The Brazilian Federal Prosecutors’ Office has dropped charges against a former Sembcorp Marine employee and a former consultant to Sembmarine in Brazil that were brought as part of ongoing investigations related to the Operacao Lava Jato (Operation Car Wash) corruption scandal in Brazil.

A Brazilian court in June 2020 accepted a complaint of money laundering and corruption in relation to certain rig construction contracts made against Martin Cheah Kok Choon, a former employee of Sembmarine’s subsidiary in the country as part of the wider Car Wash graft probe.

The rig contracts were entered into by Sembmarine subsidiaries with Brazilian rig entity Sete Brasil in 2012. Cheah is the former president of Sembmarine subsidiary Estaleiro Jurong Aracruz, but his employment was terminated in June 2015.

The court in June 2020 also accepted a complaint of money laundering against Guilherme Esteves de Jesus (GDJ), a former consultant of the Singaporean offshore and marine contractor who earlier that year was sentenced to more than 19 years’ imprisonment in Brazil on related charges.

Seatrium, which came into being this year following the company’s acquisition of compatriot Keppel Offshore & Marine, on Tuesday said it understands that in relation to the charges filed by the Brazilian Ministerio Publico Federal (MPF) against Martin Cheah and GDJ in their personal capacities, the Brazilian Federal Lower Court on 20 December acquitted both men of all the charges.

Under Brazilian law, the MPF may appeal this decision. Seatrium stressed that the abovementioned charges filed against Martin Cheah and GDJ by the MPF were in their personal capacities and were not against Estaleiro Jurong Aracruz (EJA), the company’s Brazilian subsidiary.

“[However], the potential outcome of Operation Car Wash is still uncertain, and the company cannot predict how the abovementioned decision by the Brazilian Federal Lower Court will impact the current investigations or allegations relating to Operation Car Wash,” Seatrium said in a statement.

“The company also has no control over and cannot predict whether investigations by the Brazilian authorities will lead to new allegations or investigations.”

Seatrium added is continuing to provide its full cooperation to the Brazilian authorities.

“The company will continue to monitor developments in Brazil and other jurisdictions with respect to this matter and will make appropriate announcements in the event of any material developments. The company remains committed to the highest standards of compliance with the anti-corruption laws and does not condone and will not tolerate any improper business conduct.

Seatrium further reiterated it has as a strict compliance programme and continuously works to ensure that policies and procedures are in place to prevent any violation to any anti-corruption laws applicable to the company’s operations.

GDJ in early 2020 was convicted by the Federal Courts of Curitiba of corruption, money laundering and participation in a criminal organisation, and sentenced to 19 years and four months in prison. He was also fined by the court.

He was engaged as a consultant by Sembmarine’s subsidiaries in Brazil in connection with drilling unit construction contracts for subsidiaries of Sete Brasil.

The units, worth over US$4 billion combined, were to have been built at Sembmarine’s wholly owned EJA yard and delivered through to 2019.