Sembawang and Keppel reject Petrobras case reports

FEBRUARY 9, 2015 — Responding to stories in the Brazilian media, Singapore's Keppel Corporation and Sembcorp Marine have each rejected suggestions of involvement in the Operation Car Wash bribery scandal involving  state owned oil giant Petrobras.

Brazilian media stories have quoted assertions made by Pedro Barusco, a former executive at Petrobras's engineering and services division, as part of a plea deal, that Keppel FELS and Sembcorp Marine's Estaleiro Jurong Aracruz had made payments to Petrobras directors and officials of PT, Brazil's Workers' Party.

Singapore's Business Times reports Sembcorp Marine as saying: "Sembcorp Marine did not make any illegal payments and the group's policies and contracts prohibit bribery and unethical behavior."

And Keppel released the following statement:

We refute allegations made in media reports on Keppel FELS' involvement in the scandal surrounding Petrobras.

We would like to emphasize that Keppel Group has a Code of Conduct which prohibits, among others, bribery and corruption. Our employees are required to conduct themselves with integrity, in an ethical and proper manner, and in compliance with the applicable laws and regulations of the countries in which we operate, including anti-bribery laws.

We wish to point out that Zwi Skornicki is an employee of Eagle do Brasil, which is the agent of Keppel FELS in Brazil. Keppel FELS had conducted due diligence review of Eagle do Brasil and Zwi Skornicki. Further, the Agency Agreement with Eagle do Brasil categorically states that Eagle do Brasil and Zwi Skornicki 'shall not make, either directly or indirectly, any improper payment of money or anything of value to an Official in connection with the Contract.' In addition, Eagle do Brasil's services are not exclusive to Keppel FELS, and it is also an agent to other reputable multi-national companies.

We would also like to clarify that as part of initiatives to contribute to the communities around the world in which we operate, we make various contributions in Brazil, which include social welfare programs, community activities and political donations. All of our various contributions are made according to and within local laws and regulations, which are documented in the respective companies' records and audits.

[Zwi Skornicki is an individual mentioned in reports as representing Keppel in discussions about the alleged payments].

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