https://www.channelnewsasia.com/singapore/sembcorp-marine-seatrium-keppel-employees-charged-bribery-brazil-4225691
Two former employees of Sembcorp Marine, now Seatrium, charged with bribing Brazilian officials
SINGAPORE: Two former employees of the now-defunct Sembcorp Marine and a subsidiary were charged on Thursday (Mar 28) with bribing Brazilian officials to advance their companies' interests in the South American country.
Sembcorp Marine was one of Singapore's two main offshore and marine companies before it became Seatrium in 2023 following a merger with Keppel Offshore & Marine (KOM).
The alleged offences took place between 2009 and 2014, where a total sum of around US$44 million (S$59.3 million) was handed out via a Brazilian middleman known as Guilherme Esteves de Jesus (GDJ), according to the Attorney-General's Chambers (AGC) and Corrupt Practices Investigation Bureau (CPIB) in a joint news release on Thursday.
The first accused is Wong Weng Sun, 62, who was the president, executive director and CEO of Sembcorp Marine, and managing director of its wholly owned subsidiary Jurong Shipyard (JSPL) at the time of the alleged offences.
The other accused, Lee Fook Kang, 75, was JSPL's senior general manager.
Wong and Lee each face five charges of conspiring to corruptly give gratification to GDJ for the benefit of people in Brazil, as inducements or rewards to advance the business interests of Sembcorp Marine's subsidiaries there. The alleged offences fall under the Prevention of Corruption Act.
A 2021 Sembcorp Marine annual report describes GDJ as someone connected to the consultant engaged by Sembcorp Marine's subsidiaries in Brazil.
ALLEGED OFFENCES
- Over two occasions in 2009, Wong and Lee allegedly conspired to give GDJ gratification of not more than US$2 million in total, for the benefit of one or more Brazillian officials, to advance JSPL's business interests in Brazil.
- Over four occasions between 2010 and 2012, the pair allegedly conspired to give GDJ not more than US$1,905,345 in total, for the benefit of one or more officers of Petroleo Brasileiro SA - a state-owned Brazilian petroleum company, to advance the business interests of JSPL.
- In 2010, Wong and Lee allegedly conspired to give GDJ not more than US$1,169,590.64, for the benefit of one or more Brazilian politicians to advance JSPL's business interests in Brazil.
- In 2010, both men allegedly conspired to give GDJ gratification of not more than US$300,000, for the benefit of one or more Brazilian officials, as a reward to advance the business interests of Estaleiro Jurong Aracruz (EJA), a wholly-owned subsidiary of Sembcorp Marine.
- In 2010, both men allegedly conspired to give GDJ gratification in the form of money amounting to not more than 2.5 per cent of the contract sums relating to drilling rig units to be awarded by Sete Brasil Participacoes SA to EJA.
The money is allegedly a reward for those helping EJA to be awarded the contracts. Between 2012 and 2014, gratifications not exceeding a sum total of US$26,478,989.80, EUR10,506,608.22 (US$11.36 million) and 5,066,794.77 Brazilian reals (US$1.02 million) were allegedly given to GDJ corruptly.
Wong was also charged with obstruction of justice, after he allegedly instructed two Sembcorp Marine employees in 2014 to remove an email sent by GDJ. The email was said to contain evidence of bribes that GDJ had given or would be giving to other people, according to AGC and CPIB.
Charge sheets stated that the two employees were Mr Siew Kam Onn and Mr Patrick Tan Lye Hock. Mr Siew was finance director of EJA in 2014, according to a company newsletter.
In February 2020, Sembcorp Marine said in a filing with the Singapore Exchange that GDJ had been sentenced to 19 years and 4 months' jail and a fine by a Brazillian court for corruption, money laundering and participation in a criminal organisation.
However, in another filing last December, Seatrium announced that the Brazilian Federal Lower Court had acquitted him of all charges.
Wong is represented by Mr Samuel Navindran of WongPartnership. Lee is represented by Mr Low Cheong Yeow and Mr Eugene Quah of Matthew Chiong Partnership.
