1

ANNEX A

AGREED STATEMENT OF FACTS

The agreement by parties to the facts set out in this document does not amount to any

admission of each accused person’s individual contemporaneous state of knowledge of the

relevant facts at the material time, and does not preclude any party from later adducing or

relying on additional facts on the same subject matter.

Introduction

1 Involved persons

Accused Persons

1.1 Kong Hee is the founder and Senior Pastor of City Harvest Church (“CHC”). He has

held the position of President of the CHC Management Board (“the CHC Board”)

since 1992 until he relinquished his position on 10 April 2011.

1.2 Tan Ye Peng is a Deputy Senior Pastor of CHC. He was first appointed to the CHC

Board on 23 April 1995 and elected as the Vice President in the 2007 Annual General

Meeting. He previously served on the CHC Finance Committee, which later became

known as the CHC Investment Committee, from 7 July 2006 to 28 June 2007.

1.3 Chew Eng Han became a CHC member sometime in 1995. He was a member of the

CHC Board from 25 April 1999 to 7 July 2007 and held various positions such as

Vice-President from 6 June 2006 to 7 July 2007, and Treasurer from 25 April 1999 to

16 April 2000, and 27 April 2003 to 27 June 2004. He previously served on the CHC

Finance Committee, which became known as the CHC Investment Committee later,

from 2006 to 2007. On 7 July 2007, he resigned from the CHC Board after the CHC

Board made a decision to appoint AMAC Capital Partners (Pte) Ltd (“AMAC”) as

CHC’s fund manager.

1.4 Serina Wee Gek Yin (“Serina Wee”) joined the accounts department of CHC on 17

August 1999 as an Assistant Accountant. She was promoted to Accountant on 1

January 2001, then to Senior Accountant on 1 January 2003, and then to Finance

Manager sometime in 2005 until she resigned on 31 August 2007 and handed her

position over to Sharon Tan. After leaving CHC and before setting up Advante, she

provided accounting services to Xtron Productions Pte Ltd (“Xtron”)1. She was also a

member of the CHC Board from 17 April 2005 to 7 July 2007. She is a director and

shareholder of Advante Consulting Pte Ltd, a company incorporated on 1 October

2007. She is the administrator of the Crossover Project, which is elaborated on in

Section 3 below.

1.5 Tan Shao Yuen Sharon (“Sharon Tan”) joined the accounts department of CHC on

12 January 2000 as an Assistant Accountant. When Serina Wee left on 31 August

1 General Contract for Services dated 1 September 2007 between Xtron and Serina Wee

2

2007, she took over as Senior Accountant and was subsequently promoted to Finance

Manager sometime in 2008.

1.6 Lam Leng Hung has been a member of the CHC Board since 1993. He has at various

times served as Treasurer and Secretary and also sits on the Audit Committee. He

previously served on the CHC Finance Committee, which became known as the CHC

Investment Committee later, from 2006 to 2008, and was the Chairman from 5 July

2007 to 1 February 2008.

Other relevant persons

1.7 Ho Yeow Sun is Kong Hee’s wife and a co-founder of CHC. She was a member of

the CHC Board from 1993 until she relinquished her position on 2 December 2006.

She also led the Creative Department of CHC from 1993 till 2003. She is popularly

known as Sun Ho.

1.8 Wahju Hanafi (“Wahju”) is the director of several companies in Papua New Guinea,

Indonesia, Singapore and British Virgin Islands. These companies include Xtron, PT

The First National Glassware (“Firna”) and Ultimate Assets Ltd. He became a CHC

member in 1993.

1.9 Dua Poh Teng (“Lai Baoting”) joined the accounts department of CHC as an

Accounts Officer on 21 February 2006, promoted to Assistant Accountant on 1

January 2009 and then to Accountant on 1 January 2010. Her job scope includes

updating of monthly budgets, posting of donations, journal entries, payment vouchers,

and preparing schedules for CHC’s Investments and Building Fund. She reported to

Serina Wee, and then to Sharon Tan, after Serina Wee left CHC.

2 Entities involved

CITY HARVEST CHURCH

2.1 CHC was registered as a society on 21 December 1992. It was registered as a charity

under the Charities Act on 16 October 1993.

CHC Constitution

2.2 Article II of the CHC Constitution sets out the various objects of CHC. Clauses 6 and

10 of Article II of the CHC Constitution provide the following powers to the CHC

Board:

“6. To make such investments, to acquire and hold by way of investment either in

the name of the Church or in the name of any nominee (whether directly or

indirectly) whether in debt or equity securities, real property, movable property or

personal property as the Board of Directors may from time to time deem to be in

the interests of the Church; and from such funds as the Board of Directors deem

surplus to the normal operational needs of the Church, or such funds raised, set

aside or designed by the Board of Directors for the purpose of such investments”;

and

3

“10. To do all acts set out in the 3rd

Schedule to the Companies Act [Cap. 50], as

at 31 March 2004”2.

The above wording of clauses 6 and 10 was approved at an Annual General Meeting

(“AGM”) on 17 April 20053.

2.3 Article V clause 7 sets out the 3 categories of membership within CHC:

(a) Executive Members;

(b) Ministry Members; and

(c) Ordinary Members

Executive members have the right to both attend and vote in General Meetings, and

are eligible to hold office in CHC.

2.4 Article VI of the CHC Constitution stipulates that the business affairs of the church

are to be governed by the Board of Directors, also known as the CHC Management

Board (“the CHC Board”). The CHC Board comprised of the President, Vice-

President, Secretary, Treasurer, and between 6 to 8 Ordinary Board Members.

CHC Board of Directors

2.5 The table below shows the members who were on the CHC Board for the relevant

period.

2.6 Pursuant to the aforementioned AGM held on 17 April 2005, the minutes state that the

Executive Members also approved a resolution authorising the CHC Board, inter

alia,“[to] determine and to use such funds as it deems surplus to the normal

operational needs of CHC, or such funds raised, set aside or designated by the Board

of Directors for the purpose of such investments, and in connection with such

investments, to incorporate such investment vehicles in such jurisdictions as the

Board may determine on the advice of its consultants”4.

2 3

rd Schedule to the Companies Act, Cap. 50 as at 31 March 2004.

3 Minutes of AGM dated 17 April 2005. Letter from Drew & Napier LLC to Commissioner of Charities

dated 18 April 2005. Letter from Commissioner of Charities to Drew & Napier LLC dated 24 May 2005. Letter from Drew & Napier LLC to Commissioner of Charities dated 2 March 2006. 4 Ibid.

4

Board Members of City Harvest Church between 2003 and 2010 per Annual Returns filed with the Registrar of Societies

Position 2003 2004 2005 2006 2007 2007 2009 2010

President Kong Hee Kong Hee Kong Hee Kong Hee Kong Hee Kong Hee Kong Hee Kong Hee

Vice President Ho Yeow Sun Ho Yeow Sun Ho Yeow Sun Chew Eng Han Aries Santoso

Zulkarnain

Tan Ye Peng Tan Ye Peng Tan Ye Peng

Secretary Lam Leng

Hung

Lam Leng Hung Suraj Lam Leng

Hung

Lam Leng Hung Suraj Suraj Suraj

Treasurer Chew Eng Han Suraj Lam Leng

Hung

Tan Ye Peng Tan Ye Peng Lam Leng Hung Goh Yong

Shing Nicholas

Lam Leng Hung

Member Suraj Chew Eng Han Chew Eng Han Ho Yeow Sun5 Koh Siow Ngea

6 Koh Siow Ngea Choong Tsih

Ming

Choong Tsih

Ming

Member Tan Ye Peng Tan Ye Peng Tan Ye Peng Nil Lee Tat Haur Lee Tat Haur Lee Tat Haur Lee Tat Haur

Member Goh Yong

Shing Nicholas

Goh Yong

Shing Nicholas

Wee Gek Yin

Serina

Wee Gek Yin

Serina

Goh Yong

Shing Nicholas

Goh Yong

Shing Nicholas

Aries Santoso

Zulkarnain

Aries Santoso

Zulkarnain

Member Choong Kar

Weng

Choong Tsih

Ming

Choong Tsih

Ming

Choong Tsih

Ming

Ong Tiong Sing

Martin

Ong Tiong Sing

Martin

Ong Tiong Sing

Martin

Ong Tiong Sing

Martin

Member Derek John

Dunn

Derek John

Dunn

Derek John

Dunn

Derek John

Dunn

Chiang Pak

Shane

Chiang Pak

Shane

Chiang Pak

Shane

Chiang Pak

Shane

Member Wong Foong

Ming

Wong Foong

Min Nil

Suraj Suraj Nil

Lam Leng Hung Goh Yong

Shing Nicholas

Member Nil

Aries Santoso

Zulkarnain

Aries Santoso

Zulkarnain

Aries Santoso

Zulkarnain Nil

Aries Santoso

Zulkarnain Nil Nil

Date of Annual

Returns submission

28 May 2003 24 December

2004

22 April 2005 27 October

2006

8 October 2007 25 February

2008

4 September

2009

7 April 2010

Date of AGM 27 April 2003 27 June 2004 17 April 2005 6 June 2006 7 July 2007

(EOGM)

28 October

2007

19 April 2009 7 March 2010

5 Ho Yeow Sun and Derek John Dunn were replaced by Ong Tiong Sing Martin and Lee Tat Haur at an EOGM on 2 December 2006.

6 Koh Siow Ngea was replaced by Choong Tsih Ming at an EOGM on 10 August 2008.

5

2.7 Various versions of the CHC Constitution are attached7, and an index of these

versions is reflected in the table below.

