THE abbot of Leong Hwa Monastery, testifying over an ill-fated joint venture to build a columbarium, admitted yesterday he asked for a fee equivalent to 5 per cent of construction costs, which were more than $20 million.
Venerable Meow Ee eventually received $900,000 from a business partner during the deal, the High Court heard yesterday.
The money, banked into a funeral services company owned by the monk, was for 'religious professional fees', the court heard.
ABOUT THE CASE
WHO'S WHO
Plaintiff
Poh Lian Development, main financier of the columbarium project, which put in $13.3million
Defendants
Hok Mee Property, project manager, which invested $5.73 million
Leong Hwa Monastery, which lent its name for the land tender
Hok Chung Construction, main contractor
Mr Kek Kim Hok, majority shareholder of Hok Mee and Hok Chung
WHO SAYS WHAT
Poh Lian claims:
Hok Mee failed to provide a full account of expenses and income in the project
Leong Hwa failed to account for $2.02 million from sales of niches
Hok Chung significantly overclaimed for works
Mr Kek, as project mastermind, committed fraud by: causing overpayments of $14.4 million to Hok Mee and Hok Chung; 'fixing' the tender exercise so Hok Chung got the main contract; making sure architects were paid a significant sum - $2.15 million - so they did not question claims by Hok Chung
Hok Mee and Mr Kek claim:
Failure to account for sales proceeds came from Leong Hwa, and Poh Lian itself failed to give proper accounts
Leong Hwa claims:
It was 'used' by Poh Lian and Hok Mee to make money
Award of main contract to Hok Chung was a sham
Hok Mee failed as co-financier and financial controller of project
He said he used the money to repay bank loans taken out to renovate the temple, which came up to more than $900,000. He produced documents showing a $420,000 payment.
Yesterday was Venerable Meow Ee's fourth day on the stand in the long-running legal tangle between the temple and its former business partners.
The dispute stemmed from a 1999 joint venture between Poh Lian Development, Hok Mee Property and the temple, to build a columbarium in Choa Chu Kang Road.
Poh Lian was the main financier. The temple was roped in because only religious organisations can bid for land to build columbariums.
The business relationship eventually soured and the $50 million project was sold for $26 million.
Poh Lian, represented by Ms Tan Lee Cheng, sued to get back its $13.3 million investment.
The hearing into the suit began in March last year. Venerable Meow Ee took the stand last week and details of his pay and business and property interests emerged.
He earned about $100,000 a year in the past few years, and in 2001, took home $660,000. He owns a coffee shop with five family members, as well as two flats, one jointly with a brother. He has a stake in at least four companies.
Yesterday, he was quizzed on various sums of money relating to the columbarium project.
One was the $1.02 million the business partners gave the temple, to pay a marketing agent. But only about $290,000 was paid out.
The monk said the temple was entitled to keep the remaining $700,000 because the agent did not do its job properly.
Also at issue was $800,000 Venerable Meow Ee lent to four Poh Lian directors through one of his companies.
The monk, represented by Mr Julian Lim, insisted the loan was authorised by the business partners.
The trial, which went into its 37th day yesterday, will be heard for another six days.
Monastery earned $1.2m last year
THE Leong Hwa Monastery, now in the midst of a court battle, was founded over a century ago, according to its website.
Formerly known as the Leong Hwa Chan Si Temple, it earned about $1.2 million last year, the Commissioner of Charities told The Straits Times yesterday.
Located in the Novena area, the monastery's income was about $1 million in 2006.
The money came from donations, special events and the placement of ancestral tablets and niches, said the commissioner.
Monastery staff would not give contact information of its leaders when The Straits Times visited yesterday afternoon.
In 2001, the monastery set up its community service arm - Viriya Community Services.
Today, Viriya Community Services runs various outfits, including a childcare centre and a facility which counsels dropouts and other at-risk youth.
The president of Viriya Community Services is the Venerable Meow Ee, who is also the monastery's abbot. His secular name is Mr Chia Eng Soon.
This article was first published in The Straits Times on May 21, 2008
