‘Not to find scapegoats’: Singapore ministers summon bosses of 10 firms over haze

In a rare move, Singapore on Wednesday summoned top executives from 10 locally registered companies potentially linked to haze-causing fires in Indonesia to a meeting with three ministers.

The executives all agreed to cooperate fully in an investigation by the city state into the regional environmental crisis that has caused air quality to dip to “very unhealthy” levels earlier this month.

Deputy Prime Minister Gan Kim Yong, Senior Minister K Shanmugam and Minister for Sustainability and the Environment Grace Fu laid out expectations by the government, including its plan to strengthen laws targeting polluters.

The companies at the meeting were Bumitama Agri, First Resources, Golden Agri-Resources, Indofood Agri Resources, Kencana Agri, TSH Resources, Wilmar International, Sinar Mas Group, Asia Pulp & Paper Company and Asia Pulp & Paper Company (China).

Speaking to the media after the closed-door meeting, which reportedly lasted under half an hour, Shanmugam, coordinating minister for national security, said he had told the firms that Singapore expected full cooperation, and was “determined to act” on the issue and was giving it full attention.

“I told them … that we will pursue all available legal and regulatory avenues, and we will use all the powers we have to establish responsibility where there is responsibility, and we will hold those responsible to account,” he said.

“I was very direct about what we expected of these companies. We told them the intention of this exercise is not to find scapegoats.” The firms had said that they would cooperate fully, Shanmugam said.

The National Environment Agency last Friday said it sent notices seeking documents and details of land concessions in Indonesia owned by the 10 firms, their firefighting and blaze prevention measures, and their relationship to other relevant companies.

The law ministry said on the same day that a panel of experts including law firms, auditors and investigative companies with expertise in cross-border inquiries would support the government’s investigation efforts.

Asked if there were concerns regarding firms choosing to leave Singapore to avoid scrutiny and possible action against them, Shanmugam said Singapore would do “what is right” for its citizens.

“We are now on a fact-finding mission, and if companies have been involved in wrongdoing, and as a result of the investigation, they wish to leave Singapore, then I think doing right by Singaporeans means accepting that consequence,” he said.

Shanmugam on Wednesday said the panel would be announced within the next two days, with legislation expected to be moved in parliament next week to “give ourselves more powers in this area”.

On Tuesday, Fu said Singapore was looking to strengthen existing legislation and introduce new laws where necessary to deal with companies responsible for the haze.

“The objective is to address enforcement gaps, strengthen corporate accountability and enhance our ability to investigate and take decisive action against those responsible for transboundary haze,” she said.

Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School, said the meeting was the “strongest signal” that Singapore was serious about tackling the problem at its source.

“Forest clearance through burning has to be addressed at the root cause – even if the companies do not initiate the actions, they have to take definitive steps to prevent the happening,” he said.

Chong Ja Ian, an associate professor of political science at NUS, said that while the meeting served to convey the gravity of the situation, its actual effect remained to be seen.

“People will be watching to see if there are meaningful penalties meted out, but punishment is less important in recovery, prevention, mitigation and response,” he said.

“Ultimately, what matters are results. Even if there are costs imposed on these firms, if they continue to contribute to future haze episodes that negatively affect Singapore, then the position is just a position.”

The meeting was held amid rising tensions between Singapore and Indonesia in recent weeks, with Jakarta stating it would cut gas supplies to the city state.

On Wednesday, both states announced they were looking into setting up a haze task force that would enable information sharing and potentially recover assets from companies linked to the forest fires.