Singapore: Sembcorp Marine Commercial Executive charged for alleged corruption offences

Singapore’s Corrupt Practices Investigation Board (CPIB) on Wednesday (16 August) said Balakrishnan Govindasamy (Balakrishnan), 61, a Commercial Executive of Sembcorp Marine Integrated Yard Private Limited at the material time, was charged in court for allegedly committing corruption offences.

Between 2015 and 2021, Balakrishnan was alleged to have corruptly obtained and attempted to obtain gratifications in the form of cash totalling at least SGD 202,877 from nine contractors representing different companies. 

“These gratifications were meant as an inducement or reward for advancing the business interests of these contractors with Sembcorp Marine Integrated Yard Private Limited,” CPIB said in a statement.

“For his alleged offences, Balakrishnan faces 14 charges punishable under Section 6(a) of the Prevention of Corruption Act, of which five charges are amalgamated under Section 124(4) of the Criminal Procedure Code and punishable under Section 124(8) of the Criminal Procedure Code.”

CPIB added Singapore adopts a strict zero-tolerance approach towards corruption. 

“Any person who is convicted of a corruption offence under Section 6 of the Prevention of Corruption Act can be fined up to S$100,000 or sentenced to imprisonment of up to five years or both. Any person who is convicted of an offence under Section 124 of the Criminal Procedure Code can face two times the amount of punishment liable for that offence.”

CPIB said companies are “strongly advised” to put in place robust procedures in areas such as procurement and internal audit to prevent falling victim to corrupt acts by their employees. 

Guidance for companies on measures to prevent corruption can be found in PACT: A Practical Anti-Corruption Guide for Businesses in Singapore, which is available on CPIB’s website. 

“Companies are also strongly encouraged to obtain certification under the Singapore Standard (SS) ISO 37001 – Anti-Bribery Management Systems, which is designed to help companies implement or enhance an anti-bribery management system to reduce corporate risk and costs related to bribery,” it added.

Seatrium was formed following the merger of Sembcorp Marine and Keppel Offshore & Marine (KOM) in April. 

In June, Seatrium said CPIB on 31 May released a statement stating that it has commenced investigations against the company and individuals from the company on alleged corrupt offences that occurred in Brazil. 

“The company believes that this relates to events that occurred prior to 2015 and to the Sembcorp Marine group in existence at that time,” it said in a company announcement.  

“Those events predate the merger with Keppel Offshore & Marine which only took place in February 2023.”

Related: Singapore: CPIB begins probe into Seatrium for alleged corruption in Brazil
Related: Singapore issues stern warnings to six former Keppel O&M staff for bribery
Related: Singapore-based firm Sembcorp Marine proposes name change to Seatrium
Related: Keppel Corporation and Sembcorp Marine merger concludes at USD 3.34 billion

Photo credit: Pepi Stojanovski from Unsplash
Published: 21 August, 2023