Two S’poreans admit role in illegal $2m sale of sonar that ended up with Myanmar Navy

SINGAPORE – Two Singaporeans who sold a sonar system, which eventually ended up with a survey centre operated by the Myanmar Navy, have admitted in court to breaching a law that controls the sale of strategic goods including weapons.

The two men – Poiter Agus Kentjana, a 57-year-old sales manager at Hydronav Services, and Wui Ong Chuan, one of the directors of the firm – pleaded guilty on Aug 25 to one count of cheating and one charge under the Strategic Goods (Control) Act.

Hydronav, which was represented by Wui, pleaded guilty to two charges under the Act. Wui, 70, was the only director involved in the firm’s import and export operations.

The case involved a multi-beam echo sounder system for seabed mapping.

It was sold to Myanmar entity Light of Universe for US$1.58 million (about S$2 million). The end-user was the Myanmar Navy Hydrographic Centre, which carries out hydrographic survey activities in Myanmar waters.

Although the system is classified for both military and civilian use, there was no evidence that it was used for military purposes, the prosecution said, adding that it is seeking fines for the parties, including a fine of more than $1 million for the company.

Deputy Public Prosecutor Magdalene Huang said Poiter and Wui had engaged in a conspiracy to cheat Norwegian firm Kongsberg Maritime, the seller of the system, into believing that Indonesian company Bina Nusantara Perkasa would be its end-user.

Poiter, who was in charge of sales of the system, had devised a plan to fraudulently list the Indonesian company as the end-user to deceive the Norwegian authorities into approving the export of the system from the Nordic country.

The Norwegian authorities had earlier rejected two applications when the Myanmar Navy Hydrographic Centre was listed as the end-user.

Poiter picked Bina Nusantara Perkasa because the company had prior dealings with Hydronav. He believed the Norwegian authorities would approve the sale to the firm.

Wui agreed with the sales strategy and gave Poiter the contact details of Bina Nusantara Perkasa’s director, who decided to go along with the plan. The director of the Indonesian firm then filled up a statement indicating his company as the end-user.

After Poiter submitted the false statement to Kongsberg, the company was dishonestly induced into obtaining the Norwegian export licence for approval of the sale of the system, which was purchased for US$759,931.20.

The export to Bina Nusantara Perkasa was approved by the Norwegian authorities after they received the false statement, and the system was shipped from Norway to Singapore on July 17, 2018. It was exported to Myanmar on July 20, 2018, without any permit under the Strategic Goods (Control) Act.

DPP Huang said the seabed mapping tool consists of two sub-systems, both specified in the Schedule of the Strategic Goods (Control) Order 2017, which meant it was subject to controls under the Act.

The authorities were alerted when Singapore Customs received a complaint alleging that the export of the system by Hydronav from Singapore to Myanmar was done without the requisite permit.

An investigation was launched and Hydronav’s premises were raided on Oct 15, 2020, with the authorities seizing digital devices and documents.

DPP Huang said the case is likely to damage Kongsberg’s reputation. The prosecution is seeking a fine of more than $1 million for one of the two Strategic Goods (Control) Act charges Hydronav faces, with the sum equivalent to the profits earned by the company.

It is seeking a fine of $10,000 for the other charge under the Act.

DPP Huang also asked the court to impose a fine of at least between $25,000 and $30,000 in total for Poiter, and from $30,000 to $35,000 in total for Wui.

The DPP said Wui has the higher culpability as he had approved Poiter’s plans.

The sentencing for the two men and the company is expected to take place in September.