CPIB gives Keppel O&M 6-month extension to pay US$52.7m under terms of conditional warning

THE Corrupt Practices Investigation Bureau (CPIB) has extended the deadline for Keppel Offshore & Marine (Keppel O&M) to pay the balance sum of US$52.7 million under its conditional warning by 6 months to June 22, 2022.

This is given that discussions with specified Brazilian authorities remain ongoing, said Keppel Corp BN4 in a bourse filing on Tuesday (Dec 14).

This additional grace period was also granted on top of a previous 12-month extension with the sum initially due on Dec 22, 2021.

Keppel O&M had in 2017 accepted a conditional warning from the CPIB, which was issued given the "substantial cooperation" rendered to investigations in relation to its involvement in a corruption scandal that took place between 2001 and 2014, with bribes totalling up to US$55 million.

The company had to pay US$52.7 million within 90 days from the date of the conditional warning, and a further US$52.7 million within 3 years from the date of the warning, less any penalties paid to Brazilian authorities during this period.

Investigative proceedings by the Attorney-General's Chambers (AGC) and CPIB revealed that between 2001 and 2014, Keppel O&M had made corrupt payments to officials of Brazilian state-run oil company Petrobras and other parties. This was in a bid to win contracts with Petrobras and its related companies.

These corrupt payments were concealed by Keppel O&M through omissions paid to an intermediary, under the guise of legitimate consulting agreements.

Keppel O&M had in 2017 reached a global resolution with criminal authorities in the United States, Brazil and Singapore.

As part of the resolution, Keppel O&M will pay fines amounting to US$422.2 million to be allocated between the US, Brazil, and Singapore.

Shares of Keppel ended Tuesday flat at S$5.18.