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'You know the Singapore Govt. We will do what is right': What Shanmugam told leaders of firms allegedly linked to haze

Senior Cabinet members on Wednesday (Oct 28) met with leaders of companies that are involved, or have related corporate entities that are involved, in industries widely considered to have contribute to haze due to forest fires in Indonesia.Deputy Prime Minister and Minister for Energy, Trade and Industry (Trade) Gan Kim Yong, Senior Minister, Coordinating Minister for National Security and Minister...

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'You know the Singapore Govt. We will do what is right': What Shanmugam told leaders of firms allegedly linked to haze
'You know the Singapore Govt. We will do what is right': What Shanmugam told leaders of firms allegedly linked to haze

Senior Cabinet members on Wednesday (Oct 28) met with leaders of companies that are involved, or have related corporate entities that are involved, in industries widely considered to have contribute to haze due to forest fires in Indonesia.

Deputy Prime Minister and Minister for Energy, 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 were at the meeting.

Also present were senior officials from the relevant ministries and Senior Counsel Davinder Singh, whose firm was appointed adviser to Government on haze-linked company probes .

The companies present at the meeting were Bumitama Agri, First Resources, Golden Agri-Resources, Indofood Agri Resources, Kencana Agri, TSH Resources, Wilmar International and Sinar Mas Group.

Expectations of companies

Speaking in his capacity as chairman of the Homeland Crisis Ministerial Committee (HCMC), Shanmugam opened his remarks by telling the company leaders that he had asked to meet with them personally because the haze situation is serious.

We want to be clear about the Government's position. And what we expect from each of you.

But he also emphasised that the intention was not to find scapegoats or to fix blame for public or political reasons.

You know the Singapore Government. We will do what is right.

The Senior Minister reiterated to the companies present that they must conduct their operations in a manner that does not affect Singapore or the region, pointing out that haze has affected daily lives and the well-being of Singaporeans.

Haze is caused by fires. Fires are caused by irresponsible business practices. It is not a natural phenomenon.

Shanmugam reminded them that the Government takes the situation seriously, and is determined to act.

We will pursue all available legal and regulatory avenues. We will use all the powers we have to establish responsibility, where there is responsibility. And we will hold those responsible to account. And if the facts show that there is no wrongdoing — we will proceed on that basis as well.

We will pursue all available legal and regulatory avenues.

We will use all the powers we have to establish responsibility, where there is responsibility.

And we will hold those responsible to account.

And if the facts show that there is no wrongdoing — we will proceed on that basis as well.

Turning to the Government's expectations of the companies linked to haze-causing fires in Indonesia, Shanmugam pointed out that their corporate presence here means they have a stake in Singapore, and consequently, a responsibility to ensure that their operations and supply chains do not contribute to the haze.

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.

He reminded them that corporate structures or third-party arrangements will not be allowed to stand in the Government's way of establishing the facts.

Turning to the notices under Section 10 of the Transboundary Haze Pollution Act , he stressed that these are formal statutory notices, not routine requests for information.

I will say this plainly. Non-compliance with Section 10 is an offence. We expect your companies to respond fully, accurately, and promptly.

I will say this plainly. Non-compliance with Section 10 is an offence.

We expect your companies to respond fully, accurately, and promptly.

Shanmugam also warned the leaders present that "substantive cooperation and transparency" are required; not merely technical compliance or lawyered responses which do not deal with the substance.

The senior minister, also a lawyer, made a name for himself in arbitration, litigation and insolvency cases.

He was also one of the youngest to be appointed senior counsel at the age of 39 in 1998.

Your companies must make every effort to provide the information needed to establish the facts.

How the assessment will be done

On the panel of experts announced last week, Shanmugam said that whether or not a company was involved in any fires that caused, or contributed to the haze, will be determined through an expert assessment.

He added that a specialist panel of assessors will be announced soon, and that Davinder Singh Chambers will serve as the Government's adviser in respect of these matters.

The firm will also oversee the coordination of the panel's work.

Companies identified will then have to engage a team comprising an investigations firm, and a law firm — to advise the investigations firm.

The list of firms will be from the panel to be appointed.

Your company is expected to give the assessors full access to information, documents, premises, people, and on your operations, corporate relations and supply chains.

He added that assessors may need to engage third parties or other experts to assist with the assessment.

This may include remote sensing, and geospatial analysts to look into satellite hotspot data, Shanmugam said.

The National Environment Agency (NEA) will take the reports to be submitted by assessors into account when assessing further steps.

If your company is not involved in any way in the fires, and your supply chains are clean, the assessment should help to establish that fact and address our concerns.

But where there are lapses, these will be dealt with, taking into account the level of cooperation given, the senior minister highlighted.

Legislative amendments

Turning to next week's Parliament sitting, Shanmugam said that amendments to the Transboundary Haze Pollution Act will be tabled, giving legal force to the framework outlined.

After the amendments are passed, NEA will be empowered to issue a formal direction to any entity suspected of contributing or being connected to the fires.

This includes directing that the entities appoint assessors, with a failure to comply constituting an offence.

The legislation will provide that assessors will have full access to documents and information, and access to sites, facilities, as they decide to be necessary... They will seek to establish whether the entity is in any way involved in causing or contributing to fires that have led to haze pollution in Singapore.

The legislation will provide that assessors will have full access to documents and information, and access to sites, facilities, as they decide to be necessary...

They will seek to establish whether the entity is in any way involved in causing or contributing to fires that have led to haze pollution in Singapore.

Shanmugam urged such companies to submit to the process and proceed with the engagement of assessors, without a formal notice issued under the law.

We will be announcing the names of CEOs and companies who voluntarily committed to going through the Assessor process. The Government will update Singaporeans of the status of the exercise.

He also cautioned that this will not be a one-off exercise, with regular evaluations and certifications by assessors being planned for.

Rounding up his remarks, Shanmugam said:

The haze has caused real harm to Singapore and Singaporeans. We cannot treat this as an unavoidable fact of life or business. The health and well-being of Singaporeans must come first.

He also reiterated the determination of the Government in pursuing the facts and evidence "for as long as it takes".

"It cannot be business as usual, even after the haze is over," Shanmugam said.

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