S Ramesh Channel NewsAsia 28 Jun 13;
SINGAPORE: Singapore's Law and Foreign Affairs Minister K Shanmugam has clarified his past directorships in Asia Food & Properties Ltd (AFP) and Golden Agri-Resources Ltd (GAR) which are controlled by the Sinar Mas Group (SMG).
Writing on his Facebook page, he said these questions have been raised because one senior Indonesian official said last week that the Sinar Mas Group, which has some companies in Singapore, was among those involved in the forest burning in Indonesia that caused the haze.
Mr Shanmugam revealed that in June 1996, the Singapore Exchange (SGX) had asked him and two others to become independent directors of a listed company called Amcol because Amcol was in serious trouble.
Most of Amcol's then directors were told to step down. Amcol had over 11,000 shareholders and many of them were Singaporeans who had invested using their CPF.
Amcol went into Judicial Management, and a white knight, the Sinar Mas Group was eventually found for Amcol.
The group took over Amcol in 1997, through Asia Food and Properties Limited (AFP), an SMG subsidiary.
Mr Shanmugam said AFP was then listed and he became a director of AFP. He stressed that he did not charge or receive any legal fees for this work as the work was done to help the public, who were Amcol shareholders.
Legal fees refer to payment that a lawyer performing work in a similar situation could have received.
He added that Golden Agri Resources was listed in 1999 as a subsidiary of AFP, and he was appointed a director of the company.
When AFP was listed in 1997, Mr Shanmugam said he wanted to step down as the work SGX had asked him to do was completed.
However, Sinar Mas Group asked him to stay on for a period to give confidence to shareholders, given that the company had gone through difficult times.
Mr Shanmugam agreed to the request.
In 2001, he stepped down from both the AFP and GAR Boards, as the transition was over, and SMG had found new directors.
Throughout this period, Mr Shanmugam stressed he did not own any shares in Amcol, AFP or GAR.
However, as a director of AFP and GAR, he said he received director's fees, similar to other directors.
- CNA/fa
Shanmugam clears air on past links to firms
Andrea Ong Straits Times 29 Jun 13;
FOREIGN Minister K. Shanmugam yesterday explained his past position as director in two companies controlled by an Indonesian conglomerate reportedly linked to the fires causing the haze.
The conglomerate, Sinar Mas Group (SMG), has some companies in Singapore and was named by a senior Indonesian official last week as one of the alleged culprits burning forests and contributing to the haze enveloping the region.
In a Facebook post yesterday, Mr Shanmugam, who is also Law Minister, detailed how he came to be involved in the two SMG-controlled companies: Golden Agri-Resources (GAR) and Asia Food & Properties (AFP).
In June 1996, he and two others were asked by the Singapore Exchange (SGX) to be independent directors of then listed company Amcol, he said. The company, many of whose shareholders were Singaporeans who had invested using their Central Provident Fund savings, was in "serious trouble".
Most of its directors had been told to step down, he said.
"The three of us were asked to go in and see how the investing public shareholders of Amcol could be helped," said Mr Shanmugam, then a lawyer with expertise in securities law.
They managed Amcol's affairs with judicial managers and a white knight, SMG, was found.
SMG took over Amcol in 1997 using AFP, which was listed that same year. In 1999, GAR was listed as a subsidiary of AFP.
Mr Shanmugam was appointed director of both companies after their listing. The Amcol shareholders who kept their shares ended up getting "a substantial benefit".
But, he said, "I did not charge or receive any fees for this work - the work was done to help the public, who were Amcol shareholders". He had wanted to step down when AFP was listed in 1997 as the task given to him by SGX - to help Amcol shareholders - had been completed.
He, however, agreed to SMG's request to stay on for a period, to give confidence to shareholders.
He stepped down from the boards of AFP and GAR in 2001.
"Throughout this period, I did not own any shares in Amcol, AFP or GAR," he said. "I did my duty on behalf of shareholders as requested by SGX. And I have never owned any shares in any of these companies." He received director's fees for his AFP and GAR posts, similar to other directors.
Mr Shanmugam said he had also been asked about Asia Pulp and Paper (APP), which a top Indonesian official said owned land with hot spots. GAR and APP are units of SMG. Noting that APP was listed on the New York Stock Exchange, he said: "I had no dealings whatsoever with APP."
On Tuesday, a foreign online report highlighted Mr Shanmugam's links with these companies.
Late on Wednesday night, he called lawyer Choo Zheng Xi, who co-founded The Online Citizen, to discuss the report. Yesterday, he said he knew Mr Choo and had discussed issues with him before over dinner and the phone.
In a Facebook post yesterday, Mr Choo, 28, said: "Minister shared his views about the article, noting that he thought it was libellous... I agreed that there were many unverifiable facts in the article and that it appeared to me that the article was libellous." He added that he had told friends of the conversation and the minister's views. "I had earlier in the day informed them of my opinion that the article was libellous under Singapore's laws on defamation."
Mr Shanmugam said he was "surprised" to see blogger Kirsten Han posting on Thursday that she found the late-night call "troubling" and "worrying".
"Unfortunately the picture Ms Han has painted is quite untrue. To give her the benefit of the doubt, she was not part of the conversation and may not therefore have had the full picture," he said.
Yesterday, he also told reporters that Mr Choo had sent him an e-mail saying his posting explaining what happened was fair.
In another post last evening, Mr Choo took responsibility for the mischaracterisation of the minister's phone call to him, which was a personal call. "I apologise to both the minister and Kirsten for the miscommunication, which was solely occasioned by me," said Mr Choo.
