Temasek Holdings invested US$106 million in Petrobras while Keppel bribery scandal was ongoing, lost US$80 million

The 13-year bribery scandal at Keppel has proven good corporate governance at Temasek-linked companies to be a myth.

20 years ago, Keppel was also involved in another bribery case.  The Temasek-linked company pleaded guilty to giving $8.53 million in bribes to an Exxon employee to secure ship repairing contracts and was fined $300,000.  [ TOC ]

While Keppel was dishing out US$55 million in bribes from 2001 to 2014 to Petrobras officials, Temasek was somehow totally in the dark and had invested US$106 million in the same company in 2010.  [ Reuters ]

Temasek had wrongly assumed that Petrobras was value for money simply because its shares had collapsed from US$77 only 2 years earlier.

As can be seen from the chart below, Temasek subsequently lost about 80% of the investment, an estimated US$80 million in 5 years.

Check out Temasek’s US stocks holdings since 2008 here.

With Temasek speculating in Petrobras while Keppel was giving bribes to the same company, are Singaporeans still expected to believe good corporate governance exists?

 

 

Phillip Ang

* The author blogs at LikeDatOsoCanMeh.

 

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17 Responses to “Temasek Holdings invested US$106 million in Petrobras while Keppel bribery scandal was ongoing, lost US$80 million”

  • N.Jungne:

    Someone said, very disappointed, must be money no enough. Then another one said could have been prevented, but he didn’t, why? Maybe got share, who knows? Nowadays, no evidence rules otherwise apologize.

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  • Criminal act:

    Quote
    ” In the end, what decided the issue for Mr Lee Kuan Yew, our founding Prime Minister, and his team was the overriding need to prevent the public service from going corrupt. One term of an incompetent, corrupt government and Humpty Dumpty could never be put together again. So the PAP fought to win and formed the Government. When they took their oath of office, Mr Lee and his PAP colleagues wore white shirts and white trousers. It symbolised their determination to keep the Government clean and incorruptible. That has set the tone for Singapore ever since.

    Third, with strong political will, we institutionalised a robust, comprehensive anti-corruption framework that spans laws, enforcement, the public service and public outreach. We enacted the Prevention of Corruption Act (PCA), which puts the burden of proof on the accused to show that he acquired his wealth legally. Any unexplained wealth disproportionate to known sources of income is presumed to be from graft and can be confiscated.

    The PCA provides for extra-territorial jurisdiction, so that the actions of Singaporean citizens overseas are treated the same as actions committed in Singapore, regardless of whether such corrupt acts have consequences for Singapore.

    Our anti-corruption agency, the Corrupt Practices Investigation Bureau (CPIB), is well resourced and independent. It is empowered to investigate any person, even police officers and ministers, and conducts public outreach to raise public awareness and shape social norms. We pay public servants fair and realistic wages benchmarked to private sector earnings and, in return, demand the highest standards of integrity and performance.

    Fourth, we have over time developed a society and culture that eschews corruption. Singaporeans expect and demand a clean system. They do not condone giving or accepting “social lubricants” to get things done. They readily report corrupt practices when they encounter them. Singaporeans trust that the law applies to all and that the Government will enforce the laws without fear or favour, even when it may be awkward or embarrassing. Businesses have confidence that, in Singapore, rules are transparent and fairly applied. The story is told …” unquote.

    Link,
    https://www.youtube.com/watch?v=FydULS9pfBs
    Morgan Lewis Partner Suet-Fern Lee on the Rule of Law – YouTube

    Lee Hsien Loong – Board of directors – GIC
    http://www.gic.com.sg/about-gic/corporate-governance?id=255

    Fight against corruption: Singapore’s experience, Opinion News & Top …
    http://www.straitstimes.com/opinion/fight-against-corruption-singapores-experience

    Singapore’s Corruption Control Framework | Corrupt Practices …
    https://www.cpib.gov.sg/about-corruption/corruption-control-framework

    Singapore…

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  • Tikam Tikam enterprises:

    Infinite A.T.M.

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  • jaywalker:

    We trusted our nation’wealth to a housewife. We should learn from the Chinese.

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  • pap selected INDIAN president:

    Hi bro, Phillip. Thank you very much. We have always learned something from your posts. Very grateful.