Index of various versions of CHC Constitution

No. Constitution as at

1 26 April 2001

2 17 April 2004

3 9 April 2005

4 7 December 2005

5 12 October 2007

6 24 November 2009

CHC Investment Policy

2.8 The minutes of meeting of the Investment Committee dated 28 June 2007 state that at

that meeting, the CHC Investment Committee discussed the need to draft an

Investment Policy for CHC and approved a draft Investment Policy8. The minutes of

the CHC Extraordinary General Meeting (“EOGM”) dated 7 July 2007 state that the

Executive Members were informed of the same at the EOGM on 7 July 20079. The

minutes of meeting of the Investment Committee dated 17 August 2007 state that the

Committee confirmed the Investment Policy during this meeting. Lam Leng Hung

drafted the Investment Policy with input from Chew Eng Han and Mr Charlie Lay10

.

2.9 The table below shows the members who were on the CHC Investment Committee,

formerly known as the Finance Committee, for the relevant period.

Finance Committee Members of City Harvest Church

20 Jan

2006

8 Apr

2006

22 Apr

2006

7 Jul

2006

9 Sep

2006

30 Dec

2006

28 Jun

2007

Chairperson Chew

Eng Han

Chew

Eng Han

Chew

Eng Han

Chew

Eng Han

Tan Ye

Peng

Tan Ye

Peng

Tan Ye

Peng

Member Lam

Leng

Hung

Lam

Leng

Hung

Lam

Leng

Hung

Lam

Leng

Hung

Chew

Eng Han

Chew

Eng Han

Chew

Eng Han

Member Serina

Wee Gek

Yin

Serina

Wee Gek

Yin

Serina

Wee Gek

Yin

Serina

Wee Gek

Yin

Lam

Leng

Hung

Lam

Leng

Hung

Lam

Leng

Hung

Member Lay

Nhuc

Hiang

Charlie

Lay

Nhuc

Hiang

Charlie

Lay

Nhuc

Hiang

Charlie

Lay

Nhuc

Hiang

Charlie

Serina

Wee Gek

Yin

Serina

Wee Gek

Yin

Serina

Wee Gek

Yin

7 Various versions of the CHC Constitution.

8 Minutes of meeting of Finance Committee dated 28 June 2007 and CHC Investment Policy as at 27

June 2007. 9 Minutes of EOGM dated 7 July 2007.

10 Emails both entitled “RE: Investment Policy” dated 27 June 2007 and 28 June 2007.

6

20 Jan

2006

8 Apr

2006

22 Apr

2006

7 Jul

2006

9 Sep

2006

30 Dec

2006

28 Jun

2007

Member Lay

Nhuc

Hiang

Charlie

Lay

Nhuc

Hiang

Charlie

Lay

Nhuc

Hiang

Charlie

Investment Committee Members of City Harvest Church

17 Aug

2007

1 Dec 2007 2 Feb 2008 1 Mar 2008 29 Jul 2008

Chairperson Lam Leng

Hung

Lam Leng

Hung

Goh Yong

Shing

Nicholas

Goh Yong

Shing

Nicholas

Goh Yong

Shing

Nicholas

Member Ong Tiong

Sing Martin

Ong Tiong

Sing Martin

Lam Leng

Hung

Lam Leng

Hung

Lam Leng

Hung

Member Lay Nhuc

Hiang

Charlie

Lay Nhuc

Hiang

Charlie

Ong Tiong

Sing Martin

Ong Tiong

Sing Martin

Ong Tiong

Sing Martin

Member Koh Siow

Ngea

Koh Siow

Ngea

Koh Siow

Ngea

2.10 The minutes of the Board meeting dated 14 February 2009 state that the Board

approved that Investment Committee and Building Committee meetings and updates

be held concurrently with Board meetings, due to the fact that the same individuals of

the Committees also sat on the Board11

.

CHC Building Fund

2.11 At the EOGM held on 7 July 2007, Kong Hee proposed investing the Building Fund

to earn a higher interest than that of time deposits. Based on the transcripts of the

EOGM, the Executive Members were told that S$2.2 million from the Building Fund

had previously been invested and that a profit had ultimately been made, even though

the value had fluctuated such that there was at some point a paper loss. Executive

Members were also informed that the Board and the Investment Committee had come

up with an Investment Policy, and that AMAC was to be appointed as CHC’s fund

manager, with an initial sum of S$25 million of Building Fund monies invested

through AMAC with a view to earning a better return than interest on bank deposits.

At the meeting, Chew Eng Han’s interest in AMAC was disclosed. The Executive

Members raised no objection to these matters12

.

11

Minutes of meeting of CHC Management Board dated 14 February 2009. 12

Transcript of EOGM provided by Wong Partnership LLP for Serina Wee on 2 May 2013.

7

XTRON PRODUCTIONS PTE LTD

2.12 Xtron Productions Pte Ltd (“Xtron”) is a limited exempt private company. It is

primarily a production house for music albums, concert organizer, distributor,

wholesaler, retailer of albums and compact discs.13

2.13 Xtron was registered on 18 June 2003 with Chew Eng Han, Lam Leng Hung and

Chong Lay Choo (Chew Eng Han’s wife) as the subscribing shareholders and

directors of Xtron. They each held 1 subscription share at $1.14

Park Crescent Services

Pte Ltd (“Park Crescent”) and Baker Tilly (then TFWLCL) handled all the secretarial

and account matters relating to the registration of Xtron.

2.14 As of 16 October 2008, Xtron had issued 6,000,006 shares at $1 each, held equally by

the current directors and shareholders, Choong Kar Weng and Koh Siow Ngea. The

table below summarises the changes in the ownership of Xtron shares from

incorporation to date:

Date Description

18 Jun 03 3 shares at $1 each issued and subscribed by Chew Eng Han,

Lam Leng Hung and Chong Lay Choo who were the initial

subscribing shareholders.

31 Dec 05 The trio transferred their shareholdings to Choong Kar

Weng.15

5 Aug 08 3 additional shares at $1 each were issued and subscribed by

Koh Siow Ngea.16

16 Oct 08 6 million additional shares at $1 each were issued and

subscribed equally by Choong Kar Weng and Koh Siow

Ngea.17

2.15 Xtron had no premises of their own and shared an office with CHC at Suntec Tower

Three until 21 May 2007, when Xtron shifted their operations to their current

premises at 84 Genting Lane #03-06 Cityneon Design Centre Singapore 349584.

2.16 The directors of Xtron for the relevant periods are as follows:

Director Period of appointment

Chew Eng Han 18 Jun 03 – 10 Aug 04 18

Lam Leng Hung 18 Jun 03 – 10 Aug 04 19

13

ACRA screening of Xtron Productions Pte Ltd (“Xtron”) dated 27 January 2012. 14

Bizfile record of Xtron dated 27 August 2003. 15

Letter from Park Crescent Services Pte Ltd to Xtron dated 15 March 2006. Xtron Share Certificate No.4 issued to Choong Kar Weng dated 31 December 2005. 16

Letter from Park Crescent Services Pte Ltd to Xtron dated 21 Aug 08. Xtron Share Certificate No.5 issued to Koh Siow Ngea dated 5 August 2008. 17

Letter from Park Crescent Services Pte Ltd to Xtron dated 11 February 2009. Xtron Share Certificate No.6 ($3 million) issued to Koh Siow Ngea dated 16 October 2008. Xtron Share Certificate No.7 ($3 million) issued to Choong Kar Weng dated 16 October 2008. Acknowledgement letters from Koh Siow Ngea and Choong Kar Weng. 18

ACRA screening of Chew Eng Han dated 3 May 2010. 19

ACRA screening of Lam Leng Hung dated 25 January 2012.

8

Director Period of appointment

Chong Lay Choo 18 Jun 03 – 10 Aug 04 20

Wahju Hanafi 25 Jun 03 – 29 Jul 08 21

Chiam May Mei Valarie 10 Aug 04 – 31 Dec 05 22

Choong Kar Weng 31 Dec 05 – present 23

Koh Siow Ngea 29 Jul 08 – present 24

2.17 Choong Kar Weng became a CHC member sometime in 1995. He was a member of

the CHC Board until 27 June 2004. He became the director and shareholder of Xtron

from 31 December 2005. He is also the sole director and shareholder of Attributes

Pte Ltd since 31 December 2004.

2.18 Koh Siow Ngea became a CHC member sometime in 1997. He was a member of the

CHC Board from 7 July 2007 to 10 August 2008. He became a director of Xtron on

29 July 200825

and a shareholder of Xtron on 5 August 2008.

Xtron’s Artiste Management Business

2.19 Pursuant to an Artiste Management Agreement between Xtron and Ho Yeow Sun

dated 18 June 200326

, Xtron was to provide management services in respect of Ho

Yeow Sun’s music albums and performances.

