Singapore conglomerate Keppel said it has completed a deferred prosecution agreement with the US Department of Justice relating to a corruption scandal in Brazil involving its offshore and marine division.

The agreement was entered into on 22 December 2017 as part of Keppel's global resolution with criminal authorities in the US, Brazil and Singapore in connection to corrupt payments by Keppel Offshore & Marine's former agent in Brazil.

The past three years has seen Keppel meet a series of obligations to the Department of Justice including paying applicable fines, reporting, compliance, and other requirements.

Keppel said it has complied with its obligations under a conditional warning issued by the Corrupt Practices Investigation Bureau in Singapore and the leniency agreement entered into with the Public Prosecutor’s Office in Brazil, Ministério Público Federal.

As part of the applicable fines, a sum of US$52.8 million (less any penalties that Keppel O&M may pay to specified Brazilian authorities) was payable to the Singapore authorities.

The discussions with the Brazilian authorities remain ongoing, said Keppel, with a one-year extension agreed until 22 December 2021.

Lee Boon Yang, chairman of Keppel Corporation, said: “Keppel has zero tolerance for corruption. Since the allegations first emerged, we have put in place stricter controls and embedded best practices across the group."

"Following the global resolution in 2017, we continued to enhance our compliance measures, including through comprehensive training, setting the tone from the top, tightening policies, and attaining the relevant certification, as we sought to build a strong culture of compliance."

"Keppel’s whistle-blower policy was also enhanced to encourage reporting in good faith of suspected reportable conduct. We will continue to take all necessary steps and to ensure that such incidents are not repeated."

Finance

Keppel completes corruption-related obligations in the US