ST : MND rejects claims of sand smuggling

Jun 26, 2010

MND rejects claims of sand smuggling

Suppliers required to show proof sand comes from approved sources

By Jessica Cheam

THE Singapore authorities have rejected a claim published in Malaysian newspaper The Star that sand worth millions of dollars has been illegally 'floated' out of Malaysia and into Singapore for the past three years.

The report by The Star on Thursday alleged that a Singapore firm, which obtains the sand from a Malaysian partner, supplies it to Singapore's Housing Board.

This is despite a ban on sand exports imposed by the Malaysian government since 1997.

The Ministry of National Development (MND) told The Straits Times yesterday that 'there is no evidence that the sand HDB receives has been smuggled out of Malaysia, as alleged by The Star article'.

The MND, parent ministry of the HDB, said the agency engages sand suppliers on a commercial basis to supply sand for its development works.

As part of the procurement process, HDB requires its tenderers to produce quality certificates and export permits to confirm that their supply is from approved concessions in the source nations.

'In addition, our Customs have in place procedures to check and investigate the import of goods at the checkpoints.'

Sand supplies must have the necessary import permits to come through the Pulau Punggol Timor Aggregate Terminal, which is managed by the Building and Construction Authority, added the MND.

Meanwhile, the Johor state government said it will initiate its own probe into the sand smuggling allegations.

Its Local Government, Housing, Arts, Culture and Heritage Committee chairman, Datuk Ahmad Zahri Jamil, said at a press conference on Thursday: 'Johor does not export sand. So far, all our records indicate that everything is in order.'

Separately, the Malaysian Anti-Corruption Commission has called on all relevant agencies to join forces and dig deeper into illegal sand smuggling activities in the country.

Earlier this year, it arrested 43 people during its sand smuggling investigations. It added that illegal sand mining was rampant in Selangor, Johor, Perak and Pahang.

The Star reported that sand extraction is a common sight in Sungei Johor, as mining syndicates illegally transport millions of tonnes of sand, even on weekends and public holidays, via Danga Bay and the Port of Tanjung Pelepas. The sand is transported on barges through Sungei Johor to a jetty in Pulau Punggol Timor in north-eastern Singapore where the sand is unloaded, it claimed.

This is the second time in as many months that Singapore's sand industry has come under the spotlight.

Sand is a highly sought-after commodity in the Republic as it is used heavily either in the construction of buildings or for reclamation of land.

Last month, British environmental group Global Witness alleged that Singapore sand suppliers were importing Cambodian sand illegally and without regard for the environment. The report claimed Cambodia's sand trade was thriving despite a recent sand export ban.

Then, the Singapore Government rejected the report and issued a strong rebuttal. It said it had a robust system in place to control sand imports.

The Star also claimed that to circumvent the Malaysian ban on sand exports, the syndicates are believed to be exporting the sand as processed or 'packed' silica sand, an item that can be legally exported. Silica sand is high-purity sand often used in high-end applications such as sand blasting.

The newspaper said that the Singapore firm stands to profit from this lucrative trade as it pays $30 per cubic metre

of sand from its Malaysian source, compared with $40 per cubic metre for the same amount of sand from Thailand or Vietnam.

It estimated that since August 2007, more than three million cubic metres of sand had been smuggled out of Sungei Johor, and that syndicates could have raked in RM207 million (S$89 million) over a two-year period.

The paper said the Malaysian government has suffered losses due to the smuggling as it should have collected at least RM37.5 million in taxes from the exports.

Industry sources told The Straits Times yesterday that there had been speculation in recent months among industry players that some sand was being smuggled into Singapore from Malaysia.

But Singapore Contractors Association president Andrew Khng said he was unaware of any illegal activity, and that the supply of sand to Singapore's construction industry 'has been stable'.

'The sand suppliers have been sourcing sand from various countries since the Indonesian ban in 2007,' said Mr Khng.

Indonesia also banned the export of sand to Singapore in 2007, citing environmental concerns.

The Star said Malaysian government officials had been tipped off on the sand smuggling activity.

In February, it reported that several government officials had been charged with accepting bribes for allowing the smuggling of sand into Singapore.

jcheam@sph.com.sg


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PROCEDURES IN PLACE

'There is no evidence that the sand HDB receives has been smuggled out of Malaysia, as alleged by the Star article... Our Customs have in place procedures to check and investigate the import of goods at the checkpoints.'

The Ministry of National Development