Petition To Prime Minister Lee Hsien Loong

[Ilovelamb]

http://forums.asiaone.com/showthread.php?t=36258

GROSS MISREPRESENTATION

Last year in early May a forummer initiated the idea to send a petition to Prime Minister Lee concerning the non disclosure to its members of how the $310 million will be spent. Many forummers and members of the public participated in the petition. In end May 10, we witnessed the CAD raid and probe.

Given the strong and clear evidence and facts of gross misrepresentation in the $310 million SCC deal vis-a-vis City Harvest Church’s Arise and Build project, it would be appropriate to raise another petition to the PM. I encourage all concerned Singaporeans who would like to see justice being served to do their civic duty by emailing the petition (see below) to Prime Minister Lee: [email protected]

I would also urge all Singaporeans in the name of public interest to encourage others to help bring justice to those that have been misled, who could be their relatives, friends, colleagues and even their children.

As a gentle reminder, kindly state your name before you email the petition. There is nothing to be afraid of as we are embarking on a salutary cause to help our fellow citizens and to make Singapore a better place for ourselves and our children. Singapore and Christians thank you for your support.

__________________________________________________ ______________


Dear Prime Minister Lee,

Members of the public are appreciative of the actions that the Government has taken to look into possible wrong doings in City Harvest Church by the CAD’s raid last year and the on-going probe into the Church’s alleged misuse of church funds, criminal breach of trust and falsification of documents. This is the second public petition to Prime Minister Lee to look into specific matters of this Church. In May last year, a petition was sent to request that the Government look into the non-disclosure of how the $310 million SUNTEC Convention Centre (SCC) commercial deal will be committed by the Church.

Since 2006, City Harvest Church has launched an annual fund raising campaign termed, “Arise and Build”. The objective of the “Arise and Build” fund raising campaign as articulated by the Senior Pastor, Pastor Kong Hee “we want to build God a house”. Appended below as annexes are some of the “Arise and Build” campaign’s trailers that the Church has used for their fund raising awareness and marketing effort that clearly give the “Arise and Build” project’s vision and objective.

Thus far, the Church has completed six “Arise and Build” campaigns and has successfully collected at least $120 million from their six annual fund raising campaigns. Much of the success can be attributed to the fact that members of the Church are supportive of the vision and objective of the “Arise and Build” project to build a new Church in the market place and the Senior Pastor’s appeal to the members to give their best, to give until their heart is broken, to give until tears stream down their eyes.

The Church has announced that the new premises will be located at the SUNTEC Convention Centre and that the Church is paying $310 million to become SUNTEC co-owner.

http://www.chc.org.sg/eng/church/church_CHCNewHome.php

http://www.chc.org.sg/eng/church/chu...uildingFAQ.php

We now however understand that the Church has not actually purchased the premises and that the premises will be made available only through rental arrangements with SCC. All members have donated their monies on the basis of the Church’s proclamation that the “Arise and Build” project is “to build God a house”. Given the current rental arrangements, the promises and commitments to build or at least owned a Church has not been fulfilled. In financial terms, there is a big difference between building a Church and renting one. We feel that the Church has made misrepresentation to deceive or mislead the members.

We would greatly appreciate that our Government look into this matter in the name of public interest.

Yours Sincerely,

(Kindly state your name)

Annexes

http://www.youtube.com/watch?v=ozGSUSz6TZg
http://www.youtube.com/watch?v=XMK6GjNCQfk
http://www.youtube.com/watch?v=7jzbscnPZD0&NR=1
http://konghee.multiply.com/video/it...ise_Build_2007

 

[Tristan]

Kenna cheated because of gullibility, now come and KPKB. Petition to PM some more.

There's a lesson to be learnt here: Never give money to anyone who tries to tell you to part with your money so he can "build" a home for GOD. If HE is truly almighty, HE doesn't need farkers like Kong Hee Fat Choy to go around collecting $$ to build his "home".

