3 Feb 2015 – Chew cross-examined by DPP – Part 2 (MrsLightnFriends: 9 Feb 2015)

Xtron Bond is Investment and mission (Crossover Project)?

Chew said the decision to buy Xtron and Firna bonds was made because of mission and investment component.

Recap what was cross-examined on 3 February 2015 – PM session.

DPP: Witness, I put it to you that your explanation that all along you considered these to be the Xtron and Firna bonds to be hybrid investments with a dual purpose of making returns and furthering the mission objective of the church is an afterthought.

Chew: No your Honour. I came out with those statements soon after we were raided.

DPP: I put it to you that at no time in 2007 and 2008 were the executive members ever told that these Xtron and Firna bonds that the church was entering into were some kind of hybrid investment.

Chew: Yes, I agree.

DPP referred to another question in the CAD statement. In the CAD statement Chew said, “the Xtron bond is not a pure investment. It has a component of missions in it. It is a decision for Pastor Kong and the Board to decide whether to fund this Crossover. But having said that, it does not mean that I did not have confidence that the Crossover would be successful.

Chew: Yes. Yah, so this is one reference to mixed motive, your Honour. What I’m saying is that because of the missions component, the second component, it cannot be a pure investment decision for AMAC to decide. Because if it was just for financial returns, then, yes, most likely I would be the one deciding. But now because there’s additional mission component, which is the church objective, therefore I say it’s for Pastor Kong Hee and the board to decide….. I went on to say in the next few lines, in question 694, that “There was expected to be income from the sale of albums…”

DPP: Well, I put it to you that the answer you’ve given as with the earlier answer that I referred you to, really suggests that any returns, if the Crossover was successful, would be a bonus, and that the real purpose of the investments was to fund the Crossover, which is why it was up to Kong Hee and the board to approve them, according to you.

Chew: No, your Honour. The reason why Kong Hee has to approve it and the board has to approve it is because now they have to decide…….because there’s a missions component in this whole evaluation, of course the fund manager can’t be the one deciding. Because I can’t decide how important is this missions component to the church. But in no way am I saying that it’s just missions that’s important, that financial return is just an added bonus. If that was the case, your Honour, then we should have just gone for a missions fund, which I was totally open to, and then just put the money out for the crossover and see whether it makes money. Your honour, I’ve already showed evidence that, even from early 2002, and even at board meetings, it was said that the albums were expected to break even or even make profits. There was never any change in that perception, at least for me.

DPP: I put it to you that, at the material time, that is, at the time the bonds were entered in 2007 and 2008, neither the board nor the auditors were told that they were hybrid investments.

Chew: Yes, I think they were not specifically told, your Honour.

DPP: I put it to you that it was consistently represented to the board and to the auditors that these were investments purely for the purpose of returns.

Chew: Your Honour, at that time I believe that the board knew there were two purposes and it was missions and financial returns.