Singapore authorities investigating Seatrium over potential offences linked to Brazil corruption case
The Monetary Authority of Singapore (MAS) and the police's Commercial Affairs Department (CAD) are conducting a joint investigation and have asked Seatrium for more information.
SINGAPORE: Singapore authorities are investigating offences potentially committed by Seatrium that are linked to a corruption case in Brazil.
The Monetary Authority of Singapore (MAS) and the police’s Commercial Affairs Department (CAD) have asked for further information from the company for the purpose of the investigations, Seatrium said in a Singapore Exchange filing on Saturday (Jun 15).
The potential offences fall under the Securities and Futures Act 2001, the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, and all previous versions of those laws.
The investigation is in connection with Operation Car Wash, a long-running corruption case in Brazil.
In response to CNA's queries, MAS and the police said on Jun 24 that they are unable to provide any further information at this stage as investigations are ongoing.
Seatrium was formed in 2023 following the merger of Singapore's two main offshore and marine companies - Sembcorp Marine and Keppel Offshore & Marine (KOM).
It said on Saturday that it will continue to provide its full cooperation to the authorities.
“The company will continue to monitor the situation and make appropriate announcements in the event of any material developments,” said Seatrium.
DEFERRED PROSECUTION AGREEMENT
In March, the Attorney-General’s Chambers (AGC) and the Corrupt Practices Investigation Bureau (CPIB) said the public prosecutor was in discussions with Seatrium on a deferred prosecution agreement (DPA) about alleged corruption offences in Brazil.
A DPA is a settlement where the prosecution agrees to defer criminal charges against a corporate offender in exchange for the corporation's agreement to comply with various conditions. These can include an admission of wrongdoing, payment of financial penalties and implementation of corporate reform.Â
“Under the proposed DPA, the company will be required to pay a financial penalty of US$110 million," said the authorities.Â
"Of this amount, US$53 million may be used to offset the settlement payment totalling 670,699,731.73 Brazilian reals (US$134.5 million) under the in-principle settlement agreements that the company has reached with the authorities in Brazil."
Seatrium said on Apr 1 that the DPA remains subject to AGC’s agreement and approval by the High Court.
It added that it would make an announcement once the definitive DPA is executed and approved by the court.
Earlier this year, two former employees of the now defunct Sembcorp Marine and a subsidiary were charged with bribing Brazilian officials to advance their companies' interest in the country.
Operation Car Wash began in 2014 as a money-laundering probe into a car wash in Brazil's capital Brasilia, but the operation expanded significantly into an extensive investigation into the country’s largest corruption scheme.
The probe revealed illicit kickbacks from corporate executives to influential politicians in exchange for contracts within the state-operated oil giant, Petrobras.