2.20 Xtron engaged JH Music Inc, previously JH Management, to produce and promote Ho

Yeow Sun’s first English single and album in the US27

. By a resolution dated 16

April 2005, an advance in relation to JH Music Inc was approved by Xtron directors

for Phase 4 of the US budget.

2.21 The Artiste Management Agreement with Ho Yeow Sun was terminated on 31 July

2008 pursuant to a termination document signed on 19 August 2008, following which

Ultimate Assets Ltd took over management services in respect of Ho Yeow Sun28

.

Xtron’s other businesses

2.22 Xtron’s portfolio of businesses also included the provision of events management and

audio-visual production services to some clients other than CHC29

. It also provided

real estate management services to CHC.

20

ACRA screening of Chong Lay Choo dated 27 January 2012. 21

ACRA screening of Wahju dated 3 May 2010. 22

ACRA screening of Chiam May Mei Valerie dated 27 January 2012. 23

ACRA screening of Choong Kar Weng dated 26 January 2012. 24

ACRA screening of Koh Siow Ngea dated 26 January 2012. 25

Supra, n 13. 26

Artiste Management Agreement between Xtron and Ho Yeow Sun dated 18 June 2003. 27

Resolution of Board of Directors of Xtron dated 16 April 2005. 28

Termination and Release Agreement between Xtron, Ho Yeow Sun and Ultimate Assets Ltd (“U.A.”) dated 19 August 2008. 29

Table of Xtron clients from 2006 to 2008 provided by Wong Partnership LLP for Serina Wee on 24 April 2013.

9

2.23 Other than using its own premises in Jurong West, CHC also leased Singapore Expo

Hall 8 from Xtron to accommodate its congregation. A Sublease of Singapore Expo

Hall 8 was signed between Chew Eng Han on behalf of CHC and Chiam May Mei

Valerie on behalf of Xtron dated 18 May 2005 for the usage of Singapore Expo Hall 8

from 1 January 2006 to 30 June 2007 (18 months). The fees for usage of the

Singapore Expo Hall 8 premises are paid on a quarterly basis at the following rates: (i)

S$24,000 for Saturdays and Sundays; and (ii) S$9,000 for a weekday30

.

2.24 An Extension Sublease of Singapore Expo Hall 8 was signed between Lam Leng

Hung on behalf of CHC and Choong Kar Weng on behalf of Xtron dated 22 February

2007 for the usage of Expo Hall 8 from 1 July 2007 to 28 February 2009 (20 months).

CHC paid Xtron S$4,797,760 (excluding GST) as a prepayment option for this

lease31

. Subsequently another Extension Sublease dated 28 February 2009 was entered

into on behalf of Xtron for the usage of Expo Hall 8 from 1 March 2009 to 28

February 201132

.

FIRNA

2.25 PT The First National Glassware (“Firna”) is an Indonesian company incorporated in

Jakarta in 1971. Its main business is in the manufacture of glassware. Pursuant to a

sale and purchase agreement dated 24 November 2006, Wahju acquired 80.4% of

Firna’s shares from Henry Muljatiwanadihardja and Gunawan Tjandra. Wahju is also

the company’s President Commissioner. The other shareholder of Firna is Wahju’s

father-in-law, Tjandra Kusuma33

.

ULTIMATE ASSETS LTD

2.26 Ultimate Assets Ltd (“Ultimate Assets”) was incorporated in the BVI on 17

November 2006 and is fully owned by Wahju. Ultimate Assets does not have a

physical office but its bank account is maintained with UBS AG, Singapore. The

authorised signatories to the bank account are Wahju and his wife, Tjan Tjan Hia.

2.27 After the Artiste Management Agreement between Xtron and Ho Yeow Sun was

terminated on 31 July 2008, Ho Yeow Sun was managed by Ultimate Assets; and an

Artiste Management Agreement was entered into between Ultimate Assets and Ho

Yeow Sun on 19 August 200834

. On 19 August 2008, Ultimate Assets and JH Music

Inc entered into a Collaboration Agreement35

for the following objectives:

(a) To promote, market, distribute, sell and otherwise exploit Records throughout the

universe, UA will furnish Artiste’s exclusive services for recording master

recordings of the Records, and JHM will use its best efforts to procure and enter

into a distribution agreement with a reputable recording company/distributor for

30

Sublease of Singapore Expo Hall 8 dated 18 May 2005. 31

Extension Sublease of Singapore Expo Hall 8 dated 22 February 2007. 32

Extension Sublease of Singapore Expo Hall 8 dated 28 February 2009. 33

Due Diligence Report by ABNR dated 31 October 2009. 34

Supra, n. 28. 35

Collaboration Agreement between U.A. and JH Music Inc dated 19 August 2008.

10

the manufacture, distribution and marketing of Records, and containing

commercially acceptable terms.

(b) JHM and UA will mutually agree on the selection of Distributors and the terms of

the Distribution Agreements.

JH MUSIC

2.28 JH Music, Inc (“JH Music”) is a production house registered in California, the United

States of America (“USA”). Its office is located at 832 South Highland Avenue, Los

Angeles, CA 90036. It was incorporated on 3 February 2006 and owned by Justin

Herz.

AMAC CAPITAL PARTNERS (PTE) LTD

2.29 AMAC Capital Partners (Pte) Ltd (“AMAC”) is a limited private company registered

on 26 April 2007.36

Chew Eng Han is its sole director, holding 70% of the shares. The

remaining 30% is owned by Kenneth Goh. Its business is in investment in currencies,

futures, commodities, equities and fixed income.

2.30 On 25 July 2007, CHC entered into an agreement37

with AMAC to appoint AMAC as

its Investment Manager. Prior to the agreement between CHC and AMAC, on 7 July

2007, Chew Eng Han stepped down as a Board member of CHC and also stepped

down as a member of the CHC Investment Committee. Investments would be subject

to the mandate given to AMAC under the Investment Agreement and the Investment

Policy drawn up by the CHC Investment Committee.

ADVANTE CONSULTING PTE LTD

2.31 Advante Consulting Pte Ltd (“Advante”) was incorporated on 1 October 200738

. Its

business is in providing accounting and corporate secretarial services. Serina Wee is a

director and shareholder of Advante. From 2007 to date, Advante has approximately

50 to 60 clients, including Xtron, Attributes Pte Ltd, International Harvest Pte Ltd,

and Skin Couture Pte Ltd.

Background facts

3 The Crossover Project

3.1 The idea of using pop music for evangelism was shared with CHC members at the

Vision Weekend of 1-2 September 2001. After a series of pop concerts with gospel

theme in Taiwan and Hong Kong, the mission became officially known as the

36

ACRA screening of AMAC Capital Partners (Pte) Ltd (“AMAC”) dated 3 May 2010. 37

Agreement to appoint AMAC as Investment Manager dated 25 July 2007 signed by Lam Leng Hung and Chew Eng Han in the presence of Sharon Tan. 38

ACRA screening of Advante dated 26 January 2012.

11

Crossover Project in May 2002. It involves, inter alia, Ho Yeow Sun recording and

launching secular music albums, in order to influence people that would never have a

chance or who would never choose to step foot into a church to listen to a preacher,

and to encourage Christians in the pop industry to share their own conversion stories

and testimonies.39

3.2 The minutes of the Board meeting on 5 May 2002 state that the Board Members of

CHC had confirmed formally and unanimously agreed that this project (referring to

Ho Yeow Sun’s recording and launching of secular music albums) would be

consistent with the overall objectives of CHC to fulfil the Great Commission. The

objective of this project was stated as: “To fulfil the Great Commission by sharing the

message of faith, hope and love throughout the Chinese Community worldwide

particularly in Far East Asia”.40

A decision was subsequently taken around 2004 for

the Crossover Project to enter the USA market.

3.3 The minutes of the Board meeting on 15 February 2007 state that the Board Members

of CHC “expressed their continual support of the cross-over project (sic) and

commended Sun for being willing to make great sacrifices in order to accomplish the

will of God for her life. The Board agreed to continually hold Sun and her work in

prayers and to do whatever is necessary to show our support to her as what she is

doing is a very practical example of engaging Christ in culture”41

.

4 Allegations made by Roland Poon on use of Church Funds for Promotion of Sun

Ho’s career

4.1 In January 2003, allegations were made by one Roland Poon (“Poon”) about the

misuse of church funds. These allegations were subsequently withdrawn by Poon,

with public apologies published in major newspapers.

4.2 On 27 April 2003, at CHC’s Annual General Meeting, Foong Daw Ching, of the

accounting firm Teo Foong Wong LC Loong & Company, made a public statement,

via a video clip, saying as follows:42

.

“Dear Members of City Harvest Church. My name is Foong Daw Ching and I am a

senior partner with the firm of Teo Foong Wong LC Loong, the auditors of City

Harvest Church. I have been practising as an auditor and accountant for 31 years and I

am the lead partner in charge of City Harvest Church’s accounts. Having led the audit

of City Harvest Church accounts, it is my professional opinion that no Church funds

were ever used in the promotion of Ms. Ho Yeow Sun’s secular singing career and

that the accounts presented before this AGM are true and fair. Thank you for this

opportunity to address you.”

