Company fined $160k, director gets 6 weeks’ jail over unlawful supply of luxury goods to North Korea

SINGAPORE – A company dealing in alcoholic drinks was fined $160,000 and its director given six weeks’ jail on Thursday for unlawfully supplying luxury goods worth more than $1.7 million to North Korea.

Due to United Nations sanctions, it is illegal for anyone in Singapore to supply, sell or transfer designated luxury items to North Korean entities.

Rejo Beverages and Loh Mun Sang, 43, were earlier convicted of charges under the UN (Sanctions- Democratic People’s Republic of Korea) Regulations 2010.

The offences were committed between July 2016 and January 2018. But Loh became a director at Rejo Beverages only in May 2019.

Even though Loh was not a director then, he was the sole directing mind behind the firm, said the prosecutor.

At the time of the offences, his wife was its shareholder and director but she was involved in only its back-end operations, including overseeing its human resource functions and signing company cheques.

Loh was in charge of sourcing the goods that Rejo Beverages sold and also dealt with customers.

When orders were placed, Loh would direct the accounts department to issue invoices to collect payment before the goods were released to the customers.

Businessman Zheng Shi Qiang, 50, owned three companies – Beneta, Tan Quang Singapore and Baron & Baron – that bought wines and spirits from Rejo Beverages.

When Beneta staff first approached Loh to buy the goods, they informed him that the firm was involved in operating a supermarket in North Korea.

Deputy Public Prosecutor Jordon Li said: “Loh therefore knew that the goods that Rejo sold to Beneta were to be supplied to the supermarket in (North Korea). Rejo had thus indirectly supplied the goods to a person (there).”

The DPP added that Loh would instruct Rejo Beverages’ staff to follow up with Beneta on the sales of the goods as well as the subsequent logistical arrangements.

According to court documents, Beneta sold the goods it bought from Rejo Beverages to companies in North Korea, after first shipping them to Dalian, China.

Rejo Beverages did not check for proof of delivery to the final destination nor was it involved in the delivery of the goods to North Korea, said the DPP.

Loh’s bail was set at $100,000 on Thursday and he is expected to surrender himself at the State Courts on June 9 to begin serving his sentence.

Zheng’s case is pending.