Six former Keppel O&M staff issued stern warnings for bribery-related offences

THE Corrupt Practices Investigation Bureau (CPIB) has issued stern warnings to six individuals who were previously senior management staff of Keppel Corporation’s Offshore & Marine (O&M) unit, on Thursday (Jan 12).

The warnings were issued to the six individuals in lieu of prosecution for offences punishable under the Prevention of Corruption Act (PCA). The six individuals were not named.

The offences relate to bribe payments to officials of Brazilian state-owned corporation Petróleo Brasileiro (Petrobras), pertaining to rigs building contracts which Petrobras and/or its related companies had awarded to Keppel O&M. 

CPIB conducted investigations into the six individuals who had allegedly conspired with each other to give bribe payments totalling about US$55 million to foreign consultants involved in Keppel O&M’s business interests in Brazil. These consultants then used these monies to pay bribes to Petrobras officials.

This case is complex and transnational, involving multiple authorities and witnesses from several countries, CPIB said. It added that there are evidentiary difficulties in cases of such nature. Many of the documents are located in different jurisdictions. 

In addition, key witnesses are located outside of Singapore and cannot be compelled to give evidence here. The decision on whether to prosecute the six individuals for criminal offences has to take into consideration all relevant factors, such as the culpability of each individual, the available evidence and what is appropriate in the circumstances. CPIB has since issued stern warnings to the six individuals.

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Meanwhile, Keppel O&M was issued a conditional warning under the global resolution led by the Department of Justice of the United States of America and involving Brazil and Singapore in lieu of prosecution. This was carried out for offences punishable under the PCA. 

The mainboard-listed company has since paid a total fine of US$422 million and fulfilled all obligations under the conditional warning.

It also previously reiterated its zero tolerance stance against bribery.

Shares of Keppel Corporation : BN4 0% dipped 1.1 per cent or S$0.08 to S$7.18 at the time of the announcement.