City Harvest Church founder faces the music

[Awake]

More than $10m spent on Ho's music album

City Harvest Church (CHC) founder Kong Hee and his wife Ho Yeow Sun, also known as Sun Ho, showed up in court hand-in-hand for the proceedings on 26 August 2013.

Melody Zaccheus
The Straits Times
Friday, Aug 30, 2013

SINGAPORE - More than US$8 million (S$10 million) was spent on the album that was supposed to launch pop singer Ho Yeow Sun's career in America - including production fees for rapper Wyclef Jean.

The sum emerged in court on Tuesday as part of minutes from a board meeting of production house Xtron, one of the firms City Harvest Church leaders allegedly used to misappropriate church funds.

The minutes listed expenses for Ms Ho's English-language album, including more than US$1.6 million in production fees for American musician Jean and more than US$1 million for a music video.

The minutes from Nov 24, 2007, were among dozens of documents tendered in court on Tuesday.

They showed that Xtron directors Wahju Hanafi and Choong Kar Weng approved an additional budget of US$2 million to produce Ms Ho's album "in order to get some popular song artistes and singers from USA to be involved in the album".

The directors expected that between two and three million copies would be sold.

But while Ms Ho's singles - such as her China Wine collaboration with Jean - were produced, the album was never released.

Xtron also paid for Ms Ho's travel expenses, noting that she would continue to fly business class for her official journeys as she had a "very busy promotional schedule".

The minutes said that about $200,000 in waived royalties for three of Ms Ho's albums in 2003, 2004 and 2006 was used to build schools in China.

 

[Awake]

Witness: Xtron footed bill

"Ultimately the directors and shareholders of Xtron had to approve my directorship, but Xtron and City Harvest were working very closely at the time to pursue a piece of land, so I assumed it was quite normal for them to discuss these matters," Choong said.

Koh Hui Theng
The New Paper
Friday, Aug 30, 2013

SINGAPORE - Who picked up the tab for Sun Ho's music career?

Xtron Productions, the former management company for the singer, said it did. Through loans and the issuing of bonds.

But before the case was adjourned in May, the prosecution argued they were sham bonds and that the accused had actually moved money meant for the church's building fund into buying those investments to finance Ms Ho's secular music career.

The prosecution also argued that Xtron was closely linked with the church, so close that it could be controlled by the church.

Independent

On Tuesday, Xtron director Choong Kar Weng disagreed, insisting the company was independent.

He has been a director since 2005, after City Harvest Church (CHC) founder Kong Hee asked him to take on the position.

Mr Choong, 41, a permanent resident, was quizzed about his ties with the accused and his role in Xtron. It emerged that the Malaysian had let former church manager Serina Wee, one of the accused and Xtron's accountant, make bond drawdown decisions for Xtron.

That was because his "management philosophy" revolved around whether he trusted the person.

He had also said that he believed she would not do anything detrimental to the company.

The prosecution sought to show that despite Mr Choong trusting church staff, they did not keep him in e-mail correspondences when discussing Xtron.

 

[Awake]

Singer Ho's over $500k in bonuses, advances

City Harvest Church (CHC) founder Kong Hee and his wife Ho Yeow Sun, also known as Sun Ho, showed up in court hand-in-hand for the proceedings on 26 August 2013.

Melody Zaccheus
The Straits Times
Thursday, Aug 29, 2013

SINGAPORE - Pop singer Ho Yeow Sun received more than half a million in bonuses and advances, including a $30,000 birthday cash gift and an $80,000 "special performance bonus for hits in the US or the United Kingdom" in 2006.

But to divert attention from some of these extra takings, leaders of City Harvest Church allegedly doctored documents to show that sponsors had given the money to her as "personal gifts".

These details emerged on the first day of the second leg of the trial involving six church leaders accused of misusing millions of church funds. The high-profile trial had resumed after a three- month break.

On Monday, prosecutors tried to show that Ms Ho's former management company, Xtron Productions, was a puppet company controlled by the church's leadership, including founder Kong Hee, who is her husband.

The State is accusing the six of using Xtron and another firm, Firna, to funnel $24 million of church funds into paying for Ms Ho's secular pop music career, and then misappropriating another $26 million to cover that up.

Like at the first part of the trial in May, supporters started lining up outside the Subordinate Courts from as early as 4am for a spot in the 80-seater public gallery in Court 3.

A solemn Ms Ho showed up in court, hand-in-hand with her smiling husband for the first half of the day's proceedings.

One of the accused, Chew Eng Han, a church stalwart and its investment manager who had quit in June, kept his distance from the rest. He did not speak to the other five in the dock, and stood aside from them during breaks.

The trial continued on Tuesday and prosecution witness Choong Kar Weng, Xtron's director and long- time church member, is expected to take the stand again.

