Kong ‘wanted to obey the law’ in CHC’s transactions

SINGAPORE — He would not want to proceed with financial transactions involving City Harvest Church until lawyers and auditors gave the go-ahead, church co-founder Kong Hee said yesterday.

The church had sounded out auditor Foong Daw Ching, who was well aware of its investment plans, the pastor added, in his third day on the witness stand.

By around August 2008, Mr Foong would have been aware that the church wanted to buy more bonds from multimedia company Xtron Productions, as well as bonds issued by Indonesian glassware firm PT The First National Glassware (Firna), which was owned by church member Wahju Hanafi.

Mr Foong was also aware that Kong’s wife, singer Ho Yeow Sun, was being managed by Xtron, and that Kong had concerns over corporate governance of the church, he added.

Kong and five other church leaders are accused of misusing S$24 million of church funds for Ms Ho’s career via sham bonds in Xtron and Firna, then misusing another S$26.6 million to cover up the first sum.

Citing how in July 2008, former Ren Ci Hospital chief executive Ming Yi had been charged with fraud, forgery and other offences, Kong said he wanted to ensure the church was complying with the law in these transactions. He had tasked his deputies and co-accused, including Tan Ye Peng and Serina Wee, to check with Mr Foong and lawyer Jimmy Yim of Drew and Napier.

“If I have committed fraud, corruption and forgery, why would I want to see (Mr Foong)? I would want to stay away from him ... We genuinely wanted his advice,” Kong said.

The defence had argued that the accused persons relied on Mr Foong to give “complete advice” and pressed the auditor on this when he was a prosecution witness last year. But prosecutors had countered that they failed to mention certain facts, such as Xtron’s cash flow projection, to Mr Foong.

Yesterday, Kong said that around July 2008, Ms Ho’s music album project in the United States, which was meant to evangelise through pop music, was considered high risk, as Xtron was being asked by American music industry insiders to invest unreasonable sums of money.

Kong said he put the church first and would not have allowed it to suffer losses if its investment in Xtron could not be repaid. The trial continues.