Singapore shipbuilder Seatrium to pay $110m penalty in relation to corruption offences in Brazil

On Wednesday, July 30, the Singapore Public Prosecutor and local shipbuilder Seatrium entered into a deferred prosecution agreement (DPA) in respect of corruption offences that occurred in Brazil.

The Public Prosecutor will apply to the General Division of the High Court to approve the DPA. The DPA will come into force only when the High Court approves it after determining that it is in the interests of justice and that its terms are fair, reasonable and proportionate.

Under the terms of the DPA, Seatrium will be required to pay to the Public Prosecutor a financial penalty of US$110 million. In addition, the company will be required to review and make further improvements to its ethics and compliance programme to reduce the risk of a recurrence of any similar conduct.

If Seatrium subsequently fails to comply with the terms of the DPA as approved by the High Court, the Public Prosecutor may apply to the High Court to terminate the DPA. In the event the DPA is terminated, the Public Prosecutor may initiate criminal proceedings against the company in respect of the alleged offences.