Sembmarine unit’s ‘alleged irregularities’ linked to Brazil’s Operation Car Wash
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Sembmarine says it will continue to cooperate and work with the Brazilian authorities on this matter.
PHOTO: SEMBCORP MARINE
Michelle Zhu
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SINGAPORE – Sembcorp Marine (Sembmarine) on Wednesday clarified that preliminary administrative proceedings commenced by Brazil’s Comptroller General of the Union (CGU) against the group’s subsidiary, Estaleiro Jurong Aracruz (EJA), are related to past conduct linked to Operation Car Wash.
This is in reference to the group’s March 24 announcement that EJA is being investigated for “alleged irregularities” in its practices.
The CGU has not brought any civil or administrative charges against Sembmarine or its subsidiaries, said the group.
Sembmarine added that it will continue to cooperate and work with the Brazilian authorities on this matter.
Prior to its March 29 update, Sembmarine’s last announcement regarding Operation Car Wash was made through a circular to shareholders dated Jan 31.
The nationwide criminal investigation by the Federal Police of Brazil was first launched in 2014 as a money laundering probe, eventually expanding to cover allegations of corruption, including at Brazil’s national oil company Petrobras.
Operation Car Wash was mentioned as one of the operational, business and political risks which Sembmarine cautioned that the enlarged group – following its acquisition of Keppel Offshore & Marine – may be exposed to.
Investigations regarding the anti-graft probe began with a search warrant on EJA in July 2019, and expanded to include its former president Martin Cheah.
On this matter, Sembmarine said EJA cooperated fully with the Brazilian federal police and provided material within the scope of the warrant.
Shares of Sembmarine were up 0.5 cent, or 4.55 per cent, at 11.5 cents on Wednesday.
