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Seatrium, a S'pore firm formed by Keppel O&M's merger with Sembcorp Marine, under probe for alleged corruption in Brazil: CPIB

SINGAPORE — Major Singapore offshore marine firm Seatrium along with individuals at the company are under investigation for alleged corruption offences that occurred in Brazil, the Corrupt Practices Investigation Bureau (CPIB) said on Wednesday (May 31).

An image taken from the website of Seatrium, a Singapore-listed company formed in early 2023 by the merger of Sembcorp Marine and Keppel Offshore and Marine.

An image taken from the website of Seatrium, a Singapore-listed company formed in early 2023 by the merger of Sembcorp Marine and Keppel Offshore and Marine.

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  • Seatrium along with individuals at the company are under investigation for alleged corruption offences that occurred in Brazil
  • A Singapore Exchange-listed company, Seatrium was formed earlier this year after a merger between Sembcorp Marine and Keppel Offshore and Marine
  • The Corrupt Practices Investigation Bureau said that it had commenced investigations "acting on information received"
  • In response to TODAY's queries on whether the alleged offences are linked to another Keppel bribery case which emerged in 2017, CPIB said it cannot provide more details amid an ongoing probe

SINGAPORE — Major Singapore offshore marine firm Seatrium along with individuals at the company are under investigation for alleged corruption offences that occurred in Brazil, the Corrupt Practices Investigation Bureau (CPIB) said on Wednesday (May 31).

The CPIB added in a press statement that it had commenced investigations "acting on information received".

Seatrium was formally born on April 27 this year after a merger between Keppel Offshore and Marine (Keppel O&M) and marine and offshore engineering company Sembcorp Marine. The new entity is listed on the Singapore Exchange (SGX). 

In its statement, CPIB said that investigations are ongoing and that it will not be able to provide further details at this point. 

Keppel O&M was previously rocked by a bribery case which emerged in 2017 and were related to contracts in Brazil. 

In response to TODAY's query over whether the latest alleged offences are related to the earlier Keppel O&M case, a CPIB spokesperson reiterated: "As investigations are ongoing, CPIB will not be able to provide further details at this juncture."

The earlier case involved six ex-senior Keppel O&M management staff who allegedly conspired with each other to give bribes totalling about US$55 million (S$74 million) to foreign consultants involved in the company's business interests in Brazil.

The bribes, paid between 2001 and 2014, were intended to help secure contracts with Brazilian state-owned oil giant Petrobras.

The six of them were then issued stern warnings in January for alleged bribery. 

Keppel O&M paid out US$422 million in fines as part of an international settlement of the wider corruption case, led by the United States.

Ms Indranee Rajah, Minister in the Prime Minister’s Office, said in Parliament in February that such stern warnings are issued when “you can't say that you give a complete, clean bill of health but at the same time, you don't have enough to clear the evidentiary hurdle”.

She added that the unwillingness of a foreign witness to give evidence in Singapore and another individual’s denial of wrongdoing were some of the hurdles faced by the prosecution in mounting a case against the staff. 

On March 24, Sembcorp Marine had said in a filing with SGX that it has come to know that the Brazilian federal government was investigating the company's subsidiary Estaleiro Jurong Aracruz Ltda for "alleged irregularities". 

This was based on a notice by Brazil's Office of the Comptroller General.

Sembcorp Marine added that the notice did not provide further facts and the subsidiary was co-operating fully with the authorities.

In another update on March 29, Sembcorp Marine said that it has clarified with the Office of the Comptroller General and confirmed that the proceedings relate generally to past conduct investigated by the Brazilian authorities in connection with Operation Car Wash.

Operation Car Wash refers to a criminal probe on money laundering that the Brazilian police first launched in 2014 that later expanded to cover graft allegations, including at Petrobras. 

Sembcorp Marine added then that the Office of the Comptroller General has not brought any civil or administrative charges against the company or its subsidiaries.

In another announcement on April 28, Seatrium said that it has been informed by Brazil's Office of the Comptroller General that the proceedings against its subsidiary have been suspended. 

"The company will continue to monitor developments in Brazil with respect to the above, and will make appropriate announcements in the event of any material developments," it said. 

In its statement on Wednesday, the CPIB said that Singapore adopts a strict zero-tolerance approach towards corruption.

"CPIB investigates without fear or favour and will not hesitate to take action against any parties involved in corrupt activities," it said. 

TODAY has sought comment from Seatrium. As of 6.45pm on Wednesday, no announcement by the company had been published on the SGX website in relation to the CPIB statement.

Listed companies are required to disclose to shareholders in a timely manner "material" information that could affect their share price.

Related topics

Keppel O&M Sembcorp Marine corruption

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