Seatrium escapes prosecution in Brazilian corruption case after High Court approves US$110m penalty

Singapore-listed Seatrium will not be charged in court over a long-running corruption probe in Brazil, in exchange for paying a financial penalty of US$110 million (S$140.36 million) and strengthening its internal controls.

In a bourse filing on April 24, the offshore and marine giant said the High Court has approved a deferred prosecution agreement (DPA) it signed with the Attorney-General’s Chambers (AGC) to avoid prosecution.

A DPA involves prosecutors postponing criminal charges against a corporate offender. This is granted in exchange for the offender agreeing to comply with certain conditions.

Seatrium’s agreement with AGC was originally signed in July 2025 and required High Court approval before it could take effect. High Court Justice Hoo Sheau Peng approved the agreement in a private hearing on April 24.

Under the agreement, Seatrium must pay a US$110 million financial penalty.

However, part of this can be offset against payments made to the Brazilian authorities.

Seatrium said in its filing that “up to a maximum of US$53 million of the payments made by the company to the Brazilian authorities… can be credited against the financial penalty”. It added that the final amount payable in Singapore is US$57 million, or about S$73 million.

The company added that it has already provided for the penalty in its financial statements, and there is no material impact on its earnings or net tangible asset per share for the financial year ending Dec 31, 2026.

Beyond the financial penalty, Seatrium has also committed under the agreement to reviewing and strengthening its ethics and compliance programme to reduce the risk of corruption.

The case is linked to Brazil’s wide-ranging anti-corruption probe known as Operation Car Wash, which began in 2014. The investigation uncovered a network of bribery involving major corporations and senior officials, particularly in connection with contracts from state oil company Petrobras.

Seatrium, previously known as Sembcorp Marine before a merger and rebranding, became implicated in the probe over allegations that improper payments were made to secure projects in Brazil.

The investigations spanned multiple jurisdictions, with both the Brazilian and Singapore authorities examining the company’s conduct.

In a filing to the Singapore Exchange on July 30, 2025, Seatrium said it has signed a leniency agreement with Brazil’s public prosecutor’s office and will sign an equivalent agreement with other authorities, under both of which it will pay a final settlement of around $168.4 million.

In Singapore, the Corrupt Practices Investigation Bureau investigated both Seatrium and individuals linked to the company. In March 2024, two former Seatrium executives, including the former Sembcorp Marine chief executive, were charged with corruption offences on March 2024 for paying bribes of more than $20 million to further the company’s business interests in Brazil.

The Monetary Authority of Singapore and the police’s Commercial Affairs Department also conducted a separate joint probe into potential breaches of securities laws. That investigation has concluded and Seatrium said in July 2025 that “no action will be taken against the company and/or its officers”.

The AGC said in July 2025 that if Seatrium fails to comply with the terms of the DPA, the public prosecutor may apply to the High Court to terminate the agreement and proceed with criminal charges.

Seatrium was represented at the High Court hearing by a Drew & Napier legal team led by Mr Adam Maniam.

Shares of Seatrium rose 1.7 per cent, or four cents, to $2.41 on April 24 before the announcement.

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.

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