[email protected]

 

[Awake]

City Harvest trial: Indonesian donor Wahju Hanafi moved by church's teachings

Published on Aug 30, 2013

On Friday, Aug 30, 2013, details of City Harvest Church founder Kong Hee's ties with long-time church member and donor Wahju Hanafi (above) emerged in court as the criminal trial against Kong and his five of his deputies continued. -- PHOTO: WONG KWAI CHOW

By Feng Zengkun

Their friendship blossomed over a dinner to thank him for his $1 million donation to the church.

On Friday, details of City Harvest Church founder Kong Hee's ties with long-time church member and donor Wahju Hanafi emerged in court as the criminal trial against Kong and his five of his deputies continued.

The six church leaders were charged last year with misusing about $50 million worth of church funds. Two firms are accused of helping them to do so. Mr Hanafi, an Indonesian businessman, was director of one firm and owner of the other.

Mr Hanafi, 53, is also owner or managing director of a string of companies in Papua New Guinea, where he is based, Indonesia and other regional countries. He joined City Harvest in 1990 when he moved his family to Singapore.

Questioned by the state on his relationships with the church and the six accused, he credited City Harvest with changing him as a person, and said he was so moved by its teachings that he paid back 10 years' worth of evaded taxes. "The church taught me principles like work hard, be honest, have integrity. Pastor (Kong) told me to do business with integrity."

Mr Hanafi said he was also old friends with another of the accused, John Lam Leng Hung, who was his family's first cell group leader. The state is expected to question him on financial transactions at the heart of the criminal case when he next takes the stand.

 

[Awake]

Updated: 09/02/2013 15:01 | By Channel NewsAsia

Xtron not "sham" company: City Harvest trustee

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SINGAPORE: More light was shed on the role of trustees of City Harvest Church as the trial of the six church leaders accused of misusing church funds continued on Monday.

Susan Ong, one of the church's trustees, took the stand and told the court that Xtron Productions was not a "sham" company.

She said Xtron, which used to manage singer Sun Ho, was not a shell company, so the bonds issued to the church were authentic.

Mdm Ong continued, saying if there were "sham bond investments", as claimed by the prosecution, church members would have found out about the fraudulent transactions.

Replying to the defence, she said accused Chew Eng Han was chosen to decide on the investments the church should make as he had the necessary expertise, as opposed to the trustees and the management board.

Thus, AMAC Capital, which is owned by Chew, was given the power by the trustees to make those decisions.

Chew, an investment manager by profession, was with the church for 17 years till he announced his decision to leave the church in June, citing differences in opinions with the leadership.

During the prosecution's questioning earlier, the court heard that AMAC Capital was not required specifically to keep church trustees informed of what it would do.

Mdm Ong also admitted that the trustees were not consulted on bond investments and personal guarantees that AMAC Capital made.

During defence's cross-examination, she further testified that the church's investment committee and management board were given the mandate to invest excess building funds.

When asked specifically by the defence if the church suffered any loss, the prosecution witness replied that there was no loss made.

Several times during the hearing, Mdm Ong attested to the character of singer Sun Ho, wife of one of the accused, Kong Hee.

She said church members knew Ms Ho was the chosen one to reach out to the secular world and said the singer was "wholesome".

Church founder Kong Hee, Chew and four others are accused of misusing S$24 million from the church's building fund to boost Ms Ho's career and using another S$26 million to cover up the initial sum. - CNA/xq

 

[Awake]

Updated: 09/02/2013 21:05 | By Channel NewsAsia

Role of trustees in the spotlight as trial of CHC leaders continue

SINGAPORE: More light was shed on the role of trustees of City Harvest Church as the trial of the six church leaders accused of misusing church funds continued on Monday.

In an email sent by accused Serina Wee to Chew Eng Han in November 2008, she said one of the trustees had remarked about signing documents blindly. That trustee was Mdm Susan Ong, wife of former CHC pastor, Derek Dunn.

When asked, Mdm Ong said she could not recall this.

The 46-year-old told the court that Xtron Productions was not a "sham" company. She said Xtron, which used to manage singer Sun Ho, was not a shell company, so the bonds issued to the church were authentic.

Mdm Ong continued, saying if there were "sham bond investments" as claimed by the prosecution, church members would have found out about the "fraudulent" transactions.

Replying to the defence, she said Chew was chosen to decide on the investments the church should make as he had the necessary expertise, as opposed to the trustees and the management board.

Thus, AMAC Capital, which is owned by Chew, was given the power by the trustees to make those decisions.

Chew, an investment manager by profession, was with the church for 17 years till he announced his decision to leave the church in June, citing differences in opinions with the leadership.

During the prosecution's questioning earlier, the court heard that AMAC Capital was not required specifically to keep church trustees informed of what it would do.

