The Singaporean authorities have recently announced that they have completed their investigation into allegations of corruption and bribery at the offshore and marine company Seatrium, the Singaporean offshore giant, and have determined that there is sufficient evidence to prosecute.In the decade-long case, two former executives of Seatrium were accused of corruptly taking orders from Brazil, while a preliminary agreement.
The Corrupt Practices Investigation Bureau (CPIB) announced its investigation into the bribery case in May 2023 and has now proceeded with the prosecution in consultation with the Attorney General’s Chambers of Singapore.The Bureau has charged Wong Weng Sun, 62, the former president, executive director and chief executive officer of the former Sembcorp Marine, and Lee Fook Kang, 75, the former senior director of the former Sembcorp Marine’s Brazilian subsidiary, with conspiracy to pay bribes to a former business consultant of the company, who was then based in Brazil, in a five-count indictment. In addition, Huang Yongxin was charged with obstruction of justice for instructing two employees in 2014 to delete emails containing evidence of bribery.
The former business consultant, named Guilherme Esteves de Jesus, who was at the heart of the bribery case, has been convicted by the Brazilian Federal Court in 2020 for bribery, money laundering and participation in a criminal organization, and sentenced to 19 years and 4 months imprisonment and a fine.
Martin Cheah Kok Choon, former president of the Brazilian subsidiary of former Sembcorp Marine, was also indicted in 2020 on money laundering and corruption charges, Martin Cheah had been fired in 2015 but was acquitted in December 2023 along with another former executive associated with the case.
The accused, Wong Weng Sun and Lee Fook Kang, both Singaporeans, allegedly paid bribes of about S$59 million (US$43.7 million/about Rs315 million), or a combined total of about S$118 million (about Rs730 million), with the aim of facilitating the former Sembcorp Maritime’s business interests in Brazil.
Between 2009 and 2014, former Sembcorp Marine associates in this bribery case paid bribes to various government officials, Brazilian offshore energy company Sete Brasil, and Petroleo Brasileiro to secure lucrative offshore equipment contracts.
The CPIB now alleges that the former Sembcorp Marine executives conspired to pay bribes, including $2 million in 2009, $1.9 million from 2010 to 2012, $1.2 million in 2010, and $300,000 in 2010, and agreed to pay Sete Brasil 2.5 percent of the value of its drillship orders, amounting to more than $26 million.
The CPIB of Singapore has reached a tentative agreement with Seatrium for the company to pay a brokerage fine of US$110 million (about RMB 796 million) to settle charges in Singapore. Meanwhile, Seatrium will be allowed a loan of up to $53 million (Rs. 383 million) to offset settlement payments reached in principle with the Brazilian Attorney General’s Office and other Brazilian agencies. The agreement will defer criminal charges if the company agrees to comply with conditions such as admitting misconduct, paying fines and implementing reforms, the Singaporean authorities said.
It is understood that this is the latest in a series of settlement agreements in the bribery case. In February 2024, Seatrium announced that it had reached a settlement in principle with the Brazilian authorities in relation to Operation Car Wash. The settlement relates to a $5.6 billion drillship order that the former Sembcorp Marine corruptly obtained from Sete Brasil a decade ago. Both the former Sembcorp Marine and its then rival Keppel Offshore & Marine were linked to Operation Car Wash, which has been described as one of Brazil’s biggest corruption scandals involving a wide range of politicians and companies.
Under the settlement agreement with the Brazilian authorities, Seatrium will pay approximately S$182.4 million in costs associated with the investigation of the case. At the same time, Seatrium has paid S$82.4 million in damages to Keppel Corporation in connection with the case.
The Singapore authorities have advised Seatrium to put in place robust procedures and safeguards to prevent illegal activities.In response to an inquiry from the SGX-ST, Seatrium confirmed that the two former executives in question are former employees and are not currently associated with the company.
Earlier, Seatrium emphasized the safeguards in place and the continuation of its operations in Brazil. In December last year, Seatrium’s Brazilian Far East Shipyard (BrasFELS) has been awarded a contract by Offshore Frontier Solutions, part of the MODEC Group, to build the upper module of a floating production, storage and offloading vessel (FPSO) for the Equinor-operated Raia project in Brazil, and entered the construction phase in March this year.
