Prosecutors shed light on the alleged misuse of City Harvest Church funds on Wednesday morning as it brought church founder Kong Hee and four senior church members to court on charges of criminal breach of trust and falsifying accounts.
They were said to have diverted $24 million of the church's building fund to finance the music career of singer Sun Ho, who is Kong's wife. This was said to have been carried out through a series of purported bond investments in two companies, Xtron Productions and PT The First National Glassware.
The prosecution believes that the investment were sham transactions. $13 million was diverted to Xtron, with the remaining $11 million of church funds going to the other company.
Deputy Public Prosecutors Christopher Ong and Grace Goh told a district court that not only had they allegedly diverted $24 million through questionable financial transactions, some of them had conspired to misappropriate another $26.6 million of church funds to avoid scrutiny.
'It is the Prosecution's case that these further monies were circulated... to create the false appearance that the purported sham bond investments had been redeemed, when in fact the 'redemption' had been financed using these further monies misappropriated from church funds,' they said.