The Straits Times reports,
Returns from ‘sham bonds’ paid for from City Harvest Church funds: Prosecution
The returns from what are allegedly sham bonds that City Harvest Church invested in was repaid with money from the church, the prosecution tried to prove in court on Thursday during the trial against founder Kong Hee and five of his deputies.
The prosecution produced emails between several of the accused to show the “flow of funds” between the church’s investment management firm AMAC Capital Partners and glassware manufacturer Firna, which had issued $11 million worth of bonds invested in by the church. AMAC is run by Chew Eng Han, one of the accused, and Firna is owned by long-time church member Wahju Hanafi.
In an email between Mr Hanafi and Chew and another accused Serina Wee, set out the timeline for money transfers from AMAC to Firna so Firna could repay the church’s bond investments. When asked on the witness stand whether the AMAC-Firna timeline was followed, Mr Hanafi replied “I think almost there” but he added that the plan had come from the accused and he had not asked why they needed it done.
Mr Hanafi also did not know where AMAC had received the money it gave to Firna. The prosecution has been trying to show that Firna, AMAC and another company, music production firm Xtron Productions, were all used to illegally channel church funds to Kong’ wife Ho Yeow Sun’s pop music career. The six accused were charged last year with misusing about $50 million in total to finance Ms Ho’s career and to cover this up.
Source: Feng Zengkun, Straits Times, Returns from ‘sham bonds’ paid for from City Harvest Church funds: Prosecution, http://www.straitstimes.com/the-big-story/chc-funds-case/story/returns-sham-bonds-paid-city-harvest-church-funds-prosecution-201, 05/09/2013. (Accessed 07/09/2013.)