SINGAPORE (Dec 23): Keppel Corporation says Keppel Offshore and Marine (Keppel O&M) has reached a global resolution with criminal authorities in the United States, Brazil and Singapore in relation to corrupt payments made by Keppel O&M's former agent in Brazil, Zwi Skornicki.

See: Keppel Corp’s internal investigations uncovers ‘suspicious’ transactions

As part of the global resolution, Keppel O&M will pay fines totalling US$422 million ($570 million) to the three jurisdictions.

Keppel O&M has also accepted a conditional warning from the Corrupt Practices Investigation Bureau (CPIB) in Singapore, and entered into a deferred prosecution agreement with the US Department of Justice (DOJ), while Keppel FELS Brasil, a wholly-owned subsidiary of KOM, has reached a leniency agreement with the public prosecutor's office in Brazil or MPF.

In addition, Keppel O&M USA, also a wholly owned subsidiary of Keppel O&M, has agreed to plead guilty pursuant to a plea agreement with the DOJ.

The agreements relate to corrupt payments made by Skornicki in relation to several Keppel O&M projects in Brazil, which were made with knowledge or approval of former Keppel O&M executives.

Court documents showed five Singaporeans were among the executives involved.

Keppel says disciplinary action has been taken, including separation and financial penalties.

KOM's relationship with Skornicki was terminated in 2016.

Keppel says the authorities recognised the group's cooperation in the investigations and its extensive remedial measures, which involved significant enhancements to compliance and internal controls systems across the group, and disciplinary action against individuals involved in the misconduct.

Keppel says it does not expect any negative impact on its ability to bid for contracts in the US and Brazil.

Shares in Keppel closed 2 cents lower at $7.47 on Friday.