Several of Keppel Corps most powerful executives have been arrested by Singaporean authorities as part of an investigation in to Bribery.
The case centres on Keppel Offshore & Marine (KOM), a company who through its subsidiaries provides offshore rig design, construction, and repair services. They offers jackup rigs, semisubmersible rigs, floating production systems, and drillships.
According to the report, Kim Hock, former president and CEO of Keppel Fels Brasil, part of KOM, has been arrested but released on bail.
Another five executives have also been arrested and released on bail as part of the ongoing investigation.
The executives were called in by Singaporean authorities to assist with questions about corrupt payments. They each gave a statement to Singapore’s Corrupt Practices Investigation Bureau (CPIB), before several appointed lawyers to represent them during any further inquiries.
The Attorney-General’s Chambers (AGC) will now decide whether to file charges.
A spokesperson for KOM said:
“We are unable to comment on any investigations by the authorities”
EARLIER BRIBERY AT KEPPEL
In December 2017, Keppel Offshore & Marine paid a penalty of more then 422 million dollars as part of an investigation in to bribery with the US, Brazil and Singapore.
This was in relation to a decade of corrupt payments by one of the company’s former executives, Mr Skornicki. The company claimed to have no knowledge of the payments.
KOM accepted a conditional warning from the Corrupt Practices Investigation Bureau (CPIB) and entered into a deferred prosecution agreement (DPA) with the US Department of Justice (DOJ).
Keppel FELS Brasil, a subsidiary of KOM, reached an agreement with the Public Prosecutor’s Office in Brazil, the Ministério Público Federal (MPF).
Keppel Offshore and Marine USA (KOM USA), also a subsidiary of KOM, pleaded guilty pursuant to a plea agreementThe Attorney-General’s Chambers (AGC) and CPIB said in a joint statement issued on December 23:
“KOM made corrupt payments to officials of Brazilian state-run oil company, Petroleo Brasileiro S.A. (Petrobras), and other parties, in order to win contracts with Petrobras and/or its related companies”
“KOM concealed these corrupt payments by paying commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of officials of Petrobras and other parties,”
In reaching the resolutions with the authorities, KOM received credit for its cooperation and for taking remedial measures. Accordingly, the criminal penalty reflects a 25 percent reduction off the bottom of the applicable US Sentencing Guidelines fine range.
The investigation is ongoing. Updates will follow…