Auditor Tiang Yii was satisfied that bond subscription was authorized investment and the use of proceeds were in line with stipulated objectives.
The morning session saw senior counsel Andre Maniam bringing prosecution’s 10th witness Tiang Yii through several emails between Tiang, Serina Wee and Foong Ai Fang, an audit manager from Baker Tilly TFWLLP.
When asked if she was aware of discussions Wee had with Foong Daw Ching, then managing partner of the audit firm, regarding the matter of bonds, Tiang said she was not aware, apart from the fact that Foong had asked her to go through these matters with Wee.
With regards to an agreement appointing AMAC Capital Partners as City Harvest Church’s fund manager, the court heard that CHC’s lawyers had advised that AMAC subscribe to the Xtron bonds on behalf of CHC.
Email correspondence showed that Tiang had held an informal discussion with some members of the risk management committee, concluding that church members need not be told about the bond subscription and that Censere would be appointed to assess the fair value of the Xtron bonds.
When she had signed off on the Xtron audit for the financial year 2007, Tiang was aware that CHC’s audit for the year 2008 had already been completed. However, she did not see the need to look into CHC’s audit report.
Tiang, upon the request of Serina Wee, had agreed to remove the name of CHC from Xtron audit reports, and suggested to replace with the term “a church” instead. Tiang had also advised that disclosure of the purpose of the bonds was not necessary to the extent that it did not affect Xtron’s cashflow.
Michael Khoo, senior counsel for Chew Eng Han, established that auditors from Baker Tilly were satisfied that CHC’s subscription into Xtron bonds were authorized investment. The auditors were also satisfied that the use of funds had been disclosed and the use of proceeds was used in line with the stated objectives as stipulated in the bond subscription agreement.
Kenneth Tan, senior counsel for John Lam established that Lam was involved as board member approached by CHC to assist in audit issues.