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Setting out what levers Singapore can pull against errant firms, Mr Shanmugam said Singapore will look beyond the individual companies that hold the concessions, but also into large groups and “persons who may ultimately control them”.<\/p>\n
“If there are linkages, we will try and go after these groups as well,” he said.<\/p>\n
For example, he noted that investigations show that Asia Pulp and Paper (APP) buys from three of the companies that NEA has sent preventive measure notices to.<\/p>\n
Smoke-source points also seem to be associated with Singapore-listed First Resources and Bumitama Agri, as well as First Borneo Plantations, said Mr Shanmugam.<\/p>\n
He noted that First Resources, for instance, has issued a detailed statement on its zero-burning policy and firefighting efforts, but added that statements alone are insufficient and must be backed by evidence.<\/p>\n
“We will ask for the full facts and we will act based on the facts. We will consider all the evidence fairly,” he said.<\/p>\n
“Companies cannot play hide and seek with different corporate structures. Nor should they hope that because the evidence and actions are in Indonesia, they can escape responsibility in Singapore.”<\/p>\n
On what actions can be taken against companies with possible links to the haze, Mr Shanmugam said that the Singapore Exchange has asked questions of seven agri-companies listed in Singapore.<\/p>\n
These companies are Golden Agri-Resources, Bumitama Agri, First Resources, Wilmar International, Kencana Agri, Indofood Agri and TSH Resources.<\/p>\n
Kencana Agri said in response to SGX queries last week that Indonesian authorities have launched a preliminary inquiry into a fire incident at its subsidiary.<\/p>\n
The company added in the bourse filing that based on information currently available, its subsidiary did not carry out land clearing or land preparation in the affected area.<\/p>\n
Other listed companies on Friday including Golden Agri-Resources and Wilmar International, also issued statements to distance themselves from the fires and haze.<\/p>\n
On Monday, Mr Shanmugam also noted that banks have lent money to companies with agricultural operations.<\/p>\n
“If these companies have a potential connection to the fires, then the banks have to consider risks arising from the environment and legal issues,” said Mr Shanmugam.<\/p>\n
“The banks have asked these companies several questions and MAS (Monetary Authority of Singapore), as the regulator, will obviously have supervisory jurisdiction over the banks to make sure that they manage their risks properly.”<\/p>\n
Mr Shanmugam added that Singapore will also examine whether or not companies linked to the haze are enjoying any benefits in Singapore in terms of government grants or incentives.<\/p>\n
“These benefits are contingent on lawful and responsible conduct \u2013 so we will need to see if they still meet the bar,” he said.<\/p>\n
Legal experts previously told CNA that there could be diplomatic implications if Singapore decides to pursue legal actions against errant companies, citing some unhappiness in Indonesia back in 2015 when Singapore tried to use the Act.<\/p>\n
Mr Shanmugam said that it is not Singapore’s approach to “shiver in our shoes before we take any action to protect our own people”.<\/p>\n
He then reiterated his support for the actions President Prabowo and his administration have taken to tackle the haze.<\/p>\n
“We do not think there should be any bilateral issues. The Indonesian public is suffering as well, and it is in Indonesia’s interest as much as ours to deal with the companies that are causing these problems,” he said.<\/p>\n
“Our actions against companies which we consider are responsible, are aligned with the broad policies as announced by the Indonesian administration under President Prabowo,” he said.<\/p>\n
“In fact, we hope to get full cooperation from Indonesia in going after the companies, and likewise, we have also offered our full cooperation in assisting to put out the fires, insofar as our assistance is required.”<\/p>\n<\/div>\n
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