SEATRIUM said that it believes that the investigation by the Corrupt Practices Investigation Bureau (CPIB) against the company relates to events that occurred prior to 2015 and to the Sembcorp Marine group in existence at that time. It noted this in a statement released on Thursday (Jun 1).

Those events predate the merger with Keppel Offshore & Marine, which only took place in February 2023, it added.

This comes after CPIB’s announcement on Wednesday that it had commenced investigations against Seatrium for alleged corruption offences. It follows a move by the Office of the Comptroller General of Brazil, which published a notice in March stating that it had initiated preliminary administrative proceedings against Seatrium’s wholly-owned subsidiary, Estaleiro Jurong Aracruz, for past conduct linked to Operation Car Wash. 

Operation Car Wash is a major anti-corruption probe in Brazil that has implicated scores of politicians and large Brazilian companies, including state-owned oil company Petrobras. The nationwide criminal investigation by the Federal Police of Brazil was first launched in 2014 to focus on money laundering, before expanding to cover allegations of corruption.

Seatrium said it was unable to comment further as investigations were ongoing, but added that it was cooperating with CPIB in the process and would make appropriate announcements in the event of any material developments. 

“The company wishes to reiterate it is committed to the highest standards of compliance with anti-corruption laws and does not condone and will not tolerate any improper conduct,” Seatrium said.

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“The company... continuously works to ensure that policies and procedures are in place to prevent any violation of any anti-corruption laws applicable to its operations.”

In another update on the same day, Seatrium said that investigations are ongoing and no formal charges have been laid against any of its key executives.

CPIB has also not provided the company with the identity of the individuals being investigated for alleged corruption offences.

Seatrium was responding to queries from the Singapore Exchange, which questioned if the individuals being investigated were executive officers and if they were, their roles in the company and whether they are suitable to continue as its director or executive officer.

Shares of Seatrium : S51 0% closed S$0.002 or 1.6 per cent lower at S$0.12 on Thursday, after a brief trading halt in the morning was lifted.