08/02/2023

"Stern warnings for bribery-related offences" Vs "Jailed for $1 bribes"


Indranee Rajah on why Keppel ex-employees were not prosecuted in Petrobras corruption case
Ms Indranee Rajah speaking in Parliament on Mon 6 Feb 2023

Six former senior management staff members of Keppel Offshore & Marine were not prosecuted over a multi-million dollar bribery case because there was insufficient evidence to establish their guilt beyond reasonable doubt, said Minister in the Prime Minister’s Office Indranee Rajah in Parliament on Monday (Feb 6). Instead, they received stern warnings.

Speaking in Parliament, Ms Indranee outlined the difficulties Singapore authorities faced in gathering evidence and getting potential key overseas witnesses to testify in Singapore.


Indranee Rajah crosses swords with MPs over decision not to prosecute ex-senior executives
Minister in the Prime Minister's Office Indranee Rajah speaking in Parliament on Feb 6, 2023

Robust exchanges unfolded in Parliament in Monday (Feb 6) over a decision not to prosecute six ex-senior management personnel at a subsidiary of conglomerate Keppel Corporation who were caught up in a major bribery scandal.

One key question under the microscope involved what directors on earlier boards of Keppel and its subsidiary knew, or should have known, when huge bribes were paid to a Brazilian firm over many years. Keppel as a corporate entity has already admitted paying the bribes.

The key figures involved in Monday's exchanges were Ms Indranee Rajah, Minister in the Prime Minister's Office, and three Members of Parliament (MPs), one of them from the ruling People's Action Party (PAP) and two from the opposition Workers' Party (WP). In responding to questions from more than 10 MPs, Ms Indranee reiterated an earlier statement from the Corrupt Practices Investigation Bureau (CPIB) in consultation with the Attorney-General's Chambers (AGC).


Pritam Singh queries Indranee Rajah on knowledge of Keppel's board at time of corruption

The Workers' Party (WP) Secretary-General, Pritam Singh, asked in Parliament on Feb. 6 if the investigations by both the police and the Corrupt Practices Investigation Bureau (CPIB) had determined the constructive knowledge of Keppel's board at the time corrupt payments had been made.

Indranee Rajah, Minister in the Prime Minister's Office, had earlier made a statement addressing questions about the basis of issuing a stern warning to the six people allegedly involved in the Keppel Offshore and Marine (KOM) corruption scandal, the process behind the decision to do so, and the significance of the decision.

This prompted Indranee to ask the Leader of the Opposition if he was indicating or suggesting that constructive knowledge is an offence under the Prevention of Corruption Act (PCA). Singh clarified his query pertained to a reply Indranee had given in 2018 in which she cited a Keppel press release that said the current board of Keppel is unaware of the corrupt payments.


Senior counsel questions handling of Keppel bribery case as other lawyers weigh in; Indranee to address matter in Parliament

A senior counsel has questioned the decision by Singapore authorities not to prosecute six former senior management staff members of Keppel Offshore & Marine for a US$55 million (S$73 million) bribery case involving Brazilian oil giant Petrobras.

However, other lawyers who weighed in on the subject, while acknowledging the lack of clarity and how it might appear questionable to the public, suggested that the Attorney-General's Chambers (AGC) might have reason not to divulge certain legally protected information. After the commentary by Senior Counsel Harpreet Singh Nehal was published on Wednesday (Feb 1), Minister in the Prime Minister's Office Indranee Rajah addressed "assertions" about the case in a Facebook post on Thursday and said the assertions were made on an "inadequate understanding of the facts". She said she would explain the facts at the next Parliament sitting on Feb 6, and the public "can decide for themselves".

The commentary was initially published by the Singapore Law Watch, a local news service for the law community. It was no longer available online as of Thursday afternoon. Responding to CNA queries, the Singapore Academy of Law, which manages the news service, said the article "was not within the editorial parameters of Singapore Law Watch which are focused on commentaries on the latest Singapore Supreme Court judgments and articles on recent legislative changes”.


'Slap on the wrist': Mixed views from lawyers on CPIB stern warnings to 6 ex-senior staff of Keppel unit over S$73m bribery case

The Corrupt Practices Investigation Bureau (CPIB) issued stern warnings on Wednesday (Jan 11) to six ex-senior management staff of Keppel Offshore and Marine (KOM), for their alleged bribery of officials of Brazilian state-owned oil giant Petrobras that emerged in 2017.

