Connect with us

Singapore

Unknown if CPIB and AGC investigated links between KOM’s senior staff in Singapore and the bribery scheme committed in Brazil

Published

on

SINGAPORE — It is unknown if Corrupt Practices Investigation Bureau (CPIB) or Attorney-General’s Chambers (AGC) have investigated possible links to corruption case by the former senior management Keppel Offshore & Marine (KOM) with those who are based in Singapore.

CPIB issued a press statement on Thursday (12 Jan) about its stern warnings to six former senior executives of KOM after close to five years of its investigations into offences punishable under the Prevention of Corruption Act (PCA). The decision to stern warnings in lieu of charges being filed was made in consultation with AGC.

Back in 2018, Members of Parliament from the Workers’ Party (WP) filed Parliamentary Questions over the bribery scheme committed by KOM soon after CPIB and AGC served a conditional warning to KOM on 23 December 2017 for corruption offences punishable under Section 5(b)(i) of the PCA.

Among the many questions filed by WP MPs, MP for Aljunied GRC, Mr Pritam Singh and former MP for Hougang SMC, Mr Png Eng Huat asked when the Government expects the CPIB and AGC to formally complete investigations and to charge the individuals in question in view of the criminal findings made against KOM by the US DoJ.

Answering on behalf of the Minister for Law, K Shanmugam, Ms Indranee Rajah said that AGC needs evidence from foreign jurisdictions, it has sought assistance, and it is continuing to work with foreign authorities.

“AGC has asked for certain information from foreign authorities and some of its requests are still pending. AGC anticipates that further requests will have to be made as the investigations develop. Only after the investigations are completed can the AGC properly assess the case and decide on the appropriate response. This is something for the Public Prosecutor to decide, independently.”

She added, “How the Public Prosecutor decides will depend on several factors, including the culpability of each individual, the available evidence and what is appropriate in the circumstances.”

“For example, it will be important to determine, for each individual: what he knew, the extent of his involvement, his motivations, any personal benefit he obtained, the circumstances under which the relevant acts took place and any cooperation rendered.”

When Mr Png asked if Ms Indranee could clarify whether bonuses and salary increases given to senior staff past and present for meeting profit and revenue targets, were deemed as personal benefits in light of her answer, Ms Indranee said how the Public Prosecutor decides to prosecute will depend not just one factor but several.

“It includes the culpability of each individual, the available evidence, what is appropriate in the circumstances, the knowledge of each individual, the extent of his involvement, his motivations, any personal benefits he obtained, the circumstances under which relevant acts took place and any cooperation rendered.” said the Senior Minister of State.

While Ms Indranee noted in her response to the WP MPs that KOM was given maximum credit for its full cooperation with investigations, it bears noting that the plea agreement noted that KOM did not voluntarily disclose its conduct to the Fraud Section.

Although KOM notified the Fraud Section about publicly-reported allegations in Brazil prior to being contacted, as the authorities were already aware of the allegations from news reports, KOM was not eligible for voluntary disclosure credit. KOM had also publicly denied the allegation of its offence when news of it first surfaced.

No answer from Govt as to whether Board of Keppel will or have been investigated

In a supplementary question, Mr Singh had asked if the CPIB or the Public Prosecutor would look into whether the Board of KOM had oversight over the contract, such as whether the board members had knowledge or they were involved in that contract and the nature of their oversight and their culpability in the bribery scheme.

Ms Indranee said, “That is actually not so much a question for the Government. As to what is known and not known within the Keppel group, that is, really, a Keppel matter.”

“The only thing that I can do here which would be useful is to point Mr Singh to one of Keppel’s media releases, where Keppel said that the current boards of directors of Keppel Corporation and its unit KOM were not aware of the illegal payments made to secure projects in Brazil. That is Keppel’s position. As far as the Government is concerned, as I have explained, the Government is shareholder in Temasek, Temasek has a just over 20% shareholding in Keppel Corporation and the operations of Keppel are run by Keppel itself.”

Mr Png also asked if Ms Indranee could clarify whether the email trail leads back to senior staff in Singapore.

He said, “In the investigation of the scam, did the email trail lead back to Singapore, which means were senior staff in Singapore actually orchestrating or sanctioning all these from Singapore?”

Email exchanges between the six executives were detailed in the plea agreement signed by KOM where they conspired to bribe the Brazilian officials to win contracts for the company.

