Singapore’s Seatrium Limited Signs Leniency and Deferred Prosecution Agreements in Operation Car Wash Probe

Singapore-based Seatrium Limited, formerly known as Sembcorp Marine, has reached significant agreements with both Brazilian and Singaporean authorities in connection with the Operation Car Wash corruption investigation.

Operation Car Wash, initiated in 2014, uncovered a widespread corruption scandal involving Brazil’s state oil company Petrobras, where corrupt executives engaged in bid-rigging and bribery to secure inflated contracts, with kickbacks funneled to politicians and political parties.

As part of the Brazilian settlement reached on Wednesday, Seatrium has agreed to pay BRL 728.9 million (approximately US$110 million) to resolve investigations by the Public Prosecutor’s Office (MPF). The company is also set to finalize a similar agreement with Brazil’s Attorney-General’s Office and Comptroller General in the near future.

Concurrently, Seatrium has concluded a Deferred Prosecution Agreement (DPA) with Singaporean authorities, necessitating a penalty of US$110 million, albeit with a provision allowing up to US$53 million from the Brazilian payment to be credited against this amount, effectively reducing the Singaporean payment to US$57 million.

In a favorable development for Seatrium, Singapore’s Monetary Authority (MAS) and Commercial Affairs Department (CAD) have completed their joint probe into potential securities and financial crimes violations, deciding not to take any action against the company or its officers.