Mdm Ong also admitted that the trustees were not consulted on bond investments and personal guarantees that AMAC Capital made.

During the defence's cross-examination, she further testified that the church's investment committee and management board were given the mandate to invest excess building funds. When asked specifically by the defence if the church suffered any loss, the prosecution witness replied that there was no loss made.

During re-examination by the prosecution, Mdm Ong acknowledged that as a trustee, she signed documents approved by the management board but would not ensure the authenticity of those documents.

Several times during the hearing, Mdm Ong attested to the character of singer Sun Ho, wife of one of the accused, Kong Hee. She said church members knew Ms Ho was the chosen one to reach out to the secular world and said the singer was "wholesome".

Later in the day, Indonesian businessman Wahju Hanafi took the stand again, continuing from last Friday. The court heard how he donated millions of dollars to the church and in January 2004, asked the church to refund him S$1.45 million.

When grilled on who the donations belonged to, Mr Wahju admitted that it was the church's but described the refund as "a diversion of the purpose".

The money was channelled into the Crossover Project, of which Ms Ho is part of.

The prosecution also sought to show that certain documents, in particular, a board resolution, were backdated. On this, Mr Wahju said it didn't matter to him if it was.

Church founder Kong Hee, Chew, Wee and three others are accused of misusing S$24 million from the church's building fund to boost Ms Ho's career and using another S$26 million to cover up the initial sum. - CNA/ac

 

[Awake]

Updated: 09/03/2013 15:03 | By Channel NewsAsia

City Harvest had control over Xtron's daily operations: prosecution

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SINGAPORE: City Harvest Church staff doubling up as Xtron Productions' employees, minutes of meetings that were back-dated and the church's control over Xtron's daily operations were the points raised in court on Tuesday as the prosecution continued to build its case against the six leaders of the church.

Founder Kong Hee and five other leaders in the church are accused of misusing S$24 million of the church's building fund to boost singer Sun Ho's music career.

Four of the six are also accused of using another $26 million to try and cover up the initial sum.

Chew Eng Han, one of the accused, had in June announced his decision to leave the church, citing differences in opinions with the leadership.

Indonesian businessman Wahju Hanafi, a former Xtron director, was grilled by the prosecution over his role in the events company.

Xtron was Ms Ho's former management company, and is one of three firms that the prosecution alleges to have been used in "sham bond transactions" and round-tripping to conceal the supposed offences.

In Tuesday’s hearing, the prosecution went through email chains and multiple documents, seeking to prove that Mr Hanafi was clueless about Xtron's daily operations.

The prosecution raised several documents pointing to accused Serina Wee and Tan Ye Peng as the ones making decisions for Xtron, even though they were not Xtron staff.

In one document, church staff Suraj was stated as Xtron's chief executive officer even though he did not work in the company.

Also, the court heard that Wee sent an email to Tan at 3.51am on 24 November 2007, asking him to look through the attachments.

In particular, one attachment was the minutes of an Xtron board meeting which was dated 24 November 2007.

The prosecution asked Mr Hanafi if he remembered attending a meeting that took place between midnight and 3.50am on 24 November.

Mr Hanafi said the date and time did not matter to him.

He added that Xtron's minutes were usually prepared after the meeting took place.

The trial continues. - CNA/xq

 

[Awake]

Updated: 09/03/2013 22:29 | By Channel NewsAsia

Former Xtron director admits he was not in control of his firm

SINGAPORE: The trial of six leaders of City Harvest Church continued on Tuesday with a former Xtron Productions director admitting he was not in control of his firm.

Indonesian businessman Wahju Hanafi said he borrowed more than S$1.66 million from Xtron through third parties in 2007, at a time when he was still its director.

He explained that in late November 2007, his own business The First National Glassware -- also known as Firna -- ran into financial difficulties.

The court heard that in emails between the former Xtron director and the founder of City Harvest Church Kong Hee in late November 2007, the pastor decided to help Mr Hanafi.

Two loans amounting to more than S$1.66 million were made to Mr Hanafi via Xtron.

One set of loan amounted to more than S$674,000, where Mr Hanafi had to pay an interest rate of seven per cent, while the other loan came up to S$990,000.

Mr Hanafi said the loans were decided by Tan Ye Peng, who is on trial, along with Kong and four other church leaders.

When asked why Tan was the one who decided on the loan even though Mr Hanafi was at that time the company's director, the witness said it was Tan's choice.

The prosecutor then pointed out that by then, Mr Hanafi had no control over Xtron even though he was its director.

To this, the witness said: "As I said again, at the end of the day, whatever decision he made on Xtron, and if Xtron were to lend me money back to me there's nothing wrong about it because I have personal guarantee in that company."