    NOW pap clown is not going to sit still since his wife is the selected ceo temasick. any unfavourable news about temasick, even though true, shall not be received well by pap clown.

    1st, as was the case of Mr Roy Ngerng, pap clown is going to abuse publicly funded secretary to be fronted against you. the source of pap fake news, the pap newspapers the states times, by telling half the story with the intent of whitewashing, is going to bold headline when pap clown makes move against you on behalf of his wife temasick.

    2nd, as was the case of Mr Roy Ngerng, pap clown is going to sue you citing he has been watching you of what you have been writing about temasick, true as the corruption about temasick are and as every Singapore knows too. DO be prepared pap clown IBs paid by pap via the S$ billions legally corrupted into pap PA are going to write all kinds of unkind untrue words about you. DO not be troubled by them. SINCE we all know their intent. IN particular the pap IB ci who is the appointed pap IB for TRE.

    3rd, as was the case of Mr Roy Ngerng, pap clown is going to win since courts high positions are appointed by ownself check ownself system. NO horse run once the pap courts system is arrayed against you. YOU are going to lose even though what you have written is true.

    EVEN so, and we say this without any intention of egging you on, we have only one life to live and so when we see lies incestuous abuse of power and such bad things, it is alright by human reckoning to stand our ground.

    AGAIN. EVEN SO. THERE may be many 2 legged running dogs who say serves you right when pap clown makes his move against as the heat gets stronger all angles in both Singapore and the wide world on Singapore corruption both legally done and illegally done, do remember if we are doing it as an honourable human with that deep sense of indignation at the abuses of pap clown and his clan, we shall be okay.

    WE die after all, sooner or later. look at pap clown papa. AFTER all the lies scheming he still died. WORSE within 3 short years his own son is publicly exposed by own other son and own other daughter. IN all our coffee shop analyses, we all do okay if pap clown papa is set as the benchmark for a life lived well. WE all, as long as our children do not publicly fued in public over minor matter of brick and mortar, shall have done far better than pap clown papa. THAT is a given.

    Best wishes for a healthy 2018.

    +++++++++++++++++++++++++++++++++++++++++++++++
    ic says INDIAN. pap says malay. ic is right or pap is wrong?
    +++++++++++++++++++++++++++++++++++++++++++++++

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  • 陈大婶:

    利润高,何况是EXPORT. 石叻坡,应该颁发PPBM 给这些有成就的功臣。

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  • Ong PC:

    Please lah, what is $80m when Temasek’s portfolio is $240bn? This can be written off easily without any impact on our finances. Temasek invested in Petrobras at the right time – It was at the end of 2010 that Petrobras revealed their discovery of pre-salt oil fields off the coast of Brazil. It was unfortunate that the oil price declined from 2014 onwards but it has since recovered somewhat. And this remains a sound long-term investment.

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  • Got it or not?:

    Like what the Bible says, they couldn’t see the splinter in the eye, let alone a plank?

    These guys are actually blind………a govt led by the blinds……..some 69.9%……a small %percentage can actually see but blinded by the ghosts of yesteryears.

    If a small%percentage can turn around and join the rest of the 30.1%……..Sinkiland still got hope. A hope to better manage the glcs……….if sufficient numbers in pariahment……….you can ask for seats in the glcs……….after all the money in the glcs belong to all Sinkies! Got it or not?

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  • IB Ong:

    If it’s nothing, they shouldn’t have invested the money in the first place. And yes, it is indeed nothing, the Temasek Board is likely collecting much more $$$ than that.

    But it doesn’t mean that they can treat our money lightly. Roy Ngerng exposed the fact that our CPF money is used. And TH is deliberately made not aware of the source of the money, so that they can take on excessive risk which they cant do with our hard-earned CPF money.

    Ong PC:
    Please lah, what is $80m when Temasek’s portfolio is $240bn? This can be written off easily without any impact on our finances. Temasek invested in Petrobras at the right time – It was at the end of 2010 that Petrobras revealed their discovery of pre-salt oil fields off the coast of Brazil. It was unfortunate that the oil price declined from 2014 onwards but it has since recovered somewhat. And this remains a sound long-term investment.

