The Attorney-General’s Chambers (AGC) has agreed to enter into a deferred prosecution agreement (DPA) with Seatrium following the alleged corruption offences that occurred in Brazil.
Under the DPA, Seatrium is required to pay a financial penalty of US$110 million. Of the total sum, the AGC has agreed to credit up to US$53 million of the payments to the Brazilian authorities against the penalty.
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As such, Seatrium will have to pay US$57 million or $76.5 million.
The group has already made provisions for the sum in its financial statements for the FY2023 ended Dec 31, 2023. As such, the penalty will have no material impact on the group’s net earnings and net tangible asset (NTA) per share for the FY2024.
The other terms of the DPA are to be agreed between Seatrium and AGC in due course.
See also: Sembcorp issues $350 mil of guaranteed notes due 2036 at 3.65%
On March 28, the AGC and Corrupt Practices Investigation Bureau (CPIB) announced that two former Sembcorp Marine S51 (SembMarine) employees were charged for bribing officials in Brazil between 2009 and 2014. One of them is the former president, executive director and CEO of SembMarine, Wong Weng Sun, who was the managing director of its wholly owned subsidiary Jurong Shipyard (JSPL) when the offences were allegedly committed. The other individual charged is Jurong Shipyard's senior general manager, Lee Fook Kang.
