All seven Singapore-listed firms back independent investigations into Indonesian fires and haze

All seven Singapore-listed companies summoned by the government have issued responses and updates, with two confirming that they will voluntarily appoint independent investigators at their own expense to look into matters relating to the haze.

All the companies that have responded expressed support for the investigations and pledged their cooperation. They said the ten Indonesian companies served notices by the National Environment Agency (NEA) were not their subsidiaries, associates or joint ventures, and had no operational, supply-chain or business ties with them.

The government summoned representatives of ten Singapore-registered companies on Wednesday (28 October) over the fires and haze. The Singapore Exchange Regulation (SGX RegCo) had earlier reportedly sent follow-up queries to the seven locally listed companies, requiring replies by Friday (30 October).

The questions included whether any authorities in Singapore or overseas had made inquiries or launched investigations into them over the recent fires and haze in Indonesia, and whether they had any links to the ten Indonesian companies that were served preventive measures notices.

Wilmar International and First Resources confirmed after the market closed on Thursday (29 October) and Friday respectively that, in line with NEA’s instructions, they would voluntarily engage investigators and law firms from the government’s panel of experts at their own expense. The investigations would determine whether the groups were involved in, or linked to, fires in Indonesia that caused transboundary haze.

Responding to SGX queries on Wednesday about the transboundary haze pollution preventive measures notices that NEA issued to ten Indonesian companies on 16 October and 19 October, Wilmar clarified that it had no operational, supply-chain or business ties with any of them.

The group had also lodged a report with the Indonesian police over fires on plantation land in West Kalimantan, and preliminary police investigations were ongoing. Its internal investigation found no evidence linking any of the affected areas to the group’s land, planting or development activities.

First Resources said on Friday that it had no operational, supply-chain or business ties with the ten named Indonesian companies. Three of its subsidiaries operating in West Kalimantan were cooperating and communicating with the relevant Indonesian authorities over forest and land fires. They had not faced any sanctions or fines in connection with the fires.

Indofood Agri Resources said late on Friday that it was prepared to cooperate voluntarily with the expert assessment panel and provide the necessary information to facilitate its investigations, as directed by NEA.

The company received a request from NEA for documents and information on 23 October. It said it would comply and cooperate with the agency, and was still gathering the documents and information.

It also said it had no links to the ten Indonesian companies. It had reported fires within and outside its plantations to the Indonesian authorities as required. Its Indonesia-listed subsidiary SIMP had received queries from the Indonesia Stock Exchange about the fires and had responded.

The other listed companies that have responded are Golden Agri-Resources, Bumitama Agri, Kencana Agri and TSH Resources Berhad, which responded on behalf of its two subsidiaries, TSH Global Plantation and TSH Oversea. All said they had no links to the ten Indonesian companies.

A representative of Golden Agri International, a subsidiary of Golden Agri-Resources, was summoned by the government. The group said on Thursday that it shared the Singapore government’s concerns about the impact of the fires and haze, and welcomed the opportunity to engage constructively with the authorities and independent assessment experts.

In addition, its Indonesia-listed subsidiary SMART had received a request from the Indonesia Stock Exchange to clarify matters relating to the fires.

Bumitama Agri said on Friday that it received a notice from NEA on 24 October and was reviewing the relevant records and compiling the requested documents and information.

In late September, the West Kalimantan provincial environment and forestry agency also directed officials to review firefighting and fire prevention measures at one of the group’s subsidiaries. The company said it had cooperated fully and provided the information and assistance requested.

TSH Resources said its two Singapore subsidiaries received notices from NEA on 23 October, requiring them to provide documents and information by 2 November. Some of SGX’s questions concerned matters covered by the NEA notices.

Apart from these, it said, the group had not received any inquiries or been subject to investigations by the relevant authorities or agencies in Singapore, Indonesia or elsewhere over the recent and ongoing fires and transboundary haze.

Kencana Agri said on Friday that Indonesian police had begun a preliminary investigation into fires at its subsidiary in North Kalimantan. The group’s internal assessment was that fires on nearby land had spread to its area.

As for NEA’s request for documents and information, the group said it was preparing its response to the agency’s notice and would cooperate fully in accordance with the law.

Apart from these companies, the Singapore-registered companies summoned by the government included Asia Pulp & Paper and Asia Pulp & Paper (China), neither of which is listed on SGX.