Ms Indranee responded by saying, “All these are matters which are subject to investigation. I do not have this information and it certainly would not be appropriate for me to enquire on this point. This is something which the Public Prosecutor and the CPIB are looking into. Let them deal with it. Let proper process, due process take place and in time, they will have to make the appropriate decision.”

In a separate supplementary question, Mr Png asked:

Would the Senior Minister of State not agree with me that the money earned by KOM through illegal and corrupt means are highly improper, and would the Senior Minister of State not agree that the dividends paid out by KOM who knew very well that its earnings were derived from bribing people and political party in power would also be deemed illegal, and would then need to be clawed back from members of senior staff, Board of Directors past and present, and the only way to ascertain the amount is through a forensic audit? Would the Government be ordering one?

Mr Png further asked if there would be a claw back illegal payouts and, thus, whether the Government would order a forensic audit since this is one of the biggest corruption scandals in corporate Singapore.

In response, Ms Indranee said, “As I have said, US$422 million is going to be paid out by the company. That is by the company. Insofar as the individuals are concerned, I have already pointed to the fact that in the DPA (deferred prosecution agreement), it has been disclosed that the company has gone against the individuals. So, basically, as far as any monies that should not have been obtained, were obtained, they have actually, effectively, been disgorged.”

No follow-up question was allowed as the Deputy Speaker, Christopher de Souza, ended the question time for the topic.

Given that CPIB has ended its investigation with the six executives with stern warnings issued, there will be no cross-examination of the suspects or revealing of investigation results in open court.

Therefore, the public will probably never know whether there were links between the senior staff in Singapore and the bribery scheme in Brazil committed over the span of over a decade or whether CPIB had even conducted an investigation upon these senior staff, to begin with.

What would be certain is that opposition MPs would file follow-up questions on the matter in the next Parliament sitting since investigations have concluded.

However, the worry that lingers is whether Ms Indranee — who is most likely answering the question — will say that the answer is not helpful or meaningful to be provided.

Offences the stern warnings were issued for

The offences relate to bribe payments to officials of Brazilian state-owned corporation Petróleo Brasileiro S.A. (Petrobras), pertaining to rigs-building contracts which Petrobras and/or its related companies had awarded to KOM.

According to the admissions and court documents, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate United States’ Foreign Corrupt Practices Act (FCPA) by paying approximately US$55 million in bribes to officials at the Brazilian state-owned oil company Petrobras, and to the then-governing political party in Brazil, in order to win 13 contracts with Petrobras and another Brazilian entity.

KOM, which has Temasek Holdings as a significant shareholder, effectuated and concealed the bribe payments by paying outsized commissions to an intermediary, under the guise of legitimate consulting agreements, who then made payments for the benefit of the Brazilian officials and the Brazilian political party.  KOM USA participated in this conspiracy from approximately 2007 to 2014.

KOM and its related entities, including KOM USA, are said to have earned profits totalling approximately US$159.9 million from the P-61 project.

KOM signed a plea agreement document with the United States Department of Justice (DoJ), admitting to the offence and paid a total fine of US$422 million to avoid further actions against the company.

Six former executives from KOM were arrested by CPIB in Feb 2018 following the DoJ’s investigation. The six were subsequently let off on bail, and the matter was then referred to the AGC to decide if charges were to be filed.

CPIB, in its latest press statement, said that the case is complex and transnational, involving multiple authorities and witnesses from several countries.

“There are evidentiary difficulties in cases of such nature. Many of the documents are located in different jurisdictions. In addition, key witnesses are located outside of Singapore and cannot be compelled to give evidence here. The decision whether to prosecute the six individuals for criminal offences has to take into consideration all relevant factors, such as the culpability of each individual, the available evidence and what is appropriate in the circumstances.”

“Having taken these into consideration, stern warnings were issued to the six individuals,” said CPIB.

Continue Reading
13 Comments
Subscribe
Notify of
13 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments

Singapore

Property tycoon Ong Beng Seng to be charged for abetting graft and obstructing justice

Property tycoon Ong Beng Seng is expected to face charges on 4 October, 2024, linked to abetting graft and obstructing justice. Ong’s case is connected to former transport minister S Iswaran, who was recently sentenced to one year in jail. Iswaran had obtained over S$400,000 worth of gifts from Ong.

Published

on

Property tycoon and hotelier Ong Beng Seng is set to face charges on Friday (4 October), according to Channel News Asia, citing Singapore court records.

Ong is expected to be charged with abetting one count each under Section 165 and Section 204A of Singapore’s Penal Code.

