Investigations On 31 May 2010, the Office of the Commissioner of Charities and the
Commercial Affairs Department of the Singapore Police began investigating more than 16 individuals linked to City Harvest Church, including church founder Kong Hee and his wife,
Sun Ho. The police were looking into financial transactions involving the possible falsification of accounts and criminal breach of trust amounting to millions of dollars which dated back a number of years. The authorities allowed regular church activities and services to continue for the congregation during ongoing investigations. On 26 June 2012, the Commissioner of Charities released a press statement detailing the results of its inquiry. It stated that there were misconduct and mismanagement in the administration of City Harvest Church. There were irregularities of at least $23 million in the church's funds, which were used to finance
Sun Ho's secular music career. There was also a concerted effort to conceal this movement of funds from stakeholders. Kong Hee and seven others were suspended from their roles in the church. A subsequent report indicated that the investigations were trigged by complaints made to the authorities.
Arrests and charges Also on 26 June 2012, Kong Hee and four other leaders of City Harvest Church were arrested and charged with misuse of funds. A sixth leader was charged on 25 July 2012. All six accused were granted bail of S$500,000 and had their passports impounded.
Trial and conviction The trial of Kong Hee and the five other leaders commenced in May 2013 and was adjourned several times. There was a total of 142 days of hearings. The verdicts were announced on 21 October 2015. Kong Hee and the other five leaders were found guilty of all charges. Sentencing was on 20 November 2015. Kong Hee received the heaviest sentence of the six, 8 years in prison. Following a request from the defendants, the judge agreed to defer the start of the sentences until 11 January 2016.
Related decisions In 2017, the Commissioner of Charities permanently barred the six in the case, with two additional church executive members,
Kelvin Teo Meng How and Tan Su Pheng Jacqueline, from holding key management positions or being a board member in City Harvest Church or any other charity. Additionally the church was barred from paying the legal fees for the six. However, they were still allowed to perform their religious activities.
Appeals On 27 November 2015, it was reported that the Attorney General's Chambers had filed appeals against the sentence issued to Kong Hee and the five other defendants, on the grounds that it was "manifestly inadequate". On 2 December 2015, it was reported that Kong Hee and the other five defendants had also filed appeals. On 4 March 2016, it was reported that the appeal hearing would commence on 19 September 2016. On 7 April 2017, his original sentence of 8 years in prison was reduced to 3.5 years. In delivering their decision, the judges noted that there was no element of wrongful gain or personal financial benefit, either direct or indirect. The Court of Appeal acknowledged that “The theological legitimacy of the Crossover as a means of evangelism is not an issue in this case.” (Para 1) However, this contract between Sun Ho and Xtron was terminated in August 2008. In addition, he had told members they were off-salary from the church. A private fund was set up to and raised over $3 million “to fund the [Crossover] Project” and was fully expended in just 3 years for the purposes of the Project. Kong Hee began serving his sentence on 21 April 2017.
Comments by the Minister for Law Expressing his disappointment by the Court of Appeal's decision to overrule a 1976 High Court decision, which had held that company directors could be convicted for criminal breach of trust under section 409 of the Penal Code,
Minister for Law K Shanmugam said, “The government believes the sentences are too low. But the sentences reflect the law as it stands after the High Court’s decision last year confirmed by the Court of Appeal. The courts decide these matters. All of us have to respect the decision regardless of whether we agree or disagree with it.” “It is now up to Parliament to amend the law, and that we should do soon. We will ensure that legislation provides for higher penalties for directors and other senior officers who commit criminal breach of trust,” he added.
Release On 22 August 2019, Kong Hee was released from prison, having served 2 years and 4 months of the sentence. Inmates typically serve two-thirds of their sentence before released on remission for good behaviour. In his first appearance at the church after his release, Kong delivered a four-minute speech apologising to church members for "any pain, anxiety, disappointment, or grief that you have suffered because of me". ==Controversies==