Short jail term for former ST Marine president

JANUARY 6, 2017 — Singapore District Judge Kessler Soh Boon Leng yesterday imposed a jail sentence of 14 days on a former president of shipbuilder Singapore Technologies Marine (ST Marine), Chang Cheow Teck, for his part in a corruption case in which shipyard executives paid bribes to secure repair contracts and then falsely claimed entertainment expenses.

Chang is the sixth of seven former ST Marine senior executives to plead guilty in the case. Former CEO and president See Leong Teck received the heaviest sentence - 10 months' jail and a Singapore $100,000 fine.

According to the Straits Times, Chang's 14 day sentence was imposed for failing to use reasonable diligence in performing his duties between 2008 and 2010 and ignoring information that pointed to criminal wrongdoing.

He was charged last month under Singapore's Companies Act. The Straits Times says that he had previously faced three charges under the Prevention of Corruption Act, for allegedly conspiring with two subordinates to offer bribes of almost Singapore $274,000 in return for ship repair contracts. The charges were withdrawn.

ST Marine parent ST Engineering yesterday issued the following statement:

On 12 September 2011, Singapore Technologies Engineering Ltd (ST Engineering) announced that the Corrupt Practices Investigation Bureau (CPIB) was investigating certain transactions involving former and current employees of Singapore Technologies Marine Ltd (ST Marine). ST Marine has been extending its fullest cooperation to the CPIB in its investigation since 2011.

We also refer to our announcements on 11 December 2014, 30 December 2014, 10 June 2015, 1 July 2015, 13 January 2016, 30 August 2016, 27 September 2016 and 2 December 2016 in relation to the criminal prosecution of former employees of ST Marine.

We wish to announce that on 5 January 2017, Chang Cheow Teck (Chang), the former President of ST Marine from March 2008 to April 2010 and the former President of Singapore Technologies Aerospace Ltd from May 2010 to June 2014, pleaded guilty to ‎one (1) charge under section 157(1) of the Companies Act. Chang was sentenced to a Short Detention Order of 14 days.

ST Engineering is committed to maintaining high standards of corporate governance and recognises that fraud is detrimental to the reputation of the ST Engineering Group. ST Engineering does not condone fraud, including corruption and bribery, and is fully committed to proactively mitigating the risk of its occurrence.

ST Engineering will make timely further announcements, if necessary.

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