Singapore shipyard to pay $422m in bribery case

Shipyard operator Keppel Offshore & Marine Ltd. and its U.S. subsidiary have agreed to pay a penalty of more than $422 million to resolve U.S. charges that it violated the Foreign Corrupt Practices Act, according to a statement from the Justice Department.    Singapore-based shipyard operator Keppel Offshore & Marine Ltd. (KOM) and its U.S. subsidiary, Keppel Offshore & Marine USA, have agreed to pay a penalty of more than $422 million to resolve U.S. charges that it paid millions of dollars in illegal bribes to Brazilian industry and government officials, according to a statement from the U.S. Department of Justice.
   Similar investigations were carried out against KOM by regulatory authorities in Singapore and Brazil, the Justice Department said.
   According to investigators, from 2001 to 2014, KOM conspired to violate the U.S. Foreign Corrupt Practices Act (FCPA) by paying about $55 million in bribes to officials at the Brazilian state-owned oil company Petrobras and to Brazil’s then-governing party in order to win 13 contracts with Petrobras and another Brazilian entity.
   “In an attempt to conceal their crimes, the defendants used the global financial system – including the United States banking system – to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies,” Acting U.S. Attorney Bridget M. Rohde said in a statement.
   KOM entered into a deferred prosecution agreement with the Justice Department related to criminal information filed Dec. 22 in the Eastern District of New York, charging the company with conspiracy to violate the anti-bribery provisions of the FCPA. 
   In addition, KOM USA pleaded guilty and was sentenced by the court on a one-count criminal information charging the company with conspiracy to violate the FCPA’s anti-bribery provisions of the FCPA. 
   Of the more than $422 million criminal penalty, KOM will pay the United States of $105,554,245, including a $4,725,000 criminal fine paid by KOM USA. As part of the deferred prosecution agreement, KOM committed to cooperating with the Justice Department’s ongoing investigation.
   KOM also terminated and disciplined employees involved in the criminal conduct, and implemented an enhanced system of compliance and internal controls to address and mitigate corruption risks, the Justice Department said. 
   In related proceedings, KOM settled with the Ministério Público Federal (MPF) in Brazil and the Attorney General’s Chambers (AGC) in Singapore. The United States will credit the amount the company pays to Brazil and Singapore under their respective agreements, with Brazil receiving $211,108,490, equal to 50 percent of the total criminal penalty, and Singapore receiving up to $105,554,245, equal to 25 percent of the total criminal penalty.