Govt to propose changes to haze law in Parliament; firms linked to fires must provide access to info

Singapore will be proposing changes to its Transboundary Haze Pollution Act (THPA) to give it more teeth when Parliament sits next week, said Senior Minister K. Shanmugam on Oct 28.

Under the amendments, firms linked to the haze must give appointed investigators full access to information, corporate documents and business premises.

Currently, the THPA does not give the National Environment Agency (NEA) – the agency administering the law – the power to request firms to appoint investigators to study a firm’s operations, corporate relationships or supply chains.

This resulted in practical challenges in obtaining information, to investigate and to enforce against transboundary offences.

NEA will be given the authority to do so once the proposed changes take effect, and failing to comply will be considered an offence, Shanmugam said.

The next parliamentary sitting begins on Nov 3.

His remarks were directed at executives from 10 Singapore-based companies that were issued notices under the THPA on Oct 23.

They had been summoned for a closed-door meeting at The Treasury building with Shanmugam, Deputy Prime Minister Gan Kim Yong and Minister for Sustainability and the Environment Grace Fu.

Also in attendance was Senior Counsel Davinder Singh, whose law firm will advise the Government and oversee the coordination of the panel of experts appointed to look into the transboundary problem.

All 10 Singapore companies were represented at the meeting.

• Bumitama Agri was represented by its chief executive and executive chairman Lim Gunawan Hariyanto

• Golden Agri Resources was represented by its chairman and chief executive Franky Oesman Widjaja

• Asia Pulp & Paper (APP) Company, APP Company (China) were represented by Bernard Tan, senior adviser to Sinar Mas Group, the Indonesian conglomerate that owns APP

• First Resources was represented by Ciliandra Fangiono, its chief executive and executive director

• Indofood Agri Resources was represented by Mark Wakeford, its chief executive and executive director

• Kencana Agri was represented by its chief executive and executive director Albert Maknawi

• TSH Global Plantation and TSH Oversea were represented by Kelvin Tan Aik Pen, the chairman and co-founder of TSH Resources, which owns both these firms

• Wilmar International was represented by Kuok Khoon Hong, its chairman and chief executive

The meeting with the company representatives came after the NEA issued notices to the 10 Singapore-based firms under Section 10 of the Republic’s haze law on Oct 23.

Under this section of the law, firms are required to furnish information about their links to companies in Indonesia contributing to the haze.

Failing to comply could result in a fine of up to $5,000, a jail term of up to one month, or both, for representatives of uncooperative firms.

According to the transcript of the meeting on Oct 28, Shanmugam told the firms: “I will say this plainly, non-compliance with Section 10 is an offence. They are not routine requests for information. We expect your companies to respond fully, accurately, and promptly.”

He also told them that the Singapore Government expects “substantive cooperation and transparency, not merely technical compliance or lawyered responses which don’t deal with the substance.”

Shanmugam was speaking in his capacity as the chairman of the Homefront Crisis Ministerial Committee, which comprises political leaders charged with setting the direction and providing strategic guidance for the overall governmental response to major crises.

The Government had also announced on Oct 23 that it will be convening a specialist panel to identify and hold accountable firms that may be responsible for, or have contributed to the haze-causing fires in Indonesia.

Comprising firms in the legal, audit and investigation fields, the panel’s work will be coordinated by Davinder Singh Chambers, which the Government said has extensive experience in cross-border inquiries and complex legal structures.

Those firms that had been identified by the Government as being linked to the haze will have to engage professionals from the panel to conduct thorough inquiries into their operations, corporate relationships and supply chains. Audits will have to be submitted to the authorities.

Fu said the list of firms in the panel will be published by the Ministry of Law, and the 10 companies issued notices will have to engage those firms at their own expense.

“Singaporeans should not have to bear the health and environmental costs of irresponsible business conduct. Even as the haze condition improves, we will not relent,” she told the media.

During the meeting, Shanmugam had also said that third-party information or experts may also be tapped, such as geospatial analysts being called in to examine data from satellite images of hot spots.

Shanmugam told the media afterwards that the Government had made clear to the 10 companies Singapore’s position on the matter.

“We told them the intention of this exercise is not to find scapegoats. The Singapore Government will do what is right. We need to make sure that the companies here conduct their operations in a manner that doesn’t affect Singapore or the region,” he said.

“I told them we are determined to act, and that we are giving full attention to this issue, and that we will pursue all available legal and regulatory avenues, and we will use all the powers we have to establish responsibility where there is responsibility, and we will hold those responsible to account.”

He added that if the facts show no wrongdoing, “we will proceed on that basis as well”.

“I told them we expect full cooperation from their companies, and in the meeting, the companies said they will cooperate fully.”

Shanmugam had said on Oct 19 that the Government would use “every legal and regulatory lever” at Singapore’s disposal to confront companies linked to the haze.

