Xtron chief grilled on control of firm in CHC trial

SINGAPORE — The criminal trial of six City Harvest Church leaders — one of whom has since parted ways with the church — resumed yesterday, with the prosecution calling its fourth witness, Xtron Productions Director Choong Kar Weng.

As during the first tranche of the trial in May, the prosecution tried to show that Xtron was controlled by the church.

The audio-visual services company’s biggest client was the church and, from 2003 to 2008, it managed the music career of Ms Ho Yeow Sun, wife of church co-founder and one of the accused, Kong Hee. Xtron also issued S$13 million of bonds to the church, which the prosecution contends are sham.

The six individuals — Kong, Tan Ye Peng, Chew Eng Han (who has left the church), Serina Wee Gek Yin, John Lam Leng Hung and Tan Shao Yuen Sharon — face between three and 10 charges each of criminal breach of trust and/or falsification of accounts. They are accused of misappropriating S$24 million in sham bonds, and another S$26.6 million to cover up the first amount.

Mr Choong, who has been Xtron Director since Dec 31, 2005, told the court that the company has ceased operations and is winding up — a decision made with its former Director Koh Siow Ngea.

Mr Choong said he could no longer commit the time, as his own business in Malaysia underwent restructuring last year.

Deputy Public Prosecutor Christopher Ong presented a series of emails and documents as he tried to show the church’s heavy involvement, and Mr Choong’s lack of an active role, in key Xtron decisions.

He showed the minutes of an Xtron meeting on Dec 20, 2006, that showed a senior church staff, Mr Suraj, as a member of the Xtron team.

Another email addressed to Wee indicated that Mr Suraj was the one approving employment of full-time Xtron staff.

Mr Choong said Mr Suraj was someone “on the ground” who assisted him, and a trusted long-time friend.

He did not feel there was a conflict of interest in Mr Suraj helping at Xtron.

Mr Choong was also shown a termination and release agreement ending Xtron’s management of Ms Ho, and an artiste management contract with Ultimate Assets, owned by former Xtron Director Wahju Hanafi. The documents were sent by Wee to Kong and Tan Ye Peng in August 2008, but Mr Choong was informed the following month.

Mr Choong maintained that the decision to stop managing Ms Ho was ultimately the Xtron directors’, but added that he would like to be consulted on such decisions.

On the bonds, Mr Choong said he did not know who decided to issue them, though his approval was sought and given.

He had thought that Xtron would redeem the bonds through proceeds from the sale of Ms Ho’s coming album, and said he did not seek legal advice as he trusted people like Kong, Chew and Wee.

But DPP Ong showed him an email from Wee to Chew in July 2007, saying that the projected sales of 200,000 for the album would “only yield us S$2.17 million, hardly enough to pay off the S$13 million”.

Mr Choong said he was not informed of this.

The prosecution will continue examining Mr Choong, a Singapore permanent resident based in Malaysia, today.

What to expect in coming months

The second tranche of the trial is expected to last about a month until Sept 20. Apart from Mr Choong Kar Weng, the prosecution is expected to call eight other witnesses, including City Harvest Church auditors from Baker Tilly, and Mr Wahju Hanafi, a former Xtron Director and businessman who sponsored part of Ms Ho Yeow Sun’s music career.

About S$11 million of funds allegedly misappropriated by the accused were said to have been channelled to bonds purportedly issued by Mr Wahju’s company, PT The First National Glassware.

The third tranche of the trial is expected to last from Jan 13 to March 7 next year, with a break in between.

The accused are all represented by Senior Counsel, except for Kong, who is represented by Mr Edwin Tong.