Singapore to use ‘every legal and regulatory lever’ against companies linked to haze: Shanmugam

[SINGAPORE] Vowing to use “every legal and regulatory lever” at Singapore’s disposal in confronting companies linked to the region’s choking haze, Senior Minister K Shanmugam on Monday (Oct 19) warned recalcitrant firms not to underestimate the government’s determination to take action.

Government agencies are considering legal, regulatory and economic measures to exert pressure on these companies where it matters, including on their bottom lines, access to financing and standing with investors, he noted.

Existing laws will be changed, or new laws introduced – on an urgent basis – to ensure further cooperation, Shanmugam pointed out, adding that the authorities will continue pursuing the matter even after the haze has cleared up.

Speaking to reporters during a visit to Woodlands Checkpoint, he said: “Some companies may try to deny responsibility. They may think that it is hard to get evidence, and that they may think that they can escape scrutiny. But they should not underestimate the Singapore government’s determination to act.”

He noted that companies cannot claim to be environmentally responsible, while refusing to subject themselves to scrutiny. “They cannot greenwash their behaviour.”

“They should also be under no illusion that they can simply wait for the haze to clear and return to business as usual. We will pursue this matter for as long as it takes,” he said.

Shanmugam, who is coordinating minister for national security and minister for home affairs, also had strong words for Singapore-listed companies who were found to have ties to burning plantations in Indonesia.

“Companies cannot play hide and seek with different corporate structures. Nor should they hope that because the evidence and actions are in Indonesia, they can escape responsibility in Singapore.”

His remarks come after the National Environmental Agency (NEA) issued legal notices to seven firms linked to the haze.

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The seven firms – Bumi Andalas Permai, Bumi Mekar Hijau, Paramitra Mulia Langgeng, Sumatera Alam Anugerah, Sebangun Bumi Andalas Wood Industries, Hutan Lestari Raya and Bangkanesia – manage pulpwood plantations.

Checks by The Straits Times found that four had Singapore links.

Bumi Andalas Permai, Bumi Mekar Hijau and Sebangun Bumi Andalas Wood Industries are suppliers for Asia Pulp and Paper (APP), which maintains a Singapore presence. These three firms received similar notices from NEA during the 2015 haze crisis, and their cases remain open.

Meanwhile, Paramitra Mulia Langgeng is a subsidiary of the Sungai Budi Group, which is led by Singapore permanent resident Oey Widarto. The conglomerate’s vice-chairman, Santoso Winata, is also a Singapore PR.

On Oct 19, NEA said that it was issuing notices to three more companies: Buana Megatama Jaya – an APP supplier, Mananjung Hayak and Baratama Putra Perkasa.

Noting that investigations show APP buys from three companies that have received notices from NEA, Shanmugam said: “We will drill into this further.”

He also cited Singapore Exchange-listed First Resources, which said in an Oct 16 statement that some fires originated from outside its boundaries, before spreading into areas under its management.

Some fires became too large and fast-moving to contain despite its firefighting efforts, it said.

In a strongly-worded critique, Shanmugam said: “Such statements, no matter how well drafted, are not good enough.” The government will ask for the full facts, consider all evidence fairly and act based on the facts, he added.

Shanmugam said that the Singapore Exchange (SGX) has queried seven Singapore-listed firms about their operations and potential ties to the haze: Golden Agri Resources, Bumitama Agri, First Resources, Wilmar, Kencana Agri, Indofood Agri and TSH Resources.

Turning to banks that have lent monies to companies that could be linked to the fires, he added that the banks will have to consider risks arising from environment and legal issues.

The Monetary Authority of Singapore, which regulates banks, will “obviously have supervisory jurisdiction over the banks to make sure that they manage their risks properly”, the minister added.

“We will also examine whether the companies that are said to be linked to the haze are in any way enjoying benefits in Singapore,” said Shanmugam, citing examples such as government grants and incentives.

Because such benefits are dependent on lawful and responsible conduct, he explained that there is a need to examine whether these firms still meet those standards.

“We do not think there should be any bilateral issues”

Asked about whether these actions could have diplomatic implications for ties between Singapore and Indonesia, Shanmugam replied that it is in both countries’ interest to deal with the companies responsible.

Referencing legal experts quoted in a media report who raised the possibility of diplomatic implications, he added: “Our people are suffering. What do these experts think we are supposed to do? Shiver in our shoes before we take any action to protect our own people? That is not the Singapore approach. If we think like that, there will be no Singapore.

“We will pursue all available legal and regulatory avenues, and use every lever at our disposal to hold those responsible to account and exert pressure where it matters.”

“We do not think there should be any bilateral issues,” he said, noting that the Indonesian public is suffering as well, and it is also in Indonesia’s interest to deal with the firms responsible for the haze.

Shanmugam also expressed appreciation for Indonesian President Prabowo Subianto and his administration’s efforts in trying to solve the haze problem.

Singapore’s actions against the companies responsible are aligned with the broad policies announced by Prabowo’s administration, he said.

“In fact, we hope to get full cooperation from Indonesia in going after the companies, and likewise, we have also offered our full cooperation in assisting to put out the fires, insofar as our assistance is required,” Shanmugam added.

On Singapore’s strategy to take companies linked to the haze to task, Shanmugam noted that the Homefront Crisis Ministerial Committee, which he chairs, is looking into issues arising from the haze situation, which includes dealing with these companies.

In a Facebook post, Prime Minister Lawrence Wong said that those responsible for the fires will be held to account.

“We will pursue all available legal and regulatory avenues, and use every lever at our disposal to hold those responsible to account and exert pressure where it matters,” PM Wong said. THE STRAITS TIMES