MAS, CAD probing Seatrium over potential offences relating to Brazil corruption case
Source: Straits Times
Article Date: 17 Jun 2024
Author: Ovais Subhani
The offences were potentially committed by the company and/or its officers when it was then Sembcorp Marine, before its renaming in 2023 after the merger with Keppel Offshore & Marine.
The Singapore authorities are conducting a joint investigation into offences potentially committed by Seatrium, formerly Sembcorp Marine, relating to a massive and long-running corruption case in Brazil, dubbed Operation Car Wash.
The Monetary Authority of Singapore and the Singapore police’s Commercial Affairs Department have requested further information from the company for the purpose of the investigations, Seatrium said in a filing with the Singapore Exchange (SGX) on June 15.
The offences were potentially committed by the company and/or its officers when it was Sembcorp Marine, before its renaming in 2023 after the merger with Keppel Offshore & Marine.
They 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.
Seatrium said it continues to provide its full cooperation to the Singapore authorities.
The company will continue to monitor the situation and make appropriate announcements in the event of any material developments. In the meantime, shareholders and potential investors are advised to exercise caution when dealing in its shares.
Seatrium shares closed down 1.77 per cent at $1.67 on June 14.
The company announced in March that Singapore’s Attorney-General’s Chambers (AGC) was agreeable to entering a deferred prosecution agreement with Seatrium following the alleged corruption offences in Brazil.
Seatrium said the agreement is not definitive yet and is subject to the AGC’s agreement and the approval of Singapore’s High Court.
In March, Seatrium was fined US$110 million (S$149 million) in connection with the alleged corruption offences in Brazil dating back some 15 years.
However, the AGC took into consideration what the group would have to pay the Brazilian authorities as part of that total amount. Seatrium, hence, only paid the remaining US$57 million to the Singapore authorities.
Additionally, two former executives of the group were charged with corruption offences on March 28 for allegedly paying bribes of more than $20 million to further the company’s business interests in Brazil.
The offshore and marine energy engineering company in February posted a $1.68 billion net loss for the second half of its 2023 financial year, a more than tenfold increase from the $118.3 million loss for financial year 2022.
Source: Straits Times © SPH Media Limited. Permission required for reproduction.
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