WASHINGTON: Singapore’s Keppel Offshore & Marine (KOM) has agreed to pay $422 million in fines to the US, Brazil and Singapore to settle bribery cases involving Brazilian contracts, US officials said Friday.
The investigation of bribes to Brazil government officials was conducted under a US law allowing authorities to punish American companies or companies active in the country that are guilty of corruption.
The Keppel group, which builds oil rigs and operates shipyards, has a US subsidiary found to have been involved in the bribery scheme, which was led by a former Brazilian agent with the knowledge of some Keppel executives, who have been fired.
The scheme “resulted in the payment by the defendant companies of over $50 million in bribes to Brazilian officials and in profits for the defendant
companies of over $350 million from business corruptly obtained in Brazil,” acting US attorney Bridget Rohde said in a statement.
KOM’s cooperation and firing or disciplining of employees involved in misconduct led the Justice Department to agree to a lower penalty than could have been assessed, the US Department of Justice said.
Keppel said in a statement in Singapore that the “global resolution” of the cases stemmed from “improper payments” made by a former agent, Zwi Skornicki, to Brazilian government officials between 2001 and 2014 in relation to various projects with state-owned oil giant Petrobras and Sete Brasil, a supplier of oil rigs.
Singapore’s anti-corruption bureau said Saturday it was investigating the individuals involved, but gave no details.
Keppel said it cooperated fully with officials in all three countries and provided its own findings from an internal company investigation after it learned about the anomalies.
“We regret and are deeply disappointed by the actions that we now know to have taken place at the Group’s offshore and marine business in Brazil from around 2001 to 2014,” said Lee Boon Yang, chairman of the firm’s parent Keppel Corp.
“Global companies such as Keppel have both a legal and moral duty to operate fully within international laws and regulations.
“Any perception that illegal payments can be condoned, if they are made by agents, is wrong and will not be tolerated.”
Following the settlement, Keppel will continue its operations in the US and Brazil, a company statement said.
“Keppel does not expect any negative impact on its ability to bid for contracts in the US, Brazil and other countries,” it added.
Singapore firm to pay $422 million in corruption fines
Singapore firm to pay $422 million in corruption fines
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
