10 firms called up over possible haze links; laws to be amended next week to strengthen enforcement

The government has summoned senior executives of 10 locally registered companies that earlier received statutory notices over their possible links to the current haze. The Ministry of Sustainability and the Environment will table amendments to the Transboundary Haze Pollution Act when Parliament resumes next week, making failure to cooperate with the assessment process an offence.

Deputy Prime Minister and Minister for Energy and Trade and Industry (Trade) Gan Kim Yong, Senior Minister, Coordinating Minister for National Security and Minister for Home Affairs K Shanmugam, and Minister for Sustainability and the Environment Grace Fu met eight chief executives representing the companies on Wednesday (28 October).

They included Wilmar International chairman and chief executive Kuok Khoon Hong, and Golden Agri-Resources chairman and chief executive Franky Oesman Widjaja.

Speaking to the media after the meeting, Shanmugam, who heads the Homefront Crisis Ministerial Committee, said: “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 stressed that the Singapore government takes this matter seriously and is determined to act, and will pursue all available legal and regulatory avenues and use its statutory powers to hold those responsible accountable under the law. “The companies said they will cooperate fully.”

Last Friday (23 October), the National Environment Agency (NEA) invoked Section 10 of the Transboundary Haze Pollution Act to issue statutory notices to 10 companies in the palm oil and forestry sectors. The notices required them to disclose all their affiliated companies in Singapore and Indonesia, their land concessions in Indonesia, and the fire prevention measures and firefighting actions taken by them and their affiliates.

Breaching Section 10 of the Act carries a fine of up to S$5,000, a jail term of up to one month, or both.

The named companies must also engage investigation companies and law firms from a government-appointed panel of experts at their own expense to conduct comprehensive investigations into their operations, business relationships and supply chains, and submit reports to NEA. The authorities will take the reports into account when deciding on their next steps.

The Ministry of Law will announce the panel members soon. The work will be coordinated by law firm Davinder Singh Chambers, which has been appointed as an adviser by the government. NEA will set the panel's terms of reference and specify the focus of the investigations into the companies, the matters to be assessed and the investigation requirements.

Shanmugam said the burning of forests takes place outside Singapore, where government agencies are restricted in the investigations they can conduct. The procedure therefore requires companies to appoint assessors from a government-designated panel of experts to investigate the circumstances.

The authorities will publish the names of companies and chief executives that voluntarily commit to the assessment process.

Responding to Lianhe Zaobao, he said, “This is for reasons of transparency. They are doing business here. If they are cooperating with the Government, we think we ought to make that clear to the public. And those who are not cooperating, we should also make clear to the public.”

Asked whether the assessment process could prompt some companies to leave Singapore, Shanmugam said, “We do what is right for Singaporeans. The companies have been told that if there is no wrongdoing, there will be no issues.”

The Ministry of Sustainability and the Environment will table amendments to the Transboundary Haze Pollution Act in Parliament next week to give the assessment process legal force. Once passed, the amendments will empower the NEA to issue formal directions to any entity suspected of causing or being linked to fires, and require it to appoint assessors. Failure to comply with the directions will constitute an offence.

Fu told the media, “In October this year, Singapore's air quality reached very unhealthy levels, affecting Singaporeans' lives and health, particularly children, older people, pregnant women and those with chronic heart or lung conditions.”

She stressed that Singapore cannot allow irresponsible corporate behaviour to harm Singaporeans' health and living environment. Even if the air quality improves, there will be no let-up.

The 10 companies involved are Asia Pulp & Paper, Asia Pulp & Paper (China), Wilmar International, Bumitama Agri, Golden Agri International, First Resources, Indofood Agri Resources, Kencana Agri, TSH Global Plantation and TSH Oversea.