Keppel FELS employees stand amongst jackup rigs at their shipyard in Singapore. (File photo: Reuters/Edgar Su)
SINGAPORE: The Government’s intention is to move as “expeditiously as possible” on investigations relating to Keppel Offshore & Marine’s (Keppel O&M) graft scandal and the Attorney-General's Chambers (AGC) has sought assistance for evidence from authorities in other jurisdictions, said Senior Minister of State for Finance and Law Indranee Rajah in Parliament on Monday (Jan 8).
She was responding to questions from Members of Parliament (MPs) about the international bribery scandal that has engulfed the rig-building unit of conglomerate Keppel Corp.
Court documents released by the US Justice Department on Dec 23 said that Keppel O&M "knowingly and wilfully conspired” to pay bribes to Brazilian officials and politicians in exchange for business deals.
The illicit payments, amounting to US$55 million made between 2001 to 2014, helped the company to secure 13 contracts from Brazilian oil firms Petrobas and Sete Brasil.
Ms Indranee noted that given that the case involved several Brazil-based projects dating back to 2001, many of the evidence, including documents and witnesses, are located in different jurisdictions, such as Brazil and the United States.
For investigations in Singapore, the AGC will need these evidences and it has sought assistance, she said.
“AGC has asked for certain information from them and some of its requests are still pending. AGC anticipates that further requests will have to be made as the investigations develop.”
The AGC is also working for a request for mutual legal assistance, said Ms Indranee. This is a procedure whereby one country formally seeks assistance from another to obtain or secure evidence for use in its own investigations and proceedings.
This request will be reviewed and administered by the courts of the foreign countries. How quickly and to what extent will these requests will be processed will depend on the jurisdiction where the request is made, said Ms Indranee.
“Obviously, the intention is to move as expeditiously as possible however as I’ve explained, not all aspects of the investigation are within our control,” she said. “This is not a case when CPIB and AGC are acting alone on a domestic case. This is an international case where many different investigating agencies are involved."
“Only after the investigations are completed, can the AGC properly assess the case and decide on the appropriate response," she added.
Investigations into individuals implicated in the graft scandal are ongoing, said Ms Indranee. "Singapore investigations are conducted at the same time frame as the US and Brazilian investigations, and go back to 2001 when the corrupt acts first took place."
While there is no agreement within the Deferred Prosecution Agreement (DPA) that prevents the disclosure of individuals under investigation, it is "standard practice" in Singapore and many other jurisdictions to not identify individuals under investigation.
“Individuals will be identified if and when charges are preferred in court,” she said.
GLOBAL RESOLUTION ACHIEVES MORE THAN PCA: INDRANEE
Ms Indranee said that authorities in the US, Singapore and Brazil worked with each other to reach an agreed approach on the case of Keppel O&M.
“There was no three-nation plea bargain agreement,” she said in response to a parliamentary question from Aljunied GRC MP Sylvia Lim Ms Lim. “What happened is each jurisdiction acted under its own domestic laws but in coordination with the other two.” Keppel O&M disclosed on Dec 23 that it would pay a hefty penalty of US$422 million (S$567 million) as part of a global resolution with authorities in three countries to resolve bribery charges.
As part of the global resolution, Keppel O&M entered into a Deferred Prosecution Agreement (DPA) with the US Department of Justice (DOJ), and a leniency agreement with Brazil’s Federal Public Ministry.
In Singapore, the public prosecutor directed the Corrupt Practices Investigation Bureau (CPIB) to administer a conditional warning on Keppel O&M.
In reaching this decision, they considered factors such as how Keppel O&M had voluntarily reported internal findings to the CPIB and AGC in September 2016 and cooperated with all 3 jurisdictions in the investigation and resolution process.
A conditional warning allows Singapore to impose on Keppel O&M conditions that are "closely aligned" with the terms of the DPA, said Ms Indranee. This aligned approach allows for a robust resolution to the case, she added.
According to the US court documents, Keppel O&M will pay about US$105.6 million to the US, including a US$4.7 million criminal fine by Keppel O&M USA. Brazil will receive US$211.1 million or 50 per cent of the total criminal penalty, and Singapore will receive US$105.6 million or 25 per cent.
For Singapore, the AGC and CPIB said Keppel O&M has committed to certain undertakings and will pay to Singapore US$52.7 million within 90 days from the date of the conditional warning, and a further US$52.7 million within three years from the date of the conditional warning, less any penalties paid to Brazilian authorities during this period.
Ms Indranee said: "Any penalty or claim that Keppel O&M might be subjected to under the Singapore law would be far less than what the company is now liable for under the coordinated resolution."
"Keppel O&M is also required under the DPA to strengthen internal controls, compliance and anti-corruption programmers."
Therefore, the current resolution "achieves more than what we would be able to do if we had proceeded against the company solely on the Prevention of Corruption Act (PCA)", said Ms Indranee.
More at Channel News Asia
Well done Ah Shan, so very well done.
