What happens now to Sembcorp Marine?

Last December, it was reported that Keppel O&M had to pay a colossal US$422m in fines after reaching a global resolution on corruption probes by authorities in US, Brazil and Singapore.

Allegations of huge corruptions occurring in Brazil first surfaced in 2015 when Brazilian authorities carried out a massive investigation code named Operation Car Wash to look into how their government-linked parties implemented money laundering and corruption schemes involving their state-run oil company Petrobras.

As a result, a key Petrobras official, Pedro Barusco, was arrested by the Brazilian authorities. In exchange for leniency, Barusco then gave testimony to Brazil’s federal police. He made allegations against Keppel’s agent, Zwi Skornicki, and Jurong Shipyard’s agent, Guilherme Esteves that he had received bribery monies through them. Jurong Shipyard is a unit of Sembcorp Marine.

Both agents, Skornicki and Esteves, were subsequently arrested. According to an earlier report by Bloomberg, Skornicki later testified in a Brazil court that 5 leading Keppel executives had authorised him to bribe Barusco in exchange for contract wins. Keppel at first denied the allegation in 2015 but now, it acknowledges that the corrupt payments made by their agent to Brazilian officials were “made with knowledge or approval” of their former senior executives.

Dr Lee Boon Yang, Keppel Chairman, even apologized, “We regret and are deeply disappointed by the actions that we now know to have taken place at the Group’s offshore and marine business in Brazil from around 2001 to 2014.”

In the case of Sembcorp Marine, its Chairman, Tan Sri Mohd Hassan Marican, has yet to say anything with regard to the corruption allegations made by Barusco.

Tan Sri Mohd Hassan Marican is the former President & CEO of Malaysia’s Petroliam Nasional (PETRONAS). He is also a senior international advisor at Temasek International Advisors.

However, Sembcorp Marine did issue two public statements with regard to the matter when news of corruptions began to surface in Brazil in 2015.

On 8 Feb 2015, it said it did not make any “illegal payment”:

“Sembcorp Marine refers to various media reports relating to statements made by Petrobras’ former engineering manager Pedro Jose Barusco and wishes to state that Sembcorp Marine did not make any illegal payment and the Group’s policies and contracts prohibit bribery and unethical behaviour.”

And on 30 Mar 2015, it said:

“The Company is unable to comment on the truth or otherwise of these allegations and its internal (legally privileged) investigations are continuing. The Company and the Group have a strict anti-bribery policy and do not condone any action that will result in the violation of any country’s anti-corruption laws. The Company and the Group also do not and will not tolerate any improper business conduct.”

It remains to be seen what the authorities in US and Brazil would conclude with regard to their investigations of Esteves, the Brazilian agent acting on behalf of Sembcorp Marine’s subsidiary, Jurong Shipyard.

 

Vincent Low

* Article first appeared on The Online Citizen.

 

 

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10 Responses to “What happens now to Sembcorp Marine?”

  • Amos exposed PAP hypocrisy:

    When GLC is involved in corruption nobody in Singapore goes to jail but when it does not involve a GLC Singaporeans involved are jailed. Want proof? Google the Bofors scandal in Singapore. Double standard. Proof of PAP hypocrisy

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  • C'est la vie:

    *****
    The SGmedia was compelled to “report” on the Keppel “cheating” shenanigans, owing to the colossal amount in fines levied and findings exposed. What little that has been disclosed has made it all the more “engaging” given the “speckless” portrayal of all things SG, especially the powers that be and its “associates”.

    What will happen to the “executives” and “senior” members interconnected with this “regrettable” “collision” of working “cultures” …………… absolutely f**k all !!!
    ***
    *****

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  • Boh Kia See:

    All the top personnel there are under the protective care of the PAP and Ho Jinx. So there is nothing to fear. The show will go on–this whiter than white party.

    On another matter, it is significant that Kee Chiu is the one to write that letter informing MPs not to write letters to Courts. A task that the old trait** did years ago. This Kee Chiu is also the PAP whip.

    These are all signs that he will succeed the Clown as a seat warmer preparing for the son to take over. Their activities are very predictable–despite all that drama that will take place around the succession. It is going to be drawn out–they will milk it for what it is worth.

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  • pap selected INDIAN president:

    where is pap S$8 major surgery cow?

    didn’t this pap Lj say the leader must take a bow and then hara-kiri?

    how come this pap Lj did not ask ex pap minister chairman keppel to take a bow and then hara kiri?

    does it mean when a pap ex minister is involved only the ikan bilis take the rap and the big fish continue to collect their S$m chairman fees?

    what happens if the chairman is not ex pap minister chairman keppel but WP Mr Low TK or WP Ms Sylvia Lim or WP Mr Leon Perera? then the gloves are off and bold headlines in pap newspapers the states times everyday with comments from pap S$8 major surgery cow about taking a bow and then hara kiri until the culprit is taken into custody and put into changi chalet?

    one country two legal systems? isn’t it more important the same amount of public resource used on Aljunied Town Council be applied to the KOM corruption without fear or favour on the ex pap minister lee chairman keppel and the keppel ceo don’t know his name or his link to pap inner echelon.

    this is what makes current pap leadership sickening. one country two legal systems. WTF.

    +++++++++++++++++++++++++++++++++++++++++++++
    when wooden goh jiak liao bee tan and clown lee were caught in own pap law inside Cheng San GRC polling station the one country two legal system kicked in and somehow as pap england goes INSIDE 200m is not within 200m. WTF.

    what happens if the three Ljs caught in pap law inside Cheng San GRC polling station were not pap Ljs but WP Mr Low WP Ms Sylvia WP Mr Leon Perara? same INSIDE is not within applies or the full weight of the pap law book is applied? NO Brainer. one country two systems non pap folks get the short end of the legal stick. As is seen now in KOM corruption case and AHTC case. one involving pap nothing doing. the other involving non pap all gloves are off and even the mundane gets amplified in order to indict. WTF.
    +++++++++++++++++++++++++++++++++++++++++++++

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  • Sad Problem:

    Should not be in this Situation…no good for Singapore Reputation…

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  • PAP is BEST:

    PAP best one, this one you no worry. You just read CPF feel rich can already. PAP best one next election 90% sure win.

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  • MarBowling:

    What happens now to Sembcorp Marine?

    Think it has turned into a Corpse! Possibly, quietly those Buggers are going back to CONCENTRATE ON THEIR CORE BUSINESSES which are selling ROASTED DUCK and DeliFrances Croissant. Holee Cow!

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  • NotMyProblem:

    When SG has the Fake News law, would the PAP, Keppel or Sambcorp sues the authorities in US and Brazil for the fake news then?

    Because, according to SG’s Keppel or Sambcorp policy; ” …The Company and the Group have a strict anti-bribery policy and do not condone any action that will result in the violation of any country’s anti-corruption laws.” As such it would never happen!!! In Singapore any company or organisation related to PAP is always whiter than white.

    So SG’s govt must sue the authorities of US and Brazil for spreading fake news, after this Fake News law coming into effect! Remember ex-CEO TT Duran of NKF sued a plumber after he whistle blown on a golden tap in the CEO’s toilet!!

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  • Undebunkable man:

    My Nick name is Cent Cork mahlin

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  • HarderTruths:

    Nothing will happen.
    All the evidence will be swept under the carpet

    The Keppel managers given raises, bonus and National Day honours
    The shortfall will be recouped from CPF or increases in taxes.

    Courtesy of the 70%

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