Keppel Corporation, a multinational conglomerate based in Singapore, made headlines in December 2017 when it reached a Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice (DOJ) over allegations of bribery and corruption. The case involved Keppel Offshore & Marine, a subsidiary of Keppel Corporation, and several individuals who were accused of paying bribes to officials in Brazil in order to secure contracts for the construction of oil rigs.
The DPA is a legal agreement between the DOJ and a company that allows the company to avoid criminal charges if it meets certain conditions, such as paying a fine and cooperating with the government`s investigation. In Keppel`s case, the company agreed to pay a total of $422 million in fines to the DOJ, the U.S. Securities and Exchange Commission (SEC), and authorities in Brazil and Singapore.
The investigation into Keppel began in 2014 after a former employee of the company`s Brazilian subsidiary reported that bribes had been paid to officials in order to win contracts. The DOJ and other authorities launched an investigation, which eventually led to the DPA.
The case is significant for a number of reasons. First, it shows the DOJ`s commitment to prosecuting foreign companies that engage in bribery and corruption, even if the company is not based in the U.S. Second, it highlights the risks that companies face when doing business in countries with a high level of corruption. Third, it serves as a reminder to companies that they must have robust anti-bribery and corruption policies in place to prevent such misconduct from occurring.
As part of the DPA, Keppel has agreed to implement a number of measures to prevent future violations. These include enhancing its compliance program, enhancing due diligence for third-party agents and consultants, and establishing a compliance committee to oversee the company`s anti-bribery and corruption efforts.
While the case has been settled and Keppel has taken steps to address the issues, it serves as a warning to other companies of the risks associated with engaging in corrupt practices. As companies expand their operations globally, it is essential that they have strong compliance programs in place to prevent misconduct and ensure that they are operating ethically and in accordance with the law.