<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Owners fork out $2.3m for RTC's fengshui
Money was for consultation, some work done: Witness
By Karen Wong
September 18, 2008
THE new owners of Raffles Town Club (RTC) spent almost $2.3 million on fengshui consultation fees.
FOR LUCK?: Finance manager Moh Siang King couldn't recall the name of company that was paid for the fengshui consultancy of Raffles Town Club. BT FILE PICTURE
That figure raised some eyebrows in court yesterday, when Mr Peter Lim's lawyer, Senior Counsel Thio Shen Yi, brought it up during his cross-examination of the club's finance manager, Ms Moh Siang King.
Mr Thio was going through the club accounts after Mr Lim and the other defendants left the club in May 2001, with Ms Moh, the club's main witness.
A letter from the taxman to its auditors for the year 2001, he pointed out, stated that the club spent $833,000 in legal fees in defending the members' suit.
And, it also forked out $2.338 million in fengshui consultancy fees.
Mr Thio: 'What are these fengshui consultation fees of $2.3 million for?'
Ms Moh: 'This is to see the fengshui for the whole club.'
Mr Thio: 'I see. $2.3 million for fengshui?'
Ms Moh: 'I believe there are other fees incurred also.'
Justice Chan Seng Onn: '..... so as a result of fengshui, there would be a lot of renovations after that?.... As a result of consultation, what happened? Were there renovations?'
Ms Moh: 'I know they changed some colours of the pillar, they put in additional things.'
No checks
When Mr Thio asked to whom the consultation fees had been paid, Ms Moh replied that she could not remember the company's name.
RTC wants Mr Lim and the other defendants - Mr Lawrence Ang, Mr William Tan and Mr Dennis Foo - to pay back some $130 million that it claims they had 'siphoned' out of the club.
Mr Thio yesterday took Ms Moh through the club's accounts that listed what Mr Lim and the club's former directors spent on, among other things, donations, cars, entertainment and a holiday trip for Mr Foo and eight others.
Referring to the trip, Mr Thio asked Ms Moh: 'Has any attempt been made to check with Mr Foo what this payment was for?'
Ms Moh: 'No.'
Mr Thio: 'You have no knowledge as to whether Mr Peter Lim was on this trip, correct?'
Ms Moh: 'No.'
Mr Thio: 'You have no basis to comment whether or not this is unjustified or unreasonable, correct?'
Ms Moh: 'Yes.'
Mr Thio: 'I suggest to you that the only people who would know why RTC is suing would be the directors (Mr Lin Jian Wei and Ms Margaret Tung), correct?'
Ms Moh: 'Yes.'
Mr Thio: 'You can't even tell us that this is unjustified or unreasonable. And the directors aren't coming. (Which is, they are apparently not taking the stand). I put it to you that this is a frivolous and vexatious claim, do you agree?'
Ms Moh: 'I can't comment on this.'
The club is claiming that the club's former directors, and Mr Lim as 'de-facto director' allegedly breached their duties to the club by accepting 19,000 members and they now want them to make good the $33 million which the club paid out to its members after it lost a class action.
But, the defendant's case is that they had not breached their duties.
Mr Lim, Mr Ang and Mr Tan are alleging that the club's new owners, Mr Lin and Ms Tung, had themselves depleted the club's reserves to 'unjustly enrich' themselves.
Mr Thio also raised the point that the defendants had not acted in breach of their duties in accepting 19,000 members but were actually acting in what they believed was the club's best interest.
He then turned the club's own case in the members' suit on the club yesterday.
He pointed out to the court that the club had, in that lawsuit, got three accounting experts, including well-known accountant Nicky Tan, who testified in court that if the club had taken in only 5,000 to 7,000 members, it would not have been able to survive.
Mr Thio to Ms Moh: 'Are you aware that RTC argued very strongly that it needed 19,000 members, otherwise, the club would become bankrupt? Are you aware of this?'
Ms Moh: 'Yes.'
The hearing continues today.
