By Jen Heger - Breaking Celebrity News Legal Editor

Music mogul Clive Davis will not be paying for Whitney Houston’s funeral which will take place in Newark, New Jersey on Saturday, Breaking Celebrity News is exclusively reporting.

The news comes as a surprise, as Davis was paying the majority of Houston’s bills before the pop singer tragically died at age 48 at the Beverly Hilton Hotel last Saturday.

Davis has faced scrutiny from Houston's family and Chaka Khan, amongst others, for proceeding with the pre-Grammy party at the hotel last Saturday, while Houston's body was still in the bathroom upstairs in her room.

Houston passed away on Saturday afternoon after she was found unconscious and unresponsive in her bathtub at the iconic hotel. The award winning singer was declared dead by paramedics at 3:55 p.m. PST.

"Yes, Clive was paying the majority of Whitney's bills before she died. He was even paying for her room at the Beverly Hilton Hotel; she was out of money. She didn't have anything left,”  a source close to the situation tells Breaking Celebrity News. “Clive won't be paying for any part of Whitney's funeral though. Whitney's family will be responsible for all the costs."