Keppel agrees to pay $422m to settle US bribe charges related to Petrobras scandal

Keppel agrees to pay $422m to settle US bribe charges related to Petrobras scandal

The US Department of Justice (DOJ) announced on Friday that Singapore-based shipbuilder Keppel Offshore & Marine and its US subsidiary have agreed to pay $422 million to settle charges relating to bribery of officials in Brazil.

Keppel, the world’s leading oil rig builder, admitted to a former agent of the company paying bribes to officials of Brazil’s state oil firm Petrobras and Brazilian politicians over a period covering 2001-2014. Those bribes amounted to $55 million in return for 13 contracts with Petrobras and Sete Brasil.

It is a part of the bribes-for-inflated-contracts scandal that has roiled Petrobras and Brazilian politics for years.

Keppel was charged with violating America’s Foreign Corrupt Practices Act. It is estimated to have earned $351.8m through the bribery.

Of the $422m penalty, Brazil will receive $211m and Singapore up to $105.6m.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.

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3 Comments

  1. M.T. Vassel
    December 25, 2017 at 1:14 am

    Surely not, not in squeaky clean Singapore …

  2. Sam Chambers
    Sam Chambers
    December 26, 2017 at 8:12 am

    And to have released the news late on Xmas eve too …

    1. Thomas Timlen
      December 26, 2017 at 9:41 am

      US DoJ released the news on the 22nd…

      Anyway, it could have been worse.

      Keppel managed to reduce the fine by 25% by cooperating with the authorities and implementing corrective/preventative measures.

      In the process, several heads rolled…