I could have done more due diligence: Chew

SINGAPORE — He admitted he could have done more due diligence on how money was spent on church co-founder Ho Yeow Sun’s pop-singing career, but former City Harvest Church investment manager Chew Eng Han was nonetheless puzzled by the criminal charges brought against him.

Taking the witness stand for the third day, Chew said it never crossed his mind that the transactions, which included “round-tripping” of church funds to redeem bonds the church had earlier bought, were illegal because these were common practices in financial markets, he told the court.

Chew is among six church leaders accused of misusing S$24 million of church-building funds to buy sham bonds in two companies and then misusing another S$26.6 million of church funds to try to cover up the first amount.

The transactions involving the S$26.6 million have been called “round-tripping charges” by prosecutors, as the funds were channelled through various entities to allegedly create the appearance that the bonds bought earlier had been redeemed.

Chew, who is fighting 10 charges of criminal breach of trust and falsification of accounts, argued yesterday that round-tripping is common practice in financial markets, such as when banks lend money to one another.

Even the backwards calculation of interest rates, which was done for the bond investments of the church, is done in financial markets when doing currency swaps, said Chew, a former top executive at State Street bank.

Had it been up to him, Chew said he would have told the church’s executive members that the S$24 million bond investments were to fund Ms Ho’s pop career, which was also known as the Crossover Project, aimed at reaching out to non-Christians.

Between 2007 and 2009, the church bought bonds from Xtron Productions, which managed Ms Ho, and PT The First National Glassware, an Indonesian firm owned by a church member.

But Chew said his intentions had been pure and that he had deferred to senior pastor and co-accused Kong Hee’s wish to keep the financing of his wife’s career under wraps to avoid jeopardising the project in countries not friendly to Christianity.

Chew said he never thought money for the Crossover Project would be recklessly spent as he trusted Kong and Ms Ho. The church went from “excellence to excellence” after he joined in 1996, he said.

Moreover, Kong and Ms Ho sent a church team to Palembang in Indonesia to be with Chew’s family when his brother-in-law died in the SilkAir plane crash in 1997, he added.

“No one does due diligence on his spiritual father, the senior pastor ... Perhaps I should (have),” he said.

Chew also spoke about the church’s efforts to secure land through Xtron. Before securing the stake in Suntec convention centre, City Harvest had in 2008 and 2009 considered buying Toa Payoh Stadium and turning it into a multi-sports arena, as well as developing a Versace hotel at the site of Capitol Theatre, he said.

The trial continues.