 

[moolightaffairs]

aiyah! tulan because all give so much. but only a few enjoy. those slaves will look up to the master and give more. those wake up ones will tulan and play the master out.

if u ask me, i think our gov not steady. so scared of those bloody church, CHC and NCC. a lot of civil servants are christians and i believe a lot of them or their children in these 2 church. so all these civil servants will try to stop action from being taken against these 2. if im in charge, i will use lao lee ops cold store method to raid and arrest those people in these 2 churches committees and seal the place up. freeze the bank ac and confiscate all the assets and money. throw those fella in jail and see if god can save them.

 

[Harvester]

Questions to the Board of Directors - City Harvest Church

1.How much more fund does CHC need to raise in order to pay for the stake in Suntec?

During “Arise and Build” campaign 2011, CHC reiterated that $310 million is needed to cover the investment in Suntec Singapore which includes:

1.An undisclosed stake in Harmony Partners Investments Limited (HPIL) that owns 80% of Suntec Singapore
2.Rental cost over the licensed period (10 years)
3.Rental deposits
4.Renovation
5.Equipment
6.Periodic shifting

Prior to the latest “Arise and Build” 2011 campaign that received pledges of $23 million, CHC had raised in excess of $100 million from the previous “Arise and Build” campaigns.

From the Press Release by Suntec REIT on 12 Aug 2011, Suntec REIT paid $114.75 million to acquire 51% of Harmony Partners Investments Limited (“HPIL”) which owns 80% of Suntec Singapore International Limited (“Suntec Singapore”). This acquisition (80 X 51%=40.8%) raised Suntec REIT's stake in Suntec Singapore from 20% to 60.8%.

This implies that the maximum stake CHC can own in HPIL is 49%. This translates to a maximum 39.2% stake in Suntec Singapore that is worth $110.25 million, according to the latest valuation paid by Suntec REIT. However, CHC cost is probably lower than $110.25 million as CHC bought at least part of the stake earlier.

This also implies that the “Arise and Build” fund raised prior to 2010 can almost cover the entire cost of CHC's stake in Suntec Singapore, assuming that it is at the maximum of 39.2%.

This means $200 million ($310 - $110.25 million) will be used to pay for items 2-6 above.
Renovation (Item 4) and Shifting (Item 6) should be well below $1 million as there are few permanent fixtures and many volunteers help in the shifting.
Equipment cost (Item 5) to date is $13 million (announced during the special OM Meeting). A huge number but should not increase by much over next 10 years.

This means the rental cost (Item 2) and rental deposit (Item 3) is around $186 million over the leasing period of 10 years starting from March 2011.
Assuming the rental deposit is 3 – 12 months, the yearly rental cost is around $14 - 15 million per year, for the usage of 40+% of space in Suntec Singapore, 2 days a week.

Comments

For prudency, especially so for a religious organisation, recurring operating expenses such as rental should always be part of a Church's annual budget, instead of relying on multiple yearly “Arise and Build” campaigns, which calls for sacrificial givings from the congregation.

This contradicts the original objectives of purchasing a stake in Suntec Singapore, which is to help set off the rental cost with dividend income from the co-owenership of Suntec Singapore.

“It is specifically intended to hedge the Church against its rental costs at the same Convention Centre, and dividends received will help to defray rental costs. “
~ CHC special notice 26 March 2010

Even if there is a shortfall, it should be funded from Church's annual budget, not from extraordinary fund-raising event like “Arise and Build” campaign.

CHC Board of Directors will have to decide:
whether to allow the continuation of this mismatch of long-term liability with revenue derives from extraordinary fund-raising events.
Whether to allow the continuation of this “Arise and Rent” campaign, taking into account that over 90% of CHC members tithe and offerings are collected at every service and Cell Group Meeting.

2.CHC's Financial Risk Exposure - Suntec Singapore Asset Enhancement Initiative

On 31 October 2011, Suntec REIT announced a $410 million captial expenditure to remake Suntec City. This includes a $180 million Asset Enhancement Initiative (AEI) on Suntec International Convention and Exhibition Centre (“Suntec Singapore”).

