Singapore will widen its scrutiny of companies potentially linked to the haze-causing fires in Indonesia, including Singapore-listed firms, their parent groups and ultimate owners, while banks with exposure to these companies are also assessing the associated risks, Senior Minister K Shanmugam said on Monday (Oct 19).
The Government will look beyond individual concession holders to larger corporate groups and the people who ultimately control them, as it steps up efforts to hold potentially responsible parties accountable.
"We will also look beyond individual concession holders, to the large corporate groups, and persons who may ultimately control them," SM Shanmugam said.
He cited Asia Pulp and Paper (APP), which investigations showed buys from three companies that the National Environment Agency (NEA) has issued notices to.
He said the authorities would investigate these links further.
Several of the companies that have been issued notices appear to be linked, and the Government is examining those connections, he added.
SM Shanmugam also said some fires or smoke-source points appeared to be associated with Singapore-listed First Resources and Bumitama Agri, as well as First Borneo Plantations. The Government would be asking more questions of these companies.
The Singapore Exchange (SGX) has separately asked seven listed agricultural companies about their operations and possible links to the haze.
They are Golden-Agri Resources, Bumitama Agri, First Resources, Wilmar, Kencana Agri, Indofood Agri and TSH Resources.
Banks that have lent money to agricultural companies with potential links to the fires have also asked these companies questions, SM Shanmugam said.
The Monetary Authority of Singapore (MAS) will exercise its supervisory jurisdiction over banks to ensure they manage environmental and legal risks properly, he added.
The Government is also examining whether companies potentially linked to the haze receive government grants or incentives, which are conditional on lawful and responsible conduct.
@asiaone Banks lending money to agricultural firms with potential links to the haze-causing fires in Indonesia have started questioning these companies, added Singapore's Senior Minister K Shanmugam. #sgnews #Singapore #Haze #Health #Indonesia ♬ original sound - AsiaOne
SM Shanmugam said companies should not be able to evade responsibility in Singapore by relying on different corporate structures.
"They cannot play hide and seek with different corporate structures," SM Shanmugam said.
Nor should they assume that because the evidence and actions are in Indonesia, they can escape responsibility in Singapore, he added.
"If companies refuse to cooperate, regardless of whether they have a presence in Singapore or do not have a presence in Singapore, we will use every legal and regulatory lever at our disposal to exert pressure where it matters, including on their bottom lines, including on their access to financing, and including on their standing with investors," SM Shanmugam said.
He added that the Government would consider amending existing legislation or introducing new laws urgently if necessary to secure further cooperation.
Companies should also not expect to simply wait for the haze to clear and return to business as usual, he said.
"We will pursue this matter for as long as it takes."
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