On Thursday, the defence lawyers requested eight weeks' adjournment to take instructions from their clients, who were charged the day before.
In asking for more time, Mr Navindran noted that the charges allegedly took place 10 to 15 years ago and involved foreign companies and politicians.
Deputy Public Prosecutor Alan Loh did not object to the request. District Judge Eugene Teo adjourned the hearing to May 23 and extended bail for both men.
Wong is currently out on bail of S$210,000 while Lee is out on bail of S$200,000.
On Thursday morning, SGX-listed Seatrium requested a trading halt pending the release of announcements. Shares in Seatrium closed at 7.9 cents the day before.
SEATRIUM VS KEPPEL CORRUPTION PROBES
In the joint statement, AGC and CPIB noted the difference between this latest case and an earlier corruption probe into Keppel Offshore & Marine.
Thursday's charges against Wong and Lee, the two Singaporeans, were filed after CPIB completed its investigations into Seatrium and individuals from the company.
"AGC considered all the relevant factors in this case, including the available evidence, and assessed that there was sufficient evidence to mount a prosecution," said the authorities.
"This is unlike the Keppel Offshore & Marine Limited case where there were evidentiary difficulties."
In January 2023, six former senior management staff members of KOM were issued stern warnings by CPIB over a corruption case involving Brazilian oil giant Petrobras. They were not prosecuted due to insufficient evidence.
Several Members of Parliament brought up the case in parliament subsequently, which Minister in the Prime Minister’s Office Indranee Rajah addressed during the February sitting.
Elaborating on the difficulties faced by Singapore authorities in gathering evidence, she cited the example of how several potential key overseas witnesses would not agree to come to Singapore to testify.
One foreign witness had given evidence in other proceedings but was not willing to testify in Singapore, and authorities here could not force him to do so.
She said: "Simply put, there is a lack of sufficient evidence, either documentary or through witnesses, which would establish any criminal charge beyond a reasonable doubt against a specific individual."
DEFERRED PROSECUTION
Authorities also said in its press release on Thursday that the public prosecutor is in discussions with Seatrium on a deferred prosecution agreement (DPA) about the alleged corruption offences in Brazil.
A DPA is a settlement where the prosecution agrees to defer criminal charges against a corporate offender in exchange for the corporation's agreement to comply with various conditions. These can include an admission of wrongdoing, payment of financial penalties and implementation of corporate reform.
"Under the proposed DPA, the company will be required to pay a financial penalty of US$110 million," said the authorities.
"Of this amount, US$53 million may be used to offset the settlement payment totalling 670,699,731.73 Brazilian reals (US$134.5 million) under the in-principle settlement agreements that the company has reached with the authorities in Brazil."
The content and terms of the DPA remain to be finalised by the public prosecutor and Seatrium, and will have to be approved by the General Division of the High Court.
OPERATION CAR WASH
CPIB announced in May 2023 the start of its probe into Seatrium and individuals from the company for alleged corruption offences that occurred in Brazil.
When asked by CNA at the time if the alleged offences by Seatrium were linked to a multimillion-dollar bribery case involving former KOM employees and Brazilian oil giant Petrobras, CPIB declined to comment.
But it came two months after Seatrium announced that its subsidiary EJA was being investigated for “alleged irregularities” over its practices.
Seatrium said soon after that the proceedings related generally to "past conduct investigated by the Brazilian authorities in connection with Operation Car Wash". A month later, however, Seatrium announced that preliminary administrative proceedings against its Brazilian subsidiary were suspended.
Operation Car Wash began in 2014 as a money-laundering probe into a car wash in Brazil's capital Brasilia, and it turned out to be anything but a routine investigation.
The operation expanded significantly, evolving into an extensive investigation into Brazil's largest corruption scheme.
As the evidence mounted, the probe revealed illicit kickbacks from corporate executives to influential politicians in exchange for contracts within the state-operated oil giant, Petrobras.
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