CHC Trial
Prosecution disputes genuineness of church’s bond investment on the basis that there was never an intention for Xtron to make good its liability to CHC; Kong disagrees, stating that church would enforce legal obligations had it been necessary.
This morning in court, the senior pastor of City Harvest Church was grilled further by prosecution on the Xtron budgeting. Prosecutor alleges that Wahju Hanafi’s personal guarantee never existed.
26 August 2014 – Summary of Day 17 of CHC hearing.
Prosecution accuses Kong Hee and team of proceeding with $13m of Xtron bonds when projections of low music album sales meant that church would only recoup its investment in 10 years; Kong justifies that revised sales projection figures later on delivered a much more positive outlook.
Kong Hee revealed co-defendant Chew’s position as a member of the church who had fallen upon bad times, and his role as the one structuring the Xtron bonds.
Accused had approached “long-time friend and personal advisor” Foong Daw Ching to obtain “genuine advice”; prosecution alleges that the true motive was to “test out things” to avoid any issues in year-end audit.
Court resumes with the prosecution continuing to suggest Kong Hee fully controlled Xtron.
22 August 2014 – Summary of Day 15 of CHC hearing.
Court hears that Kong Hee’s input into Xtron’s salary and manpower policies was out of concern for former staff who had left the “comfort of a stable nest” to work in the start-up Xtron.
Judge rules that Chew Eng Han’s COC statement cannot be used in Kong Hee’s cross-exam. Crossover team had followed auditor’s advice “not to paint a full picture” to members about Xtron.
The relationship between CHC and Xtron took centerstage this afternoon, with the prosecution alleging that the accused withheld information from the auditors, and Kong Hee emphasizing the complete opposite: that auditor Foong Daw Ching knew everything.
Kong Hee is questioned on the purpose of Xtron and how the Xtron and Firna bonds are in line with the church’s investment policy.