The case involved explosive revelations relating to those caught up in the bribery scandal including KOM, Singapore's biggest oil rig builder and a major player in the global energy and marine sector. KOM is part of Keppel Corporation, one of the largest conglomerates here. KOM paid out an eye-watering US$422 million (S$561 million) in fines as part of an international settlement of the case, led by the United States. KOM also received a conditional warning in lieu of prosecution. The affair has in the past been dubbed a "black eye to Singapore Inc" given the country's clean reputation on corruption.

In a statement on Thursday, CPIB said that it had completed its consultation with the Attorney-General’s Chambers, based on investigations into the six individuals who had allegedly conspired with each other to give bribe payments totalling about US$55 million to foreign consultants involved in KOM’s business interests in Brazil. The bribes, paid between 2001 and 2014, were intended to help secure contracts with the Brazilian firm.


Singapore defends lack of charges in US$55mil bribery case

Singapore’s government defended a decision not to prosecute key figures at Keppel Offshore & Marine Ltd. over a major bribery case involving payments to Brazil’s state-run energy company. "Simply put, there is a lack of sufficient evidence, either documentary or through witnesses, which would establish any criminal charge beyond a reasonable doubt against a specific individual,” Indranee Rajah, Minister in the Prime Minister’s Office, told the city-state’s parliament on Monday.

Rajah’s comments came in response to parliamentary questions over Singapore’s decision not to press charges against six former senior managers of Keppel O&M for their alleged involvement in a bribery scandal that cost the company US$422 million in total fines. Such a case is rare in Singapore, ranked fifth least corrupt on Transparency International’s latest annual index. Keppel O&M agreed in 2017 to pay $422 million to end a US probe into illegal payments to officials of Brazil’s state-controlled oil company Petroleo Brasileiro SA. Keppel’s US unit pleaded guilty while the Singapore-based parent entered into a deferred-prosecution agreement with the US government.

Sembcorp Marine, in which state investment firm Temasek Holdings Pte is the biggest shareholder, agreed to acquire Keppel O&M last year. Last month, Singapore’s Corrupt Practices Investigation Bureau issued "stern warnings” to the six former senior managers of Keppel O&M in lieu of prosecution for offenses punishable under the corruption law. The unnamed individuals allegedly had conspired to pay a total of US$55 million in bribes to foreign consultants involved in the company’s business interests in Brazil, according to the CPIB statement in January. The anti-graft agency cited the cross-jurisdiction nature and complexity of the case, along with difficulties in obtaining evidence for prosecution, for not taking further action.


Issuing stern warnings to former Keppel O&M staff a balanced solution: Indranee
A stern warning is given when one cannot give a complete clean bill of health, but also does not have enough to clear the evidentiary hurdle, said Minister Indranee Rajah. PHOTO: MCI

Issuing stern warnings to the six former senior management staff from Keppel Offshore & Marine (Keppel O&M) was an “in-between” solution but the right thing to do, said Minister in the Prime Minister’s Office Indranee Rajah.

She was responding to a follow-up question from Workers’ Party MP Leon Perera (Aljunied GRC), who asked on what basis stern warnings were issued by the Corrupt Practices Investigation Bureau (CPIB), given the insufficient evidence. The six staff were investigated over alleged bribery payments linked to Keppel O&M’s business interests in Brazil. Ms Indranee said that a stern warning is given when one cannot give a complete clean bill of health, but at the same time does not have enough to clear the evidentiary hurdle.

“So you see, what are the choices: Do nothing at all, or bring charges when you know you don’t have sufficient evidence? Or is there something in-between? The stern warning device is the something in-between.” She added that closing the investigation without doing anything would not have been the correct thing to do. “The stern warning device... it’s an expression of AGC’s position that we don’t think that you’re completely off the hook.”


Singapore Could Review Keppel O&M Bribery Case With New Evidence

Deputy Prime Minister Heng Swee Keat said that Singapore could review a decision not to prosecute key figures at Keppel Offshore & Marine Ltd. over a major bribery case involving payments to Brazil’s state-run energy company if there’s new evidence that warrants doing so.

