CPIB investigates Seatrium, formerly Sembcorp Marine, for alleged corruption; company calls for trading halt

SINGAPORE – The Corrupt Practices Investigation Bureau (CPIB) has started investigations into Seatrium,

formerly known as Sembcorp Marine,

for alleged corruption offences in Brazil.

CPIB said it was “acting on information received” when it began investigations against Seatrium and individuals in the offshore and marine engineering company, in a statement on Wednesday evening.

Seatrium requested for a trading halt pending release of an announcement, in a filing at 7.35am on Thursday before the Singapore stock market opened. The counter closed up 2.5 per cent at 12.3 cents on Wednesday.

When contacted by The Straits Times on Wednesday, a CPIB spokesman declined to provide further details because investigations are ongoing.

In its statement, the bureau underlined Singapore’s strict zero tolerance towards corruption, adding that it will investigate “without fear or favour”. It will not hesitate to take action against any parties involved in corrupt activities. 

Seatrium was formed by the

merger of Sembcorp Marine and Keppel Offshore & Marine

earlier this year. The combined group, described as one of the world’s largest O&M energy engineering companies with a total order book of almost $20 billion, was renamed in early April.

In March, Sembcorp Marine said its wholly-owned Brazilian subsidiary, Estaleiro Jurong Aracruz, was

being probed for alleged “irregularities”

by the authorities there.

The proceedings were related to past conduct linked to an ongoing probe into money laundering and graft activities in connection with Operation Car Wash, it added.

The nationwide criminal investigation was launched by the federal police of Brazil in 2014 to look into money laundering activities and was later expanded to include allegations of corruption.

In April, Seatrium said Brazil’s preliminary administrative proceedings against its subsidiary had been suspended.

Separately, six former senior management staff of Keppel O&M were given stern warnings by the CPIB in January over bribe payments related to Brazil’s Petrobras contracts.

The six allegedly conspired with one another to give bribes amounting to about US$55 million (S$73 million) to foreign consultants involved in Keppel O&M’s business interests in Brazil.

The money was then used to pay bribes to officials of the Brazilian state-owned company, pertaining to rig-building contracts that it or its related firms awarded to Keppel O&M.

Keppel O&M also said in January that it had made full payment of the fines and damages payable worth 343.6 million reais (S$88.3 million) to Brazil under a leniency agreement.