Allegations date back to 2009-2014, involving millions in payments tied to business interests in Brazil.
SINGAPORE: Two former executives of the now-defunct Sembcorp Marine, rebranded as Seatrium following its 2023 merger with Keppel Offshore & Marine, were charged on Thursday (Mar 28) with bribing Brazilian officials. The charges allege that between 2009 and 2014, approximately US$44 million (S$59.3 million) was funneled through Brazilian middleman Guilherme Esteves de Jesus (GDJ) to advance business interests.
The accused include Wong Weng Sun, 62, who served as CEO of Sembcorp Marine and managing director of Jurong Shipyard (JSPL), and Lee Fook Kang, 75, JSPL’s former senior general manager. Both face five charges under the Prevention of Corruption Act.
Details of Alleged Corruption
The charges claim Wong and Lee conspired to pay GDJ multiple sums to benefit Brazilian officials, politicians, and state-owned oil company Petrobras. Payments ranged from US$300,000 to 2.5% of contract sums related to drilling rig units awarded by Sete Brasil Participações SA to Sembcorp Marine’s subsidiaries.
Additionally, Wong faces an obstruction of justice charge for allegedly instructing employees to delete an email containing evidence of bribes, according to the Attorney-General’s Chambers (AGC) and Corrupt Practices Investigation Bureau (CPIB).
Legal Proceedings and Deferred Prosecution Agreement
Wong and Lee’s lawyers requested an eight-week adjournment to review charges dating back over a decade. Bail was set at S$210,000 for Wong and S$200,000 for Lee, with the next hearing scheduled for May 23.
Meanwhile, discussions are underway regarding a Deferred Prosecution Agreement (DPA) for Seatrium. If approved, the company would pay US$110 million in penalties, partially offset by settlements with Brazilian authorities.
Operation Car Wash Connection
The charges stem from investigations linked to Brazil’s Operation Car Wash, an extensive corruption probe involving Petrobras. Although Seatrium’s Brazilian subsidiary faced scrutiny for “irregularities,” preliminary administrative proceedings were suspended last year.
The allegations against Sembcorp Marine executives differ from a separate case involving Keppel Offshore & Marine, where evidentiary issues hindered prosecution of individuals.
As Seatrium negotiates penalties, the case underscores the complexities of combating corruption in global business operations.