The city-state on Monday defended a decision not to press charges against six former senior managers of Keppel O&M for their alleged involvement in a bribery scandal that cost the company $422 million in total fines. Indranee Rajah, Minister in the Prime Minister’s Office, told the city-state’s parliament on Monday there was not enough sufficient evidence to establish any criminal charge beyond a reasonable doubt against a specific individual. “But if new evidence comes to light, this decision can be reviewed,” Heng posted to Facebook Tuesday. “Corruption has no place in our society and our economy. This has not and will not change.”

“Trust in our rule of law and transparency has enabled Singapore to thrive as a vibrant economy,” he continued. “Many are understandably concerned that the Government had not mounted charges against former Keppel employees involved in the corruption scandal.” Such cases are rare in Singapore, ranked fifth least corrupt on Transparency International’s latest annual index. Keppel O&M agreed in 2017 to pay $422 million to end a U.S. probe into illegal payments to officials of Brazil’s state-controlled oil company Petroleo Brasileiro SA. Keppel’s US unit pleaded guilty while the Singapore-based parent entered into a deferred-prosecution agreement with the US government.


Stern warnings to Keppel O&M ex-staff signal they are not completely off the hook: Parliament
Minister Indranee Rajah says the AGC has to be “quite careful” in discharging its responsibility and making public statements with respect to its decisions because “further down along the line, further action may have to be taken”. PHOTO: MCI

THE stern warnings issued by Singapore authorities to six former senior management staff of Keppel Offshore & Marine (Keppel O&M) for bribery offences related to Brazil’s Petrobras contracts signal that they are not completely off the hook, even if there is a lack of evidence for prosecution, said Minister in the Prime Minister’s Office Indranee Rajah in Parliament on Monday (Feb 6).

“It signals an expression of the AGC’s (Attorney-General’s Chambers) position that they don’t have enough to charge you (ex-Keppel O&M staff) but we are putting down a marker that there is something not entirely right,” said Indranee. She said this in response to a supplementary question by Workers’ Party Member of Parliament (MP) Leon Perera (Aljunied GRC) on what was the basis for the stern warning issued by Singapore’s Corrupt Practices Investigation Bureau (CPIB) in consultation with the AGC given that there was insufficient evidence to prosecute the six individuals. “A stern warning is given when... you can’t say that you can give a complete bill of health but at the same time you don’t have enough to clear the evidentiary hurdle. (So), the choices are to do nothing at all or bring charges... or is there something in between.

“The stern warning device is the something-in-between... available to the AGC. It would be a very different thing for example if the AGC had just thrown up its hands and said ‘Okay, close investigations... don’t do anything’. That would not have been the correct thing to do,” she elaborated. Indranee fielded 17 questions filed by MPs for Monday’s Parliament session as well as took on supplementary questions in relation to CPIB’s decision to issue a stern warning to the six individuals. This followed the CPIB’s statement issued on Jan 12 that it has completed its investigations into the six individuals who had allegedly conspired with one another to pay bribes of some US$55 million to foreign consultants. These consultants then used these monies to pay bribes to officials of Brazilian state-owned Petrobras in relation to rig-building contracts.


Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption at Keppel
Mr Tong Chong Heong, one of the six former senior Keppel executives issued with a stern warning from the Corrupt Practices Investigation Bureau

The Corrupt Practices Investigation Bureau (CPIB), in a press statement on 12 January, about the stern warnings — in lieu of charges — issued to six former senior executives of the management staff of Keppel Offshore & Marine Limited (KOM) after close to five years of its investigations after consultation with the Attorney’s General Chambers (AGC),

CPIB was reported to have arrested the six former executives from KOM in Feb 2018 following the conclusion of investigations by the United States’ Department of Justice (DOJ). 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. The stern warnings issued to the six were over offences punishable under the Prevention of Corruption Act (PCA) for 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. As documented in the plea agreement signed by KOM in December 2017, beginning by at least 2001 and continuing until at least 2014, KOM conspired to violate US’ 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 and its related entities, including KOM USA, are said to have earned profits totalling approximately US$159.9 million from the contracts.