The prosecution also noted that these loans were made in 2007, at a time when Xtron needed funding for the Crossover Project.

The Crossover Project is part of the church's aim to reach out to the secular world through singer Sun Ho's music.

The prosecution argued that Xtron, which used to manage singer Sun Ho, was meant to be a vehicle for the accused to commit round-tripping via "sham bond investments".

Besides charges relating to the misuse of church funds, four of the accused are also alleged to have tried to cover this up through "sham bond investments".

On Tuesday, Mr Hanafi also testified that his firm, Ultimate Assets, was a shell company set up some time in early 2007 to act as a "financial vehicle" to lend money to his other company, Firna.

He told the court that Ultimate Assets eventually bought over Xtron.

The trial continues. - CNA/gn

 

[Awake]

Updated: 09/04/2013 15:35 | By Channel NewsAsia

Emails regarding "secret letter" emerge during CHC trial

SINGAPORE: The trial involving six leaders of City Harvest Church continued on Wednesday, with one of the accused saying that he had instructed his co-accused to draft a "secret letter".

Chew Eng Han, who left the church recently citing differences with the management, had asked Serina Wee to draft the letter between the church and Firna, also known as PT The First National Glassware.

On Wednesday, the court heard how Mr Hanafi tried to get a loan from the church. A requirement was that the church could convert the bonds issued by Mr Hanafi into shares in his company Firna, if he failed to pay back.

However, Mr Hanafi's father-in-law, who held 20 per cent of the company, was reluctant.

On Wednesday, the court heard that in an email dated September 6, 2008, Chew told Wee to draft a letter stating that the church agrees to sell back the shares to Mr Hanafi and his father-in-law at a nominal value of US$1 in the event that the bonds were converted into shares.

Chew said the letter was needed as the father-in-law would not sign the shareholders' consent for the church to convert the bonds into shares.

He also instructed Wee to pass the letter to Mr Hanafi so as to get his father-in-law's signature.

Accused John Lam and Tan Ye Peng were included in the email chain.

In another email sent on the same day, Wee asked Chew if he could speak with the board and Lam to get their agreement on this. She added it will be "troublesome to explain" to the church trustees.

Chew later replied that Lam will sign the document and no trustee will be involved.

When asked, Mr Hanafi denied knowledge of this letter. He added that his father-in-law had never asked for such a letter to be drafted.

Chew and Wee, along with the church's founder Kong Hee, and three others are contesting allegations that they misused S$24 million of church building funds to boost singer Sun Ho's career.

Four of the six also face allegations that they used another S$26 million to cover up the misuse through "sham bond investments". - CNA/ac

 

[Awake]

City Harvest trial: Wahju Hanafi denies knowledge of "secret plan" by church leaders

Published on Sep 04, 2013

Mr Wahju Hanafi, arrives at the court on Sept 3, 2013. Mr Hanafi, owner of glassware firm Firna and accused of helping six leaders of City Harvest Church to misuse church funds, denied knowledge of a "secret" plan by several of them. -- ST FILE PHOTO: WONG KWAI CHOW

By Feng Zengkun

A glassware firm and its owner accused of helping six City Harvest Church leaders to misuse church funds denied knowledge of a "secret" plan by several of them.

The State produced e-mails on Wednesday to try and show that some of the accused had cooked up a ploy to get around the terms of an investment contract between the church and the company, Firna.

The church wanted to invest $11 million into Firna bonds. This was a way of illegally diverting church funds to finance City Harvest co-founder Ho Yeow Sun's music career, the State believes. In the investment contract, City Harvest had built in a clause to protect itself - it could convert the bonds into shares in the company if the money was not returned when the bonds matured.

Later, however, several of the accused wrote in emails of a "secret letter" to be sent to Firna's owners, in which the church would promise to sell back the shares "at a nominal value of US$1" if the conversion happened, effectively voiding the protection.

This ploy was needed to get the firm on board with the plan to funnel church funds, the state believes. When asked about this, Firna owner Wahju Hanafi said that he and his father-in-law, co-owners of the firm at the time, did not know of this plan and was not involved in it.

Mr Hanafi also maintained that Firna's money had not been used to finance Ms Ho's career, and that it was his own money that was used.

City Harvest founder Kong Hee and five of his deputies were charged last year with misusing about $50 million of church funds.

 

[Awake]

City Harvest trial: $2.2 million New York apartment for Ho Yeow Sun

Published on Sep 04, 2013

City Harvest Church co-founders Ho Yeow Sun (left) and Kong Hee at the Subordinate Courts on Aug 28, 2013. Ms Ho was to receive a $2.2 million apartment in New York while she was recording her album there. Her United States manager Justin Herz was also to receive millions of dollars in church funds to boost her US career. -- FILE PHOTO: AFP

By Feng Zengkun

City Harvest co-founder Ho Yeow Sun was to receive a $2.2 million apartment in New York while she was recording her album there. Her United States manager Justin Herz was also to receive millions of dollars in church funds to boost her US career.

