SINGAPORE – In a high-profile legal case, two prominent media figures, Mr Chua Chim Kang and Ms Lee Kuan Fung, are facing a lawsuit from businessman Ren Xin Wu, who seeks the return of a $990,000 interest-free loan. This amount was initially invested in a company called Homing Holdings, established to promote Mandarin in Singapore.
Background of the Case
Mr Ren, a Canadian national of Chinese origin, claims he provided the funds to Chua, head of the Chinese news team at Mediacorp, and Lee, a former associate editor at Singapore Press Holdings (SPH), back in 2017. According to Ren’s lawyer, Jasmin Kang, the loan was to be repaid within three years, but allegations of mismanagement have arisen.
Allegations of Mismanagement
- Mr Ren accuses Ms Lee of financially mismanaging Homing Holdings.
- He claims that she diverted $40,000 to a consultancy firm named Goldciti in a dubious transaction.
- This payment is considered by the plaintiff to be an attempt to siphon money from the failing company.
Failure to Repay the Loan
The loan was due on 27 July 2020, yet no payment was made, despite Mr Chua’s initial assurances, including an offer to mortgage his house to cover the debt. Legal demands for repayment began in September 2020, leading to the company’s eventual liquidation in January 2021.
Defence’s Position
The defence claims that revenues for Homing Holdings suffered greatly due to the COVID-19 pandemic in 2020, challenging Ren’s assertion that the loan repayment was neglected. They argue that Ren applied pressure through legal means which the defence views as harassment, suggesting that they simply sought to enforce their rights.
Trial Proceedings
The civil trial commenced on 12 November 2023, and both defendants maintain that the claims lack evidence. Ms Kang, representing Mr Ren, is seeking both the return of the loan and penalties on grounds of fiduciary duty breach by Ms Lee. The trial is expected to resume on 14 November 2023.
The Bigger Picture
This case not only highlights issues of financial accountability within start-ups but also sheds light on the pressures faced by entrepreneurs during challenging economic conditions. As the trial unfolds, greater insights will likely emerge regarding the complex world of media partnerships and business ventures in Singapore.