Singapore offshore and marine engineering firm Seatrium has agreed to pay a financial penalty of US$110 million (approximately S$150 million) to Singapore’s public prosecutor in relation to historic corruption offences in Brazil.
This resolution was announced by the Attorney-General’s Chambers (AGC) on 30 July 2025, and forms part of a deferred prosecution agreement.
Deferred prosecution deal hinges on High Court approval
The agreement, which was finalised between Seatrium and the public prosecutor on the same day, requires approval from Singapore’s High Court before taking effect.
The court will assess whether the agreement is fair, reasonable, proportionate, and in the interests of justice.
A deferred prosecution agreement allows a corporate offender to avoid criminal charges, provided it meets conditions including the payment of penalties and the implementation of internal reforms.
Under this deal, up to US$53 million of the US$110 million penalty may be offset against any criminal penalties imposed by Brazilian authorities for related offences.
Seatrium also agrees to pay US$131 million in Brazil
Seatrium confirmed in a filing with the Singapore Exchange (SGX) that it will pay a total of approximately US$131 million to Brazilian authorities.
This payment is part of a leniency arrangement with Brazil’s public prosecutor’s office (MPF), and further agreements are expected with the Brazilian Attorney-General’s Office (AGU) and the Comptroller General of the Union (CGU) in the coming days.
The final settlement amount was specified as BRL$728,933,258.58, which equates to about US$131 million.
The company temporarily halted trading of its shares at around 8.20am on Wednesday before lifting the suspension roughly three hours later.
Compliance improvements mandated as part of settlement
As part of the Singapore agreement, Seatrium is required to enhance its ethics and compliance framework.
These improvements aim to mitigate the risk of recurrence of similar conduct in the future.
Failure to adhere to the agreement’s terms could result in its termination, and the public prosecutor would then be free to initiate criminal proceedings based on the original alleged offences.
In its SGX filing, Seatrium noted that it had made provisions for the financial penalty and settlement amounts in earlier financial statements.
Following the finalisation of the agreements, the company reversed a S$14 million provision in its accounts for the half-year ending 30 June 2025, reflecting updated exchange rates and expenses.
Seatrium stated that there would be “no material impact” on its group net earnings or net tangible assets for the full year ending 31 December 2025.
Corruption probe linked to Brazil’s Operation Car Wash
The corruption investigation dates back to offences tied to Operation Car Wash, Brazil’s largest corruption probe, which began in 2014.
Initially targeting money laundering through a car wash in Brasilia, the investigation uncovered a widespread network of illicit payments from corporate executives to high-level politicians.
These payments were made in exchange for favourable contracts with state-owned oil giant Petrobras.
In June 2024, Seatrium disclosed that it was under investigation by Singapore authorities in connection with possible offences related to this case.
The AGC confirmed that the investigation pertained to misconduct potentially committed by Seatrium or its predecessor entities.
Singapore authorities conclude local investigations
In the same SGX filing, Seatrium also announced that joint investigations by the Monetary Authority of Singapore (MAS) and the police’s Commercial Affairs Department (CAD) have concluded.
The probes had examined potential breaches under the Securities and Futures Act 2001, the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992, and earlier versions of these laws.
Authorities have decided not to take further action against the company or its officers.
Background: Seatrium formed from two major marine firms
Seatrium was established in 2023 through the merger of two major Singapore offshore and marine companies — Sembcorp Marine and Keppel Offshore & Marine (KOM).
Both companies had been implicated in prior investigations related to Operation Car Wash.
The formation of Seatrium was part of a broader industry restructuring amid challenging market conditions and reputational damage.
Outcry as six former KOM executives only given stern warnings in bribery scandal
In January 2023, six former KOM senior staff received stern warnings from the CPIB regarding alleged bribe payments to Brazilian officials but weren’t prosecuted, evoking public outcry.
Minister Indranee Rajah, in a February 2023 Parliament session, defended that CPIB “had done it best” amid a challenging investigation.
She highlighted the lack of evidence hindering prosecution, attributing the challenge to CPIB’s exhaustive inquiry exacerbated by the absence of key witnesses located abroad.
She added that both the CPIB and AGC had done a careful and thorough review of the documents, including the deferred prosecution agreements and plea bargains, “and the public prosecutor has advised that those are insufficient to meet the burden of proof”.
The Singapore Government has chosen not to name the six who were issued stern warnings over the offences. However, the plea agreement and media reports have already identified who these six individuals might be.
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