the five co-accused, including Kong, claimed that they did not know about the legalities concerning the bonds central to the trial, and had pointed to him as the brains behind these bonds.

"The only reason I broke away was that the story being cooked up was not the truth. Why is so much responsibility being placed on the investment manager?” he said. “I'm not going to be united with a team that chooses the most convenient way to defend themselves.”

Chew has maintained that the investments were genuine.

He also told the court that he was disappointed in the lack of leadership shown by Kong and Deputy Senior Pastor Tan Ye Peng, who is also one of the accused. The "first wake-up call" came in May 2010, after the Commercial Affairs Department had questioned all six of the accused, Chew said.

He said the senior pastor Kong and his deputy Tan did not show any conviction with regard to the bonds and how the proceeds would be used, when questioned by the church's lawyer, Mr Jimmy Yim.

"When the fire broke out, I didn't see any leadership, I didn't see any shepherds. All I saw was fear," Chew said.

He also said that contrary to what his co-accused had testified earlier, Xtron Productions - one of the companies accused of helping the church misuse the funds - was controlled by the church, and that Kong and Tan controlled decisions at Xtron.

But he added that he did not see anything wrong with this, as Xtron was known to be the vehicle to help the church manage its Crossover Project - the church's way of reaching out to the masses through Ms Ho's secular music career.

"Why would anyone divest so much money into a vehicle and not control it?," he said, adding that such an arrangement was common in the financial world.

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