Former Pokka manager jailed for selling $1.3m worth of drinks to North Korea during trade ban

SINGAPORE – A former channel manager at beverage firm Pokka International, who unlawfully supplied nearly $1.3 million worth of drinks to North Korea, was jailed for five weeks on Monday (Dec 12).

Phua Sze Hee, 59, did not earn commission for these sales that took place in 2017 and 2018. However, Pokka International had instituted a monthly sales target of $1.25 million and his unlawful sales had helped him meet it.

A prohibition has been in place since Nov 8, 2017, on all commercially traded goods that are imported, exported, transhipped or brought in transit from or to North Korea, the prosecution said.

The Singaporean pleaded guilty on Monday to four charges under the Regulation of Imports and Exports Regulations. The goods involved had a total export value of more than $290,000.

Twenty-four other charges involving the remaining value were considered during sentencing.

In 2014, a friend introduced Phua to a man identified as Zheng Shi Qiang, also known as Jordan, who was then a director of firms such as Tan Quang Singapore and Baron & Baron.

The case against Zheng, now 50, is pending.

Deputy Public Prosecutors V. Jesudevan, Sarah Thaker and Benedict Teong stated in court documents: "Jordan introduced Phua to one Mr Kim, who was working as an ambassador in the North Korean Embassy in Singapore.

"Jordan would purchase Pokka beverages from Phua, and Phua would, in turn, liaise with Jordan and his staff on these purchases. On occasion, Mr Kim would liaise with Phua for the Pokka beverages sold to Jordan and also raise issue regarding the purchase of Pokka beverages to Phua."

After Mr Kim died in early 2015, Zheng introduced Phua to another embassy employee, a Mr Mun.

According to court documents, Zheng had told Phua that the two North Koreans were his business partners in the purchase of Pokka beverages.

The DPPs said that Phua also learnt from Zheng that the drinks sold to Tan Quang Singapore and Baron & Baron were meant for export to North Korea. The products would then be sold there.

[[nid:411993]]

On or around Dec 8, 2017, Phua invoiced Tan Quang Singapore for the purchase of 2,520 cartons of Pokka strawberry milk. Phua was aware that the drinks, which had an export value of more than $44,000, would be exported to North Korea.

Separately, he committed similar offences involving Baron & Baron as well as two other firms, A-Linkz Marketing and 123 Duty Free.

At the time of the offences, Tay Kiong Chiak, also known as Ronald, was a director at A-Linkz, while Ryan Wang Jung Chung was a director at 123 Duty Free.

Court documents did not mention if these two men are now facing charges.

In a statement on Monday evening, Pokka said it has not been charged with any offences and is committed to ensuring it complies with all national laws and United Nation sanctions, including ensuring it has no dealings with North Korea.

Its spokesman added that "Pokka has a strict management policy not to trade with distributors that export to North Korea directly or indirectly.

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

"The individual convicted is a former employee of Pokka who acted in contradiction of our stated management policy not to trade with distributors that export to North Korea, directly or indirectly."

Pokka said that once it became aware that charges had been brought against Phua, it acted quickly to terminate his employment with it.

This article was first published in The Straits Times. Permission required for reproduction.