Section 165 pertains to a public servant obtaining valuables from individuals with whom they have an official relationship, while Section 204A deals with obstructing justice.

Ong’s charges stem from his involvement in a high-profile corruption case linked to former Singaporean transport minister S Iswaran.

The 80-year-old businessman was named in Iswaran’s initial graft charges earlier this year.

These charges alleged that Iswaran had corruptly received valuable gifts from Ong, including tickets to the 2022 Singapore Formula 1 Grand Prix, flights, and a hotel stay in Doha. These gifts were allegedly provided to advance Ong’s business interests, particularly in securing contracts with the Singapore Tourism Board for the Singapore GP and the ABBA Voyage virtual concert.

Although Iswaran no longer faces the original corruption charges, the prosecution amended them to lesser charges under Section 165. Iswaran pleaded guilty on 24 September, 2024, to four counts under this section, which covered over S$400,000 worth of gifts, including flight tickets, sports event access, and luxury items like whisky and wines.

Additionally, he faced one count of obstructing justice for repaying Ong for a Doha-Singapore flight shortly before the Corrupt Practices Investigation Bureau (CPIB) became involved.

On 3 October, Iswaran was sentenced to one year in jail by presiding judge Justice Vincent Hoong. The prosecution had sought a sentence of six to seven months for all charges, while the defence had asked for a significantly reduced sentence of no more than eight weeks.

Ong, a Malaysian national based in Singapore, was arrested by CPIB in July 2023 and released on bail shortly thereafter. Although no charges were initially filed against him, Ong’s involvement in the case intensified following Iswaran’s guilty plea. The Attorney-General’s Chambers (AGC) had earlier indicated that it would soon make a decision regarding Ong’s legal standing, which has now led to the current charges.

According to the statement of facts read during Iswaran’s conviction, Ong’s case came to light as part of a broader investigation into his associates, which revealed Iswaran’s use of Ong’s private jet for a flight from Singapore to Doha in December 2022. CPIB investigators uncovered the flight manifest and seized the document.

Upon learning that the flight records had been obtained, Ong contacted Iswaran, advising him to arrange for Singapore GP to bill him for the flight. Iswaran subsequently paid Singapore GP S$5,700 for the Doha-Singapore business class flight in May 2023, forming the basis of his obstruction of justice charge.

In addition to Ong, construction tycoon Lum Kok Seng was also linked to the additional charges filed against Iswaran in March this year.

Iswaran, who became transport minister in 2021, admitted to accepting valuable items worth approximately S$19,000 from Lum, including a Brompton bicycle, luxury wines, and golf equipment. However, no charges have been publicly announced against Lum.

This is not the first time Ong has found himself embroiled in controversy.

The 1990s saw questions over luxury condominium units sold by his company to Senior Minister Lee Kuan Yew and his son. The units, part of the Nassim Jade and Scotts 28 condominiums, were allegedly sold at special discounts.

This raised eyebrows due to Ong’s familial links with the Lees – his uncle, Lee Suan Yew, was a director at HPL. Although then Prime Minister Goh Chok Tong cleared the Lees of any wrongdoing in 1996, the incident has remained a notable mark on Ong’s business record.

Furthermore, an investigative report by the Organized Crime and Corruption Reporting Project in 2018 revealed allegations of corruption involving Ong in the leasing of two islands in the Maldives.

The report suggested that HPL had sidestepped Maldivian laws requiring public tender for island leases, instead conducting direct negotiations with Maldivian officials.

It was also alleged that a US$5 million payment made for the lease of Fohtheyo island had been siphoned off through a company associated with friends of the then Maldivian Vice President Ahmed Adeeb. Ong did not respond to these allegations.

Ong, who is the founder of the Singapore-based organization Hotel Properties and a shareholder in many businesses, has a net worth of S$1.7 billion.

Together with his wife Christina, they ranked No. 25 on Forbes’ Singapore’s 50 Richest list, which was published in August 2022.

Continue Reading

Comments

Dr Chee Soon Juan criticises Ho Ching’s vision for 8-10 million population

SDP chief Dr Chee Soon Juan criticised Ho Ching’s claim that Singapore could support a population of 8 to 10 million through effective city planning. In a video message, he expressed scepticism about the push for population growth, citing adverse effects like rising living costs and mental health issues. Dr Chee argued that smaller populations can thrive, referencing Scandinavian countries that excelled internationally and produced Nobel laureates.

