Singapore to set up specialist panel of law, audit and investigative firms for cross-border inquiries
[SINGAPORE] The government has appointed Davinder Singh Chambers as its adviser to coordinate cross-border inquiries and investigations into companies potentially linked to the haze affecting Singapore.
The law firm will advise on coordinating the work of a new specialist panel comprising law, audit and investigative firms with expertise in cross-border inquiries and investigations, the Ministry of Law said on Friday (Oct 23) night.
Senior Counsel Davinder Singh will provide specialist advice and guidance on the conduct of the inquiries, drawing on his experience in cross-border corporate investigations and complex legal structures.
The government said it would seek to identify and hold accountable companies that may be responsible for, or have contributed to, the fires causing haze in Singapore.
The conduct of local and foreign companies, including their corporate relationships and supply chains, will be examined to establish whether they were involved in causing or condoning the fires.
Companies identified by the government will be required to engage professionals from the specialist panel for thorough inquiries into their operations, corporate relationships and supply chains, and submit audits to the government.
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They will also be expected to cooperate fully and provide unfettered access to relevant information and their operations as necessary for the inquiries.
The panel will help Singapore establish the facts, particularly where complex corporate structures and commercial arrangements span multiple jurisdictions.
The findings will be assessed by the relevant government agencies and the Attorney-General’s Chambers.
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Other regulatory agencies, including the Monetary Authority of Singapore and the National Environment Agency (NEA), are also following up on the matter, with further details to be released next week.
In a separate announcement on Friday night, NEA said it had issued notices to 10 Singapore-registered companies, including Wilmar International and Asia Pulp & Paper (APP), seeking information on their operations and potential links to the haze.
The companies are:
- Asia Pulp & Paper Company;
- Asia Pulp & Paper Company (China);
- Bumitama Agri ;
- Golden Agri International ;
- First Resources ;
- Indofood Agri Resources ;
- Kencana Agri ;
- TSH Global Plantation;
- TSH Overseas; and
- Wilmar International .
Singapore has been grappling with haze since early September, prompting efforts to identify companies linked to fires in Indonesia.
Friday’s announcement comes just days after Senior Minister K Shanmugam vowed that Singapore would use “every legal and regulatory lever” at its disposal in confronting companies linked to the region’s choking pollution.
Speaking to the media on Monday, he also warned recalcitrant firms not to underestimate the government’s determination to take action.
NEA previously issued notices under Singapore’s Transboundary Haze Pollution Act (THPA) to 10 companies with plantations in South Sumatra and Kalimantan, directing them to stop burning on their land and submit plans to prevent further fires.
The two Indonesian regions are home to most of the hot spots contributing to the haze affecting Singapore.
The companies are:
- Buana Megatama Jaya;
- Mananjung Hayak;
- Baratama Putra Perkasa;
- Bumi Andalas Permai;
- Bumi Mekar Hijau;
- Paramitra Mulia Langgeng;
- Sumatera Alam Anugerah;
- SBA Wood Industries;
- Hutan Lestari Raya; and
- Bangkanesia.
Four of the companies – Buana Megatama Jaya, Bumi Andalas Permai, Bumi Mekar Hijau and SBA Wood Industries – are listed as pulpwood suppliers to Asia Pulp & Paper (APP), part of Indonesia’s Sinar Mas conglomerate.
Three of them – Bumi Andalas Permai, Bumi Mekar Hijau and SBA Wood Industries – had previously received notices under the THPA during the 2015 haze crisis.
A fifth company, Baratama Putra Perkasa, may also have links to APP, although these have not been firmly established.
APP, which has a presence in Singapore, has maintained that it enforces a strict no-burning policy across its operations and supply chain, and that fires within a concession do not necessarily mean the operator was responsible for starting them.
Separately, Singapore Exchange Regulation (SGX RegCo) has queried eight listed agribusinesses over their operations and potential links to the haze.
The companies – Wilmar International, First Resources, Golden Agri-Resources, Olam, TSH Resources, Bumitama Agri, Indofood Agri Resources and Kencana Agri – have maintained that they do not use fire to clear land, although some acknowledged that hot spots had been detected within their operational areas.
SGX RegCo has also warned that it would take regulatory action against companies that fail to meet their disclosure obligations.
Singapore banks have also said they could reduce funding or exit relationships with errant companies, citing a “zero-tolerance” approach to open burning and deforestation among the companies they finance.
