Frank Houston continued preaching sermons for months after admitting he had sexually abused a seven-year-old boy, a Sydney court has heard.
The evidence was given by Emmanuel Christian Family Church pastor Barbara Taylor, who was called as the second witness in criminal proceedings brought against the late Mr Houston's son, Brian Houston.
Brian Houston, founder of the Pentecostal megachurch Hillsong, has pleaded not guilty to concealing abuse allegations against his father dating back to 1970.
He claims he didn't report the claims to police as the victim did not want authorities outside the church involved.
Ms Taylor told Downing Centre Local Court she first found out about the abuse against Brett Sengstock when she was approached by his mother, Rose Hardingham, in 1998.
Over six months, she attempted to arrange a meeting between Frank Houston and Mr Sengstock in order for them to reconcile, but told the court she was unsuccessful.
In November 1999, she attended a meeting with Brian Houston, who was then the most senior member of the Australian branch of Assemblies of God.
It took place shortly after Brian Houston had been told about the allegations against his father, the court heard.
Notes made by Ms Taylor at the time indicated Brian Houston told her at the meeting he'd received a confession from his father, and that his family was in shock.
He allegedly relayed a conversation he'd had with a barrister, who told him that if the matter proceeded to court, Frank would "surely be incarcerated for the crime".
Mr Taylor said Brian Houston assured her his father would be stood down from preaching.
"I thought that the church was going to take this on and deal with it, in other words, [there was] no longer a need for me to be involved," she said.
She said she told Mr Houston that Mr Sengstock should receive counselling paid for by Assemblies of God.
But in the six months that followed, she said, nothing was done to progress the matter and her queries were met with "very defensive" responses from Brian Houston.
In a letter to him dated June 2000, Ms Taylor wrote: "I'm all for mercy, but where is justice? It is not being seen to be done at all."
"I am appealing for a definite attempt to be made towards restoration for both parties."
She told the court it came to her attention Frank Houston had preached in Canberra on at least one occasion in December 1999, a month after he'd supposedly been stood down.
She said another person told her they had seen Frank Houston on morning television.
"Nothing was really being done about Brett's case. This was six months after it had been brought to [Brian's] attention," Ms Taylor told the court.
Brian Houston's barrister, Phillip Boulten SC, has previously claimed any preaching Frank Houston participated after 1999 did not occur in Assemblies of God churches and was not done with his client's knowledge or permission.
Under cross examination, Ms Taylor admitted she had not been told about a $10,000 payment made to Mr Sengstock.
"I knew nothing of it," she said.
"I felt sidelined actually, because I had been involved in it, and then I knew nothing."
In December 2001, the court heard, a letter marked "extremely confidential" was distributed to all ordained ministers of the Australian Assemblies of God.
It informed them of "serious allegations" made against Frank Houston.
The hearing continues.
