SINGAPORE: Keppel Offshore and Marine (Keppel O&M) will pay US$422 million (S$567 million) in fines as part of a global resolution reached with criminal authorities in the US, Brazil and Singapore over corrupt payments made by a former agent in Brazil.
As part of the resolution, Keppel O&M was also issued a conditional warning by the Corrupt Practices Investigation Bureau (CPIB), according to a press release issued by the conglomerate on Saturday (Dec 23).
"These agreements relate to
corrupt payments by Mr (Zwi) Skornicki in relation to several KOM projects in Brazil, which were made with knowledge or approval of former KOM executives," it stated.
The US Department of Justice (DOJ) also said in a news release on Friday that the company entered into a deferred prosecution agreement in the US, while US subsidiary Keppel O&M USA pleaded guilty in federal court in Brooklyn to conspiring to violate the US Foreign Corrupt Practices Act (FCPA).
Investigations showed the payments were made between 2001 and 2014 to officials of Brazilian state-run oil company, Petroleo Brasileiro (Petrobras), said the Attorney General’s Chambers (AGC) and CPIB in a joint release issued on the same day.
This was "in order to win contracts with Petrobras and/or its related companies", the release stated. "KOM concealed these corrupt payments by paying commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of officials of Petrobras and other parties.""
Before Keppel there was ST Marine. Both r majority, possibly, owned by Temasek(?).
Is there a culture of "get the biz regardless of what r needed, ethically or not" in these companies?
Interesting to observe that some in the industry said that it is "common knowledge" n "standard operating pricedures" to engae "3rd party consultants with the RIGHT connections" to get contracts in Brazil, n the same apply to places like Saudi Arabia, etc. YET, no one is willing to BLOW THE WHISTLE on the whole industry in those countries!
The pervasive corrosive influene of systemic corruptions like these in sports associations like FIFA, etc. were ALL "discovered n brought to trial" due to the intervention of the USA Dept of Justice n AG n FBI/CIA!
In this Keppel case due to investigation under the Foreign Corrupt Practice Act (FCPA). Would the Brazilian government had acted if Keppel O&M informed it that some government officials were asking for illegal money? Would it had awarded the contracts to Keppel O&M still?
I used to work for US companies n always reject any suspicious acts that might violate FPCA! Those companies hv very clear rules that violating the FPCA means u will be given no mercy! In fact in one 9f the companies, a VP who lost a big contract in certain African country n missed his KPIs as he wouldn't pay bribe to some government officials were lauded by the CEO n this story became a legend n folklore on how the company is willing to walk away fr biz that will violate the Codes of Conducts!
It is under such a culture n values will the employers know it is safe n utterly encouraged to WHISTLE blow n to walk away fr unethical biz!
I m very curious WHAT made those 5 x-employees did what they had done? Systemic coercion or subtle KPI pressure or just personal greed as winning those contracts mean "big bonuses"?
ps: if i m not wrong, those "hard won contracts" r not collectible as the petrol prices r still at a low despite climbing up past the lowest. Ironical right? or sheer stupid act to bribe!!
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