These details were revealed on Wednesday as the State sought to show how six church leaders allegedly funnelled almost $11 million in church funds to Ms Ho's career illegally through sham bonds issued by glassware firm Firna.

Grilling Firna owner and long-time church member Wahju Hanafi on the stand, the prosecution produced email after email in which one of the accused, Serina Wee, instructed Mr Hanafi on how to spend the church's bond investment money, with large sums going towards Mr Herz for Ms Ho's album and publicity.

Although Mr Hanafi admitted to following many of her instructions - excluding, however, the $2.2 million apartment deal - he insisted that he made the final decisions at the firm. He also claimed that he had two sources of money, one from the Firna bonds and another $8 million from his business deals in Papua New Guinea.

City Harvest founder Kong Hee and five of his deputies were charged last year with misusing about $50 million of church funds in total to finance Ms Ho's career as a way to evangelise, and to cover this up.

 

[Awake]

Updated: 09/04/2013 23:30 | By Channel NewsAsia

Firna owner says firm was used to channel funds to boost Sun Ho's career

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SINGAPORE: A firm owned by an Indonesian businessman was used to channel funds from City Harvest Church to boost the career of singer Sun Ho.

This emerged in fresh testimony during the trial of the six leaders of City Harvest on Wednesday.

Founder Kong Hee and five others are accused of misusing S$24 million from the church's building fund to finance the career of Ms Ho, who is Kong Hee's wife.

Four of the six also face allegations of using another S$26 million to cover up the misuse through what the prosecution says are "sham bond investments".

The prosecution's case is that Firna, a firm owned by Indonesian businessman Wahju Hanafi, was controlled by the accused and used as a vehicle to do their bidding, which included "round-tripping" via sham bond investments.

Testifying for the fourth day, Mr Hanafi admitted that his company, also known as PT The First National Glassware, had been used by the church to channel money into its Crossover Project, which used Ms Ho's music to reach out to the secular world.

Mr Hanafi had said in an email dated late 2008 that his firm was used to channel money into the church's Crossover Project.

"Dear Eng Han, this whole setup was more for admin or Xtron purpose and Firna is only helping to pass through the money," he said in an email to Chew Eng Han, who left the church recently and is also one of the accused.

In 2008, Firna had issued bonds to the church to raise money.

Chew had told Mr Hanafi in a series of emails that the church will "take care of the repayment of bonds when they mature".

The prosecution argued that Firna should be the one redeeming the bonds and not the church.

Mr Hanafi said since the money was his, this should not matter.

The court also heard how accused Serina Wee gave instructions through another series of emails to Mr Hanafi on when and what amount to drawdown.

Earlier, the court heard how some of the accused drafted a "secret letter" between the church and Firna, without the knowledge of the trustees. The prosecution's case is that this has to be done in secrecy so that Firna can be used as a tool to cover up the misuse of funds.

Chew, who left the church recently citing differences with the management, had asked Wee to draft the letter between the church and Firna.

On Wednesday, the court also heard how Mr Hanafi tried to get a loan from the church.

A requirement was that the church could convert the bonds issued by Mr Hanafi, into shares in his company Firna, if he failed to pay back.

But Mr Hanafi's father-in-law, who held 20 per cent of the company, was reluctant.

On Wednesday, the court heard that in an email dated 6 September 2008, Chew told Wee to draft a letter stating that the church agrees to sell back the shares to Mr Hanafi and his father-in-law, at a nominal value of US$1, in the event the bonds were converted into shares.

Chew said the letter was needed as the father-in-law would not sign the shareholders' consent for the church to convert the bonds into shares.

He also instructed Wee to pass the letter to Mr Hanafi so as to get his father-in-law's signature.

Accused John Lam and Tan Ye Peng were included in the email chain.

In another email sent on the same day, Wee asked Chew if he could speak with the board and Lam to get their agreement on this.

She added it will be "troublesome to explain" to the church trustees.

Chew later replied that Lam will sign the document and no trustee will be involved.

When asked, Mr Hanafi denied knowledge of this letter. He added that his father-in-law had never asked for such a letter to be drafted. - CNA/xq

 

[Awake]

Updated: 09/05/2013 15:24 | By Channel NewsAsia

CHC trial saga continues

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SINGAPORE: The prosecution continued to seek to prove that the money pumped into an Indonesian businessman's firm was not from him but from City Harvest Church.

Prosecution witness Wahju Hanafi had insisted throughout the past four days on the stand that the money injected into his firm Firna, was from him and not the church.

