Update on CPIB investigation into Seatrium
On 31 May 2023, CPIB announced that it is investigating allegations of corruption against Seatrium Limited, formerly known as Sembcorp Marine Limited, that occurred in Brazil prior to 2015. As the allegations were similar to what CPIB investigated Keppel Offshore Marine Limited for, I asked when the information was received and which other foreign enforcement agency was investigating the matter as well. Minister Indranee, in her response, mentioned that she is not in a position to provide details due to the ongoing investigation. My PQ and Minister Indranee’s response may be accessed below.
Mr Murali Pillai: To ask the Prime Minister regarding CPIB’s investigation into Seatrium Limited and its employees for alleged corruption offences that occurred in Brazil (a) when did CPIB receive the information that triggered the investigation; (b) whether CPIB received similar information on Seatrium when it was investigating Keppel Offshore Marine Limited and its officers for similar offences and, if so, what steps did CPIB take; and (c) which other foreign enforcement agencies are also investigating Seatrium and its employees.
The Minister, Prime Minister’s Office (Ms Indranee Rajah) (for the Prime Minister): Mr Deputy Speaker…also address Mr Murali Pillai’s PQ on the same topic which is listed for tomorrow’s Sitting. I invite Mr Pillai to raise any supplementary questions that he may have today and to withdraw his PQ for tomorrow if his queries are addressed.
Mr Deputy Speaker: I give my consent.
Ms Indranee Rajah: Mr Deputy Speaker, on 31 May 2023, the Corrupt Practices Investigation Bureau (CPIB) announced that it had, acting on information received, commenced investigations against Seatrium Limited and individuals from Seatrium Limited, for alleged corruption offences that occurred in Brazil. Seatrium Limited was previously known as Sembcorp Marine Limited, which merged with Keppel Offshore & Marine Limited (KOM) in February 2023.
As investigations are ongoing, it is not appropriate to provide further details at this juncture. CPIB will be interviewing various individuals of interest and reviewing all documentary and other records to which it can gain access. Other than CPIB, we understand that the Brazilian authorities are investigating Seatrium, but it would not be appropriate to provide any details or comments at this juncture.
CPIB takes this matter seriously. It will investigate the case thoroughly and seek to complete the investigations expeditiously.
Dr Tan asked about the assessed impact on Singapore’s reputation. As CPIB’s investigations are still ongoing, it would be premature to speculate on the outcome. Suffice to say, there is no change in Singapore’s zero-tolerance policy on corruption and our commitment to uphold the rule of law.
Mr Louis Chua asked whether the decision by Temasek to inject capital into then-Sembcorp Marine took into account the alleged corruption offences in Brazil.
Temasek became a direct shareholder of Sembcorp Marine in 2020, following the demerger of Sembcorp Marine from its then-parent, Sembcorp Industries. Temasek participated in Sembcorp Marine’s two rights issues in 2020 and 2021.
The Government understands that Temasek conducted the due diligence appropriate to the rights issues, bearing in mind that the company was already part of the group. This due diligence took into account Sembcorp Marine’s public disclosures that had already been made. The disclosure pertaining to the Brazilian case mentioned that there were charges by Brazilian authorities against an ex-employee in his personal capacity and not against Sembcorp Marine’s Brazilian subsidiary or the company. Sembcorp Marine Group also stated it was not aware of any other of its employees being subject to those investigations. All disclosures in the circulars and Offer Information Statement came with a representation by Sembcorp Marine’s board on the accuracy of information and that all material disclosures had been made.
Temasek’s investments in Sembcorp Marine pursuant to the rights issues, as well as those of all other investors, were based on the information provided in the shareholders’ circulars and Offer Information Statement.
In the Sembcorp Marine Group’s announcements on 3 July 2019, 8 July 2019, 3 February 2020 and 21 February 2020, it further stated that it was committed to the highest standards of compliance with anti-corruption laws and does not condone, has not condoned and will not tolerate any improper business conduct.
Based on the available facts and disclosures at that time, Temasek made an independent commercial decision to inject capital into the company. The rights issues were raised during the pandemic to ensure that Sembcorp Marine had sufficient funding to see through its business obligations and complete existing projects, given the downturn of the industry which was exacerbated by COVID-19. Without the recapitalisation, there would potentially have been an erosion of value and a loss of jobs.
