Settlement Reached by Seatrim in Decade-Old Corruption Case in Brazil

Singapore-based Seatrium, a shipyard and marine engineering operator, has reached terms with Brazilian authorities to settle bribery charges related to offshore engineering and construction contracts dating back over a decade. This follows settlements made by predecessor companies Sembcorp Marine and Keppel Offshore & Marine in Brazil. Investigations into Sembcorp Marine’s actions before 2015 were renewed by Brazilian and Singaporean authorities in 2023, with a focus on pre-2015 activities in Brazil.

The case involves allegations of corruption and bribery, with headlines highlighting an agent at the center of the investigation. Sembcorp Marine won significant contracts from Brazil’s Sete Brasil in 2012, leading to investigations into corruption two years later. The wider investigation, known as “Operacao Lava Jato” (Operation Car Wash), is one of Brazil’s largest corruption scandals involving politicians and companies.

Seatrium will pay approximately US$135 million under the settlement agreements, contingent on approval by Brazilian authorities. The company will also adhere to post-closing compliance obligations. While the settlement may bring an end to the case in Brazil, an ongoing investigation in Singapore remains. Seatrium has a history of working with Brazil’s offshore industry and has taken a charge in its 2023 financial reports for the settlement, as well as indemnifying Keppel.

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