</TD></TR></TBODY></TABLE>
Money was for consultation, some work done: Witness
By Karen Wong
September 18, 2008
THE new owners of Raffles Town Club (RTC) spent almost $2.3 million on fengshui consultation fees.
FOR LUCK?: Finance manager Moh Siang King couldn't recall the name of company that was paid for the fengshui consultancy of Raffles Town Club. BT FILE PICTURE
That figure raised some eyebrows in court yesterday, when Mr Peter Lim's lawyer, Senior Counsel Thio Shen Yi, brought it up during his cross-examination of the club's finance manager, Ms Moh Siang King.
Mr Thio was going through the club accounts after Mr Lim and the other defendants left the club in May 2001, with Ms Moh, the club's main witness.
A letter from the taxman to its auditors for the year 2001, he pointed out, stated that the club spent $833,000 in legal fees in defending the members' suit.
And, it also forked out $2.338 million in fengshui consultancy fees.
Mr Thio: 'What are these fengshui consultation fees of $2.3 million for?'
Ms Moh: 'This is to see the fengshui for the whole club.'
Mr Thio: 'I see. $2.3 million for fengshui?'
Ms Moh: 'I believe there are other fees incurred also.'
Justice Chan Seng Onn: '..... so as a result of fengshui, there would be a lot of renovations after that?.... As a result of consultation, what happened? Were there renovations?'
Ms Moh: 'I know they changed some colours of the pillar, they put in additional things.'
No checks
When Mr Thio asked to whom the consultation fees had been paid, Ms Moh replied that she could not remember the company's name.
RTC wants Mr Lim and the other defendants - Mr Lawrence Ang, Mr William Tan and Mr Dennis Foo - to pay back some $130 million that it claims they had 'siphoned' out of the club.
Mr Thio yesterday took Ms Moh through the club's accounts that listed what Mr Lim and the club's former directors spent on, among other things, donations, cars, entertainment and a holiday trip for Mr Foo and eight others.
Referring to the trip, Mr Thio asked Ms Moh: 'Has any attempt been made to check with Mr Foo what this payment was for?'
Ms Moh: 'No.'
Mr Thio: 'You have no knowledge as to whether Mr Peter Lim was on this trip, correct?'
Ms Moh: 'No.'
Mr Thio: 'You have no basis to comment whether or not this is unjustified or unreasonable, correct?'
Ms Moh: 'Yes.'
Mr Thio: 'I suggest to you that the only people who would know why RTC is suing would be the directors (Mr Lin Jian Wei and Ms Margaret Tung), correct?'
Ms Moh: 'Yes.'
Mr Thio: 'You can't even tell us that this is unjustified or unreasonable. And the directors aren't coming. (Which is, they are apparently not taking the stand). I put it to you that this is a frivolous and vexatious claim, do you agree?'
Ms Moh: 'I can't comment on this.'
The club is claiming that the club's former directors, and Mr Lim as 'de-facto director' allegedly breached their duties to the club by accepting 19,000 members and they now want them to make good the $33 million which the club paid out to its members after it lost a class action.
But, the defendant's case is that they had not breached their duties.
Mr Lim, Mr Ang and Mr Tan are alleging that the club's new owners, Mr Lin and Ms Tung, had themselves depleted the club's reserves to 'unjustly enrich' themselves.
Mr Thio also raised the point that the defendants had not acted in breach of their duties in accepting 19,000 members but were actually acting in what they believed was the club's best interest.
He then turned the club's own case in the members' suit on the club yesterday.
He pointed out to the court that the club had, in that lawsuit, got three accounting experts, including well-known accountant Nicky Tan, who testified in court that if the club had taken in only 5,000 to 7,000 members, it would not have been able to survive.
Mr Thio to Ms Moh: 'Are you aware that RTC argued very strongly that it needed 19,000 members, otherwise, the club would become bankrupt? Are you aware of this?'
Ms Moh: 'Yes.'
The hearing continues today.
</TD></TR></TBODY></TABLE>
