Singapore
Offenders could face S$20m penalties as Singapore expands powers over haze-linked firms, financiers and supply chains
Harsher penalties and more economic pressure on individuals and firms linked to contributing to haze in Singapore under the revised Transboundary Haze Pollution Act. — AsiaOne pic

SINGAPORE, Nov 4 — Firms and individuals causing or contributing to land or forest fires that pose a risk of haze pollution in Singapore can face fines of up to S$20 million (RM63 million) under the revised Transboundary Haze Pollution Act (THPA) proposed in Parliament yesterday.

Errant entities convicted of a haze-related offence can be fined up to S$1 million per day, up from the S$100,000 fine per day previously. The maximum aggregate fine has also been increased from S$2 million to S$20 million.

Minister for Sustainability and the Environment Grace Fu announced the amendments to the THPA in Parliament on Wednesday, highlighting the need for stronger penalties to deter the serious harm caused by transboundary haze and underscore the gravity of such offences.

The higher penalties are among a suite of amendments to the THPA aimed at enabling earlier intervention, facilitating enforcement and enhancing deterrence.

Other enhancements to the law include allowing notices and other documents to be served electronically, as well as enabling court proceedings to continue in the absence of an accused person in specified circumstances, addressing challenges in enforcing the THPA against foreign entities.

Under the revised law, entities will also have to prove that the fire was caused by another person acting without their knowledge and that they took reasonable measures to prevent and fight the fire.

“It will no longer be sufficient to simply claim that another person caused the fire,” said Fu. She added that the recalibrated defence sends a strong signal of Singapore’s expectations that entities take sufficient care to prevent burning on their land. 

These amendments will also give the law more teeth, providing the National Environment Agency (NEA), which administers the Act, with additional tools to investigate commercial links and hold entities accountable.

The Minister for Sustainability and the Environment will now be empowered to designate firms and individuals who have been convicted of offences under the Act, are suspected of engaging in conduct constituting an offence, or have failed to comply with relevant notices or directions.

Those designated may be subject to restrictions on business dealings, prohibiting other companies from buying from or selling goods to them, or providing loans and other financial support.

Entities with corporate, business or supply-chain links to irresponsible burning activities may also come under greater scrutiny under the new framework.

The Minister-in-charge of the Monetary Authority of Singapore will administer relevant orders where restrictions concern services provided by financial institutions.

Separately, certain entities may be put on notice not to deal with parties that cause or contribute to fires posing a risk of haze pollution in Singapore.

Entities directed to appoint an assessor must engage an expert assessor from a Director-General appointed panel at its own expense. The assessor will evaluate the entity’s operations, business arrangements and corporate relationships, and submit a report directly to NEA.

Non-compliance with such orders, notices or directions will be an offence, attracting a maximum fine of S$1 million for each contravention and an additional fine of up to S$100,000 for every day the contravention continues after conviction.

In order to further address the challenges of gathering evidence outside Singapore, the amended THPA will also introduce a civil penalty framework to provide an additional route for holding errant entities accountable.

The revised bill allows NEA, with the consent of the Public Prosecutor, to bring a civil action in court seeking a civil penalty of up to S$10 million. 

“There are clear provisions to ensure that the entity is not doubly punished — the civil penalty framework cannot be used in tandem with criminal prosecution in any single case,” Fu said in Parliament. 

The revised law will also increase public accountability by allowing NEA to publish lists of entities that have failed to comply with notices or directions issued under the Act.

Fu emphasised that the proposed changes will not guarantee successful prosecutions, nor will legislation alone solve the transboundary haze problem.

“But we must do what we can within our own jurisdiction to protect our people from the harmful effects of haze,” said Fu. 

The Bill was introduced under a Certificate of Urgency to expedite the implementation of the enhanced enforcement powers while investigations into the recent haze episode are ongoing.

“We will continue working with our neighbours to strengthen regional cooperation and prevent fires at source,” said Fu, noting the recent announcement of the joint task force between Singapore and Indonesia to tackle errant firms linked to the transboundary haze. — AsiaOne

 

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