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Prosecution tries to show close links between CHC, Xtron

SINGAPORE — The close links between City Harvest Church (CHC) and audio-visual company Xtron Productions — which issued S$13 million of alleged sham bonds purportedly to further songstress Sun Ho’s career — came under scrutiny yesterday at the trial of six leaders from the mega-church.

SINGAPORE — The close links between City Harvest Church (CHC) and audio-visual company Xtron Productions — which issued S$13 million of alleged sham bonds purportedly to further songstress Sun Ho’s career — came under scrutiny yesterday at the trial of six leaders from the mega-church.

The court heard yesterday that it was the church’s idea for Xtron to issue bonds, buy property and enter into an agreement to collect advance rentals from the church.

Other than supplying audio-visual services and subletting its Singapore Expo space to the church, Xtron also managed the career of Ms Ho, wife of church founder Kong Hee, from 2003 to 2008.

Five of the CHC leaders allegedly used S$24 million of church building funds to purchase sham bonds from Xtron and another company, PT The First National Glassware.

Four of them then allegedly misappropriated another S$26.6 million of church funds in the guise of redeeming the bonds.

Xtron was registered in 2003 and Mr Koh Siow Ngea, 53, a property developer and church executive member, became its director in July 2008.

Xtron’s S$13 million of alleged sham bonds — which prosecutors contend were used to further Ms Ho’s career — were issued between August 2007 and March 2008. Mr Koh, who took the witness stand yesterday, said he did not know if the bonds had been redeemed when he became its director.

As Xtron director, Mr Koh also signed the letter terminating its artist management agreement with Ms Ho. But he said he was not aware of any losses incurred by the project to manage Ms Ho and produce her music album. The minutes of an Xtron directors’ meeting held on Oct 25, 2008 and produced in court yesterday, however, stated that from 2006 to 2007, S$5.2 million were incurred for the production of a music album and would be written off as “advertising and publicity expenditure”. It was signed by Mr Koh and fellow Xtron director Choong Kar Weng.

The losses were covered via a personal guarantee of Mr Wahju Hanafi — whose companies had bond transactions with the church and an artist management agreement with Ms Ho.

Asked about the S$53 million advance rental licence agreement between the church and Xtron, Mr Koh said he learnt about details when the agreement was changed and S$40 million had to be returned to the church trustees. It was the church that wanted to purchase land and its members who were sourcing for a site, he said. His duty as Xtron director was to ensure a good buy that suited the church’s needs.

Earlier in the day, Mr Koh told the court he was approached by Tan Ye Peng, former vice-president of the church’s board, to be Xtron’s director. To avoid conflict of interest, Mr Koh stepped down as a church board member. Asked why the church was able to select Xtron’s directors, Mr Koh said: “Someone has to appoint me. It can’t be a man on the street.”

Presented with an email that revealed church secretary Suraj could appoint full-time Xtron staff, Mr Koh said he was not aware of the policy.

He said he did not oversee Xtron’s day-to-day affairs, but would know about the “important issues” and assess documents presented before signing off on them. The defence will cross-examine Mr Koh today.

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