In what may be Singapore’s largest corruption-related settlement to date, offshore and marine engineering giant Seatrium has agreed to pay a huge, multi-million dollar settlement to resolve bribery allegations stemming from Brazil’s sweeping Operation Car Wash investigation. The deal involves $110m payable to Singapore under a deferred prosecution agreement (DPA) and a further $131m to Brazilian authorities under a leniency agreement. This settlement highlights both the enduring legacy of one of the world’s biggest corruption scandals and the very real risks companies face when fraud and corruption is not treated seriously.

The scandal that shook the globe

To understand the gravity of this development, it’s important to revisit Operation Car Wash or Lava Jato. What began in 2014 as a modest investigation into money laundering at a car wash in Brazil quickly unraveled into a multi-billion-dollar corruption network involving Petrobras, Brazil’s state oil company. Contractors, executives and politicians across Latin America and beyond were implicated in systemic bribery schemes designed to win public contracts and enrich insiders.

The fallout was staggering: Hundreds of arrests, high-profile resignations and criminal convictions. It led to corporate reforms, political upheaval and an enduring spotlight on cross-border corruption. Though Brazil declared the task force officially closed in 2021, the global consequences, including this month’s Seatrium resolution, prove the legacy of Operation Car Wash is far from over.

Seatrium’s role and resolution

Seatrium, formerly Sembcorp Marine, was swept into the investigation due to its historical involvement in alleged bribery to secure rig-building contracts in Brazil. The company has now agreed to a global settlement that involves:

• $110m to the Singapore authorities under a DPA, which is essentially a legal mechanism that allows a company to avoid prosecution if it meets strict conditions.

• $131m to Brazilian authorities under two leniency agreements signed with the Public Prosecutor’s Office and the Attorney General’s Office.

Singapore’s Attorney-General’s Chambers and Monetary Authority of Singapore, in concluding their investigations, stated that no action will be taken against Seatrium or its officers, a decision that reflects both the company’s cooperation and its commitment to compliance reforms.

Global enforcement is the new normal

This case underscores the reality that anti-bribery enforcement has gone global. Regulatory bodies from multiple jurisdictions are increasingly working together and they expect companies to respond with equal agility and transparency. If a company operates internationally, especially with a U.S. nexus or listings, it’s no longer protected by geography. Enforcement regimes like the U.S. Foreign Corrupt Practices Act (FCPA) can have reach and teeth far beyond American borders.

From controversial to common: DPAs

DPAs, once considered novel or even controversial in jurisdictions like Singapore, have become mainstream tools for enforcement. These agreements incentivize corporate cooperation and compliance enhancements while holding companies accountable. Seatrium’s DPA not only avoids criminal prosecution but also compels the company to review and improve its ethics and compliance programme or face potential legal consequences if it falls short.

The high cost of corruption

While Seatrium has reassured investors there will be no material impact on net earnings this financial year, the costs of this corruption case are broader than the balance sheet:

• A total of $241m in penalties

• Years of regulatory scrutiny

• Damaged corporate reputation

• Operational disruption

Seatrium’s share price saw a modest recovery following the announcement and analysts remain optimistic about the company’s long-term prospects. Still, this episode is a stark reminder of just how expensive and disruptive corporate misconduct can be, even when the formal investigations are resolved without individual prosecutions.

How you can prevent corruption in your company 

It’s all too easy for companies, especially those operating in high-risk jurisdictions or complex sectors, to become unknowing participants in fraud or corruption. A single agent, a local partner or a poorly monitored subsidiary can expose a global operation to massive risk.

It is possible to avoid getting caught up in corruption. Companies must:

1. Build a culture of integrity. Ethics can’t live only in the compliance department. Leadership must actively promote and embody a zero-tolerance approach to fraud, bribery and conflicts of interest.

2. Invest in strong compliance infrastructure. Regular risk assessments, due diligence on third parties, whistleblower protection and real-time auditing tools are essential.

3. Be prepared for cross-border investigations. Multinational operations require multi-jurisdictional compliance readiness, particularly with respect to data management, recordkeeping and internal investigations.

4. Train and empower employees. Everyone from executives to procurement officers needs regular, relevant training on anti-bribery policies, local laws and red flags.

5. React quickly when issues arise. Self-reporting, full cooperation with authorities and proactive remediation are no longer best practices. They are minimum expectations.

A wake-up call?

The Seatrium settlement is not just another headline, it’s a warning. Even years after the original misconduct, the fallout from corruption remains and the web of liability can span continents. Companies that once operated under the radar are now subject to intense global scrutiny and enforcement tools like DPAs ensure that even without a courtroom trial, justice and reform can be achieved.

In today’s interconnected world, compliance isn’t optional. It’s a strategic imperative. Seatrium’s resolution marks a turning point for Singapore’s legal landscape and a clear signal to companies everywhere: The cost of inaction is far greater than the cost of doing the right thing.

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