“Dear Members of City Harvest Church. I wish to refer you to the incident in January

this year when one Mr. Roland Poon Swee Kay printed public apologies to City

39

This description of the project, which is not exhaustive, is adapted from a commemorative book, “The Crossover Project: Celebrating 10 Years”, published by CHC, at p 22. 40

Minutes of meeting of CHC Management Board dated 5 May 2002, para 1. 41

Minutes of meeting of CHC Management Board dated 15 February 2007, para 4. 42

Transcript of statement made by Foong.

12

Harvest Church in 5 newspapers at a cost of S$33,372.06. As this payment was made

after the financial year ended 31st December 2002, we further carry out [sic] the

review of the payments from the church for the months of January and February 2003.

Our review did not uncover any such payment on behalf of Mr. Roland Poon.”

4.3 Kong Hee also told the Executive Members that the Hanafi family had donated seed

money of S$1.27 million to the Crossover Project. The Executive Members were then

shown a letter from Lam Leng Hung, as Director of Attributes Pte Ltd43

, to Wahju and

his wife thanking them for their generous contribution to sponsor Ho Yeow Sun’s

“crossover music project(s)”. The letter concluded “May God bless you mightily for

giving to the missionary and social outreach project(s).”44

5 CHC Building Fund

5.1 The first cycle of the Arise and Build Campaign was from 1997 to 2003. The purpose

of the campaign was to raise funds for CHC to build its church building at Jurong

West.

5.2 The second cycle of the Arise and Build Campaign started in August 2005. The

projected aim in or around 2008 was to raise $160 million at the end of 7 years for the

Building Fund. This projected aim was adjusted to S$310 million in or around 2010.

The campaign had several phases and these were held in the following periods:

Campaign Period

Arise and Build 2005 August 2005 to January 2006

Arise and Build 2006 November 2006 to April 2007

Arise and Build 2007 November 2007 to April 2008

Arise and Build 2008 November 2008 to April 2009

Arise and Build 2010 March 2010 to June 2010

5.3 The relevant EOGM and Board meeting minutes in relation to the Arise and Build

Campaign are attached45

.

5.4 During the Arise and Build Campaign period, members were each given a pledge card

to pledge their commitment towards fulfilling the target of $160 million.

Subsequently, the members would fulfil their pledges with actual donations. These

donations would all be deposited into the CHC General Fund account DBS 012-

009203-2, and, due to administrative limitations, would be transferred periodically to

the CHC Building Fund account DBS 012-010037-0 where they would be accounted

for.

5.5 In most cases, for the purposes of investing the Building Fund, CHC also maintains a

separate Deutsche Bank account 6005763 (“the Deutsche Bank account”), with

Deutsche Bank acting as a custodian for some of CHC’s Building Fund investments.

The signatories for the Deutsche Bank account are Tan Ye Peng, Sharon Tan, Suraj,

43

Attributes Pte Ltd was previously known as City Harvest Pte Ltd. 44

Letter from Lam Leng Hung dated 23 December 2002. 45

Relevant EOGM and CHC Management Board meeting minutes for Arise and Build campaign.

13

Aries Zulkarnain and Derek John Dunn. Any three from the abovementioned

signatories are required to operate the account.

5.6 For Arise and Build 2007 and 2008, the pledge card stated “Building Fund is to be

used for the purchase of land, construction costs, rentals, furniture and fittings”. The

relevant pledge cards for the different Arise and Build campaigns in 2005, 2006,

2007, 2008 and 2010 are attached46

.

5.7 After the third phase of the Arise and Build Campaign, Kong Hee reported at an

EOGM on 10 August 2008 that the Building Fund had a balance of $44 million47

.

Facts pertaining to DACs 23145-47/2012, DACs 23148-50/2012, DACs 23158-60/2012,

DACs 23168-70/2012, and DACs 26645-47/2012

6 Xtron bonds

6.1 In August 2007, Xtron required about $13 million, to repay various loans previously

taken to fund the Crossover Project as well as to pay new expenses relating to the

Project. These expenses related inter alia to the planned production of Ho Yeow

Sun’s first English album.48

6.2 To provide Xtron with the funds needed, Serina Wee, Tan Ye Peng and Chew Eng

Han exchanged emails on 4 May 2007 in relation to a proposed loan from Citic Ka

Wah Bank Limited, Hong Kong49

. On 5 May 2007, the Xtron Board minutes reflect

the Board’s view that the interest rate of 16% per annum offered by this bank for a $9

million loan facility was too high, and that the directors would source for other credit

facilities50

.

7 Details of Xtron bonds

The First BSA

7.1 On 7 July 2007, AMAC was appointed as CHC’s Investment Manager. An

Investment Management Agreement dated 25 July 2007 was entered into between

CHC and AMAC.51

7.2 The transcript of the EOGM dated 7 July 2007 states that it was recounted to

Executive Members that S$2.2 million from the Building Fund had previously been

invested and that a profit had ultimately been made even though the value had

fluctuated such that there was at some point a paper loss. Executive Members were

46

Pledge cards for Arise and Build campaigns in 2005, 2006, 2007, 2008 and 2010. 47

Minutes of EOGM dated 10 August 2008. 48

Email from Serina Wee to Tan Ye Peng on 18 January 2007. Email from Serina Wee to Tan Ye Peng on 15 March 2007. Email from Serina Wee to Tan Ye Peng and Chew Eng Han dated 15 June 2007. Email from Serina Wee to Chew Eng Han copied to Tan Ye Peng dated 3 July 2007. 49

Emails from Serina Wee to Chew Eng Han and Tan Ye Peng dated 4 May 2007. 50

Minutes of meeting of Xtron Board dated 5 May 2007. 51

Supra, n. 37.

14

also informed that the Board and the Investment Committee had come up with an

Investment Policy, and that AMAC was to be appointed as CHC’s fund manager, with

an initial sum of S$25 million of Building Fund monies invested through AMAC with

a view to earning a better return than interest on bank deposits. At the meeting, Chew

Eng Han’s interest in AMAC was disclosed52

. The Executive Members raised no

objection to these matters53

.

7.3 On 17 August 2007, a BSA (“the first BSA”) was signed between AMAC and Xtron

for the issuance of up to $13 million by Xtron, with the stated interest rate being 7%

and the due date being 16 August 2009.54

The first BSA was prepared by Christina

Ng, then of Drew & Napier LLC. Clause 2.3 of the Third Schedule of the first BSA

provided that:

“Use of proceeds: The Issuer shall use the proceeds of the Bonds as follows:

production, publicity, distribution and travelling costs related to the production

and marketing of the Issuer’s music albums in the USA and Asia and salary

costs.”

7.4 The $13 million to be provided to Xtron under the first BSA was transferred from

CHC’s Building Fund to Xtron in four tranches. The steps taken by the various

entities involved before and after each of these drawdowns were as follows:

7.4.1 First, Xtron sent a Form of Drawdown Notice to AMAC stating the desired

amount to be drawn down. AMAC sent a letter of instruction to Deutsche

Bank Singapore on behalf of CHC instructing the transfer of the respective

sums of money from an account containing funds from CHC’s Building Fund

to Xtron’s account. These letters were authorised by three of CHC’s

authorised signatories whose signatures were mandatory in order for Deutsche

Bank Singapore to effect payment to Xtron.

7.4.2 Xtron issued Directors’ Certificates and Forms of Bond indicating that Xtron

was duly issuing the amount of bonds specified in the respective Forms of

Drawdown Notice to AMAC. The Forms of Bond were sent to Deutsche Bank

Singapore to hold for safekeeping as custodian.55

7.5 The relevant details for each of the drawdowns under the first BSA are summarised in

the table below.

Actual drawdown of

funds Xtron Form of Drawdown

Notice AMAC Letter of

Instruction to Deutsche

Bank Singapore

Directors’

Certificates

and Forms of

Bond Value

Date

Amount Date Xtron

Signatory

Amount Date CHC

Signatories

Date

24 $5,000,04056 18 Wahju $5 23 Aries Santoso 24 Aug

52

Minutes of EOGM dated 7 July 2007. 53

Supra, n.12. 54

Bond Subscription Agreement dated 17 August 2007. 55

Ibid. 56

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 August 2007 at p 2.

15

Actual drawdown of

funds Xtron Form of Drawdown

Notice AMAC Letter of

Instruction to Deutsche

Bank Singapore

Directors’

Certificates

and Forms of

Bond Aug

2007 Aug

2007 Hanafi million

57 Aug

2007 Zulkarnain,

Derek John

Dunn and

Sharon Tan58

200759

30

Nov

2007

$2,000,04060 23

Nov

2007

Wahju

Hanafi $2

million61

29

Nov

2007

Aries Santoso

Zulkarnain,

Tan Ye Peng

and Sharon

Tan62

28 Nov

200763

4 Jan

2008 $3,000,040

64 1 Jan

2008 Wahju

Hanafi $3

million65

2 Jan

2008 Derek John

Dunn, Tan Ye

Peng and

Sharon Tan66

4 Jan 200867

6 Mar

2008 $3,000,040

68 29 Feb

2008 Choong

Kar Weng $3

million69

5 Mar

2008 Aries Santoso

Zulkarnain,

Derek John

Dunn and

Sharon Tan70

5 Mar 200871

7.6 The $13 million disbursed to Xtron under the first BSA was applied to the Crossover

Project.72

The Second BSA

7.7 A second BSA (“the second BSA”) was signed between AMAC and Xtron on 21

April 2008.73

No money was drawn down under the second BSA.

