PALM oil producer First Resources : EB5 0% has denied allegations that it is linked to a network of companies accused of clearing rainforests in Indonesia.
The Singapore-listed firm was responding to allegations made by The Gecko Project, which published two articles that accused First Resources of operating so-called “shadow companies”.
The companies – FAP Agri, Ciliandry Anky Abadi and New Borneo Agri – and their subsidiaries have allegedly cleared tens of thousands of hectares of Indonesian rainforests since 2008, The Gecko Project wrote.
The first article was published in November 2023, with a follow-up story released in March this year.
The Gecko Project, which describes itself as a nonprofit newsroom, is registered in the United Kingdom.
In response, First Resources said in a bourse filing on Wednesday (Apr 17) that it “does not have any ownership stake or hold any management roles” in Ciliandry Anky Abadi or New Borneo Agri.
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The company added that it has not entered into any transactions with either entity, nor does it share the same office addresses or employees.
On its relationship with FAP Agri, First Resources clarified that the latter was neither a subsidiary nor an associated company, but rather a “supplier to First Resources on an ad hoc basis”.
For the financial year ended Dec 31, 2023, First Resources purchased some US$100 million of palm oil materials from FAP Agri, it said.
“It is important to state that the company has no control, management or otherwise, over FAP Agri,” First Resources added.
FAP Agri, which is listed on the Indonesia Stock Exchange, had a market capitalisation of 19.2 trillion rupiah (S$1.6 billion) as at market close on Wednesday.
It is majority-owned by Prinsep Management, whose shareholders include Indonesian billionaire Wirastuty Fangiono.
In its filing, First Resources said that Fangiono, while related to its chief executive officer and deputy CEO, “does not have control over First Resources, nor (does she) hold any management or director position in the company”.
The company added that it has appointed a sustainability consulting firm, Robertsbridge, to investigate the allegations and “develop an action plan”.
Shares of First Resources closed S$0.02 or 1.4 per cent lower to S$1.37 on Wednesday, prior to the filing.