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  • Rabble-rouser:

    Another great insightful piece of financial news from resident TRE Economics & Finance Commentator, Phillip Ang. Now compared that with the esoteric articles from CI about Low Productivity – it pales in comparison revealing a wide gulf between CI & Phillip Ang. Besides, much of CI’s contribution are copy-&-paste from the mainstream news media & from prominent figures. Whereas Phillip’s articles were gold digs from the bowels of hidden financial underground of facts & declarations which were deliberately ‘missed’ by S’pore’s Mainstream Media to hide facts from the public.
    One writes about nothing in particular (everyone here in TRE knows that the poor productivity is correlated with the foreigner influx – so what’s new & when it’s already so obvious) while the other brings us earth-shattering news about actual misdeeds & the very poor performance from the MIW (which would never been published in the MSM).
    Long & short is that S’pore is dead in the water with the PAP at the helm. They can’t operate businesses well re: Keppel’s bribery case & NOL; & they certainly can’t even invests wealth re: Stanchart & Petrobras. And with PM LHL running the politics; while his wife controls Temasek Holdings, it’s a sure recipe for disaster! No financial responsibility; No accountability for poor actions; people that are responsible constantly let off without punitive actions nor financial clawbacks; humongous pay for pitiful performance.
    And that was how the reign of PM LHL have come to symbolize his time in power. Anyone else would have step down willingly for embarrassment of their “poor”achievements & let someone else (better) to take over. Alas, the late LKY had to hand over S’pore over to his ‘Strawberry Generation’ offspring after a long period of seat warming by Woody Goh! The reason: PM LHL ‘bruises’ easily like a strawberry re: 1990/1992 period – go read it yourself & form your own opinion. Go read about Strawberry Generation on the link below:
    https://en.wikipedia.org/wiki/Strawberry_generation

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  • Michael:

    One day we be bankrupted.buy at top sell at bottom

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  • Rabble-rouser:

    Ong PC: It was unfortunate that the oil price declined from 2014 onwards but it has since recovered somewhat. And this remains a sound long-term investment.

    @ Ong PC:
    The Global Investment Community were already divesting Fossil Fuel producers from their global portfolios. How can you say that Petrobras remains ‘a sound long-term investment’?
    Renewal Energies from Solar panels, wind farms & hydrogen conversion process are already near the threshold of technological breakthrough – the threat of disruption to Fossil Fuels are real & obvious. Within 10 years, Electric Vehicles together with Autonomous Vehicle driving system will become common place. Elon Musk’s other product beside the Tesla EV is his solar roof tiles which he intends to create a paradigm shift from a central grid electricity supply to a energy self-sufficiency which powers itself from the sun’s energy. What will happened to Fossil Fuel producers & their share price would be a waterfall event!

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  • Stupid IB:

    Stupid IB with no Finance background uttering nonsense again!

    How can $80m be peanuts?

    Assuming 2.5% return, earning $80m requires $3.2b investment!

    Ong PC:
    Please lah, what is $80m when Temasek’s portfolio is $240bn? This can be written off easily without any impact on our finances. Temasek invested in Petrobras at the right time – It was at the end of 2010 that Petrobras revealed their discovery of pre-salt oil fields off the coast of Brazil. It was unfortunate that the oil price declined from 2014 onwards but it has since recovered somewhat. And this remains a sound long-term investment.

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  • Too much dirt under the carpet:

    OMG! What is happening? Looks like all the dirt is slowing filtering out of the carpet. Perhaps there is so much dirt that sweeping it under the carpet no longer helps.

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  • Underwater Investments:

    TH has too many of such Underwater Investments, value dropping by more than 50%. I wonder how did they propped up everything to make it look like nothing bad is going on to foolish sinkies.

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  • Remember Chip Goodyear:

    Chip Goodyear was supposed to take over from Ho Ching as Temasek CEO. But it did not go through after he told Temasek Board (and Ho Ching) that he plans to promptly “clean house” after he takes over. This would mean disclosing the bad investments made by Ho Ching. The rest is history.

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  • Goodbye, Goodyear:

    Goodyear was only good for less than a year! He was contracted to “take the heat”; warm the seat and then it was goodbye, Goodyear.

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