SINGAPORE — In a dramatic turn of events, two prominent figures in Singapore's media landscape, Chua Chim Kang, head of Mediacorp's Chinese news team, and former Lianhe Zaobao news veteran Lee Kuan Fung, are facing a lawsuit over a staggering S$990,000 (approximately US$740,500) “loan” linked to a failed Mandarin language business.

The lawsuit was filed by businessman Ren Xin Wu, who claims he provided the large sum to Chua and Lee as working capital for Homing Holdings, a company aimed at promoting Mandarin through tuition services and specialized events. Ren contends that the loan was supposed to be repayable within three years from 2017, a claim that Chua and Lee’s legal representatives dispute, arguing the existence of any repayment agreement is unfounded.

Storm clouds gathered over the parties involved when it was revealed that in 2020, as Homing Holdings faced financial turmoil, Lee allegedly diverted S$40,000 of the company’s funds to Goldciti, a consulting firm.

This transaction, introduced to her by Chua, is described by Ren as a fraudulent maneuver intended to obscure the company’s financial mismanagement and avoid paying creditors.

The company's current liquidators are also suing Lee for purported breaches of fiduciary duty. They allege that her actions led to significant financial losses for Homing Holdings, which has since failed.

The civil trial for these intertwined lawsuits kicked off in the High Court on November 12, with Chua and Lee’s attorneys vehemently denying the claims, describing them as baseless and lacking credible evidence.

Background of the scandal

Lee Kuan Fung is no stranger to the media scene, boasting an 18-year career at Singapore Press Holdings before transitioning to Mediacorp in 2017. She's recognized for her significant contributions to Mandarin news reporting. Meanwhile, Chua brought his extensive expertise from SPH to Mediacorp as the current chief editor of Chinese news and current affairs.

The roots of the alleged dispute trace back to 2015, when Ren first met Chua. The business relationship blossomed over lunches, leading to the inception of Homing Holdings in 2017, which housed two subsidiary companies focused on educational programs.

Despite initial success, the business plummeted following the onset of the COVID-19 pandemic in 2020, prompting Ren to demand repayment of his loan. During the trial, his legal team intends to illustrate that Lee conspired with Goldciti to misappropriate funds, while also alleging that Lee failed to maintain proper company records, further complicating Mishaps encountered by the business.

In a surprising twist, the defense suggested that the suit was merely a facade orchestrated by Ren to regain the funds he lost in a failed venture. Chua and Lee's lawyers asserted that Ren's tactics were nothing more than legal harassment, citing a prior issue where Ren's lawyer was reprimanded for improperly delivering a demand letter to Lee's home.

Implications and future steps

The outcome of this high-profile case could have serious ramifications for both media professionals. Observers note that it reflects larger issues of accountability and integrity within business dealings among prominent public figures.

As the trial unfolds, the stakes are high, with Mr. Ren seeking not only the return of his investment but also holding Lee accountable for what he claims to be a calculated effort to mislead stakeholders and enrich herself at the expense of the dissolved company.

Legal experts are watching closely as both parties prepare for a showdown in the courtroom. Will the evidence back up Ren's claims, or will Chua and Lee walk away unscathed? Only time will tell as the drama continues to evolve in this shocking saga!