28-8-2023 (SINGAPORE) Two Singaporean individuals involved in the sale of a sonar system, which ultimately ended up with a survey center operated by the Myanmar Navy, have confessed to violating laws governing the trade of strategic goods, including weaponry, during a court appearance on August 25.
The two men identified as Poiter Agus Kentjana, a 57-year-old sales manager at Hydronav Services (S), and Wui Ong Chuan, one of the company’s directors, pleaded guilty to one count of fraud and one charge under the Strategic Goods (Control) Act. Hydronav, represented by Wui, also admitted guilt to two charges under the same Act. Wui, aged 70, was the sole director responsible for the company’s import and export operations.
The case revolves around the sale of a multibeam echosounder system used for seabed mapping. This system was sold to the Myanmar entity known as Light of Universe for the sum of US$1,580,000.00 (S$2,164,442.00), with the end-user being the Myanmar Navy Hydrographic Centre, responsible for hydrographic survey activities in Myanmar waters.
Although this sonar system is designated for both military and civilian applications, there is no evidence indicating its utilization for military purposes, according to the prosecution. Nonetheless, they are pursuing fines for all parties involved, including a fine exceeding $1 million for the company.
Deputy Public Prosecutor Magdalene Huang stated that Poiter and Wui conspired to deceive Norwegian firm Kongsberg Maritime, the original seller of the system. They falsely represented that Indonesian company PT Bina Nusantara Perkasa would be the end-user. Poiter, responsible for system sales, devised this fraudulent plan to mislead Norwegian authorities into approving the system’s export from Norway.
Prior to this, Norwegian authorities had rejected two applications that listed the Myanmar Navy Hydrographic Centre as the end-user. Poiter selected PT Bina Nusantara Perkasa due to their previous dealings with Hydronav, believing that Norwegian authorities would grant approval for the sale to this company.
Wui endorsed this deceptive strategy and provided Poiter with PT Bina Nusantara Perkasa’s director’s contact details, who agreed to participate in the plan. The Indonesian firm’s director completed a statement falsely indicating his company as the end-user.
Following Poiter’s submission of the false statement to Kongsberg, the company was induced dishonestly into obtaining Norwegian export approval for the system, which had been purchased for US$759,931.20. The system was shipped from Norway to Singapore on July 17, 2018, and then exported to Myanmar on July 20, 2018, without the necessary permit under the Strategic Goods (Control) Act.
DPP Huang pointed out that the seabed mapping tool consisted of two sub-systems, both explicitly specified in the Schedule of the Strategic Goods (Control) Order 2017, subjecting it to controls under the Act.
Singapore Customs was alerted to the case when they received a complaint alleging that Hydronav had exported the system to Myanmar without the required permit. This prompted an investigation, leading to a raid on Hydronav’s premises on October 15, 2020, during which digital devices and documents were seized.
DPP Huang expressed concerns that this case could tarnish Kongsberg’s reputation and is thus seeking a fine exceeding $1 million for one of the two Strategic Goods (Control) Act charges faced by Hydronav, equivalent to the profits earned by the company. Additionally, the prosecution is requesting a $10,000 fine for the other charge under the Act.
DPP Huang also urged the court to impose a fine ranging from $25,000 to $30,000 in total for Poiter and $30,000 to $35,000 in total for Wui, highlighting Wui’s higher level of culpability due to his approval of Poiter’s fraudulent plans.
The sentencing for the two individuals and the company is scheduled for September.
