The Brazilian authorities have started an administrative enforcement procedure against five Keppel Corp units in relation to alleged irregularities under the Brazilian Anti-Corruption Statute.
Two officials will preside over the proceedings, Keppel Corp said in a Singapore Exchange filing yesterday.
The subsidiaries are: Keppel Offshore & Marine (Keppel O&M); Keppel Fels; Keppel Fels Brasil; BrasFELS; and Prismatic Services.
Keppel Corp said none of these units has been served with any notice or summons, adding that as the Brazilian authorities did not provide any factual particulars, it is "unable to assess the matter or its impact".
It was told that more investigations will be undertaken and a decision made if any summons is to be served. The subsidiaries will then have 30 days to file a defence.
Keppel Corp understands that the process will not affect its ongoing negotiations with the Brazilian authorities over payments of a US$422.2 million (S$585.5 million) fine imposed in 2017 for corrupt payments made by a former Keppel agent in Brazil. The fine is part of Keppel's resolution with criminal authorities in the United States, Brazil and Singapore.
Keppel O&M has already paid US$52.8 million to Singapore and is to pay a further US$52.8 million within three years from Dec 23, 2017, less any penalties paid by the unit to specified Brazilian authorities, Keppel Corp said.
The Brazilian authorities are also considering suspending the latest administrative enforcement procedure "pending these ongoing discussions", it added.
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