Seatrium Avoids Prosecution, Agrees to Pay US$110M Penalty Under Deferred Prosecution Agreement

Gate News message, April 25 — Singapore-listed Seatrium has secured approval from Singapore’s High Court for a deferred prosecution agreement (DPA) with the Attorney-General’s Chambers, avoiding criminal prosecution in connection with a long-running corruption probe in Brazil. Under the agreement, the company will pay a financial penalty of US$110 million, with up to US$53 million credited against payments already made to Brazilian authorities, bringing the final Singapore payment to US$57 million (approximately S$73 million).

Beyond the financial penalty, Seatrium has committed to reviewing and strengthening its ethics and compliance programme to reduce corruption risks. The company stated that the penalty has already been provided for in its financial statements with no material impact on earnings or net tangible asset per share for the financial year ending December 31, 2026.

The case stems from Brazil’s Operation Car Wash, a wide-ranging anti-corruption investigation that began in 2014 and 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 over allegations that improper payments were made to secure projects in Brazil. In March 2024, two former Seatrium executives, including the ex-CEO of Sembcorp Marine, were charged with corruption offences for paying bribes exceeding US$20 million to further the company’s business interests in Brazil.

Separate investigations by Singapore’s Monetary Authority and the police’s Commercial Affairs Department into potential securities law breaches have concluded, with authorities determining no action will be taken against the company or its officers. The DPA, originally signed in July 2025, requires High Court approval before taking effect; should Seatrium fail to comply with its terms, prosecutors may apply to terminate the agreement and proceed with criminal charges.