Six former Keppel Corp senior management staff allegedly involved in paying bribes to secure drilling rig newbuilding contracts have avoided prosecution.
Instead, the unnamed individuals have been issued with stern warnings, according to Singapore’s Corrupt Practices Investigation Bureau (CPIB).
In addition, Keppel Offshore & Marine (KOM) was issued with a “conditional warning” in lieu of prosecution as part of the global resolution led by the US Department of Justice and involving Brazil and Singapore.
KOM has paid a total fine of $422m and fulfilled all obligations under the conditional warning, the CPIB said in a statement.
CPIB said it conducted investigations into the six individuals who had allegedly conspired with each other to give bribe payments totalling about $55m to foreign consultants involved in KOM’s business interests in Brazil.
These consultants then used these monies to pay bribes to Petrobras officials.
“This case is complex and transnational, involving multiple authorities and witnesses from several countries,” the CPIB
“There are evidentiary difficulties in cases of such nature, while many of the documents are located in different jurisdictions.
“In addition, key witnesses are located outside of Singapore and cannot be compelled to give evidence here,” the CPIB added.
The decision on whether to prosecute the six individuals for criminal offences was said to have “taken into consideration all relevant factors, such as the culpability of each individual, the available evidence and what is appropriate in the circumstances”.
In a separate case, the CPIB said two former Keppel Corp executives had been charged under the Prevention of Corruption Act with accepting bribes for contracts.
Singaporeans Tan Seng Cheh and Wong Kok Seng, who both worked for Keppel Fels at the time of the offence, are said to have accepted gratifications from Thong Chee Kong who was regional general manager of Corus South East Asia at the time.
In March 2008, in Singapore, Thong was alleged to have knowingly given Tan a quotation from Blue Steel made to Keppel Fels to purchase its scrap steel which was not intended to be a genuine offer.
Sometime between 4 March 2008 and 9 April 2008, Tan was alleged to have knowingly used the said quotation in his bid analysis.
These were allegedly done with the intent to mislead Keppel Fels into selling scrap steel to Corus SEA, the CPIB said.
In 2007, Thong allegedly paid for Tan’s trip expenses to Italy and for two other trips to Japan, while in 2006 Thong also allegedly paid for Wong’s and his wife’s expenses for a trip to China.
In both cases, this alleged gratification was corruptly given to Wong as an inducement for advancing the business interest of Corus SEA with Keppel Fels, the CPIB said.
The CPIB said Singapore adopts a “strict zero-tolerance approach towards corruption” and any person who is convicted of a corruption offence can be fined up to SGD100,000 ($75,595) or sentenced to imprisonment of up to five years or both.
