City Harvest Trial: Church's eight-year lease agreement with Xtron "didn't make sense"
Published on Jan 21, 2014 2:12 PM
City Harvest Church's $46.3 million eight-year rental lease agreement with music production firm Xtron puzzled the church's auditor, who on Tuesday said it "didn't make sense".
Under the contract, signed in October 2009, Xtron would have to procure a location to be leased to the church for worship. At the time, its lease of Singapore Expo was to expire on Sept 30, 2011.
Baker Tilly managing partner Sim Guan Seng, who presided over the church's accounts for financial years 2008 and 2009, and for Xtron's in 2008, said: "That's a big sum of money to pay to a company like Xtron."
He was taking the stand for the third day on Tuesday. "In a sense, you are paying for rental commitment when Xtron didn't have a lease to back it up. So we were wondering why was it done. Commercially it just didn't make sense."
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