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Business Times
6 hours ago
- Business
- Business Times
Seatrium to pay over S$240 million to Brazilian, Singapore authorities over corruption offences
[SINGAPORE] Seatrium is putting a long-running corruption case behind it with the payment of financial penalties of more than S$240 million to the authorities in Brazil and Singapore. On Wednesday (Jul 30), the company announced that it signed a leniency agreement with Brazilian prosecutors in relation to Operation Car Wash – the name given to a major corruption probe in Brazil that had initially focused on companies bribing politicians for contracts . Seatrium's subsidiary, Estaleiro Jurong Aracruz, a shipyard in Brazil, came under investigation in 2023 for its past conduct linked to the probe. The unit's former president was charged by the Brazilian authorities for money laundering and corruption, linked to contracts that subsidiaries of Sembcorp Marine – Seatrium's former incarnation – entered into in 2012. Seatrium will make a final settlement payment of around S$168.4 million under the leniency agreement with Brazil. Additionally, it is required to pay a financial penalty of US$110 million under a deferred prosecution agreement (DPA) it signed on Wednesday with the Singapore authorities. However, because the Singapore Attorney-General's Chambers (AGC) has agreed that a maximum of US$53 million of Seatrium's payments to the Brazilian authorities may be credited against this penalty, the company will pay the Singapore authorities a sum of US$57 million – around S$73.3 million – under the DPA, which is subject to approval of the Singapore High Court. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The DPA will come into force only when the High Court approves it, after determining that it is in the interests of justice and that its terms are fair, reasonable and proportionate,' a Wednesday statement by the AGC said. Under the DPA, Seatrium must also review and improve its ethics and compliance programme 'to reduce the risk of a recurrence of any similar conduct', the AGC statement said. It added: 'If the company subsequently fails to comply with the terms of the DPA as approved by the High Court, the public prosecutor may apply to the High Court to terminate the DPA. In the event the DPA is terminated, the public prosecutor may initiate criminal proceedings against the company in respect of the alleged offences.' This news came a day ahead of Seatrium's announcement of its first-half earnings on Jul 31. The company said that there will be no material impact to its net earnings and net tangible asset per share for the financial year ending Dec 31, 2025. This is because it had previously made provisions in its financial statements for the in-principle settlement payment and financial penalty. The group called for a trading halt on Wednesday morning, before the announcement. The counter fell to S$2.29 after the announcement, 3.8 per cent or S$0.09 below Tuesday's closing price, with some 9.2 million shares having changed hands as at 11.41 am. The counter recovered to S$2.38 by 3 pm, unchanged from the day before. The Monetary Authority of Singapore (MAS) and the Commercial Affairs Department (CAD) have informed Seatrium that their joint investigation into its potential offences has concluded, the company said. The authorities said no action will be taken against Seatrium or its employees. On Wednesday, Citi assigned Seatrium a 'buy' call and a target price of S$2.65. The bank said: 'Although the share price had recovered from the lows during the initial MAS and CAD investigation announcement, we believe the conclusion of the investigation will lift the remaining overhang on Seatrium. The next milestone (or hurdle) to future value creation may come with improving margins and financials in its results. 'We apply a target multiple of 1.2 times on FY2026 (estimates), as we believe the market will look into its long-term prospects as new higher-margin contracts should raise returns further and push return on equity higher.' Seatrium said it is 'keen to move forward' and to ride on energy-market tailwinds. It added that it has zero tolerance for fraud, bribery and corruption. In February, Seatrium posted its first full-year profit since its 2023 reconstitution. It swung into the black with a S$156.8 million net profit in FY2024, a turnaround from the S$2 billion loss in FY2023.
Straits Times
10 hours ago
- Business
- Straits Times
Seatrium to pay $168m to Brazilian authorities, $73m to Singapore authorities to settle corruption case
Sign up now: Get ST's newsletters delivered to your inbox With this announcement, Seatrium said that Singapore authorities have concluded their joint investigations into potential offences. SINGAPORE - Offshore and marine specialist Seatrium said it has signed a leniency agreement with the authorities in Brazil in relation to a long-running corruption probe, known as Operation Car Wash. It made the announcement on July 30, a day before the company is due to release its earnings for the first half of the 2025 financial year. Under the terms of the leniency agreements with Brazil's public prosecutor's office and other authorities, Seatrium will pay a final settlement of around $168.4 million. It was also required to pay a penalty of US$110 million (S$141.7 million) to Singapore authorities, under a deferred prosecution agreement (DPA) entered with the Attorney-General's Chambers (AGC) in Singapore. However, the AGC has agreed for up to a maximum of US$53 million of the payment to the Brazilian authorities to be credited against the financial penalty here. As such, the amount payable by Seatrium under the DPA will be US$57 million (S$73.3 million). The DPA, signed on July 30 with Singapore authorities, is subject to approval by the Singapore High Court. With this announcement, Seatrium said that the Monetary Authority of Singapore (MAS) and the Singapore police's Commercial Affairs Department (CAD) have concluded their joint investigations into potential offences. 'No action will be taken against the company and/or its officers,' Seatrium said. Seatrium shares fell 1.3 per cent, or three cents, to $2.35 as at the midday trading break on July 30, after the announcement. This is after the company lifted a trading halt around 11.20am that it had called for before the market opened earlier. Seatrium, which was then Sembcorp Marine, became implicated in Operation Car Wash, a major corruption scandal in Brazil, which involved allegations of paying bribes to secure contracts. The company said in its July 30 statement that it has made provisions in its financial statements for the in-principle settlement payment and financial penalty. 'Following the finalised agreements with the Brazilian and Singapore authorities, the company has reversed a provision of $14 million in its financial statements for the financial period ended June 30 to take into account the finalised settlement payment and financial penalty, current exchange rates and other expenses,' it said. 'There is therefore no material impact on the net earnings and net tangible asset per share of the group for the financial year ending Dec 31.' Seatrium added that it is 'keen to move forward' and to ride on the energy market tailwinds to create transformative offshore energy solutions globally and ultimately deliver long-term sustainable growth. 'The company wishes to emphasise that it remains committed to the highest standards of corporate governance and business integrity, including zero-tolerance for fraud, bribery and corruption,' it said. It added that it has put robust policies and procedures in place to instill the highest standards of discipline, ethics, and compliance across its global operations.
