The Corrupt Practices Investigation Bureau (CPIB) has launched an investigation into Seatrium after receiving information on the latter's alleged corruption offences in Brazil.
Seatrium was formerly known as Sembcorp Marine (SembMarine). The name change was proposed in April after the completion of the merger between Keppel Offshore & Marine (Keppel O&M) and SembMarine.
It is not known whether the offences are related to the corrupt payments made by Keppel O&M.
According to queries made by CNA, CPIB said that it was unable to provide further details as investigations were still ongoing.
In December 2022, Keppel O&M had reached a joint resolution with the Brazilian authorities by signing a leniency agreement and paid around US$65 million ($88.3 million) in relation to the long-running corruption case.
The Keppel O&M employees involved in the case were let off with stern warnings by the Singapore government due to insufficient evidence. However, the government added that the case could be reopened should new evidence emerge.
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In March 2023, Brazil’s Comptroller General of the Union had commenced a “preliminary administrative liability proceeding” against SembMarine’s local unit, Estaleiro Jurong Aracruz Ltda (EJA), for alleged “irregularities”.
On June 1, Seatrium issued an update, stating that the investigations by the CPIB were related to the investigations by the Brazilian authorities in connection with Operation Car Wash.
"The company believes that this relates to events that occurred prior to 2015 and to the SembMarine group in existence at that time. Those events predate the merger with Keppel Offshore & Marine which only took place in February 2023," says the group.
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In response to queries from SGX if the individuals being investigated are executive officers of the company, Seatrium reiterates that CPIB has not provided further details other than the announcement.
"The 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," says Seatrium in its response after market on June 1.
New director appointed
Seatrium has also announced the appointment of Sarjit Singh Gill as its independent director.
Gill, who will step into the role with effect from June 1, will also be appointed as a member of the audit and risk committee upon his appointment as a director.
Gill is a senior partner with Shook Lin & Bok and is a senior counsel of the Supreme Court of Singapore since 1998. He is also currently a board member of the Inland Revenue Authority of Singapore (IRAS) and the Urban Redevelopment Authority (URA).
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In addition, Gill is a non-executive director of Temasek subsidiary, Heliconia Capital Management.
He was formerly a board member of the Central Provident Fund (CPF) from 2012 to 2018.
Shares in Seatrium closed 0.3 cents higher or 2.5% up at 12.3 cents on May 31.