Published

on

Dr Chee Soon Juan, Secretary-General of the Singapore Democratic Party (SDP), slammed Senior Minister Lee Hsien Loong’s spouse, Ho Ching, for her assertion that Singapore could accommodate 8 to 10 million people with proper city planning and land reclamation.

In a video message published on 1 October, Dr Chee expressed strong scepticism regarding the narrative of increasing the population, highlighting that the current surge past the 6 million mark had been largely driven by the influx of foreigners, which led to several adverse consequences.

He further highlighted that smaller populations were not inherently negative, drawing examples from some Scandinavian countries that had flourished on the international stage despite their smaller populations and had even produced Nobel Prize laureates.

Ho Ching expressed confidence that with proper city planning, Singapore could accommodate up to 8-10 million people

Last Friday (27 September), in a Facebook post, Madam Ho, who was also the former CEO of Temasek Holdings, highlighted the growing demand for caregivers as the population aged and the need for workers to sustain sectors like construction and engineering, particularly as the workforce shrank due to lower birth rates.

“As we have less children, we need more people from elsewhere to join us to keep this city functioning, from repairing train tracks through the night to serving patients in hospitals through the night. ”

Dr Chee Highlights Risks of Population Growth

In response, Dr Chee recalled his experience of being reprimanded by Minister for Foreign Affairs Dr Vivian Balakrishnan during the last General Election for raising concerns about the implications of a rapidly growing population.

He questioned why Madam Ho, who shared similar views, had not faced the same scrutiny.

In his video, Dr Chee articulated several concerns regarding the proposed increase in population, highlighting the potential negative impacts, including increased demand for food, housing, and transportation, which would result in a significant rise in living costs.

With a larger population, Dr Chee pointed out that more flats, roads, hospitals, and public transportation would need to be constructed, which would ultimately require higher taxes and fees to maintain the necessary infrastructure.

The SDP leader emphasized that an influx of residents would intensify competition for jobs, exerting downward pressure on wages and potentially leading to higher rates of unemployment and underemployment.

Dr Chee further expressed concern over the environmental degradation that would accompany population growth, citing the recent clearing of forests for housing and industrial developments, including Tengah and Kranji Forests.

Dr Chee questioned the ability of existing infrastructure to cope with a growing population, referencing the persistent issues with the MRT system, including breakdowns and safety hazards.

He highlighted the toll that congestion and overpopulation take on the mental health of Singaporeans, noting a rise in reported mental health challenges.

“All this while the ministers live in secluded and luxurious bunglows and villas, far from the madding crowd which we are subjected to every single day.”

“So, when Ho Ching says that we can accommodate up to 10 million people, I’d like to ask her, where and what type of house she lives in?”

Dr Chee Argues for Innovative Economic Solutions Over Traditional Urban Expansion

Regarding the ruling government’s persistent push to increase Singapore’s population to what he considered “unhealthy levels,” Dr Chee suggested that the PAP lacked viable alternatives for fostering economic growth.

He implied that the government resorted to traditional methods of expansion, such as construction and urban development.

He highlighted that the government is fixated on physically expanding the city—“digging, pouring concrete, and erecting structures”—to sustain GDP growth.

This approach, he argued, creates an illusion that Singapore remains a productive economic hub, despite potential downsides.

Dr Chee Advocates for the Value of Smaller Populations: Cites Political Freedom as Key to Innovation and Success

Dr Chee further contended that a smaller population did not necessarily hinder a nation’s success.

He cited several Scandinavian countries and Taiwan, emphasising their global brands and innovations despite their relatively small populations.

Dr Chee connected the success of these nations to their political freedoms, arguing that the ability to think and express oneself freely fostered innovation and societal progress.

He contrasted this with Singapore, where he claimed that the government controlled media and stifled freedom of expression.

He criticised the ruling People’s Action Party (PAP) for its centralised control and for limiting the potential of Singaporeans. Dr Chee used the metaphor of a “grotesque monkey” clinging to the nation, suggesting that the PAP hindered progress and growth.

Dr Chee emphasised that the quality of a population—its talent, energy, and potential—was far more important than its size.

He suggested that Singapore possessed the necessary attributes to succeed on a global scale but was held back by the current political landscape.

He urged Singaporeans to engage in critical thinking rather than passively accepting government narratives.

Dr Chee advocated for a more mature and sophisticated approach to governance and civic engagement, encouraging citizens to take an active role in shaping their society.

Continue Reading

Trending