Keppel Corporation Limited says it had reached a joint resolution and concluded a leniency agreement with the authorities in Brazil, namely the AGU and the CGU with regard to the corrupt payments made by its former agent in Brazil.
This comes from a case back in December 2017 and has since been resolved following the global resolution reached with criminal authorities in Brazil, the United States, and Singapore.
In Brazil, AGU and CGU are authorities that have a parallel mandate with the Brazilian criminal authorities to enforce certain anti-corruption laws. Keppel, therefore, engaged in a separate negotiation process with AGU and CGU following the conclusion of the 19 December 2017 Leniency Agreement with the Public Prosecutor’s Office in Brazil (the Ministerio Publico Federal or “MPF”).
This additional leniency agreement with AGU and CGU brings to a conclusion the negotiations with the authorities in Brazil relating to its former agent in Brazil. Under the agreement, Keppel has committed to a payment of fines and damages to the Brazilian Federal Treasury and Petrobras totaling R$343,571,455.25 (equivalent to approximately US$65 million) within 30 days from the signing of the leniency agreement.
As part of the 2017 global resolution, AGC and CPIB had agreed for KOM to pay the balance sum of US$52,777,122.50 within three years from the date of the Conditional Warning.
The leniency agreement with the MPF and this additional leniency agreement by KOM with AGU and CGU each provide for the payment of fines and damages in connection to the same matter. With the two leniency agreements in place, KOM does not expect there to be any further grounds for liability in Brazil in relation to these issues.
The above is not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.
