Seatrium to pay US$110 million penalty to Singapore prosecutor over Brazil corruption case

Singapore offshore and marine engineering firm Seatrium has agreed to pay a financial penalty of US$110 million (approximately S$150 million) to the public prosecutor in relation to historic corruption offences in Brazil.

The Attorney-General’s Chambers (AGC) announced the resolution on 30 July 2025, confirming that it forms part of a deferred prosecution agreement.

Deferred prosecution deal requires court approval

The agreement, finalised between Seatrium and the public prosecutor on the same day, must first be approved by Singapore’s High Court before taking effect.

The court will assess whether the terms are fair, reasonable, and in the interests of justice.

A deferred prosecution agreement allows a corporation to avoid criminal charges if it complies with specific conditions, such as paying penalties and strengthening internal compliance systems.

Under this arrangement, up to US$53 million of the total penalty may be offset against any criminal fines imposed by Brazilian authorities for related offences.

Seatrium to pay additional US$131 million in Brazil

In a separate filing with the Singapore Exchange (SGX), Seatrium confirmed it will pay approximately US$131 million to Brazilian authorities as part of a leniency arrangement with Brazil’s federal prosecutor’s office (MPF).

Further agreements with Brazil’s Attorney-General’s Office (AGU) and the Comptroller General of the Union (CGU) are expected in the coming days.

The total settlement amount was listed as BRL$728,933,258.58, equivalent to around US$131 million.

Trading in Seatrium shares was temporarily suspended at around 8.20 am on 30 July before resuming roughly three hours later.

Compliance reforms required under settlement

As part of the Singapore deal, Seatrium is required to enhance its ethics and compliance framework to reduce the likelihood of future breaches.

Failure to comply with the agreement could result in its termination, enabling the public prosecutor to resume criminal proceedings.

The company stated in its SGX announcement that it had already made provisions for the penalty and settlement amounts in prior financial statements.

Following the finalisation of the agreements, Seatrium reversed a S$14 million provision in its accounts for the half-year ending 30 June 2025, reflecting updated exchange rates and expenses.

It added that there would be “no material impact” on group net earnings or net tangible assets for the full year ending 31 December 2025.

Corruption probe linked to Brazil’s Operation Car Wash

The corruption investigation traces back to Operation Car Wash, Brazil’s largest corruption probe, which began in 2014.

Initially centred on money laundering through a car wash in Brasilia, the investigation uncovered a vast bribery network involving corporate executives and senior politicians in exchange for contracts with state-owned oil firm Petrobras.

In June 2024, Seatrium disclosed that it was under investigation by Singapore authorities for possible offences linked to this case.

The AGC later confirmed that the probe related to misconduct potentially committed by Seatrium or its predecessor entities.

Singapore authorities close local investigations

Seatrium also announced that joint investigations by the Monetary Authority of Singapore (MAS) and the police’s Commercial Affairs Department (CAD) have concluded.

The investigations examined potential breaches under the Securities and Futures Act 2001 and the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992.

Authorities have decided not to take further action against the company or its officers.

Formation of Seatrium and industry background

Seatrium was formed in 2023 through the merger of two major Singapore marine engineering companies — Sembcorp Marine and Keppel Offshore & Marine (KOM).

Both firms had been previously implicated in investigations connected to Operation Car Wash.

The merger was part of a larger effort to consolidate the industry following years of financial challenges and reputational setbacks.

Public criticism over leniency in earlier cases

In January 2023, six former KOM senior executives received stern warnings from the Corrupt Practices Investigation Bureau (CPIB) for their involvement in alleged bribery related to Brazilian contracts.

The decision not to prosecute drew public criticism.

Minister Indranee Rajah, addressing Parliament in February 2023, defended the outcome, explaining that prosecutors lacked sufficient evidence due to the absence of key overseas witnesses and limited access to documents.

She stated that both CPIB and AGC had conducted extensive reviews and determined that the evidence available was “insufficient to meet the burden of proof.”

The Singapore Government did not name the six individuals, though their identities were widely reported in international plea agreements and media coverage.