Singapore authorities are investigating Seatrium for potential offences linked to a high-profile corruption case in Brazil, known as Operation Car Wash.
Seatrium, formed in 2023 following the merger of Sembcorp Marine and Keppel Offshore & Marine (KOM), revealed the investigation in a Singapore Exchange filing on Saturday (15 June).
The Monetary Authority of Singapore (MAS) and the police’s Commercial Affairs Department (CAD) have requested further information from Seatrium as part of their investigation.
The alleged offences are under the Securities and Futures Act 2001, the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, and their previous versions.
Seatrium, in which Temasek holds a 37.9% share, assured its full cooperation with the authorities, stating, “The company will continue to monitor the situation and make appropriate announcements in the event of any material developments.”
Earlier in March, the Attorney-General’s Chambers (AGC) and the Corrupt Practices Investigation Bureau (CPIB) announced that the public prosecutor was in discussions with Seatrium regarding a deferred prosecution agreement (DPA) related to alleged corruption offences in Brazil.
Under the proposed DPA, Seatrium would be required to pay a financial penalty of US$110 million, with US$53 million potentially offsetting the settlement payment to Brazilian authorities of R$670,699,731.73 (approximately US$125.1 million).
The DPA, a settlement mechanism where prosecution defers criminal charges in exchange for corporate compliance with various conditions, including admission of wrongdoing, financial penalties, and corporate reform, remains subject to AGC’s agreement and approval by the High Court. Seatrium has stated it will announce once the DPA is executed and approved by the court.
Seatrium continues to cooperate fully with ongoing investigations and maintains its commitment to transparency and legal compliance amidst these serious allegations.
Operation Car Wash, which started in 2014 as a money-laundering probe into a car wash in Brasilia, evolved into a significant investigation revealing the largest corruption scheme in Brazil’s history.
The probe exposed illicit kickbacks from corporate executives to influential politicians in exchange for contracts with the state-operated oil giant, Petrobras which include bribe payments to officials of the Brazilian state-owned corporation Petróleo Brasileiro S.A. (Petrobras) concerning rigs-building contracts awarded to KOM.
Stern warnings were issued by CPIB last January to six former senior executives of KOM after nearly five years of investigation in consultation with AGC. These offences relate to to KOM.
Additionally, in March, two former employees of the now-defunct Sembcorp Marine and a subsidiary were charged with bribing Brazilian officials to advance their companies’ interests.