Keppel O&M says S$88 million in fines and damages paid in full to Brazil authorities
A worker passes a vessel modified and upgraded by Keppel Shipyard. (File photo: Reuters)
SINGAPORE: Keppel Offshore & Marine has fully paid fines and damages of almost 343.6 million reais (S$88 million) to Brazilian authorities in relation to its corruption case, Keppel Corporation announced on Monday (Jan 30).
The sum was payable under a joint resolution and leniency agreement that Keppel O&M concluded with the Brazilian Attorney-General's Office and Comptroller General of the Union last month.
The deal was on top of a global resolution reached in December 2017 with authorities in Singapore, Brazil and the United States.
Keppel O&M was then fined US$422 million for its part in an international corruption scandal that took place between 2001 and 2014, with bribes amounting up to US$55 million.
This was after corrupt payments made by Keppel O&M's former agent in Brazil to secure contracts with Brazilian oil giant Petrobras were brought to light.
In Brazil, the Brazilian Attorney-General's Office and Comptroller General of the Union have a parallel mandate with the Brazilian criminal authorities to enforce certain anti-corruption laws, and Keppel engaged in a separate negotiation process with the two agencies.
As part of the 2017 global resolution, Keppel O&M agreed to pay a balance sum of
US$52,777,122.50 within three years from the date of a conditional warning from the Corrupt Practices Investigation Bureau (CPIB) in December 2017.
Singapore's Attorney-General's Chambers (AGC) and CPIB subsequently extended the credit period to Mar 23, 2023 due to Keppel O&M's discussions with the Brazilian Attorney-General's Office and Comptroller General of the Union.
The AGC and CPIB also agreed in principle to allow Keppel O&M to seek crediting of up to US$52,777,122.50 in fines payable to the Brazilian authorities.
In an announcement filed with the Singapore Exchange on Monday, Keppel said that the AGC and CPIB had confirmed this decision.
"KOM has made full payment of the fines and damages payable under the leniency agreement," the company added, referring to its offshore and marine arm.
With the earlier global resolution and this leniency agreement, Keppel previously said it does not expect further grounds for liability in Brazil for this case.
In January, CPIB said it had issued stern warnings to six unnamed individuals over the corruption case, in lieu of prosecution for offences punishable under the Prevention of Corruption Act.
CPIB then added that Keppel O&M had paid the US$422 million fine and fulfilled all obligations under its conditional warning.