In more emails admitted on Thursday, the prosecution pointed out that if this was the case, then he should not be asking church leaders, who are currently on trial, what he should do.

The court heard that Serina Wee, one of the six accused, had instructed Mr Hanafi to complete all transactions by a certain date.

The prosecution argues that this was done as the six accused needed Mr Hanafi to comply so as to facilitate their "round-tripping" of funds through "sham bond investments".

Wee, along with church founder Kong Hee and four others, are accused of misusing S$24 million of church funds to finance the singing career of Sun Ho, Kong's wife.

Four of the six are alleged to have used another S$26 million to cover up the misuse through "round-tripping". - CNA/ec

 

[Awake]

Returns from 'sham bonds' paid for from City Harvest Church funds: Prosecution

Published on Sep 05, 2013

Indonesian businessman Wahju Hanafi, a member of the City Harvest Church (CHC), outside the Subordinate Courts on Sept 2, 2013. The returns from what are allegedly sham bonds that City Harvest Church invested in was repaid with money from the church, the prosecution tried to prove in court on Thursday during the trial against founder Kong Hee and five of his deputies. -- ST FILE PHOTO: LIM SIN THAI

By Feng Zengkun

The returns from what are allegedly sham bonds that City Harvest Church invested in was repaid with money from the church, the prosecution tried to prove in court on Thursday during the trial against founder Kong Hee and five of his deputies.

The prosecution produced emails between several of the accused to show the "flow of funds" between the church's investment management firm AMAC Capital Partners and glassware manufacturer Firna, which had issued $11 million worth of bonds invested in by the church. AMAC is run by Chew Eng Han, one of the accused, and Firna is owned by long-time church member Wahju Hanafi.

In an email between Mr Hanafi and Chew and another accused Serina Wee, set out the timeline for money transfers from AMAC to Firna so Firna could repay the church's bond investments. When asked on the witness stand whether the AMAC-Firna timeline was followed, Mr Hanafi replied "I think almost there" but he added that the plan had come from the accused and he had not asked why they needed it done.

Mr Hanafi also did not know where AMAC had received the money it gave to Firna. The prosecution has been trying to show that Firna, AMAC and another company, music production firm Xtron Productions, were all used to illegally channel church funds to Kong' wife Ho Yeow Sun's pop music career. The six accused were charged last year with misusing about $50 million in total to finance Ms Ho's career and to cover this up.

 

[Awake]

Updated: 09/05/2013 23:33 | By Channel NewsAsia

Prosecution seeks to discredit its own key witness in CHC trial

SINGAPORE: The prosecution in the case involving City Harvest Church leaders sought to discredit its own key witness on Thursday as it wrapped up its questioning of the Indonesian businessman.

Fifty-three-year-old Wahju Hanafi was grilled over several discrepancies, key of which was the date he signed a personal guarantee.

The long-time church member had signed an agreement to guarantee events company Xtron Productions which he was a director of.

Xtron was singer Sun Ho's former management company.

With the personal guarantee, Mr Hanafi agreed to incur the losses of the church's Crossover Project which aims to reach out to the secular world through Ms Ho's music.

The prosecution questioned Mr Hanafi on when did he signed the document. The businessman replied that he did so around August 15, 2007.

The prosecution then cited Xtron Director, Choong Kar Weng's evidence, saying Mr Choong signed it in 2010.

As more documents surfaced, the court heard how Serina Wee, one of the six church leaders on trial, said in an email to co-accused Chew Eng Han and Tan Ye Peng that she had dated the personal guarantees on August 15, 2007.

Wee's email was sent on March 30, 2010.

In another email dated March 31, 2010, Chew informed church founder Kong Hee that Mr Hanafi had signed the personal guarantee.

When asked repeatedly about when he signed the personal guarantee, Mr Hanafi said he could not remember.

Another personal guarantee was also shown in court.

This was one where Kong, Tan, Chew and former Xtron Director, Koh Siow Ngea, agreed to guarantee Mr Hanafi in the event he failed to redeem the church-Firna bonds.

Mr Hanafi testified that he sought such a guarantee from Chew.

The prosecution sought to establish that this church-Firna personal guarantee negates the purpose of Mr Hanafi's agreement to incur the losses of the church's Crossover Project.

Another key issue is the need to borrow money from an individual known as Mr Suhadirman, among others.

In records kept by Wee, the court heard how Mr Hanafi borrowed S$3 million from Mr Suhadirman in April 2010 and gave the money to Xtron.

This prompted the prosecution's question on why there was a need to loan Xtron the amount, especially when the Crossover Project wasn't managed by Xtron at that point in time.

The witness explained he had a personal guarantee with Xtron.

