While Tan Ye Peng and the other co-accused had relied on Wahju Hanafi’s commitment to sponsor the Crossover Project, it was only formalized on paper in 2010 for accounting reasons, Tan explained in court today.
This afternoon in court, Tan Ye Peng was accused by the prosecution of being involved in creating the false impression that the Xtron bonds were a secure investment.
Over the course of City Harvest trial proceedings, the court has seen that Wahju Hanafi’s personal guarantee had been backdated to the time the Xtron bond subscription agreement was signed. Hanafi testified during his time on the stand as a witness for the prosecution that he had agreed to underwrite the Crossover Project.
The prosecution charged that this backdating was done to create the impression that the accused had considered the interest of the church before investing in a loss-making company like Xtron.
Tan disagreed; he explained that when Hanafi had signed on the first bond subscription agreement, it was as good as him giving his word that he would ensure the fulfilment of financial obligations to CHC as Xtron’s director.
A long-time church member, Hanafi has faithfully fulfilled his tithes—a non-contractual commitment—to the church, what more after putting his signature on a legally binding agreement? Tan testified.
The prosecution then questioned the need to draw up a personal guarantee in Mar 2010, which was backdated to 2007.
Tan explained that it was done to formalize Hanafi’s personal guarantee for accounting reasons, echoing Chew Eng Han’s evidence during his time on the stand.
The deputy public prosecutor, pointing to the “convoluted” cross-guarantee signed by Tan along with Kong Hee, Chew Eng Han and Koh Siew Ngea, theorised that the accused never had the intention to hold Hanafi liable for Xtron’s debt to CHC, and that this was so because the bonds were sham in the first place. Tan refuted her allegation.
This morning, Tan explained to the court that while the liability of repaying the Xtron bonds lay with Xtron, it was Kong Hee and his responsibility to ensure the success of the Crossover Project.
The prosecution had asked him who had the obligation to repay the Xtron bonds. Tan explained that because the Crossover Project was Kong’s vision for the church, it was firstly his responsibility to ensure its success; Tan, Chew and also Wahju Hanafi, Xtron’s director, would be assisting him.
Tan made the distinction between Xtron’s liability of repaying the bonds and the responsibility for the success of the Crossover Project. He explained Xtron had other sources of revenue besides the sales of the Crossover album. However, because a large part of Xtron’s money went to the Crossover, Kong and he had to ensure that the Crossover succeeded. If the project did not succeed, they would then depend on Hanafi to source for funds to repay the bonds with the help of the rest of the team. He emphasized that they would never allow the church to suffer loss.
Cross-examination of Tan resumes tomorrow at 9.30am.
中文报道 – 城市丰收审讯：陈一平完全信任何清伟会履行承诺