SINGAPORE - A new legal framework that can grant companies amnesty for certain corporate offences is being proposed in Singapore.
Deferred prosecution agreements (DPAs) could be offered to corporations as long as they comply with specific requirements, Minister for Home Affairs and Law K. Shanmugam announced on Monday (Jan 15) during a dialogue with lawyers.
The framework is one of several proposed amendments to the Criminal Procedure Code and Evidence Act.
http://www.straitstimes.com/singapore/deferred-prosecution-agreements-proposed-to-take-companies-to-task-shanmugam
One set of rules for elites, another for peasants. Well suck it up peeps.
Cronies viciously barking in defense, yet the puppet masters remain completely silent.
Indranee gave excuses, not reasons, on Keppel corruption probe
Senior Minister of State for Finance and Law Indranee Rajah's response in Parliament yesterday to the Keppel corruption scandal was a wash-out.
Apart from issuing motherhood statements such as having “zero tolerance for corruption” and warning firms not to “import” corrupt practices into Singapore, she said precious little on how the Government would deal with the perpetrators of our nation's biggest corruption scandal.
Keppel O&M's executives have already paid penalties in excess of $500 million in the United States in a scandal that saw the company pay $73 million in bribes over 14 years. Yet, all Ms Indranee can say is that the Singapore Government is “extremely disappointed” with Keppel's conduct.
This is in contrast to recent cases such as:
Mr Edwin Yeo – sentenced to 10-year imprisonment for stealing $1.76 million in public funds.
Mr Lim Cheng Hoe – sentenced to 15-month imprisonment for cheating the government out of $89,000.
Mr Tey Tsun Hang – sentenced to 5-month imprisonment for receiving gifts and sexual favors in exchange for passing grades. (Mr Tey's conviction was acquitted by the High Court on appeal.)
In Keppel's case, only a “conditional warning” has been given by the CPIB. How is this possible? The uneven treatment by the authorities in this case is beyond shocking.
Ms Indranee also says that the probe involves cross-border issues and, hence, complicates investigations. This is yet another vacuous excuse.
Keppel is a government-linked company. They are answerable to shareholders of which Temasek, helmed by PM Lee Hsien Loong's wife, is the largest. Surely, Keppel can be easily held to account by its largest and institutional shareholder, can't it?
Also, the executives are Singaporeans. They can be investigated independent of foreign involvement with those found guilty swiftly brought to justice. The vaunted prowess of the CPIB to ferret out corruption matters must not be left to question.
If the PAP government can speedily track down and prosecute Internet users who post anonymously, why can't it resolve the current case with similar efficiency? Failing to do so is but an excuse.
Another cop-out is Ms Indranee's answer about former Ambassador to Brazil Choo Chiau Beng. Mr Choo was one of those named in the probe. He stepped down as ambassador in 2016. Ms Indranee said that she did not have information regarding Mr Choo's stepping down.
How can the minister not have answers to such a fundamental question? Couldn't she have turned to Foreign Minister Vivian Balakrishnan for an answer? Why such a nonsensical and evasive response?
The SDP is deeply concerned about the entire matter. A huge criminal scandal has been un-earthered and the PAP seems reluctant to provide clear answers.
The fact that Keppel is one of the myriad of GLCs belonging to Temasek which is wholly owned by the government and that the CPIB operates within the Prime Minister's Office, creates a morass of conflicts of interest.
The arrangement raises questions about the government's position as an impartial actor to this case as well as future ones. This exacts a heavy price for Singapore's reputation despite the warm pronouncements and assurances that the authorities mouth.
The SDP calls on the PAP to stop dithering and giving excuses, and provide firm answers about what it will do with the Keppel scandal, how it will prosecute the matter and by when it will get it done.
http://yoursdp.org/news/indranee_gave_excuses_not_reasons_on_keppel_corruption_probe/2018-01-09-6218
LEE-galized corruption. Nuff said.
The G needs to look absolutely spotless, naturally it will distance itself from all the bad, corrupt characters. What stands out as super odd is its somewhat stubborn refusal to get Temasek to hold an EGM.
Well done, our monkeys in white are now feigning complete ignorance. Nope, we don't know a fucking damn thing about what's going on inside, even though we are a sizeable shareholder by virtue of Temasek's stake.
Pritam Singh asked Indranee Rajah many questions about Keppel’s corruption case. She responds.
Workers’ Party MP Pritam Singh earlier filed a number of parliamentary questions on the Keppel Offshore & Marine Ltd. (KOM) corruption case for the Jan. 8 sitting of Parliament.
Senior Minister of State for Law and Finance Indranee Rajah responded to the questions. But Pritam subsequently raised additional supplementary questions which elicited further responses from Indranee.
Here’s a rundown of the back-and-forth exchange between them.
1. Will Temasek Holdings call for an extraordinary general meeting?
Pritam asked if Temasek Holdings will call for an extraordinary general meeting to pursue civil action and seek equitable compensation from those responsible for the case.