Mr Hanafi said: "I just...I just...because I have a personal guarantee in there (Xtron). And if they have a need, that's where I come up with all these means and ways to try to borrow from other people in the meantime, rather than liquidating all my property and assets.

"And these people (referring to individuals like Mr Suhadirman) lent it to me because they know I have something to back up (the loan)."

Earlier in the day, the prosecution continued to seek to prove that the money pumped into Firna, which was owned by Mr Hanafi, was from the church.

Throughout the five days on the stand, Mr Hanafi has maintained that he was the one financing Firna.

In more emails admitted on Thursday, the prosecution pointed out that if this was the case, then he should not be asking church leaders, who are currently on trial, what he should do.

The court also heard how Wee instructed Mr Hanafi to complete all transactions by a certain date.

The prosecution argues that this was done as the six accused needed Mr Hanafi to comply so as to facilitate their "round-tripping" of funds through "sham bond investments".

Wee, Kong and four others are accused of misusing S$24 million of church funds to finance the singing career of Ms Ho, wife of the founder.

Four of the six are alleged to have used another S$26 million to cover up the misuse through "round-tripping".

The defence team is expected to cross-examine Mr Hanafi on September 6.

- CNA/fa

 

[Awake]

Updated: 09/06/2013 21:04 | By Channel NewsAsia

CHC transactions were legal, no misappropriation of funds: defence

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SINGAPORE: The trial of six City Harvest Church leaders continued on Friday, with defence lawyers cross-examining Indonesian businessman Wahju Hanafi.

They sought to show that because the church wanted to buy a stake in Suntec City, the six accused, who are church leaders, then attempted to reclaim money from the church's investments and loans, as well as restructured bonds it had bought.

The defence lawyers argued that these financial transactions were legal, and no dishonest misappropriation of funds had been carried out.

Six leaders of the church are standing trial for allegedly misusing millions of dollars in church building funds to promote the singing career of Sun Ho, wife of church founder Kong Hee.

When questioned by the defence team, prosecution witness Mr Hanafi said he knew the transactions were for a legitimate purpose, and were "very, very legal".

Mr Hanafi, 53, owns Firna - one of the companies that have been named for allegedly helping the church leaders misuse the funds.

Defence lawyer N Sreenivasan pointed out that documents for the various financial transactions, such as the bond documentation, had been drafted by prominent law firms that included Drew & Napier and Rajah & Tann, and registered with the Central Bank in Indonesia.

He also said that the church's bond monies and those of its investment manager AMAC Capital Partners were paid back in full with interest.

The hearing continues on Monday. - CNA/xq

 

[Awake]

City Harvest trial: Transactions were because church wanted to buy Suntec property

Published on Sep 06, 2013

City Harvest founder Kong Hee (above), who, along with five of his deputies, was charged last year with misusing about $50 million of church funds. Church leaders wanted to buy a stake in Suntec City and had recalled the church's investment money and loans to raise funds. -- ST PHOTO: LIM SIN THAI

By Feng Zengkun

City Harvest church leaders wanted to buy a stake in Suntec City and had recalled the church's investment money and loans to raise funds.

The transactions involved were legal and in some cases even "common" in the business world. That was the explanation put up on Friday by defence lawyers, who were giving a more prosaic take on financial deals which the State believes were used to conceal a misuse of church funds.

Three prominent law firms including Singapore's Drew & Napier and Rajah & Tann had also drafted these and other allegedly suspect transactions and found nothing wrong with them, the defence argued.

City Harvest founder Kong Hee and five of his deputies were charged last year with misusing about $50 million of church funds, partly through the buying of alleged sham bonds.

A prosecution witness had said earlier that former church investment manager Chew Eng Han, one of the accused, told him that the church's auditors had grown "uncomfortable" with the bonds. Chew then proposed a plan to "restructure" these bonds.

But defence lawyer N. Sreenivasan noted that at the time, City Harvest was in talks to purchase the Suntec stake, and suggested that the various transactions that followed was to finance this.

He also noted that in the end, the church and its investment manager AMAC Capital Partners' bond monies and were paid back with interest in full, so they had not suffered any losses as a result of the transactions.

 

[Awake]

Tycoon didn't want to buy Sun Ho $2.2m New York apartment

Koh Hui Theng
The New Paper
Saturday, Sep 07, 2013

SINGAPORE - IT'S up to me how I want to spend my money, Indonesian tycoon Wahju Hanafi, 53, told the court on Wednesday at the trial of the City Harvest Church (CHC) leaders.

The six, including founder Kong Hee, are accused of using sham bonds to finance his wife, pop singer Sun Ho's career.

Mr Wahju (in photo above) uttered that phrase about his money several times on Wednesday.

In e-mail exchanges, produced in court, it was revealed that when the Indonesian businessman received a request for a donation to buy Ms Ho an apartment in New York, he said no.

