Key Points:
- Seatrium faces a US$110 million fine for alleged corruption offenses in Brazil but will only pay US$57 million to Singapore authorities.
- Discussions are underway for a deferred prosecution agreement, requiring Seatrium to admit wrongdoing and implement corporate reform.
- Wong Weng Sun and Lee Fook Kang were charged with bribery offenses dating back to 2009. Charges include paying bribes to Brazilian officials.
- If convicted, individuals face imprisonment and fines under Singaporean law. Seatrium advises shareholders to proceed with caution.
Singapore-listed Seatrium, formerly Sembcorp Marine, faces a $110 million (S$149 million) fine in connection with alleged corruption offenses in Brazil dating back 15 years. However, due to considerations of payments to Brazilian authorities, Seatrium will only pay $57 million to Singapore authorities.
The Attorney-General’s Chambers (AGC) and the Corrupt Practices Investigation Bureau issued statements on March 28, revealing that Seatrium is discussing a deferred prosecution agreement. This agreement would require Seatrium to admit wrongdoing, pay the fine, and implement corporate reform.
Seatrium, one of the world’s largest offshore and marine energy engineering companies, was formed through a merger in 2023. The group advised shareholders to exercise caution, as details of the agreement are pending AGC’s assent and High Court approval.
Meanwhile, two individuals, Wong Weng Sun and Lee Fook Kang, were charged on March 28 for their involvement in the corruption scheme. Wong, Seatrium’s former president and CEO, and Lee, a senior general manager, face charges related to bribery between 2009 and 2014.
The charges include paying bribes to Brazilian officials and politicians to further their companies’ business interests. Wong also faces a charge of obstruction of justice for allegedly instructing subordinates to remove incriminating evidence in 2014.
If convicted, individuals face up to five years in prison and/or a fine of up to $100,000 for corruption offenses. For the obstruction of justice, they face up to seven years in prison and/or a fine. Seatrium’s share price remained unchanged at 7.9 cents on March 28, with ongoing uncertainties surrounding the case.
