SINGAPORE: The lawyer for a Chinese businessman who is suing two Chinese news veterans to recover money he put into a failed Mandarin-language business questioned the authenticity of a share transfer agreement between the duo on Friday (Jan 10). 

Mr Ren Xin Wu is suing Ms Lee Kuan Fung, a former veteran at Singapore Press Holdings (SPH) daily Lianhe Zaobao, and Mr Chua Chim Kang, now the head of Mediacorp's Chinese news team, to return S$990,000 (US$740,500) to him.

He purportedly gave them the sum as working capital for Homing Holdings, a holding company for two businesses that provided tuition and specialised in Mandarin-language programmes and events.

Homing Holdings was ordered to wind up in January 2021.

Mr Ren claims that the S$990,000 was an interest-free loan repayable in three years from 2017 when it was given, but Mr Chua and Ms Lee's lawyers allege there was no such agreement.

It is also alleged that in 2020, when the business was in dire straits, Ms Lee paid S$40,000 in Homing Holdings funds to a third-party company called Goldciti.

The company was introduced to her by Mr Chua, and the sum was purportedly for consulting services.

The suing parties claim that this was a sham transaction, made to funnel funds out of Homing Holdings and allow the business to avoid paying creditors.

At the same time, liquidators for Homing Holdings are suing Ms Lee for allegedly breaching her fiduciary duties as director of the company, with Goldciti as a second defendant.

The civil trial opened in the High Court last November, and hearings resumed this week.

STAKE IN HOMING HOLDINGS

Mr Ren held 35 per cent of shares in Homing Holdings, Ms Lee held 30 per cent, and Mr Chua had a 35 per cent stake, according to the defendants.

Ms Lee and Mr Chua claim that Mr Chua had no desire to be involved in the day-to-day management of the business and did not participate or have shares in it, but Mr Ren purportedly insisted that Mr Chua be given a 35 per cent stake.

Those shares were eventually held by Ms Lee, who was also a director of the subsidiary companies, the defendants claim.

Earlier in the week, Mr Chua and Ms Lee testified about an agreement they signed in February 2018 to transfer Mr Chua's shares in Ho...