city harvest case continue to harvest.

8th Sep
Firna bonds
Kong position is that Wahju had made a commitment to use the proceeds of the Firna bonds to independently support the Crossover project。 And these Firna bonds also were covered by a personal guarantee signed by Wahju。
DPP produced an email with the subject title “;What Firna bonds are used for”;。
The top email is from Ye Peng to Sharon Tan。
The second email is from Serina to Ye Peng。
In the email she listed out funds transferred in and loans to Wahju。
Serina wrote!
The following are what the $11m Firna bonds already drawn down are used for。
Attached worksheet under cash flow projection shows the whole picture of what the bonds would be used for assuming there is net profits from the 2 albums, we will be able to redeem the bonds。 At the end of the day, out of the whole $17m bonds, $1。473m goes to bond interests payment and the rest are bond album related。
Based on the email DPP said that the $1。473m bonds drawn down by Firna were actually used to pay the interest under the bonds themselves。
DPP! “;That’;s not consistent with what you’;ve just told us。 Correct?”;
Kong! “;In what way was it inconsistent?”;
DPP! “;Because you told us that Firna was to use album proceeds to pay the interest and the principal upon maturity。 But what we see here is that the plan that Serina explains to Ye Peng, the cash flow, shows that, in fact, bond drawdowns are going to pay bond interest payments。”;
Kong! “;Your Honour, what I meant was that the net profit of the album proceeds would be an amount that should cover the principal and the interest。 As to the mechanics of using the cash flow of Firna to pay off the bond interest, I believe that I trust my team that they would do it legally and legitimately。 But as to the mechanics of how they actually would do it,MALAYSIA GOLDEN AROWANA I trust them to do everything properly and above board。”;
DPP! “;Are you saying that you didn’;t know that first of all, do you agree that the Firna bond proceeds are actually coming from the church Building Fund? Correct?”;
Kong! “;Yes, your Honour。”;
DPP! “;Effectively, if bond proceeds are being used to pay the bond interest, that it’;s really the church Building Fund monies that are being recycled back to pay the interest to the church。 Correct?”;
Kong! “;Yes, your Honour, but to the best of my knowledge I don’;t believe there was anything wrong with that。”;
When DPP asked Kong about the overall plan of the Firna Bond, Kong said he cannot remember and he requested DPP to show him some documents to jog his memory。
DPP opened another email。 It is an email from Serina Wee to Yee Peng。
Serina wrote!
Because of the delay in the recouping of income as compared to the very original budget, we can only redeem the bonds later,city harvest case continue to harvest。 hence resulting in additional bond interest of $1。9m to be incurred。
We need to find additional $1。9m in order to pay CHC these bond interests。 Eng Han says we can draw down additional bonds of $2。5m from CHC and then use this to pay back CHC bond interest。 It won’;t affect CHC cashflow wise as the money will go out and in。 We only need this for a bridging period from November 2009 to May 2012 so total drawdowns of bonds during the period will be $17m + $2。5m = 19。5m
DPP! “;Eng Han proposes to add to the planned $17m another $2。5m to cover the interest payments。 Correct?”;
Kong! “;Yes, your Honour”;
<;…;。some questions and answers related to the additional $2。5m to pay back CHC bond interest and some put statement…;>;
DPP! “;I put it to you that, in fact, it was always planned that the church funds would be channeled to pay the interest on the Firna bonds and that this is yet another piece of evidence that the bonds were actually shams。”;
You may want to refer to Mrs Light n Friends Facebook page for the second half related to Firna bond。
>9th Sep
The prosecutor wrapped up its cross-examination of Kong
DPP! “Witness, I put it to you that from the inception of the Crossover Project, you were both the person in charge and the ultimate decision maker behind the project。 Witness, I am actually going to be putting the key points of our case to you, so I think for each of these puts you were to answer with all the normal replies about lawyers and auditors, it will take a very long time。 I think by now we are clear what your position is。 So unless there’s really something really new, perhaps you want to agree or disagree。 All right? So do you agree? I put it to you that from the inception of the Crossover Project you were both the person-in-charge and the ultimate decision maker behind the project。”
