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Singapore

Ex-Pokka manager jailed for selling S$1.3 million worth of beverages that ended up in North Korea

Phua Sze Hee sold beverages like Pokka Strawberry Milk and Pokka Premium Milk Coffee Regular to various companies, knowing they would be exported to North Korea.

Ex-Pokka manager jailed for selling S$1.3 million worth of beverages that ended up in North Korea

Screengrab from Google Street View of Pokka International.

SINGAPORE: A manager at Pokka International sold about S$1.3 million worth of beverages such as strawberry milk and coffee to various companies, knowing they would eventually be exported to North Korea.

Singaporean Phua Sze Hee, 59, was sentenced to five weeks' jail on Monday (Dec 12) after he pleaded guilty to four charges of breaching Regulation of Imports and Exports Regulations, with another 24 charges taken into consideration. 

It is illegal for any Singapore citizen or anyone in Singapore to trade certain goods with North Korea. On top of this, a trade prohibition on all commercial goods from or to North Korea was imposed in November 2017.

The court heard that Phua began working as a channel manager at Pokka in 2009. His customers included ship stores, vendors of vending machines, office suppliers, funeral parlours and wholesale companies.

The company had a monthly sales target of S$1.25 million that Phua had to meet.

In 2014, a friend introduced Phua to a customer named Zheng Shi Qiang. Zheng was the director of several companies and in turn introduced Phua to a man known only as Mr Kim.

Mr Kim was working as an ambassador at the North Korean embassy in Singapore, the court heard.

Zheng would buy Pokka beverages from Phua, and Mr Kim occasionally liaised with Phua over the beverages that Zheng bought. Mr Kim also would raise issues with Phua about the sale of the drinks.

After Mr Kim died in 2015, Zheng introduced Phua to a man named in court documents only as Mr Mun. Mr Mun also worked at the North Korean embassy.

Zheng introduced Mr Mun as his business partner for the purchase of Pokka beverages.

Phua found out from Zheng that the Pokka drinks sold to his companies were meant to be exported to North Korea for sale there.

Between Nov 29, 2017 and Sep 25, 2018, Phua sold Pokka beverages to businesses in Singapore, knowing that the drinks would thereafter be exported to North Korea for commercial trade. 

The total value of the goods, which included Pokka Strawberry Milk and Pokka Premium Milk Coffee Regular, that ended up being exported to North Korea was S$1,295,162.53.

While he did not earn a commission for these sales, it helped Phua meet his monthly sales target of S$1.25 million.

In response to queries from CNA, Pokka said that it has not been charged with any offences and is committed to ensuring that it complies with all national laws and UN sanctions. This includes ensuring that it has no dealings with North Korea.

"Pokka has a strict management policy not to trade with distributors that export to North Korea directly or indirectly," the company said.

"Furthermore, Pokka would immediately suspend business with customers, in and outside Singapore, that are suspected of trading in North Korea."

It added that Phua was a former Pokka employee who went against the stated management policy not to trade with distributors that export to North Korea, directly or indirectly.

"Once we became aware that charges had been brought against the individual, we acted quickly to terminate his employment," the firm said.

"We expect all Pokka employees to abide by our management policies and to act lawfully and ethically in all business activities."

'SINGAPORE SUFFERED A LOSS TO ITS REPUTATION'

The prosecution said such offences cause Singapore to suffer a loss to its reputation. 

Such laws have been enacted for Singapore to support international efforts, said the prosecution, citing discussions in Parliament on how North Korea's development of nuclear ballistic missiles poses a great threat to international peace and security.

Defence lawyer Safiuddin Naseem said his client was not a director at Pokka but was just an employee. He did not profit from the offences and cooperated fully with authorities in investigations, he said.

Phua also suffered additionally from the "stress and guilt" as a result of proceedings, said the lawyer. He suffered a heart attack earlier this year and was also let go by the company.

His parents and wife are all suffering from cancer, and Phua hopes to pay his dues and move on with his life, said the defence.

Phua's lawyer said the six to eight weeks' jail asked for by the prosecution was on the "excessive side" and instead asked for four weeks' jail. 

Source: CNA/ll(sn)
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