South China Morning Post
10 hours ago
- Business
- South China Morning Post
Singapore's Seatrium agrees to pay US$110 million in Brazil corruption case
Singapore 's Seatrium has agreed to pay US$110 million as part of a deferred prosecution agreement over corruption offences in Brazil, the Attorney General's Chambers (AGC) said on Wednesday. A deferred prosecution agreement is a settlement where the prosecution agrees to defer criminal charges against a corporate offender in exchange for the corporation's agreement to comply with various conditions. The AGC said the public prosecutor and Seatrium entered into the agreement on Wednesday. The public prosecutor will apply to the High Court to approve the deferred prosecution agreement. It will come into force only when the High Court approves it after determining that it is in the interests of justice and that its terms are fair, reasonable and proportionate, according to the AGC. Seatrium has agreed to pay US$110 million as part of a deferred prosecution agreement over corruption offences in Brazil. Photo: Facebook/Seatrium Under the terms of the deferred prosecution agreement, Seatrium will be required to pay a financial penalty of US$110 million to the public prosecutor.
CNA
11 hours ago
- Business
- CNA
Seatrium agrees to pay US$110 million to public prosecutor over corruption offences in Brazil
SINGAPORE: Seatrium has agreed to pay US$110 million as part of a deferred prosecution agreement (DPA) over corruption offences in Brazil, the Attorney-General's Chambers (AGC) said on Wednesday (Jul 30). A DPA is a settlement where the prosecution agrees to defer criminal charges against a corporate offender in exchange for the corporation's agreement to comply with various conditions. AGC said the public prosecutor and Seatrium entered into the agreement on Wednesday. The public prosecutor will apply to the High Court to approve the deferred prosecution agreement. It will come into force only when the High Court approves it after determining that it is in the interests of justice and that its terms are fair, reasonable and proportionate, said AGC. Under the terms of the deferred prosecution agreement, Seatrium will be required to pay to the public prosecutor a financial penalty of US$110 million. 'Of this amount, up to US$53 million may be used to offset any fines or criminal penalties paid to the authorities in Brazil, arising from the same or substantially the same facts as those underlying the alleged offences,' said AGC. Seatrium will also be required to review and make further improvements to its ethics and compliance programme to reduce the risk of a recurrence of any similar conduct. If it fails to comply with the terms of the deferred prosecution agreement as approved by the High Court, the public prosecutor may apply to terminate the agreement. In the event of a termination, the public prosecutor may initiate criminal proceedings against the company in respect of the alleged offences, AGC said. Seatrium was formed in 2023 following the merger of Singapore's two main offshore and marine companies - Sembcorp Marine and Keppel Offshore & Marine (KOM). In March 2024, AGC and the Corrupt Practices Investigation Bureau (CPIB) said the public prosecutor was in discussions with Seatrium on a deferred prosecution agreement about alleged corruption offences in Brazil.
The Star
14 hours ago
- The Star
Family vindicated by court's fresh investigation order
KUALA LUMPUR: The family of Dutch model Ivana Smit has welcomed the High Court's order to reopen the investigation into her death, nearly eight years after the tragic incident. In a statement released through the family's lawyer, Datuk Sankara Nair, Smit's uncle Fred Agenjo Weinhold said the family was 'very content' with the judge's decision that held four defendants liable over the negligence linked to the investigation. 'The money awarded is of no consequence. What is far more important is that we have received acknowledgement from Malaysia that we were not crazy for saying this for almost eight years. 'We won't get Ivana back, but at least we have the satisfaction of knowing that a new investigation has been ordered and the monsters responsible cannot rest easy,' he said. Sankara commended the court for issuing exemplary and unprecedented mandamus orders, including the removal of Asst Supt Faizal Abdullah from the investigation, the formal reopening of the case, and a requirement for quarterly progress reports to be submitted to the Attorney General's Chambers (AGC), with the AGC mandated to take appropriate prosecutorial steps. 'These structural and supervisory remedies demonstrate the court's clear intent to ensure accountability is no longer delayed or denied,' said Sankara. He also urged the AGC to consider the public interest, the suffering endured by the family and the integrity of the court's decision before deciding whether to appeal the judgment. Yesterday, Justice Roz Mawar Rozain awarded RM1.1mil in general, aggravated and exemplary damages to Smit's mother Christina Carolina Gerarda Johanna Verstappen in her civil suit against the defendants for negligence in handling the investigation into her daughter's death.
