KEPPEL EXECUTIVES ARRESTED IN SINGAPORE

February 05, 2018

The Singapore Strait Times reported that Several former key executives of Keppel Corp and its offshore and marine units have been arrested in connection with the Singapore authorities’ investigation into the corruption scandal involving Keppel Offshore & Marine (Keppel O&M). The Straits Times said it understands that they include Mr Tay Kim Hock, former president and chief executive of Keppel Fels Brasil, a wholly owned unit of Keppel O&M. He was arrested by the Corrupt Practices Investigation Bureau (CPIB) and is currently out on bail.
It is understood that more than five others connected with the case are also out on bail.
Mr Tay was president and chief executive of Keppel Fels Brasil from June 2000 to October 2007.
The Straits Times understands that the former executives had been called in by the Singapore authorities to assist with investigations into the scandal, which saw the government-linked company paying US$422.2 million (S$554 million) in fines to the United States, Brazil and Singapore.
In December last year, Keppel O&M reached a global resolution with law enforcement agencies in the US, Brazil and Singapore in relation to corrupt payments made by a former agent in Brazil.
From 2001 to 2014, Keppel O&M paid US$55 million in bribes to secure contracts with Brazilian oil giant Petrobras.
Keppel Fels Brasil also reached a leniency agreement with the Public Prosecutor’s Office in Brazil.
In Singapore, Keppel O&M accepted a conditional warning from the CPIB. This was issued in lieu of prosecution for corruption offences punishable under the Prevention of Corruption Act, and part of the global resolution, said the AGC and the CPIB.
But the authorities also said then that “investigations in respect of the individuals involved are ongoing”.
After news broke about the global resolution, some observers raised public concern over what was perceived to be lenient treatment given to Keppel O&M despite the large sums of money involved and the blow to Singapore’s reputation. (Source: The Straits Times)