Kong! “I disagreed。 I do not deny the fact that I’m the spiritual leader and。 visionary of the Crossover Project, but when the Crossover Project became so large, where so much money was involved, it took on a complexity that was a little beyond me。 I could still be involved in the budgeting, liaison with Americans。 But when it came to the financing, it was beyond my capability。 I needed the Xtron directors, the church board, the professionals to play their role so that my spiritual vision can be fulfilled for the church。”
DPP! “I put it to you that you knowingly conspired with Ye Peng, Serina, John Lam to cause CHC and Xtron to enter into the first CHC Xtron bond which purported to be a bond agreement but which was actually a sham transaction。”
Kong! “I disagree。 I asked the team to check with the lawyers, auditors, get the management board to approve of it。 And from day one, whether is it Xtron bonds or the Firna bonds, at the moment of execution there was very intention to fulfill its legal obligation, your Honour。”
DPP! “I put it to you that you knew that this sham transaction, the first Xtron BSA, had the sole purpose of channeling funds from CHC Building Fund to Xtron to pay for the expenses of Sun Ho’s music career。
Kong! “I disagree for the reasons given previously。”
DPP! “I put it to you that you were able to cause this sham transaction to take place because you, Ye Peng, Eng Han, Serina and John Lam controlled or manipulated the decision-making processes in both CHC and Xtron, leading to the sham transaction。
……。
DPP! “I put it to you that, despite all this, you lied to CHC’s auditor, lawyers, the CAD and this court that this sham transaction was a genuine investment。”
…。
DPP! “I put it to you that you were able to cause this sham action to take place because you had secured Wahju as a conduit to be channeled to finance Sun’s music career。”
Kong! “I disagree for the reasons given previously。”
…。
DPP! “I put it to you that you have consistently lied to the CAD and this court when you claimed that Wahju had given a personal guarantee to underwrite the Crossover Project’s expenses in 2002。”
Kong! “I disagree for the reasons given previously。”
…。
DPP! “I put it to you that you engaged in a series of lies and deceptions over the years to conceal and facilitate the unauthorized misuse of the church’s Building Fund by you and your co-accused, Ye Peng, Eng Han, Serina ad John Lam。”
Kong! “Your Honour,city harvest case continue to harvest。 I disagree, and if this put is true, then Baker Tilly must be my accomplice, because they knew that the Building Fund had been used for this and they didn’t say it was unauthorized。”
DPP! “I put it to you that you knew that channelling the Building Fund out of the church through these sham transactions was in breach of the permitted uses of this Building Fund, which had been entrusted to you as a board member, specially as president of the CHC board。”
Kong! “Your Honour, I disagree, precisely because there are legalities and technicalities that I needed to check。 That was the reason why I constantly relied on lawyers and auditors to advise us on these transactions。”
DPP! “Your Honour, I have no further questions。”
>Wow。。。 founder, president, person-in-charge and decision maker of CHC, claimed simi poon um zhai and bo yi a tai chi (noe nothing and not his concerns)。。。。 very smart and defensive answer indeed。。
>Originally Posted by bali Wow。。。 founder, president, person-in-charge and decision maker of CHC, claimed simi poon um zhai and bo yi a tai chi (noe nothing and not his concerns)。。。。 very smart and defensive answer indeed。。 Ya lor, everything he also dont know。 He leaves everything to the Directors and he ";trust"; them to act on each matter legally and legitimately。 So he is totally innocent at any point in time when these ";sham bonds"; were sold to his CHC church members。
I disagree to his ";disagreements";, your honour。
>Juz imagine if this is an national issue。。。 The top man tolak to who sia。 Lol。
>If it is a national issue and using the same hypothesis, his deputy can kena telok telok jiak lat jiak lat if ";he does not deflect it downwards";
>Kong Hees way of defending himself makes me remember my Regional FC, when there was a major problem popped up during auditing, she claimed that she isnt aware of those issues, all she know (to the best of her knowledge), she had all of us under her to work on all the portfolio, if there is a mistake, its best to look for the staffs under her ranking, but not to hold her responsible。
laugh die me, this kind of words also can come out from a Regional Financial Controller。。。。。at the end, my COO told her,"; if your department loose out in a battle, you have to bare the responsible as well";。。。。。。。。。。。。at the very very end, she was asked to Pack-and-Go!!!!