57

Form of Drawdown Notice issued by Xtron dated 18 August 2007. 58

Letter from AMAC to Deutsche Bank Singapore dated 23 August 2007. 59

Xtron Directors’ Certificate and Form of Bond dated 24 August 2007. 60

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 30 November 2007 at p 5. 61

Form of Drawdown Notice issued by Xtron dated 23 November 2007. 62

Letter from AMAC to Deutsche Bank Singapore dated 29 November 2007. 63

Xtron Directors’ Certificate and Form of Bond dated 28 November 2007. 64

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 January 2008 at p 3. 65

Form of Drawdown Notice issued by Xtron dated 1 January 2008. 66

Letter from AMAC to Deutsche Bank Singapore dated 2 January 2008. 67

Xtron Directors’ Certificate and Form of Bond dated 4 January 2008. 68

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 March 2008 at p 3. 69

Form of Drawdown Notice issued by Xtron dated 29 February 2008. 70

Letter from AMAC to Deutsche Bank Singapore dated 5 March 2008. 71

Xtron Directors’ Certificate and Form of Bond dated 5 March 2008. 72

Email from Serina Wee Gek Yin to Tan Ye Peng dated 27 August 2007. Email from Serina Wee Gek Yin to Tan Ye Peng dated 20 November 2009. 73

Bond Subscription Agreement dated 21 April 2008.

16

Amended CHC-Xtron BSA and related transactions

7.8 Xtron entered into an Option to Purchase the property at 20 Upper Circular Road #02-

21, The Riverwalk, Singapore 058416 (“Riverwalk”) for the sale price of $17,550,000

on 26 July 2008, with the option to be exercised by 11 August 2008.74

On 28 July

2008, Kong Hee sent an email to Serina Wee, Tan Ye Peng and Chew Eng Han

asking them to confirm, among other things, that AMAC was planning to buy bonds

for CHC from Xtron, which the latter would use to pay for Riverwalk.75

7.9 On 10 August 2008, a CHC EOGM was held. The Executive Members were informed

of Xtron’s intention to purchase Riverwalk and to rent it back to CHC for ministry

purposes. They were also told that the CHC Board had decided to purchase $18.2

million worth of bonds from Xtron to fund Xtron’s purchase of Riverwalk, and that

CHC would be granted an option to purchase Riverwalk at its original cost.76

7.10 On 11 August 2008, Xtron exercised the Option to Purchase for Riverwalk.77

7.11 On 11 August 2008, the CHC Trustees executed a power of attorney78

in favour of

AMAC allowing the latter to enter into any agreement on CHC’s behalf that was

connected to AMAC’s role as CHC’s Investment Manager.79

7.12 On 20 August 2008, the following steps were taken. The second BSA was terminated

by AMAC and Xtron via a Deed of Termination.80

AMAC transferred the $13 million

worth of bonds issued under the first BSA to the CHC Trustees via a Deed of

Assignment.81

The CHC Trustees executed a Deed of Ratification and Accession

under which they agreed to be bound by the terms of the first BSA.82

7.13 Finally, Xtron and AMAC (as attorney for the CHC Trustees) entered into an

Amended and Restated BSA (“the amended BSA”)83

varying the terms of the first

BSA. Under the Amended BSA, the maximum amount of funding to be made

available to Xtron was increased from $13 million to $25 million, the stated interest

rate was varied from 7% to 5% with effect from 20 August 2008 and the maturity of

the bonds already issued was moved back to the 10th

anniversary of their issue. The

amended BSA also included a call option allowing the CHC Trustees to purchase

Riverwalk at the price of $17,550,000 excluding GST.84

Under the amended BSA, the

CHC Trustees were also entitled to convert $18.2 million worth of bonds into shares

in Xtron amounting to 99% of Xtron’s issued share capital.

74

Option to Purchase dated 26 July 2008. 75

Email from Kong Hee to Serina Wee Gek Yin, Tan Ye Peng and Chew Eng Han dated 28 July 2008. 76

Minutes of EOGM dated 10 August 2008 at para 3(f). 77

Acceptance Copy of Option to Purchase dated 11 August 2008. 78

Power of Attorney notarised 11 August 2008. 79

Supra, n. 37. 80

Deed of Termination relating to the Bond Subscription Agreement dated 21 April 2008, dated 20 August 2008. 81

Deed of Assignment relating to the Bond Subscription Agreement dated 17 August 2007, dated 20 August 2008. 82

Deed of Ratification and Accession dated 20 August 2008. 83

Amended and Restated Bond Subscription Agreement dated 20 August 2008. 84

Land Titles Act Caveat IB/224294J dated 9 December 2008.

17

7.14 Under the amended BSA, a further $8.5 million was transferred from CHC’s Building

Fund to Xtron in three tranches. The steps taken before and after each of these

drawdowns were similar to those described at paragraph 7.4 above.

7.15 The relevant details for each of the further drawdowns under the amended BSA are

summarised in the table below.

Actual drawdown of

funds Xtron Form of Subscription

Notice AMAC Letter of

Instruction to Deutsche

Bank Singapore

Directors’

Certificates

and Forms of

Bond Value

Date

Amount Date Xtron

Signatory

Amount Date CHC

Signatories

Date

20

Aug

2008

$1,500,04085 20

Aug

2008

Koh Siow

Ngea $1.5

million86

20

Aug

2008

Aries Santoso

Zulkarnain,

Sharon Tan

and Suraj87

20 Aug

200888

8 Oct

2008 $6,300,040

89 1 Oct

2008 Koh Siow

Ngea $6.3

million90

6 Oct

2008 Sharon Tan,

Suraj and Tan

Ye Peng91

8 Oct 2008

(no

Directors’

Certificate)92

22

Apr

2009

$700,04093 20

Apr

2009

Koh Siow

Ngea $700,00094

20 Apr

2009 Aries Santoso

Zulkarnain,

Tan Ye Peng

and Sharon

Tan95

22 Apr 2009

(no

Directors’

Certificate)96

7.16 The further $8.5 million disbursed to Xtron under the amended BSA was used as part

payment towards the purchase of Riverwalk.97

7.17 On 15 October 2008, Standard Chartered Bank granted Xtron a letter of offer for a

loan facility of $10,700,000 for the purpose of assisting in the purchase of Riverwalk.

A mortgage over Riverwalk was to be granted as security for this loan.98

Xtron

accepted the loan facility which accounted for the remainder of the purchase price of

Riverwalk.

85

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 August 2008 at p 5. 86

Form of Subscription Notice issued by Xtron dated 20 August 2008. 87

Letter from AMAC to Deutsche Bank Singapore dated 20 August 2008. 88

Xtron Directors’ Certificate and Form of Bond dated 20 August 2008. 89

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 October 2008 at p 3. 90

Form of Subscription Notice issued by Xtron dated 1 October 2008. 91

Letter from AMAC to Deutsche Bank Singapore dated 6 October 2008. 92

Xtron Form of Bond dated 8 October 2008. 93

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 30 April 2009 at p 3. 94

Form of Subscription Notice issued by Xtron dated 20 April 2009. 95

Letter from AMAC to Deutsche Bank Singapore dated 20 April 2009. 96

Xtron Form of Bond dated 22 April 2009. 97

Email from Serina Wee to Tan Ye Peng dated 20 November 2009. 98

Letter entitled “Banking Arrangements” from Standard Chartered Bank to Xtron dated 15 October 2008.

18

7.18 On 6 November 2008, AMAC (as attorney for the CHC Trustees) sent a letter to

Xtron. In this letter AMAC acknowledged that Xtron had accepted the loan facility

granted by Standard Chartered Bank, agreed to enter into a Subordination Deed

subordinating the CHC Trustees’ rights under the amended BSA to the rights of the

Bank, and agreed to waive any breaches of the amended BSA resulting from Xtron’s

compliance with the conditions of the loan facility.99

7.19 The sale of Riverwalk to Xtron was completed on 7 November 2008.100

On 5

December 2008, Xtron, AMAC (as attorney for the CHC Trustees) and Standard

Chartered Bank entered into A Deed of Subordination.101

Under this Deed, the CHC

Trustees agreed to subordinate their interests under the amended BSA to the Bank’s

interest under the loan facility to Xtron. The CHC Trustees acknowledged that their

call option on Riverwalk was subject to the Bank’s mortgage over Riverwalk.102

8 Firna bonds

8.1 The minutes of the Investment Committee’s meeting on 29 July 2008 state that the

Investment Committee approved the proposal for CHC to enter a BSA with Firna103

.

9 Details of Firna bond

9.1 On 19 August 2008, Xtron, Ho Yeow Sun and Ultimate Assets entered into a

Termination and Release Agreement.104

The effect of this agreement was to end the

contractual management relationship between Xtron and Ho Yeow Sun with effect

from 31 July 2008 and to establish Ultimate Assets as Ho Yeow Sun’s new manager.

