Wahju Hanafi maintains his stand on evidence he had submitted during cross-examination despite grilling by prosecution.
It was an afternoon of confusion as prosecution lawyer and prosecution witness appeared unable to decipher what each other meant.
In his re-examination of Wahju Hanafi, deputy public prosecutor Tan Kiat Pheng sought to clarify what he felt were inconsistencies in evidence given by Wahju Hanafi during his examination-in-chief and later on, cross-examination by the defense counsel.
Firstly, there was the revisiting of the “comfort letter” which contained the clause that should Firna default on its bonds issued to CHC, the shares to which the bonds could be converted to would be sold back to Firna at US$1—not in the church’s favor at all.
At several points, DPP Tan asked Hanafi if he wanted to reconsider the evidence he gave during his cross-examination, to which the witness firmly answered no. Hanafi stood his ground, stating that he would never buy back the shares at US$1 from the church after borrowing S$11 million, and that this letter was at no point a factor of consideration leading up to the signing of the bonds.
DPP Tan also sought to clarify the purpose for these bonds, and asked why Hanafi said that it was taken to repay a debt to Ultimate Assets when he said in cross-examination that it was to meet the margin calls of his private bankers in Papua New Guinea. Hanafi clarified that while the repayment of debt was the original intention for the bond issuance, changes to his personal finances over time simply meant that one purpose took precedence over the other.
The re-examination also touched on the topic of the cross-guarantee made by Kong Hee, Tan Ye Peng, Chew Eng Han and Koh Siew Ngea (see box story).
DPP Tan tried to establish that Chew Eng Han was involved in financing the Crossover Project even though he was not a staff of Xtron, by pointing out that it was Chew who negotiated with Citic Ka Wah Bank in Hong Kong for a loan facility.
The prosecution expects to complete the re-examination of Wahju Hanafi tomorrow when court resumes at 9:30 a.m.
CROSS GUARANTEE TOOK CENTER STAGE
In the course of the prosecution's re-examination this afternoon, DPP Tan Kiat Pheng repeatedly questioned Wahju Hanafi regarding a cross guarantee made by four individuals, namely, Kong Hee, Tan Ye Peng, Chew Eng Han and Koh Siow Ngea. This cross guarantee, as explained by Koh, director of Xtron when he took the stand as prosecution witness the first tranche, was a show of support by these individuals for Wahju Hanafi. It was their way of appreciating Hanafi for standing as guarantor for Xtron and the Crossover Project.
When cross-examined by SC Kannan Ramesh yesterday, Hanafi stated that he would not have invoked the cross guarantee if it came down to it.
DPP Tan questioned Hanafi this afternoon as to why there was a need for the cross guarantee in the first place? To which Hanafi replied that there was no need as he was not going to rely on it. DPP Tan went on to ask Hanafi how does a cross guarantee work? Would Hanafi have to cover the loss first, then claim against the cross guarantee?
Questioning on the cross guarantee went on for a good 20 minutes before DPP Tan decided to move on.