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The Corrupt Practices Investigation Bureau (CPIB) has commenced investigations against Seatrium, a company formed from the merger of Sembcorp Marine and Keppel Offshore & Marine (KOM).
According to a press release by CPIB, the investigation against the company and individuals within it pertain to alleged corruption offences in Brazil.
CPIB added that as investigations are ongoing, it will not be able to provide further details at this juncture.
Seatrium: Investigations likely related to events that occurred prior to 2015
Seatrium subsequently made an announcement on the Singapore Exchange on Jun. 1, in which it said that it believes the investigation by CPIB relates to events that occurred prior to 2015 and to the SembCorp Marine group in existence at that time.
The same day also saw a request for a trading halt at 7:35am, followed by a request to lift the halt at 9:59 am.
Seatrium added that these events predate the merger with KOM in February 2023.
The company said that it was unable to comment further at this stage, as investigations are still ongoing.
Seatrium also referenced previous announcements on the investigations by Brazilian authorities in connection with Operation Car Wash.
Operation Car Wash refers to a money-laundering probe in Brazil, which eventually became the country's largest corruption investigation.
On Mar. 29, Sembcorp Marine stated in an update that the Office of the Comptroller General of Brazil had initiated investigations against its Brazilian subsidiary Estaleiro Jurong Aracruz.
The update further noted that the proceedings generally relate to past conduct investigated by the Brazilian authorities in connection with Operation Car Wash.
On Apr. 28, Seatrium said that the preliminary proceedings against Estaleiro Jurong Aracruz were suspended, CNA reported.
Stern warnings were previously handed out to Keppel O&M senior management staff
Previously, six former KOM senior management staff were found to be involved in paying bribes amounting to US$55 million (S$73 million) to officials of Brazilian state-owned oil giant Petrobras between 2001 and 2014.
The payments, which were made to help KOM secure thirteen projects in Brazil, were concealed using consulting agreements with shell companies that were controlled by an intermediary, or consultant, who then transferred the monies to the intended parties.
KOM admitted to this modus operandi, and provided details of the bribery, as part of a deferred prosecution agreement in 2017. It was issued a conditional warning in lieu of prosecution and paid a total fine of US$422 million as part of a global resolution.
CPIB announced on Jan. 12, 2023 that it had issued the six former KOM staff stern warnings in lieu of prosecution on Jan. 11, following consultations with the Attorney-General’s Chambers (AGC).
In its explanation, CPIB said:
"This case is complex and transnational, involving multiple authorities and witnesses from several countries. There are evidentiary difficulties in cases of such nature. Many of the documents are located in different jurisdictions. In addition, key witnesses are located outside of Singapore and cannot be compelled to give evidence here."
CPIB said that it took into consideration all relevant factors, such as the culpability of each individual, the available evidence, and what is appropriate in the circumstances, when deciding whether to prosecute the six individuals, before it settled on the decision to issue stern warnings.
Top screenshot screenshot via Seatriumltd/Instagram