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CPIB gives Keppel O&M 6-month extension to pay US$52.7 million under terms of conditional warning

Amala Balakrishner
Amala Balakrishner12/14/2021 06:53 PM GMT+08  • 2 min read
CPIB gives Keppel O&M 6-month extension to pay US$52.7 million under terms of conditional warning
The funds will be payable on June 22 2022, instead Dec 22.
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The Corrupt Practices Investigation Bureau (CPIB) has granted Keppel Offshore & Marine (Keppel O&M) a six-month extension to pay up the balance amount of US$52.8 million ($72.2 million).

With this, the funds will be payable on June 22 2022, instead Dec 22. The extension was granted as the company still has ongoing discussions with Brazilian authorities, Keppel Corp announced in a Dec 14 regulatory filing.

The latest move is on top of the 12-month extension that had been previously granted. The company had initially accepted a conditional warning of 3-years in 2017.

Keppel O&M’s CPIB payment follows a corruption scandal it was involved in between 2001 and 2014.

In this time, the company had made bribes of up to US$55 million to officials of Petrobras, a Brazilian state-run oil company, as well as other parties.

More recently in 2017, the company reached a global resolution with criminal authorities in the US, Brazil and Singapore.

See also: The time is now for continuous controls to prevent fraud

As part of this, it will have to pay up fines amounting to US$422.2 million, to be allocated between the US, Brazil and Singapore.

Keppel O&M had subsequently accepted a conditional warning from the CPIB. It had committed to paying US$52.7 million within 90 days from receiving that warning, and a further US$52.7 million within 3 years of that, less any penalties paid to Brazilian authorities during this period.

Shares of Keppel ended Tuesday flat at $5.18.

Cover image: file photo

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