From the Presentation Slides released by Suntec REIT, the $180 million capital expenditure will be raised from bank borrowings. With a 39.2% (maximum) stake in Suntec Singapore, CHC's exposure to this bank loan is $70.56 million.

Comments

As a 49% (maximum) shareholder of HPIL, CHC either agreed to this $180 million capital expenditure or was powerless to deter ARA Trust Management (Suntec) Limited, the manager of Suntec REIT, from carrying out the AEI.

Like it or not, CHC will be liable for up to $70.56 million of bank loan in order to participate in the $410 million remaking of the entire Suntec City, majority-owned and control by ARA .

This additional exposure of up to $70.56 million may enhance the dividend return from Suntec Singapore, but then again, it may not.

CHC Board of Directors will have to decide
whether it is the mandate of a Church body to undertake such a venture when most of the congregation does not understand the liablity implications.
Whether it is good corporate governance when no mandate has been sought from the congregation for a liability of this magnitude.
Whether it is prudence for CHC to be a minority shareholder that has no control of an asset

3.Corporate Governance, Transparency and Disclosure

CHC has repeatedly declined to disclose details of the financials on the acquisition of a minority stake in Suntec Singapore, citing NDA signed with the private investors of HPIL.

From a Press Release by ARA dated 12 August 2011, it announced the divestment of the interests of the private investors in the ARA Harmony Fund.
ARA Harmony Fund was established to hold the 80% stake in the Suntec International Convention & Exhibition Centre (“Suntec Singapore”) owned by the private investors of Harmony Partners Investments Limited (HPIL).
HPIL bought the 80% stake in Suntec Singapore in September 2009, a few months before selling an undisclosed minority stake to CHC.
ARA Harmony Fund achieved an overall internal rate of return of 64.8% and an equity multiple of 2.2 times for the investors.
The return was so outstanding that ARA was awarded by ARA Harmoney Fund an one-off acquisition and performance fee of $10.7 million for its services.

By the end of Augest 2011, all the original private investors had exited from HPIL with a very handsome profit of 2.2 times for an investment of 24 months. Please note that these private investors used BVI companies to hold the shares, so their identities are not revealed.

The unusual all-encompassing, can-saying-nothing NDA was signed between the original private investors of HPIL and CHC.

Suntec REIT, the new majority shareholder of HPIL has a totally different attitude toward transparency and disclosure.

From a Press Release by Suntec Reit dated 1 Nov 2011, titled "Suntec REIT was conferred SIAS' "Most Transparent Company" Award 2011 (Runner-up, REIT category)."

~ (Mr Yeo See Kiat, CEO of ARA Trust Management (Suntec) Limited, said, "I am pleased that we have received this award for the sixth year in recognition of Suntec REIT's good corporate transparency and disclosure...")

From another Press Release by ARA Asset Management, Suntec REIT's controlling shareholder, dated 28 Oct 2011, titiled “ARA Asset Management's emphasis on corporate governance recognized by SIAS' inaugural “Internal Audit Excellence Award””

~ (ARA's Group CEO, John Lim commented; “We believe that sound corporate governance policies and practices is the foundation for a trusted, successful, profitable and respected business organisation.”)

Comments

The lack of transparency in CHC's acquisition of Suntec Singapore has had unnecessary brought the good name of a Church into disrepute, judging from the many discussions and postings on internet forums.

CHC Board of Directors will have to decide on the followings:
With a new major shareholder in HPIL that publicly epouses sound corporate goverance polices, corporate transparency and disclosure, is it time for CHC to seek partial or full release from the original NDA, with the full support of Suntec REIT?
Review the constitutions to accord an Ordinary Member the right to vote at AGM. If necessary, the Board can introduce new measures to tighten the requirements for one to become Ordinary Member.
Review the procedures of AGM to ensure that there is open debate and discussion on important resolutions
Introduce “Voting by ballot” on all resolutions instead of a simple show of hands
Post the updated Financial Statements on CHC website.
Provide details on breakdowns for the millions spend on outreach programs.