Sembcorp Marine’s Brazilian unit under scrutiny for alleged compliance irregularities

Singapore’s leading offshore and marine contractor, Sembcorp Marine, has again found itself under investigation in Brazil, where it was one of many embroiled in the so-called Operation Car Wash corruption probe.

This major corruption scandal, which resulted in scores of prosecutions in Brazil between 2014 and 2019, involved bribes being paid through intermediaries to secure contracts from state-controlled oil company Petrobras.

In a statement released on Friday, Sembmarine informed it had been made aware that Brazil’s Office of the Comptroller General (CGU) has published a notice in the Official Gazette to the effect that the CGU has started a preliminary administrative liability proceeding against its Brazilian subsidiary, Estaleiro Jurong Aracruz (EJA), to investigate alleged irregularities.

The Singapore parent added the notice does not provide any further facts and it is currently unable to assess the matter or impact, if any.

The statement added that EJA is co-operating fully with the authorities.

Sembmarine said it would continue to monitor developments in Brazil and “will make appropriate announcements in the event of any material developments”.