And although the six were also not named by CPIB and DoJ in its report, a report by Bloomberg in 2016 on the court proceedings at a Brazilian court over the bribery case shed light on the matter. The Consultant who assisted KOM in bribing the Brazilian officials was identified as Zwi Skornicki. He reportedly told the court that five Keppel executives were involved. They are:
  • Chow Yew Yuen, then-current Keppel Offshore & Marine CEO
  • Tong Chong Heong, former senior executive at Keppel Corp
  • Tay Kim Hock, former CEO of Keppel Fels Brasil
  • Kwok Kai Choong, then-current CEO at Keppel Fels Brasil
  • Choo Chiau Beng, a former Keppel Corp CEO and former non-resident ambassador to Brazil

6 ex-Keppel O&M employees given stern warnings over bribes amounting to $73 million
The employees allegedly conspired to give bribes to foreign consultants involved in Keppel O&M’s business interests in Brazil. PHOTO: KEPPEL CORP

The Corrupt Practices Investigation Bureau (CPIB) issued stern warnings on Wednesday to six former senior management staff of Keppel Offshore & Marine (O&M) over bribe payments. CPIB conducted investigations into the six, who allegedly conspired with one another to give bribes amounting to about US$55 million (S$73 million) to foreign consultants involved in Keppel O&M’s business interests in Brazil.

The money was then used to pay bribes to officials of Brazilian state-owned company Petrobras, pertaining to rig-building contracts that it or its related firms had awarded to Keppel O&M. The offences fall under the Prevention of Corruption Act. Under a global resolution led by the US Department of Justice and involving Brazil and Singapore, a conditional warning in lieu of prosecution was issued to Keppel O&M for offences punishable under the Act. Keppel O&M has paid a total fine of US$422 million and fulfilled all obligations under the conditional warning.

“This case is complex and transnational, involving multiple authorities and witnesses from several countries... 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,” said CPIB in a statement on Thursday. “The decision on 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.”


Six former Keppel O&M staff issued stern warnings for bribery-related offences
Six former senior management staff of Keppel Corporation’s Offshore & Marine unit are being issued stern warnings for bribery-related offences. PHOTO: BT FILE

THE Corrupt Practices Investigation Bureau (CPIB) has issued stern warnings to six individuals who were previously senior management staff of Keppel Corporation’s Offshore & Marine (O&M) unit, on Thursday (Jan 12).

The warnings were issued to the six individuals in lieu of prosecution for offences punishable under the Prevention of Corruption Act (PCA). The six individuals were not named. The offences relate to bribe payments to officials of Brazilian state-owned corporation Petróleo Brasileiro (Petrobras), pertaining to rigs building contracts which Petrobras and/or its related companies had awarded to Keppel O&M. CPIB conducted investigations into the six individuals who had allegedly conspired with each other to give bribe payments totalling about US$55 million to foreign consultants involved in Keppel O&M’s business interests in Brazil. These consultants then used these monies to pay bribes to Petrobras officials.

This case is complex and transnational, involving multiple authorities and witnesses from several countries, CPIB said. It added that 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 on 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. CPIB has since issued stern warnings to the six individuals.


Inside the Keppel Corporation Corruption Scandal
Former AG criticises Govt for not prosecuting Keppel management in 1995 bribery case

Former Attorney-General Walter Woon wrote an article, which was published in ST today ('Punishing corporate corruption', 30 Apr), criticising the government for not prosecuting the Keppel management involved in the 1995 bribery case.

In June 1995, Keppel was cited in a UK probe into a bribery scandal involving an Exxon subsidiary's employee. The person, Cornelius Van der Horst, who handled ship repair contracts at Exxon's subsidiary, was charged with accepting bribes from Keppel Shipyard. As a result, on Singapore's end, then Home Affairs Minister Wong Kan Seng announced that CPIB had also initiated investigation into the case. The case was finally brought up in Singapore court in Dec 1997.

In court, it was revealed that Keppel's marketing manager Chan Lim Hong and its Senior General Manager, Kung Yew Hock, had entertained Van der Horst at Club Kabuki in Orchard Road. Kung reportedly told Van der Horst, "If that side (Keppel's competitor) takes care of you, we can also take care of you."


Forklift operator jailed for collecting bribes of between 10 cents and $1 from drivers
Chen Ziliang ran a scheme from Feb 1, 2016, to March 12 2018, earning up to $10 in bribes daily. PHOTO: CORRUPT PRACTICES INVESTIGATION BUREAU

To jump the queue so that they can promptly collect or return their containers, truck drivers had to pay Chen Ziliang bribes of between 10 cents and $1.

On Thursday (Jan 10), the container yard forklift operator was jailed for two months and ordered to pay a penalty of $4,870.50, after pleading guilty to a corruption charge. Chen ran the scheme from Feb 1, 2016, to March 12 last year, earning up to $10 in bribes daily. Those who did not bribe the Chinese national had to endure a longer waiting time, Deputy Public Prosecutor Ang Siok Chen told the court.