9.2 On 7 October 2008, a BSA (“the Firna BSA”) was signed between AMAC (as

attorney for the CHC Trustees) and Firna for the issuance of up to $24.5 million by

Firna.105

The stated interest rate was 4.5%106

and the due date for each bond was the

3rd

anniversary of their issue.107

Under the Firna BSA, the CHC Trustees were entitled

to convert the bonds issued under the BSA into shares in Firna amounting to 40% of

Firna’s issued share capital.108

The BSA was prepared by Christina Ng of Rajah &

Tann LLP, who had by then left Drew & Napier LLP.

99

Letter entitled “Waiver Letter” from AMAC to Xtron dated 6 November 2008. 100

Notice of Transfer of 20 Upper Circular Road, #02-21, Singapore 058416 dated 7 November 2008. Letter from Characterist LLC to M/s Rajah & Tann LLP dated 7 November 2008. Letter from M/s Rajah & Tann LLP to Characterist LLC dated 7 November 2008. Letter from M/s Rajah & Tann LLP to Xtron dated 7 November 2008. 101

Deed of Subordination dated 5 December 2008. 102

Ibid at clause 2.3. 103

Minutes of meeting for CHC Investment Committee dated 29 July 2008. 104

Email from Serina Wee to Kong Hee and Tan Ye Peng dated 19 August 2008. Supra, n. 28, n. 35. Letter from Xtron to Ho Yeow Sun dated 31 October 2008. 105

Bond Subscription Agreement dated 7 October 2008. 106

Ibid at Clause 8.1 of Schedule 3. 107

Ibid at Clauses 1.1 and 5.2 of Schedule 3. 108

Ibid at Clause 9.4 of Schedule 3.

19

9.3 Under the Firna BSA, $11 million was transferred from CHC’s Building Fund to

Firna in five tranches. The steps taken by the various entities involved before and after

each of these drawdowns were as follows.

9.3.1 Firna sent a Form of Subscription Notice to AMAC stating the desired amount

to be drawn down. AMAC sent a letter of instruction to Deutsche Bank

Singapore on behalf of CHC instructing the transfer of the respective sums of

money from an account containing funds from CHC’s Building Fund to

Firna’s account. These letters were authorised by three of CHC’s authorised

signatories whose signatures were mandatory in order for Deutsche Bank

Singapore to effect payment on Xtron.

9.3.2 Firna issued Forms of Bond indicating that Firna was duly issuing the amount

of bonds specified in the respective Forms of Drawdown Notice to AMAC.

9.4 The relevant details for each of the drawdowns under the Firna BSA are summarised

in the table below.

Actual drawdown of

funds Firna Form of Subscription Notice AMAC Letter of

Instruction to Deutsche

Bank Singapore

Forms

of Bond

Value

Date

Amount Date Firna

Signatory

Amount Date CHC

Signatories

Date

8 Oct

2008 $5,000,040

109 7 Oct

2008 Wahju

Hanafi $5

million110

6 Oct

2008 Sharon Tan,

Suraj and Tan

Ye Peng111

7 Oct

2008112

6 Nov

2008 $1,000,040

113 31 Oct

2008 Wahju

Hanafi $1

million114

5 Nov

2008 Derek John

Dunn, Suraj

and Aries

Santoso

Zulkarnain 115

5 Nov

2008116

11

Dec

2008

$1,000,040117 19

Nov

2008

Wahju

Hanafi $1

million118

3 Dec

2008 Sharon Tan,

Tan Ye Peng

and Suraj119

10 Dec

2008120

4 Jun

2009 $2,000,040

121 22

May

Wahju

Hanafi $2

million122

1 Jun

2009 Sharon Tan,

Suraj and

2 Jun

2009124

109

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 October 2008 at p 3. 110

Form of Subscription Notice issued by Firna dated 7 October 2008. 111

Letter from AMAC to Deutsche Bank Singapore dated 6 October 2008. 112

Firna Form of Bond dated 7 October 2008. 113

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 30 November 2008 at p 2. 114

Form of Subscription Notice issued by Firna dated 31 October 2008. 115

Letter from AMAC to Deutsche Bank Singapore dated 5 November 2008. 116

Firna Form of Bond dated 5 November 2008. 117

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 31 December 2008 at p 3. 118

Form of Subscription Notice issued by Firna dated 19 November 2008. 119

Letter from AMAC to Deutsche Bank Singapore dated 3 December 2008. 120

Firna Form of Bond dated 10 December 2008. 121

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 30 June 2009 at p 2.

20

Actual drawdown of

funds Firna Form of Subscription Notice AMAC Letter of

Instruction to Deutsche

Bank Singapore

Forms

of Bond

2009 Derek John

Dunn123

22 Jun

2009 $2,000,040

125 11 Jun

2009 Wahju

Hanafi $2

million126

19 Jun

2009 Suraj, Derek

John Dunn and

Tan Ye

Peng127

15 Jun

2009128

9.5 Of the $11 million disbursed by CHC to Firna under the Firna BSA, $10,978,698.06

was transferred from Firna’s bank accounts to Ultimate Assets’ bank account in 13

transactions from 13 October 2008 to 6 July 2009.129

After being transferred to Ultimate

Assets’ account as a repayment of shareholder’s loan, $7,555,190.31 was used by the

Crossover Project and $2,503,369.22 was used by Wahju Hanafi for his personal expenses.130

Facts pertaining to DACs 23151-57/2012, DACs 23161-67/2012, DACs 23171-77/2012,

and DACs 26648-26654/2012

10 Purchase of Suntec

10.1 Due to the growing congregation, CHC had been seriously considering purchasing a

stake in Suntec Singapore International Convention & Exhibition Centre (“Suntec”) to

secure larger premises. This project was referred to as “Palm Oil”. In June 2009, CHC

through Chew Eng Han approached the owners of Suntec to negotiate for the purchase

of a stake in Suntec, through Xtron. However, this bid was unsuccessful, and the stake

in Suntec was sold to other purchasers.

10.2 Sometime after 3 June 2009, an Extension Sublease of Singapore Expo Hall 8 was

signed between Lam Leng Hung on behalf of CHC and Koh Siow Ngea on behalf of

Xtron dated 28 February 2009 for the usage of Expo Hall 8 from 1 March 2009 to 28

February 2011 (24 months). The usage is charged at $30,000 per day for each event

day, and $12,000 per day for each non-event day131

.

10.3 Around September 2009, CHC through Chew Eng Han was in discussions with

architects and consultants relating to CHC’s potential bid for the land at Capitol

Theatre. This project was referred to as “Crude Oil”.

10.4 Concurrently, in September 2009, Chew Eng Han and Tan Ye Peng started to renew

negotiations with the new owners of Suntec for the purchase of a stake in Suntec and

122

Form of Subscription Notice issued by Firna dated 22 May 2009. 124

Firna Form of Bond dated 2 June 2009. 123

Letter from AMAC to Deutsche Bank Singapore dated 1 June 2009. 125

Account Statement for CHC’s Account No. 6005763-000 with Deutsche Bank Singapore from 1 to 30 June 2009 at p 2. 126

Form of Subscription Notice issued by Firna dated 11 June 2009. 127

Letter from AMAC to Deutsche Bank Singapore dated 19 June 2009. 128

Firna Form of Bond dated 15 June 2009. 129

Email from Serina Wee to Sharon Tan and Tan Ye Peng dated 2 December 2009. 130

Ibid. 131

Supra, n. 32.

21

rental of halls for use by CHC. On 15 January 2010, CHC signed a sales and purchase

agreement to purchase a stake in Suntec through the acquisition of 12.5% shares in

Harmony Partners Investment Limited for $18.75 million.

11 Background to series of relevant transactions

11.1 On 29 September 2009, Chew Eng Han, Sharon Tan and Serina Wee had a meeting at

CHC’s Suntec office. During the meeting, Chew Eng Han drew a diagram132

on a

whiteboard of a series of transactions between the following six entities: CHC, Xtron,

Firna, Ultimate Assets, AMAC and one Pacific Radiance Ltd, a company in which

Lam Leng Hung was the Chief Financial Officer at the material time. After the

meeting, Sharon Tan took eight pictures of the diagram. Sharon Tan also copied down

the diagram onto a piece of paper133

for her own reference.

11.2 On 3 October 2009, Sharon Tan sent an Excel spreadsheet to Serina Wee containing

details of the aforementioned series of transactions134

. This spreadsheet was edited by

Serina Wee135

, following which she sent an email to Wahju on the tentative dates and

proposed actions for redemption of the Firna bonds136

.

12 Series of relevant transactions

12.1 On 2 October 2009, CHC transferred $5.8 million to AMAC137

as payment for

Tranche 10 of a Special Opportunities Fund (“SOF”) administered by AMAC.

12.2 By way of background, the SOF was an ongoing fund which was set up by AMAC in

2009. This fund comprised several tranches by which AMAC guaranteed the principal

and a fixed return to a client who had invested in a particular tranche. There were a

total of 15 tranches in the SOF from 17 March 2009 to 25 February 2010. CHC

invested into 13 of these 15 tranches, while the remaining tranches were invested into

by two other clients of AMAC.