He also said then that the Monetary Authority of Singapore (MAS), which regulates banks, will have supervisory jurisdiction over banks to ensure they manage risks properly.

To that end, the authority on Oct 28 said that banks should take steps to mitigate environmental risks.

For starters, they should engage their customers and obtain information if they are linked to activities contributing to the haze, including details on measures to prevent, detect and stop fires.

They can also impose conditions, review financing terms and limit any additional exposure.

“Clear breaches of environmental laws would warrant stronger measures, including limiting exposures or exiting the relationship,” MAS said.

Leaders of firms probed for haze links summoned to meet S’pore ministers, warned to cooperate

The haze-causing fires in Indonesia are caused by irresponsible business practices, and Singapore will use all the powers it has to hold to account those responsible, Senior Minister K. Shanmugam said on Oct 28.

Speaking to senior leaders representing the 10 Singapore firms being investigated for their links to these fires, he emphasised that the firms have a corporate presence and stake in the country.

They also have a responsibility to ensure that their operations and supply chains do not contribute to the haze, he said at the closed-door meeting held at The Treasury.

“Where there are concerns about a company’s involvement, whether directly, or through its corporate relationships or supply chains, we will examine the facts carefully,” said Shanmugam, who was speaking as chair of the Homefront Crisis Ministerial Committee, the apex group to deal with national crises.

Singapore cannot allow corporate structures or third-party arrangements to stand in its way of establishing facts, he said.

Shanmugam told the firms that the Government must deal with issues that affect Singapore, pointing to how air quality reached “very unhealthy” levels with Pollutant Standards Index readings above 200. Vulnerable groups such as children, seniors and those with chronic heart or lung conditions faced greater health risks during this time, he added.

He also told the representatives that Singapore will be proposing changes to its Transboundary Haze Pollution Act to give the authorities here greater powers to investigate the fires in Indonesia and their links to entities in Singapore.

He said: “If there have been lapses, these will have to be dealt with. We will take into account the level of cooperation you have given.”

Shanmugam said that the intent of the Government’s exercise is not to find scapegoats nor fix blame for public or political reasons.

He noted that the pollution has caused harm to Singapore and its people, stressing that the Government “cannot treat this as an unavoidable fact of life or business”.

When asked by the media about the companies’ response during the meeting, he said it was “not a very long meeting”, with the Government setting out its expectations and the firms agreeing to cooperate.

The National Environment Agency issued notices to the 10 Singapore-based firms under Section 10 of the Republic’s haze law on Oct 23. Under this section of the law, firms are required to furnish information about their links to companies in Indonesia contributing to the haze.

Shanmugam, who is also Coordinating Minister for National Security and Minister for Home Affairs, told the firms that non-compliance with Section 10 of the Transboundary Haze Pollution Act requesting for information was an offence.

Of the 10 Singapore-listed firms that acknowledged receiving the notices, three did not explicitly say they would cooperate with the agency’s request. They were Indofood Agri Resources, TSH Global Plantation and TSH Oversea.

Shanmugam said: “We expect substantive cooperation and transparency, not merely technical compliance or lawyered responses which don’t deal with the substance.” He said many of the companies had expressed a commitment to cooperate fully, a sentiment the Government welcomes.

He pointed out that if the companies were not involved in any way in the fires and their supply chains are clean, the assessment by the Government’s panel of assessors would establish that fact and address the Government’s concerns.

“If there have been lapses, these will have to be dealt with. We will take into account the level of cooperation you have given, he added.

His remarks to the companies were provided to the media in a transcript. The Oct 28 meeting with the firms also included Deputy Prime Minister Gan Kim Yong, and Minister for Sustainability and the Environment Grace Fu.

Seven of the executives representing the firms – seated directly opposite the ministers – were stony-faced when the media was momentarily allowed into the room for photos and videos.

The eighth, Bernard Tan, senior adviser for Sinar Mas Group, the parent company for Asia Pulp & Paper and Golden Agri Resources, declined to sit in the front row with the other leaders, according to sources in the room.

The other representatives were:

• Chief executive and executive chairman of Bumitama Agri Lim Gunawan Hariyanto

• Chief executive and executive director of First Resources Ciliandra Fangiono

• Chairman and chief executive of Golden Agri Resources Franky Oesman Widjaja

• Chief executive and executive director of Indofood Agri Resources Mark Julian Wakeford

• Chief executive and executive director of Kencana Agri Albert Maknawi

• Chairman of TSH Resources Berhad Kelvin Tan Aik Pen

• Chairman and chief executive of Wilmar International Kuok Khoon Hong

Shanmugam said he had asked to meet the representatives personally because the haze situation is serious. He pointed out that the Government will announce the names of chief executives and companies who voluntarily committed to going through the assessment process by its special panel.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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