Ex-CEO of Sembcorp Marine Wong Weng Sun Age 62 & Ex-Senior General Manager of Jurong Shipyard Lee Fook Kang Age 75 Charged for $44 Million Bribery of Officials in Brazil from 2009 to 2014, Seatrium to Pay $57 Million to Singapore Authorities in Deferred Prosecution Agreement, Name Changed to Seatrium in 2023 after Merger of Keppel Offshore & Marine and Sembcorp Marine
29th March 2024 | Hong Kong
The ex-CEO of Sembcorp Marine Wong Weng Sun (Age 62) and ex-Senior General Manager of Jurong Shipyard Lee Fook Kang (Age 75) had been charged in Singapore court for $44 million bribery of officials in Brazil from 2009 to 2014. Seatrium is also required to pay $57 million to Singapore authorities in a deferred prosecution agreement. Singapore Corrupt Practices Investigation Bureau: “Wong and Lee each face five charges of conspiring to corruptly give gratification to Guilherme Esteves de Jesus (“GDJ”), for the benefit of persons in Brazil, as inducements or rewards to advance the business interests of the Company’s subsidiaries in Brazil, punishable under Section 5(b)(i) read with Section 29(a) of the Prevention of Corruption Act.” In 2023 June, Singapore Corrupt Practices Investigation Bureau (CPIB) has launched an investigation into Seatrium for alleged corruption related to “Operation Car Wash” in Brazil (Name changed to Seatrium after merger of Keppel Offshore & Marine and Sembcorp Marine, proposed in April 2023). In 2022 December, Keppel Offshore & Marine had paid $65 million to Brazil authorities in a settlement agreement. More info below:
“ Ex-CEO of Sembcorp Marine Wong Weng Sun Age 62 & Ex-Senior General Manager of Jurong Shipyard Lee Fook Kang Age 75 Charged for $44 Million Bribery of Officials in Brazil from 2009 to 2014, Seatrium to Pay $57 Million to Singapore Authorities in Deferred Prosecution Agreement, Name Changed to Seatrium in 2023 after Merger of Keppel Offshore & Marine and Sembcorp Marine “
Ex-CEO of Sembcorp Marine Wong Weng Sun Age 62 & Ex-Senior General Manager of Jurong Shipyard Lee Fook Kang Age 75 Charged for $44 Million Bribery of Officials in Brazil from 2009 to 2014, Seatrium to Pay $57 Million to Singapore Authorities in Deferred Prosecution Agreement, Name Changed to Seatrium in 2023 after Merger of Keppel Offshore & Marine and Sembcorp Marine
28th March 2024 – Acting on information received, the Corrupt Practices Investigation Bureau (“CPIB”) commenced investigations in May 2023 against Seatrium Limited (formerly Sembcorp Marine Limited) (“the Company”) and individuals from the Company, for alleged corruption offences that occurred in Brazil. CPIB has since completed its investigations, and in consultation with the Attorney-General’s Chambers (“AGC”), two individuals were charged with corruption offences involving the payment of bribes for the benefit of persons in Brazil. One of these individuals was also charged with obstruction of justice.
2. The Public Prosecutor is also in discussions with the Company on a deferred prosecution agreement (“DPA”) in respect of the alleged corruption offences that occurred in Brazil.
Prosecution against Individuals
3. The following two individuals were charged today, on 28 March 2024:
a) Wong Weng Sun (“Wong”) (黄東燊, 62-year-old male Singaporean). At the time of the offences, Wong was the President, Executive Director and Chief Executive Officer of the Company and the Managing Director of Jurong Shipyard Pte Ltd (“JSPL”), a wholly-owned subsidiary of the Company; and
b) Lee Fook Kang (“Lee”) (李福根, 75-year-old male Singaporean). At the time of the offences, Lee was the Senior General Manager of JSPL.
Corruption Charges
4. Wong and Lee each face five charges of conspiring to corruptly give gratification to Guilherme Esteves de Jesus (“GDJ”), for the benefit of persons in Brazil, as inducements or rewards to advance the business interests of the Company’s subsidiaries in Brazil, punishable under Section 5(b)(i) read with Section 29(a) of the Prevention of Corruption Act. The alleged offences are as follows:
a) Over two occasions in 2009, in Singapore or elsewhere, Wong and Lee allegedly conspired to corruptly give to GDJ gratification of not more than US$2 million in total, for the benefit of one or more Brazilian officials, as an inducement to advance the business interests of JSPL in Brazil;
b) Over four occasions between 2010 and 2012, in Singapore or elsewhere, Wong and Lee allegedly conspired to corruptly give to GDJ gratification of not more than US$1,905,345 in total, for the benefit of one or more officers of Petroleo Brasileiro S.A., as a reward to advance the business interests of JSPL in Brazil;
c) In 2010, in Singapore or elsewhere, Wong and Lee allegedly conspired to corruptly give to GDJ gratification of not more than US$1,169,590.64, for the benefit of one or more Brazilian politicians, as an inducement to advance the business interests of JSPL in Brazil;
d) In 2010, in Singapore or elsewhere, Wong and Lee allegedly conspired to corruptly give to GDJ gratification of not more than US$300,000, for the benefit of one or more Brazilian officials, as a reward to advance the business interests of Estaleiro Jurong Aracruz Ltda (“EJA”), a wholly-owned subsidiary of the Company; and
e) In 2010, in Singapore or elsewhere, Wong and Lee allegedly conspired to corruptly give to GDJ gratification in the form of moneys amounting to not more than 2.5% of the contract sums of contracts relating to drilling rig units to be awarded by Sete Brasil Participacoes S.A. to EJA, for the benefit of one or more persons in Brazil, as a reward for the said person(s) assisting EJA to be awarded such contracts. Between 2012 and 2014, gratifications not exceeding a sum total of US$26,478,989.80, EUR10,506,608.22 and BRL5,066,794.77 were allegedly given to GDJ corruptly.
