Temasek purchased Sembcorp Marine’s rights issues after proper due diligence: Indranee
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Temasek became a direct shareholder of Sembcorp Marine in 2020.
PHOTO: SEMBCORP MARINE
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SINGAPORE - Temasek’s decision to invest in the now-defunct Sembcorp Marine’s 2020 and 2021 rights issues was taken after due diligence was done based on available facts and company disclosures, said Ms Indranee Rajah, Minister in the Prime Minister’s Office and Second Minister for Finance.
“At that time, Temasek (then) made an independent commercial decision to inject capital into the company,” she said.
Ms Indranee was responding to Parliament questions raised on Monday in relation to an investigation by Singapore’s Corrupt Practices Investigation Bureau (CPIB) and Brazilian authorities against Seatrium – the company formed in April 2023
On May 31, CPIB commenced investigations against Seatrium and individuals from the company
There were no details on whether the offences were related to Brazil’s national “Operation Car Wash” investigation, which was launched in 2014 and included Sembcorp Marine’s Brazilian subsidiary, or a separate bribery case against Keppel O&M, which emerged in 2017.
“As investigations are ongoing, it is not appropriate to provide further details at this juncture,” Ms Indranee said.
Temasek became a direct shareholder of Sembcorp Marine in 2020. The state investor’s $1.1 billion investment in the company through the 2020 and 2021 rights issues, in addition to a mandatory general offer,
Temasek and its affiliates together are the biggest investors in Seatrium.
Ms Indranee said Sembcorp Marine’s disclosures pertaining to the alleged corruption case at the time of the rights issues mentioned that there were charges by Brazilian authorities against a former employee in his personal capacity, and not against Sembcorp Marine’s Brazilian subsidiary.
“The Government understands that Temasek conducted the due diligence appropriate to the rights issues, bearing in mind that the company was already part of the group,” she said.
She referred to Sembcorp Marine’s announcements made through July 2019 and February 2020 which stated that “the company was committed to the highest standards of compliance with anti-corruption laws and does not condone, has not condoned, and will not tolerate any improper business conduct”.
The minister also pointed out that the rights issues were raised amid an industry downturn, which was exacerbated by the Covid-19 pandemic, to ensure that Sembcorp Marine had sufficient funding to see through its business obligations.
“Without the recapitalisation, there would potentially have been an erosion of value and the loss of jobs,” she said.
Ms Indranee said CPIB will be interviewing individuals of interest and reviewing all documentary and other records to which it can gain access.
“CPIB takes this matter seriously. It will investigate the case thoroughly and seek to complete the investigations expeditiously.”
In its latest response to queries raised by the Singapore Exchange on the Brazil investigation, Seatrium on June 1 said CPIB has not provided the company with the identity of the individuals who are being investigated for alleged corruption offences.
“As far as the company is aware, investigations are ongoing, and no formal charges have been made against any of the key executives of the company,” it said.
