SINGAPORE – In late 2023, employees of one of the largest vaping companies in China approached The Sunday Times, alleging that their employer and colleagues were involved in criminal activities.

The allegations involved a company in River Valley, which they said was being used by the Chinese vaping company to facilitate, manage and coordinate illegal shipments of its vapes to some markets that have banned e-vaporisers.

The whistle-blowers, who spoke on condition of anonymity, said they had come forward as they felt that what the Chinese vaping company was doing was wrong. The whistle-blowers did not want to be implicated. ST obtained recordings of phone calls allegedly between employees of the company, including two Singaporean senior managers who work for the company in China.

Recording 1

Two people can be heard talking about a Bloomberg journalist who had been investigating the company’s operations in Malaysia.

They discussed doing a background check on her and also lying to her by sticking to the “official narrative” that the company does not sell vapes containing nicotine in Malaysia.

Person A: “I just said (company name) does not support people doing that, we don’t – I mean I already gave all these answers but I’m worried that – I mean they’re not selling... are people selling these in our stores? Like if she (the journalist) goes to a store and tries to – if this person is even who they say they are – if they go to a store and say like, hey do you have, you know, the nic (nicotine) in the back?”
Person B: “Yeah we, we only... and this is something I want to bring up with the team next week, because I’m going to Malaysia next week right?”
Person A: “Yeah.”
Person B: “What I heard from my new guy (name redacted) is that they do keep the nicotine products in the store.”
Person A: “F***... (laughter)”
Person B: “And that’s just like so stupid and so pointless.”
Person A: “F***.”
Person B: “So next week I want to remind them, it’s not worthwhile trying to make some of these small sales. They’re like, oh but sometimes the customer will want to ask for it, you know, that kind of thing. It’s like this is the perfect kind of risk for a scandal, right?”

Recording 2

In a second recording, two people can be heard discussing how non-compliant products were sold and payments made in the South-east Asia region.

Person D: “I don’t know, did they tell you that we’re already selling these... these non-compliant products in the UK (Britain) as well?”
Person C: “Yeah, I’m not surprised. We have put them all over the world.”
Person D: “And then I think, what is it? I mean, I think the biggest issue too is if they can figure out what we’ve done in South-east Asia, like apparently making these payments that (name redacted) was telling me about too... I think that I heard about.”
Person C: “Yeah, it will require some (inaudible) or something.”
Person D: “But is that in all three markets or just two?”
Person C: “I think there is some form of it everywhere, so...”

The names of several countries are mentioned, including Indonesia, the Philippines, Malaysia, New Zealand and Australia.

The conversation then alludes to bribes.

Person D: “What… we can… I thought there would be like, extremely difficult. We’ve made f***ing bribes in New Zealand and Australia?”
Person C: “That’s the thing, right, especially in difficult markets or markets with heavy, strict regulations. All you have to do to circumvent them is to go into grey channels.”
Person D: “No, no, but I’m talking about making like, government payments.”
Person C: “Oh, no, no, no, we don’t do that visibly in Australia and New Zealand. But government payments are not a problem for us because, because these are extremely... how do I put it... subtle. It’s just like how the Big Tobacco does it, right, they go through multiple shell companies and associations and consultants and agencies and whatnot. And it’s almost… you need to have a very persistent investigative journalist to find out...”
Person D: “Okay.”
Person C: “...or this call is recorded. (Laughter)”
Person D: “Well, an investigative journalist is one thing, but if a government comes at us?”
Person C: “It’s hard to get the proof, yah.”
Person D: “Okay, okay.”