Seatrium’s two former executives, including CEO, charged with bribery involving more than S$20 million in Brazil

TWO former executives, including a top executive, of offshore and marine (O&M) giant Seatrium (previously known as Sembcorp Marine), were charged with corruption offences on Thursday (Mar 28) for paying bribes of more than S$20 million to further the company’s business interests in Brazil.

Wong Weng Sun, 62, was charged at Singapore’s State Court with five counts of conspiring to corruptly give gratification to a former consultant with Seatrium, Guilherme Esteves de Jesus.

Wong was president, executive director and chief executive of Sembcorp Marine for 14 years. He stepped down from Seatrium in February 2023, following the merger of Sembcorp Marine and Keppel’s O&M unit.

He allegedly bribed the consultant to advance the business interests of Seatrium’s subsidiaries, including Jurong Shipyard, on several occasions between 2009 and 2014. Wong, who was also Jurong Shipyard’s managing director at the time of the offences, was charged with obstruction of justice.

Lee Fook Kang, 75, who was Jurong Shipyard’s senior general manager at the time of the offences, also faces the same five bribery charges.

Singapore’s Corrupt Practices Investigation Bureau (CPIB) and the Attorney-General’s Chambers (AGC) said in a joint statement that the public prosecutor is in discussions with Seatrium on a deferred prosecution agreement (DPA) that will require the company to pay a financial penalty for the alleged corruption offences.

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Wong is represented by lawyers from WongPartnership, while Lee is represented by lawyers from Matthew Chiong Partnership. Thursday’s first mention hearing on the charges was heard before District Judge Eugene Teo.

Wong and Lee are out on bail of S$210,000 and S$200,000, respectively.

Both defence counsels asked for an adjournment in court proceedings, with Wong’s lawyer noting that his client was charged on Mar 27 for offences relating to events that took place 10 to 15 years ago.

The lawyer also asked for an adjournment of eight weeks, stating that he needed some time to take his client’s instructions. Deputy public prosecutor Alan Loh said the prosecution had no objections to this.

Wong allegedly instructed two employees of Seatrium in 2014 to remove an e-mail sent by de Jesus containing evidence of bribes that de Jesus had given or would be giving to other persons.

Under the proposed DPA, the company will likely be required to pay a financial penalty of US$110 million.

Up to US$53 million of the amount may be used to offset the settlement payment totalling 670.7 million Brazilian real (S$181 million), as part of the in-principle settlement agreements that the company has reached with the authorities in Brazil.

This is a settlement under which the prosecution agrees to defer criminal charges against a corporate offender, in exchange for the corporation’s agreement to comply with various conditions, such as admission of wrongdoing, payment of financial penalties, and implementation of corporate reform.

Contents and terms of the deferred prosecution agreement remain to be worked out and agreed upon. It will also have to be approved by the General Division of the High Court before it comes into force.

AGC said it considered all the relevant factors in this case, including the available evidence, and assessed that there was sufficient evidence to mount a prosecution.

This is unlike the Keppel Offshore & Marine case where there were evidentiary difficulties, it added.

In May 2023, CPIB said it was “acting on information received” and investigating Seatrium, and individuals from the company for alleged corruption offences in Brazil.

This comes after Seatrium in March 2023 issued a notice that its wholly owned subsidiary, Estaleiro Jurong Aracruz, was being investigated for “alleged irregularities” in its practices.

Any person convicted of a corruption offence can be imprisoned for up to five years and/or fined up to S$100,000. Any person convicted of an offence of obstruction of justice can be imprisoned for up to seven years and/or fined.

The next hearing for Wong and Lee is slated for May 23 at 9 am. The respective bails of the duo have been extended till then.