Seatrium to pay $168m to Brazilian authorities, $73m to Singapore authorities to settle corruption case

Straits Times

3 days ago

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With this announcement, Seatrium said that Singapore authorities have concluded their joint investigations into potential offences.
SINGAPORE - Offshore and marine specialist Seatrium said it has signed a leniency agreement with the authorities in Brazil in relation to a long-running corruption probe, known as Operation Car Wash.
It made the announcement on July 30, a day before the company is due to release its earnings for the first half of the 2025 financial year.
Under the terms of the leniency agreements with Brazil's public prosecutor's office and other authorities, Seatrium will pay a final settlement of around $168.4 million.
It was also required to pay a penalty of US$110 million (S$141.7 million) to Singapore authorities, under a deferred prosecution agreement (DPA) entered with the Attorney-General's Chambers (AGC) in Singapore.
However, the AGC has agreed for up to a maximum of US$53 million of the payment to the Brazilian authorities to be credited against the financial penalty here. As such, the amount payable by Seatrium under the DPA will be US$57 million (S$73.3 million).
The DPA, signed on July 30 with Singapore authorities, is subject to approval by the Singapore High Court.
With this announcement, Seatrium said that the Monetary Authority of Singapore (MAS) and the Singapore police's Commercial Affairs Department (CAD) have concluded their joint investigations into potential offences.
'No action will be taken against the company and/or its officers,' Seatrium said.
Seatrium shares fell 1.3 per cent, or three cents, to $2.35 as at the midday trading break on July 30, after the announcement.
This is after the company lifted a trading halt around 11.20am that it had called for before the market opened earlier.
Seatrium, which was then Sembcorp Marine,
became implicated in Operation Car Wash, a major corruption scandal in Brazil, which involved allegations of paying bribes to secure contracts.
The company said in its July 30 statement that it has made provisions in its financial statements for the in-principle settlement payment and financial penalty.
'Following the finalised agreements with the Brazilian and Singapore authorities, the company has reversed a provision of $14 million in its financial statements for the financial period ended June 30 to take into account the finalised settlement payment and financial penalty, current exchange rates and other expenses,' it said.
'There is therefore no material impact on the net earnings and net tangible asset per share of the group for the financial year ending Dec 31.'
Seatrium added that it is 'keen to move forward' and to ride on the energy market tailwinds to create transformative offshore energy solutions globally and ultimately deliver long-term sustainable growth.
'The company wishes to emphasise that it remains committed to the highest standards of corporate governance and business integrity, including zero-tolerance for fraud, bribery and corruption,' it said.
It added that it has put robust policies and procedures in place to instill the highest standards of discipline, ethics, and compliance across its global operations.