'There was nothing sinister'
THE founder of Sunshine Empire, which allegedly operated a
multimillion-dollar scam, denied it was a fraudulent business.
James Phang Wah, 49, maintained this when cross-examined by
Deputy Public Prosecutor Aedit Abdullah in court on Tuesday.
The prosecution had alleged that the firm's business was not
sustainable as it had no substantial source of income except for
the sale of its lifestyle packages, which would increase the costs
of rebates as there would be more customers.
Phang disagreed and said that the total costs did not amount to
50 per cent. He had also delayed payment of his consultancy fee for
1 1/2 years until October 2007, and even then, the US$5 million
(S$7 million) he received did not amount to the agreed 5 per cent
of sales turnover. He told the court that there was nothing
sinister or illegal about Sunshine's business.
Also on trial with Phang are the firm's president Jackie Hoo
Choon Cheat, 29, and Phang's wife Neo Kuon Huay, 46, who was
described as the group sales director.
Hoo is also accused of receiving about $950,000 by abetting
Phang in criminal breach of trust, while Neo is said the have
falsified payment vouchers to receive nearly $1 million in
commissions.
Hoo is expected to testify next.
-- ST
