Bigger is not always better in matters of governance

SIZE and government links have become a convenient regulatory proxy for quality, but the corruption scandal that has tarred Keppel Corp's offshore and marine business shows that a shiny pedigree is not always protection from lapses.

In fact, there is often more at stake when something goes wrong at a large company of national importance - which makes it imperative that our markets and regulators learn to be more discerning.

Keppel announced over the Christmas long weekend that its offshore and marine unit, Keppel Offshore & Marine (KOM), faced fines of US$422.2 million in relation to corrupt payments made by a former agent in Brazil.