>This type of ppl must be a smooth talker and good in dedicating work and deflecting blames to his/her subordinate。 Must be a Pro in the area of diversion。 I remember there was a Mgr who always get his deputy to do all the work。 When retrenchment comes, he was asked to nominate his staff for it。 Fearing for his own position, he nominated his capable deputy for retrenchment。 On the day itself, he was confident his service will be retain as his deputy will be retrenched。 As he handed the retrenchment slip to his deputy, he notice there is another slip。 When he asked whose slip is this, his Director told him it is for him! So justice is somehow served but I feel sorry for his deputy who did all the work and yet he was sacrificed。
>9 September 2014 –; Kong Re-examination by Mr Tong
Mr Tong directed Kong to open an email exchange between Brother Foong and Serina。
The bottom of the email, Serina Wee wrote to Foong on 12 January 2006。 She asked whether TFW Baker Tilly should continue to be the auditors of companies that have a relation to CHC。 Foong Daw Ching replied to Serina and copied to Ye Peng。
Foong wrote!“;Hi Serina,
In my opinion and looking at the critical problems uncovered from the NKF saga, it may be better that the audit of a group of companies with some common interest even though they may not be directly related be handled by the same firm。
This will ensure that certain transactions whether they are related at all can be critically reviewed and appropriate decisions made。
Overall, I am still the Consultant Partner to the whole of CHC group of companies。”;
Serina wrote!”;Hi Mr。 Foong,
I understand that Joseph Aifang are in charge of the audit of the following companies that are not related to CHC!
<;<;…; Serina listed out all the companies…;>;
As we are trying to keep CHC very separate from all these companies, we were wondering if it is a good idea to have another audit partner and manager in charge of these accounts? Could you advise us on this?”;
Mr Tong asked, “;Did you rely on Mr Foong to the exclusion of the other members of TFW Baker Tilly?”;
Kong replied, “;No your Honour。 Although Mr Foong was the one that I would go to, but I trusted Mr Foong to disseminate the information to whoever that he has tasked to look after our church’;s accounts and Xtron’;s accounts。”;
Kong said, “;Your Honour, I would understand a few things from this email。 I understand, first of all, that Brother Foong recognized that among the different companies, there are common interests。 But yet he also acknowledged that they are not directly related to each other, and it would be better to detect any wrongdoings, fraud, to prevent any inappropriate transactions if they are all being audited by one audit partner and one audit manager。”;
What did the words “;Consultant Partner to the whole of CHC group of companies”; mean to you?
Kong replied, “;Your Honour, it meant that Brother Foong had taken upon himself to be in charge of all the accounts of CHC and what he termed the group of companies that were linked to CHC。 It meant that he was willing to shoulder the responsibility to ensure that all the accounts and the financial transactions were done properly。”;
<;…;Mr Tong pointed out some emails and transcripts …; >;
Mr Tong asserted the followings!
1。 Mr Foong would have been aware that CHC had invested in bonds issued by Xtron
2。 Mr Foong would have been aware that these proceeds that were invested into Xtron would then be used to fund Sun Ho’;s project in the US。
3。 Mr Foong would have been aware that Sun Ho, as the artiste, was transferred from Attributes in 2003 to Xtron。
4。 Mr Foong and his team at Baker Tilly would have been aware of both the use of Building Fund to make the investment on the CHC side as well as the precise nature and amount use of the bond proceeds on the Xtron side。
5。 Baker Tilly would have access to the books of CHC, which recorded the fact that CHC had acquired bonds in Xtron。
Mr Tong asked, “;Over the years, when your team dealt with Mr Foong directly or with people with TFW or Baker Tilly, were they refused advice by any of them as far as you know?”;
Kong replied! “;As far as I know, they would never refuse advice, your Honour。”;
------
Now dragging Mr Foong and his Baker Tilly TFW accounting firm in。
>Page 1 of 4 123 。。。 Last Jump to page。

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