Former finance manager Serina Wee had asked him to transfer $2.2 million to buy the property for Ms Ho while she was recording and working in the US city.

Mr Wahju told the court: "That was supposed to be a place for her to stay, maybe, rather than renting a place. It's something she (Wee) wants to instruct me to donate, but I didn't do it."

Wee later clarified in subsequent e-mail that the $2.2 million for the New York apartment should come from Ultimate Assets - the company managing Ms Ho - and not from Mr Wahju.

So why did Mr Wahju say no?

"I just didn't want to buy somebody a house... I can rent her a house, a unit, a flat, an apartment," he said. "But I needed the money more than her at that time."

He explained he had been suffering losses and the 2008 downturn made things worse. It put him in a difficult position, forcing him to sell his Singapore properties.

That's because at the peak of the recession, banks started asking people to top up their loans to cover against their property values going down.

 

[Awake]

Updated: 09/09/2013 20:03 | By Channel NewsAsia

Defence in CHC trial seeks to establish financial transactions are legitimate

SINGAPORE: The trial of the six City Harvest Church leaders accused of misusing church funds continued on Monday with the defence seeking to establish that the various financial transactions in question were common and legitimate.

Defence counsel Kannan Ramesh went through the finances of glassware company, Firna, which is owned by prosecution witness Wahju Hanafi.

The Indonesian businessman testified that Firna's finances were in relatively good shape from 2007 to 2010.

In 2008, Firna had issued bonds to the church to raise capital.

Mr Ramesh pointed out to Mr Hanafi that it was only logical to restructure the debts if the church wanted Firna to redeem the bonds before the stipulated three years, to which Mr Hanafi agreed.

The lawyer also sought to show that the personal guarantee undertaken by church founder Kong Hee, Tan Ye Peng, Chew Eng Han and former Xtron Productions director Koh Siow Ngea, in favour of Mr Hanafi, was done as "a show of support" between friends.

Previously, the court heard that the four had undertaken a personal guarantee from Mr Hanafi, in the event the Indonesian failed to redeem the church-Firna bonds.

A requirement under that agreement was that the church could convert the bonds issued by Mr Hanafi into shares in Firna, if he failed to pay the church back.

But Mr Hanafi's father-in-law, who held 20 per cent of the company, was reluctant to agree to this.

Last week, the court was told that in an email dated 6 September 2008, one of the six accused, Chew Eng Han told co-accused Serina Wee to draft a "secret letter".

It stated that the church would sell back the shares to Mr Hanafi and his father-in-law, at a nominal value of US$1, in the event the bonds were converted into shares.

At that time, Chew said the letter was needed as the father-in-law would not sign the shareholders' consent for the church to convert the bonds into shares.

But Chew's lawyer, Michael Khoo, on Monday raised documents showing that there was no need for the letter.

This was because Mr Hanafi managed to convince his father-in-law to allow the personal guarantee by signing the waiver of transfer of shares either before or on September 6.

With the waiver, Mr Hanafi's shares would be transferred to the church in the event he was not able to redeem the bonds.

Mr Khoo noted that this meant the waiver was signed a month before the personal guarantee was made.

Later in the day, church founder Kong Hee's lawyer, Edwin Tong, also sought to show that much effort and thought was put into planning the music career of Ms Sun Ho, Kong's wife.

Kong and five others allegedly misused S$24 million church funds to boost the career of Ms Ho.

Four of the six accused are said to have falsified accounts to cover up the misuse through round-tripping of sham bond investments. - CNA/nd

 

[Awake]

Updated: 09/10/2013 13:56 | By Channel NewsAsia

Kong Hee not involved in transactions involving Firna: defence lawyer

SINGAPORE: The lawyer of the founder of City Harvest Church sought to show on Tuesday that Kong Hee had nothing to do with the numerous transactions involving glassware firm Firna.

Firna is owned by Indonesian businessman Wahju Hanafi, who is testifying in the trial of the six church leaders.

The prosecution alleges that Firna is one of the firms used by the six accused as a vehicle to commit and cover up their offences through sham bond investments.

On Tuesday, Kong Hee's lawyer, Edwin Tong posed a series of questions to Mr Hanafi, asking if Kong had anything to do with what should be done with the proceeds of the Firna bond.

He also asked Mr Hanafi if Kong had anything to do with the convertibility of Firna bonds into shares and if the founder decided on the various draw down details.

Mr Hanafi said Kong was not involved in these matters.

The six leaders of the church are standing trial for allegedly misusing millions of dollars in church building funds to promote the singing career of singer Sun Ho.

Four of the six accused also face charges of trying to cover up the misuse through "round-tripping" of what the prosecution describes as sham bond investments. - CNA/fa