12.3 Prior to investing in the individual tranches of the SOF, CHC had entered into an

“Agreement to participate in AMAC Special Opportunities Fund” (“Master

Agreement”) with AMAC dated 17 March 2009138

which stated:

The fund will issue subscription invitations as and when opportunities arise,

for specific amounts and for specific fixed periods. … The client has a right to

participate in the fund for amounts beginning from $1m upwards, and can

exercise that right by signing the subscription invitation.

132

Photograph of a whiteboard diagram. 133

Handwritten note. 134

Email from Sharon Tan to Serina Wee dated 3 October 2009. 135

Email from Serina Wee to Sharon Tan and Chew Eng Han dated 3 October 2009. 136

Email from Serina Wee to Wahju dated 3 October 2009. 137

DBS Transaction Advice dated 2 October 2009. 138

Agreement to participate in AMAC Special Opportunities Fund dated 17 March 2009.

22

12.4 The above Master Agreement was signed by Lam Leng Hung on behalf of CHC and

by Chew Eng Han on behalf of AMAC. Subsequently, when CHC invested in a

particular tranche of the SOF, it would enter into a separate agreement with AMAC

known as a “Subscription Invitation” for that tranche.

12.5 The details of the individual tranches of the SOF which CHC invested in, based on the

Subscription Invitations CHC entered into with AMAC, are set out in the following

table:139

Tranche Principal Investment Period Interest

1 $5 million 17 March 2009 – 16 June 2009 3% fixed

2 $7 million 27 March 2009 – 26 July 2009 5% fixed

3 $3 million 21 April 2009 – 20 August

2009

5% fixed

6 $1.5 million 1 June 2009 – 7 June 2009 3% fixed

7 $4 million 17 June 2009 – 30 August

2009

3% fixed

8 $1.5 million 29 June 2009 – 30 August

2009

4% fixed

9 $2.35

million

22 July 2009 – 29 July 2009 1% fixed

10 $5.8 million 2 October 2009 – 25

November 2009

5.05% per annum

11 $5.6 million 15 October 2009 – 25

November 2009

5.05% per annum

12 $1.2 million 12 November 2009 – 11

March 2010

4% absolute

13 $2.92

million

19 November 2009 – 18

February 2010

Based on share price

14 $3 million 23 November 2009 – 4

January 2010

Based on share price, minimum

1% absolute

15 $350,000 26 November 2009 – 25

February 2010

1% per month

12.6 The MAS Electronic Payment System (“MEPS”) application form140

for the transfer

of $5.8 million from CHC to AMAC on 2 October 2009 (in respect of Tranche 10 of

the SOF) was signed by Tan Ye Peng, Lam Leng Hung and Sharon Tan. AMAC

received the monies the same day.141

139

Series of Subscription Invitations between CHC and AMAC. 140

MEPS Payment Application Form. 141

Account Statement for AMAC’s Account No. 520887480001 with OCBC Bank from 1 to 31 October 2009 at p 1.

23

12.7 Also on the same day, Lai Baoting made an entry number GJ/BT/09/10/001 in CHC’s

General Journal,142

describing a payment of $5.8 million to AMAC as “Investment–

Special Opportunity Fund”.

12.8 On 5 October 2009, AMAC transferred $5.8 million to Ultimate Assets.143

12.9 On 6 October 2009, Ultimate Assets received the $5.8 million from AMAC,144

minus

a telegraphic transfer fee of $20.

12.10 On 7 October 2009, Ultimate Assets transferred $5.3 million to Firna, which it

received on the same day minus a telegraphic transfer fee of $37.01.145

12.11 On 9 October 2009, Firna transferred $5,228,750 to CHC.

12.12 On 13 October 2009, CHC received the $5,228,750 from Firna,146

minus a telegraphic

transfer fee of $25, as partial redemption of the Firna bonds.147

12.13 The sequence of fund transfers as detailed above is summarised in the diagram below:

12.14 On 15 October 2009, CHC transferred $5.6 million to AMAC148

as payment for

Tranche 11 of the SOF. The MEPS application form149

for this transfer was signed by

Sharon Tan, Suraj and Lam Leng Hung. AMAC received the monies the same day.150

12.15 On the same day, Angie Koh, the Accountant of Advante, sent an email151

to Sharon

Tan, copied to Chew Eng Han, Serina Wee and Lai Baoting, attaching an Advance

Rental Licence Agreement dated 1 October 2009 (“ARLA”) between CHC and Xtron

which was drafted by Rajah & Tann LLP. Angie Koh informed Sharon Tan in this

email that “You can use the attached to let the trustees sign this weekend”. The ARLA

was subsequently signed by Koh Siow Ngea on behalf of Xtron, and by Tan Yew

Meng, Ong Sueh Lian Susan and Cheong Tuck Mun Jeffrey as trustees of CHC.152

142

CHC General Journal entry for 2 October 2009. 143

OCBC Bank Debit Note dated 5 October 2009. 144

Account Statement for Ultimate Assets’ Account No. 1/175,566/00,04 with UBS AG from 1 to 31 October 2009 at p 1. 145

Account Statement for Firna’s Account No. 168-8010828 with Bank Central Asia from 30 September 2009 to 31 October 2009. 146

DBS Transaction Advice dated 13 October 2009. 147

CHC General Journal entry for 31 October 2009. 148

DBS Transaction Advice dated 15 October 2009. 149

MEPS Payment Application Form. 150

OCBC Bank Credit Note dated 15 October 2009. 151

Email from Angie Koh to Sharon Tan, Chew Eng Han, Serina Wee and Lai Baoting dated 15 October 2009. 152

Signed copy of Advance Rental Licence Agreement dated 1 October 2009.

CHC AMAC Ultimate Assets

Firna

Out: 2 Oct $5,800,000

In: 2 Oct $5,800,000 Out: 5 Oct $5,800,000 Out: 5 Oct $5,800,000 Out: 5 Oct $5,800,000

In: 6 Oct $5,799,980 Out: 7 Oct $5,300,000

In: 7 Oct $5,299,963 Out: 9 Oct $5,228,750

In: 13 Oct $5,228,725

24

12.16 The ARLA between Xtron and the CHC Trustees is dated 1 October 2009, and was

signed sometime after 15 October 2009. The ARLA was prepared by Christina Ng

from Rajah & Tann LLP and states:

“Whereas the Licensee (the CHC Trustees) desires to obtain and the

Licensor (Xtron) agrees to procure that the Licensee is able to use and

occupy certain auditorium space to be agreed between the Licensor

and the Licensee from time to time, upon the terms and subject to the

conditions contained in this Agreement”.

12.17 The licence is for a period of eight years and a Licence Fee of S$46,270,522.97 is

payable to Xtron over a period of 6 months. A further deposit of S$7 million is

required to be paid to Xtron as a Security Deposit, making a total sum of

S$53,270,522.97.

12.18 On 16 October 2009, AMAC transferred $5.6 million to Ultimate Assets,153

who

received the money on the same day minus a telegraphic transfer fee of $20.

12.19 On 20 October 2009, Ultimate Assets transferred $6.1 million to Firna.154

12.20 On 21 October 2009, Firna received the $6.1 million from Ultimate Assets, minus a

telegraphic transfer fee of $36.98.

12.21 On 22 October 2009, Firna transferred $6,061,950 to CHC.

12.22 On 23 October 2009, CHC received the $6,061,950 from Firna,155

minus a telegraphic

transfer fee of $25, as payment for redemption of the remaining Firna bonds with

interest.

12.23 The sequence of fund transfers as detailed above is summarised in the diagram below:

12.24 On 27 October 2009, Lai Baoting made an entry number GJ/BT/09/10/003 in CHC’s

General Journal,156

describing a payment of $5.6 million to AMAC as “Special

Opportunity Fund”.

153

OCBC Bank Debit Note dated 16 October 2009. 154

Account Statement for Ultimate Assets’ Account No. 1/175,566/00,04 with UBS AG from 1 to 31 October 2009 at p 2. 155

DBS Transaction Advice dated 23 October 2009. 156

CHC General Journal entry for 27 October 2009.

Out: 15 Oct $5,600,000

In: 15 Oct $5,600,000 Out: 16 Oct $5,600,000 Out: 5 Oct $5,800,000 Out: 5 Oct $5,800,000

In: 16 Oct $5,599,980 Out: 20 Oct $6,100,000

In: 21 Oct $6,099,963 Out: 22 Oct $6,061,950

CHC AMAC Ultimate Assets

Firna

In: 23 Oct $6,061,925

25

12.25 On 31 October 2009, Lai Baoting made an entry number GJ/BT/09/10/009 in CHC’s

General Journal,157

describing a set-off of $21.5 million in favour of Xtron as

“Redemption of Xtron Bonds”.

12.26 On 3 November 2009, Firna transferred $12,000 to AMAC.158

12.27 On 4 November 2009, AMAC received the $12,000 from Firna,159

minus a

telegraphic transfer fee of $10.

12.28 On 6 November 2009, CHC transferred $15,238,936.61 to Xtron,160

with $12 million

being part payment of advance rental under the ARLA between CHC and Xtron, and

the remaining $3,238,936.61 being Goods and Services Tax for the advance rental.