Indranee responded with an oft-repeated point, saying that the Government and Temasek does not interfere in the day-to-day management or running of Temasek portfolio companies.
She said the company has engaged in substantive remedial measures, including
Took disciplinary action against 17 former or current employees in relation to the misconduct
7 employees who participated in the conduct described in the statement of facts left the from the company,
Issued demotions and/or written warnings to 7 employees who failed to detect the misconduct and failed to take appropriate steps to mitigate corruption and compliance risk
Imposed approximately US$8.9 million in financial sanctions on 12 former or current employees as part of the disciplinary process
Conducted individualised anti-corruption and compliance training for 6 employees.
In short: No, it is not for Temasek or the government to decide.
2. Was the government aware of Keppel board’s conduct?
Pritam asked if the Government was aware whether the Keppel board gave the CEO broad powers to enter into the contract.
Indranee again reiterated that Keppel is in charge of its own operations and “what was known or not known within Keppel is really a Keppel matter.”
In short: No, Keppel is in charge of its own operations.
3. What is the KOM subsidiary in Singapore that paid bribes?
Pritam asked for the name of the KOM subsidiary in Singapore mentioned by US Department of Justice for paying bribes of US$17 million to an entity in Miami, Florida.
Indranee did not have the information with her.
In short: Until the name is revealed, it’s still called KOM subsidiary.
4. Was former Keppel CEO and former Ambassador to Brazil Choo Chiau Beng involved?
Pritam pointed out that former Keppel CEO and senior adviser Choo Chiau Beng, was the Singapore ambassador to Brazil from 2004 till 2016.
He asked if Choo was removed as ambassador because of his involvement or knowledge of the bribery scheme.
Indranee did not provide a reason. She gave an answer sticking to some obvious facts.
In short: For reasons unknown, Choo is no longer our Brazil ambassador
5. Why are the individuals involved not identified?
This is an exchange worth quoting in full, given the names that have been circulating in media reports and yet the authorities have neither confirm or deny the accuracy of these reports.
In short: Not disclosing names of the individuals who are being investigated is government policy. It does not control what others say outside.
You can watch the full exchange between Pritam and Indranee below. It begins at 28:25 and finishes at 36:45:
https://mothership.sg/2018/01/keppel-corruption-bribery-indranee-rajah-cpib-investigation-keppel/
And so the whitewashing officially begins..........
In the end PAP will once more ownself clear ownself in parliament.
Wonder how much they paid that Taichi master to stay frozen for the shot.
Parliament to wayang on GLC Keppel record bribery scandal
https://likedatosocanmeh.wordpress.com/2018/01/06/parliament-to-wayang-on-glc-keppel-record-bribery-scandal/
On Monday, Singaporeans will be treated to a Keppel wayang in Parliament with ministers facilitating further cover up. Today
How could it not be when all hear-no-evil, see-no-evil PAP MPs will continue to act stupid as if corrupt Keppel executives did not exist?
The US$55 million was offered by a government-linked company in bribes and more than S$1/2 billion in fines appear to be loose change to all $192,500 a year PAP MPs.
Hmm .. perhaps the words “corruption” and “bribe” are only associated with non-elites?
According to US court documents, Keppel’s action taken against 17 nameless former and current employees included “US$8.9 million (S$12 million) of financial sanctions, demotions and departures“. CNA
If so, that must be a record but there may be some creative accounting at play. Perhaps the “S$12 million of financial sanctions” include future loss in earnings till retirement?
No Keppel shareholder knows if the employees involved have been sacked because senior executives of GLCs are easily transferred to other GLCs. As for those who were demoted, they could easily be promoted within a couple of years, if not months.
(Recall the death of NSF Dominique Lee where the 2 SAF officers involved were “punished by fines, delays in promotions” for their negligence? Asiaone Well, that’s only what PAP wanted the public to believe.
Captain Chia, one of the officers involved, was in fact promoted in less than 2 years after Dominique’s death.)
In another bribery case almost similar to Keppel’s involving ST Marine 3 years ago, there was no cover up and the names of those involved in the 11-year corruption were disclosed. They are:
Chang Cheow Teck (ST Marine and Aerospace president from 2008 to 2010 and 2010 to 2014 respectively) Mok Kim Whang (SVP, Tuas Yard) Ong Teck Liam (SVP, Finance 2007 to 2012) etc.
The deafening silence from all PAP MPs cannot be a coincidence but orchestrated at the highest level.
That MSM has already been roped in to deflect the issue and Keppel given only a conditional warning by CPIB clearly confirm that Monday’s Parliamentary sitting will be another … wayang.
Enjoy. :)
Obviously it is in the interest of the People's Adultery Party to bury this shit storm as quickly as possible......the longer the inquiry drags, the greater likelihood of much more horrifying dirt being uncovered, not to mention more elites being implicated.
Why the fucking urgency to move the saga along huh IndraLEE??? What else have you hidden from the general public you are so afraid of disclosing?
She added that the Government “cannot be a global policeman”.
A truly fucking brilliant excuse. Round of applause for you.