Keppel to start arbitration against Seatrium for S$68.4 million related to Brazil’s corruption probe

[SINGAPORE] Asset manager Keppel is starting arbitration proceedings against Seatrium for a S$68.4 million claim related to Brazil’s corruption crackdown, Operation Car Wash.

In 2022, Seatrium had made provisions of S$82.4 million to indemnify Keppel against claims related to Operation Car Wash. That year, Keppel Offshore and Marine merged with Seatrium, formerly known as Sembcorp Marine.

But in July this year, Seatrium announced that it will have to pay 728.9 reals (S$168.4 million) to the Brazillian authorities, as part of leniency agreements related to the probe.

In a bourse filing on Tuesday (Aug 26), Keppel said that the S$68.4 million sum is due from Seatrium upon the latter’s signing of its final leniency agreements.

The arbitration will be conducted in Singapore, in accordance with the rules of the Singapore International Arbitration Centre.

Seatrium had previously indicated that it will contest the claim. In Tuesday’s filing, Keppel said that it “plans to pursue its rights accordingly”.

Keppel shares ended Tuesday at S$8.35, down 0.6 per cent. Seatrium closed at S$2.33, down 0.4 per cent.