CHC wanted Xtron link to be discreet: Chew

SINGAPORE — The extent of City Harvest Church’s (CHC) control over Xtron Productions was never made explicit to the auditors, the church’s former investment manager, Chew Eng Han, testified yesterday.

Chew told the court that church leaders preferred to remain discreet about the control CHC had over Xtron so as not to jeopardise the Crossover Project, which sought to evangelise through the pop music of Ms Ho Yeow Sun, the wife of church founder Kong Hee.

The prosecution, however, argued that Chew and his conspirators hid the connection between CHC and Xtron “to prevent the bonds from being uncovered as shams”, to which Chew disagreed.

Chew and Kong are among six church leaders accused of misusing S$24 million in church building funds to buy sham bonds in two companies, including Xtron, to boost Ms Ho’s pop music career. Another S$26.6 million of church funds were then allegedly circulated through complex transactions to cover up the first sum.

Citing documents that CHC had submitted for audits for the financial years 2007 to 2009, the prosecution yesterday contended the church had falsely declared that CHC and Xtron were unrelated.

On the contrary, Deputy Public Prosecutor Christopher Ong charged that Xtron’s directors were appointed by Kong and his deputy Tan Ye Peng, another co-accused, so that the company’s objectives would be in line with what CHC wanted to accomplish.

Chew agreed, adding that Kong and Tan had the ability to “swing profits away from Xtron (to CHC)”.

The prosecution further argued that church members were kept in the dark about the true motive behind the purchase of Xtron bonds to raise funds meant to advance Ms Ho’s career.

Chew said the church leaders refrained from conveying CHC’s “overt” control over Xtron for fear that its members would “misconstrue and exaggerate” it.

He added that he had “assumed and expected” the auditors knew about the relationship between CHC and Xtron.

Refuting DPP Ong’s charge that he had played an active role in facilitating the disguise, Chew said he “did not share (Kong and Tan’s) desire” to remain discreet, but had been tasked to do so to ensure the Crossover Project could be executed. Kelly Ng