In a statement on Thursday, the CPIB said: "Singapore adopts a strict zero-tolerance approach towards corruption. It is a serious offence to obtain bribes, or attempt to obtain bribes from another individual or entity." Offenders convicted of corruption can be jailed for up to five years and fined up to $100,000.


Forklift operator jailed 2 months for taking mostly $1 bribes

A forklift operator at a container yard allowed truck drivers to beat a queue to load or unload their containers in return for small sums of 10 cents to $1, a court heard.

For two years, Chen Ziliang collected about $7 to $10 daily from the corrupt practice. By the time anti-graft officers caught him red-handed, the 47-year-old Chinese national had accepted $4,872.50 in bribes.

At the State Courts on Thursday (10 January), Chen was jailed for two months and ordered to pay a penalty of $4,870.50. If he fails to pay the amount, he would have to serve another two weeks in jail.


Jailed Over One Dollar Bribes

There is no limit on the bribe amount that the Corrupt Practices Investigation Bureau (CPIB) can and will investigate, even if the amount is as small as one dollar. A bribe of one dollar is still an offence.

On 10 January 2019, a forklift operator employed by Cogent Container Depot Pte Ltd (“Cogent”) was jailed for corruption. Chen Ziliang (陈 子 良), a 47-year-old male, was sentenced to 2 months’ imprisonment and ordered to pay a penalty of $4,870.50, for embarking on a course of conduct to obtain bribes from truck drivers at Cogent.

Chen was responsible for operating forklifts for the loading or unloading of containers for truck drivers. Investigations by the CPIB revealed that in October 2017, a truck driver had confronted Chen after having to wait for a considerably long time in the queue. Chen then informed the driver that it was the norm for truck drivers to pay one dollar, or risk having to wait longer in the queue or be given containers that were in a bad condition. In March 2018, when Chen was arrested by the CPIB, coins amounting to $2 were found on the mudguard of the forklift operated by Chen.


Full Coverage:
Singapore Could Review Keppel O&M Bribery Case With New Evidence
Insufficient evidence to prosecute those involved in Keppel O&M corruption case: Indranee
Senior counsel questions handling of Keppel bribery case as other lawyers weigh in
Keppel condones and retains senior executives involved in bribery to get contracts
Issuing stern warnings to former Keppel O&M staff a balanced solution: Indranee
Stern warnings to Keppel O&M ex-staff signal they are not completely off the hook: Parliament
Lack of sufficient evidence reason behind ‘stern warnings’ for former O&M employees: Indranee
Pritam Singh queries Indranee Rajah on knowledge of Keppel's board at time of corruption
Keppel corruption case: Lack of sufficient evidence to prosecute 6 ex-employees:Indranee
The uncomfortable past appointments by PAP members for CPIB in Keppel's corruption scandal
Indranee Rajah crosses swords with MPs over decision not to prosecute ex-senior executives
Singapore Defends Lack of Charges in $55 Million Bribery Case
Will Singapore government throw former Keppel O&M officials under the bus?
Stern warnings was an "in-between" solution as CPIB lacks sufficient evidence
Minister to tell MPs why ex-Keppel staff were not prosecuted over Brazil bribes
Inadequate information, inadequate understanding
Singapore Defends Lack of Charges in $55 Million Bribery Case
Singapore's Government Defends a Decision Not to Prosecute Key Figures at Keppel
Minister Rajah to clarify stern warning for Keppel O&M on next Parliament meeting
Foreign witness of Keppel O&M scandal unwilling to give evidence in S'pore: Indranee Rajah
Witness' unwillingness to testify, an individual's denial of wrongdoing hampered prosecution
Senior Counsel Harpreet Singh:Difficult to appreciate CPIB's decision of not prosecuting 6 former
'Assertions' of CPIB's handling of KOM corruption inadequate understanding of facts:Indranee
Indranee to explain facts of Keppel O&M corruption probe in Parliament on Monday
Not the first time, Tong Chong Heong, former KOM senior executive, was involved in corruption
Singapore Law Watch removes commentary on CPIB's decision to not prosecute former Keppel
Assertions about six ex-Keppel O&M staff show 'inadequate understanding': Indranee

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