Obstruction of Justice Charge
5. Wong has also been charged with allegedly instructing two employees of the Company, in 2014, to remove an email sent by GDJ containing evidence of bribes that GDJ had given or would be giving to other persons. This constitutes an obstruction of justice, punishable under Section 204A of the Penal Code.
Assessment of Evidence
6. AGC considered all the relevant factors in this case, including the available evidence, and assessed that there was sufficient evidence to mount a prosecution. This is unlike the Keppel Offshore & Marine Limited case where there were evidentiary difficulties.
7. As this matter is currently before the Courts, it would not be appropriate for AGC or CPIB to provide further details at this juncture.
Deferred Prosecution Agreement
8. In addition to bringing charges against Wong and Lee, the Public Prosecutor is in discussions with the Company concerning a DPA in respect of the alleged corruption offences that occurred in Brazil. Please see Annex A for more information on the purpose and nature of a DPA.
9. Under the proposed DPA, the Company will be required to pay a financial penalty of US$110 million. Of this amount, up to US$53 million may be used to offset the settlement payment totalling R$670,699,731.73 under the in-principle settlement agreements that the Company has reached with the authorities in Brazil, namely, the Brazilian Attorney-General’s Office, Comptroller General of the Union, and Public Prosecutor’s Office in Brazil.
10. The contents and terms of the DPA remain to be worked out and agreed upon by the Public Prosecutor and the Company. The DPA will also have to be approved by the General Division of the High Court, before it comes into force.
Anti-Bribery Management Systems
11. Companies are strongly advised to put in place robust procedures and safeguards against illicit activities perpetrated by their employees. Companies are also strongly encouraged to obtain certification under the Singapore Standard (SS) ISO 37001 – Anti-Bribery Management Systems, which is designed to help companies implement an anti-bribery management system or enhance such an existing system, to reduce corporate risk and costs related to bribery. Additionally, CPIB has made available on its website guidance for companies on measures to prevent corruption – PACT: A Practical Anti-Corruption Guide for Businesses in Singapore.
12. Singapore adopts a strict zero-tolerance approach towards corruption. Any person convicted of a corruption offence can be imprisoned for up to five years and/or fined up to S$100,000. Any person convicted of an offence of obstruction of justice can be imprisoned for up to seven years and/or fined.
Attorney-General’s Chambers
Corrupt Practices Investigation Bureau
Singapore Corrupt Practices Investigation Bureau Investigates $6.1 Billion Seatrium for Alleged Corruption in Brazil, Name Changed to Seatrium after Merger of Keppel Offshore & Marine and Sembcorp Marine
2nd June 2023 – Singapore Corrupt Practices Investigation Bureau (CPIB) has launched an investigation into Seatrium (1/6/23: $6.1 billion / S$8.26 billion market capitalization) for alleged corruption related to “Operation Car Wash” in Brazil (Name changed to Seatrium after merger of Keppel Offshore & Marine and Sembcorp Marine, proposed in April 2023). In 2022 December, Keppel Offshore & Marine had paid $65 million to Brazil authorities in a settlement agreement. Singapore Corrupt Practices Investigation Bureau (CPIB): “Acting on information received, the Corrupt Practices Investigation Bureau (CPIB) commenced investigations against Seatrium Limited and individuals from Seatrium Limited on alleged corruption offences that occurred in Brazil. As investigations are ongoing, CPIB will not be able to provide further details at this juncture. Singapore adopts a strict zero-tolerance approach towards corruption. CPIB investigates without fear or favour and will not hesitate to take action against any parties involved in corrupt activities.” See below for Seatrium statement.
Singapore Corrupt Practices Investigation Bureau Investigates $6.1 Billion Seatrium for Alleged Corruption in Brazil
1st June 2023 – Seatrium Limited (the “Company”) refers to its previous announcements on the investigations by the Brazilian authorities in connection with Operation Car Wash, which began in or around early 2015. The Company has previously made numerous announcements concerning this, with the latest being the announcement dated 28 April 2023.
The Company would like to update that on 31 May 2023, the Corrupt Practices Investigation Bureau (“CPIB”) released a statement stating that it has commenced investigations against the Company and individuals from the Company on alleged corrupt offences that occurred in Brazil. The Company believes that this relates to events that occurred prior to 2015 and to the Sembcorp Marine group in existence at that time. Those events predate the merger with Keppel Offshore & Marine which only took place in February 2023.
The Company is unable to comment further at this stage as the investigations are still ongoing.
The Company is cooperating with CPIB in its investigations and will make appropriate announcements in the event of any material developments.
The Company wishes to reiterate it is committed to the highest standards of compliance with anti- corruption laws and does not condone and will not tolerate any improper conduct. The Company has a strict compliance programme and continuously works to ensure that policies and procedures are in place to prevent any violation of any anti-corruption laws applicable to its operations.
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