The MEPS application form161

for this transfer was signed by Sharon Tan, Aries

Zulkarnain and Lam Leng Hung. Xtron received this money the same day.162

12.29 On 6 November 2009, Lai Baoting made an entry number GJ/BT/09/11/001 in CHC’s

General Journal,163

describing the above payment of $15,238,936.61 to Xtron as

“Advance rental with Xtron”.

12.30 On 30 November 2009, AMAC’s account was debited for the sum of $12,000. This

sum was in respect of a cash cheque dated 26 November 2009164

which Chew Eng

Han had given to CHC.

12.31 On 1 December 2009, Xtron transferred $11,455,000 to Firna,165

pursuant to a bond

subscription agreement166

dated the same day between Xtron and Firna.

12.32 On 2 December 2009, Firna received the $11,455,000 from Xtron,167

minus a

telegraphic transfer fee of $6.90.

12.33 From 4 December 2009 to 14 December 2009, Firna transferred a total of

$11,476,000 to Ultimate Assets in three separate tranches, as follows:

(a) On 4 December 2009, Firna transferred $3,980,000 to Ultimate Assets, which

sum was received on 7 December 2009 minus a telegraphic transfer fee of $25;

157

CHC General Journal entry for 31 October 2009. 158

Account Statement for Firna’s Account No. 168-8010828 with Bank Central Asia from 31 October 2009 to 30 November 2009. 159

Account Statement for AMAC’s Account No. 520887480001 with OCBC Bank from 1 to 30 November 2009 at p 1. 160

DBS Credit/Debit Advice dated 6 November 2009. 161

MEPS Payment Application Form. 162

Account Statement for Xtron’s Account No. 074-900439-8 with DBS Bank from 1 to 30 November 2009 at p 2. 163

CHC General Journal entry for 6 November 2009. 164

Image of cash cheque dated 26 November 2009. 165

Account Statement for Xtron’s Account No. 074-900439-8 with DBS Bank from 1 to 31 December 2009 at p 1. 166

Bond Subscription Agreement between Firna and Xtron dated 1 December 2012. 167

Account Statement for Firna’s Account No. 168-8010828 with Bank Central Asia from 30 November 2009 to 31 December 2009.

26

(b) On 8 December 2009, Firna transferred $3,675,000 to Ultimate Assets, which

sum was received on 9 December 2009 minus a telegraphic transfer fee of $25;

(c) On 11 December 2009, Firna transferred $3,821,000 to Ultimate Assets, which

sum was received which sum was received on 14 December 2009 minus a

telegraphic transfer fee of $25.

12.34 On 15 December 2009 and 28 December 2009, Ultimate Assets transferred a total of

$11,475,825 to AMAC in two separate tranches of $5 million and $6,475,825

respectively,168

and these payments were received by AMAC on the same dates.169

12.35 On 16 December 2009 and 29 December 2009, AMAC transferred a total of

$11,476,665 to CHC in two separate tranches of $5,000,020 and $6,476,645

respectively, and these payments were received by CHC on the same dates,170

minus

telegraphic transfer fees of $20 for each of the transfers. CHC thus ultimately received

$11,476,625 from AMAC in respect of Tranches 10 and 11 of the SOF, comprising of

$11.4 million principal and $76,625 interest.

12.36 The sequence of fund transfers as detailed above is summarised in the diagram below:

12.37 In January 2010, CHC was successful in its bid to purchase a stake in Suntec City.

Subsequently, the ARLA was terminated and Xtron repaid CHC a total of S$40.5

million by 4 October 2010 comprising (a) $33,039,117.60 being the unutilized licence

fee, (b) $7 million being the full amount of the security deposit paid by CHC; and (c)

$453,103.02 being the interest accrued from the date of termination of the ARLA till

full payment.

13 Commercial Affairs Department’s Investigations

13.1 On 31 May 2010, the Commercial Affairs Department commenced investigations and

raided the offices of CHC, Xtron, International Harvest Pte Ltd, Advante, Attributes

168

Account Statement for Ultimate Assets’ Account No. 1/175,566/00,04 with UBS AG from 1 to 31 December 2009 at p 1. 169

Account Statement for AMAC’s Account No. 520887480001 with OCBC Bank from 1 to 31 December 2009. 170

Account Statement for CHC’s Account No. 012-010037-0 with DBS Bank from 1 to 31 December 2009 at p 1.

Out: 6 Nov $15,238,936.61

In: 6 Nov $15,238,936.61 Out: 1 Dec $11,455,000

Out: 5 Oct $5,800,000 Out: 5 Oct $5,800,000

In: 15, 28 Dec $11,475,825 Out: 16, 29 Dec $11,476,665

In: 2 Dec $11,454,993 Out: 4, 8, 11 Dec $11,476,000

CHC Xtron

Ultimate Assets

Firna

In: 16, 29 Dec $11,476,625

In: 7, 9, 14 Dec $11,475,925 Out: 15, 28 Dec $11,475,825

AMAC

27

Pte Ltd, and also the residences of the relevant individuals in order to secure

documentary and electronic evidence.

14 1 August 2010 EOGM

14.1 On 1 August 2010, CHC convened an EOGM. The minutes state that the Executive

Members gave approval on the following171

:

a) CHC’s use of its Building Fund to subscribe to the bonds issued by Xtron in 2007

and 2008 for up to $13 million and $25 million respectively at 7% and 5% interest

yields.

b) CHC’s use of its Building Fund to subscribe to the bonds issued by Firna in 2008

for up to $24.5 million at a yield of 4.5%.

c) CHC’s use of its Building Fund to pay the licence fee and security deposit

amounting to $53,300,000 to Xtron to secure an auditorium space for CHC for a

period of 8 years in 2009.

d) Continuing the Crossover Project and authorizing the Board to support the mission

on behalf of CHC.

The above facts are not disputed and are agreed upon between the Prosecution and the

Defence pursuant to Section 267 of the Criminal Procedure Code (Cap. 68, 2012 Rev. Ed.).

For the Public Prosecutor

Allen & Gledhill LLP

Counsel for Kong Hee

Tan Rajah & Cheah

Counsel for Tan Ye Peng

Michael Khoo & Partners

Counsel for Chew Eng Han

Nicholas & Tan Partnership

LLP

Solicitors for Lam Leng

Hung

Tan Kok Quan Partnership

Counsel for Tan Shao Yuen

Sharon

WongPartnership LLP

Counsel for Serina Wee Gek

Yin

10 May 2013

171

Minutes of EOGM dated 1 August 2010.

28

ANNEX B

GLOSSARY OF TERMS

Term Description

Xtron BSA Bond Subscription Agreement dated 17 August 2007 between

AMAC and Xtron

ABSA Amended and Restated Bond Subscription Agreement dated 20

August 2008 between the trustees of CHC and Xtron

Advante Advante Consulting Pte Ltd

Agus Agus Gunawan, chief financial officer of Firna

Ai Fang Foong Ai Fang, audit manager

Angie Koh Lee Ching Angie, staff member of CHC’s accounts department

AMAC AMAC Capital Partners (Pte) Ltd

ARLA Advance Rental Licence Agreement dated 1 October 2009 between

the trustees of CHC and Xtron

Attributes Attributes Pte Ltd

Baoting Dua Poh Teng Sheryl (Lai Baoting), staff member of CHC’s accounts

department

BF Building Fund of CHC

BSA Bond Subscription Agreement

CAD Commercial Affairs Department of the Singapore Police Force

CFO Chief Financial Officer

Charlie Lay Lay Nhuc Hiang Charlie, member of CHC’s investment committee

until sometime around February 2008

CHC City Harvest Church

CHPL City Harvest Pte Ltd

Citic Ka Wah Citic Ka Wah Bank Limited

DBS DBS Bank Ltd

EGM Extraordinary General Meeting of CHC

EMs Executive Members of CHC

Eng Han Chew Eng Han, fourth accused

Expo Singapore Expo Hall 8

29

Firna PT The First National Glassware

Firna BSA Bond Subscription Agreement dated 7 October 2008 between the

trustees of CHC and Firna

Foong Foong Daw Ching, senior partner of the auditors of CHC and Xtron

Foong Ming Wong Foong Ming, CHC human resource and admin manager and

board member until 2004

GF General Fund of CHC

JH Music JH Music Inc

John Lam John Lam Leng Hung, first accused

Kar Weng Choong Kar Weng , Xtron director

Martin Martin Ong Tiong Sing, CHC board member from 2007

Riverwalk 20 Upper Circular Road, #02-21, The Riverwalk

Serina Serina Wee Gek Yin/Serina Huang Yuyin, sixth accused

Sharon Tan Shao Yuen Sharon/Chen Shaoyun Sharon, third accused

Sim Sim Guan Seng, engagement partner for the audits of CHC and Xtron

from late 2008

Siow Ngea Koh Siow Ngea, Xtron director

SOF Special Opportunities Fund

Sun Ho Ho Yeow Sun

Suntec Suntec Singapore International Convention & Exhibition Centre

UA Ultimate Assets Ltd

UBS UBS AG

US United States of America

Wahju Wahju Hanafi

Xtron Xtron Productions Pte Ltd

Xtron-Firna

BSA

Bond Subscription Agreement dated 1 December 2009 between

Xtron and Firna

Ye Peng Tan Ye Peng/Chen Yiping, fifth accused