Keppel Limited

[Bibi]

I suppose if kepcorp is listed in the US, they would be sued for misleading the shareholders. Over here, nothing will happen I believe.

[tonylim]

https://www.justice.gov/opa/pr/keppel-of...-penalties

Keppel Offshore & Marine Ltd. (KOM), a Singapore-based company that operates shipyards and repairs and upgrades shipping vessels, and its wholly owned U.S. subsidiary, Keppel Offshore & Marine USA Inc. (KOM USA), have agreed to pay a combined total penalty of more than $422 million to resolve charges with authorities in the United States, Brazil and Singapore arising out of a decade-long scheme to pay millions of dollars in bribes to officials in Brazil.  KOM USA pleaded guilty today in connection with the resolution.  In addition, a guilty plea by a former senior member of KOM’s legal department was unsealed.



Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Bridget M. Rohde of the Eastern District of New York, and Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division made the announcement.



“Today’s resolution once again underscores the importance of the Department of Justice’s collaboration with foreign authorities to hold corrupt companies and individuals accountable for their crimes, while ensuring the fair and appropriate allocation of fines and penalties,” said Acting Assistant Attorney General Cronan.  “This case also represents the first coordinated FCPA resolution with Singapore and the most recent of several coordinated resolutions with Brazil.  The Criminal Division is committed to working with our international partners to ensure that honest, law abiding companies are able to compete on a level playing field across the globe.”

Keppel  has practiced corruption for more than 10 Years and still tried to deny ?
Is corruption not a serious commercial crime ?

[touzi]

I suppose if kepcorp is listed in the US, they would be sued for misleading the shareholders. Over here, nothing will happen I believe.

Many US companies have been charged with corrupt practice (bribery), including the big boys like Walmart, J&J, Haliburton. Even European blue chips such as Siemens (also listed in US) and Alstom have been found guilty. I do not believe that any of them have admitted at the start of the investigation. Anybody know if any of them have been sued by shareholders? I may be wrong but my guess is that they have not been sued because the company (meaning senior management) is not aware of such practice. It should not be too difficult for the senior management to get away. They just need to issue reminders regularly on ethics even as they put pressure on the people below to bring in the sales.

[corydorus]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

[MINX]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

You made a really good point......

[tonylim]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

You made a really good point......

Exactly ! If the top management are not aware of such big amount of under- table transactions for more than 10 years , something must be very wrong with the management itself . Could they be  many other corruptions involved  with other customers that the top management are not aware of,  since they are sleeping on their jobs ?

[touzi]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

You know the money can appear to be used for legitimate purpose. That is where intermediaries come in. There are always agents, subcontractors, distributors etc, and they may be asked to sign an agreement that they will not engage in corrupt practice.  These people will charge agent fees, consultation fees, negotiate addiitonal discounts, have payment tied to successful closure of contract etc. Over they years it add up. Unless the top management rose through the ranks and have worked in third world countries (especially in sales related roles), they may not be aware.  CFO's who have minimal contact with customers normally will not know. For some, they just "act blur" and "don't want to know". In fact Keppel's denial specifically is against the allegation they authorized the bribe. Of course they did not.

How guilty are these companies if they did not authorize the bribe and the intermediary whose behaviour they cannot always control, ran afoul of the law? Even if they are guilty, what are they guilty of? Corruption or lax in control? Any legal or ethics expert can comment?

[weijian]

I suppose if kepcorp is listed in the US, they would be sued for misleading the shareholders. Over here, nothing will happen I believe.

Many US companies have been charged with corrupt practice (bribery), including the big boys like Walmart, J&J, Haliburton. Even European blue chips such as Siemens (also listed in US) and Alstom have been found guilty. I do not believe that any of them have admitted at the start of the investigation. Anybody know if any of them have been sued by shareholders? I may be wrong but my guess is that they have not been sued because the company (meaning senior management) is not aware of such practice. It should not be too difficult for the senior management to get away. They just need to issue reminders regularly on ethics even as they put pressure on the people below to bring in the sales.

Lawyers in US are in high demand - remember the guy who sued his poor korean immigrant suit cleaners?

Just some examples of class action suit bought by investors due to corruption:

Petrobras sued by its own shareholders: https://www.theguardian.com/world/2015/j...holders-us
Customer of Petrobras agreeing to paying investors for facilitating bribes to Petrobras: http://www.pionline.com/article/20170915...corruption
PetroChina sued by investor for covering up bribery investigation results (didn't win): http://www.globaltimes.cn/content/808708.shtml

I am pretty sure the jurisdiction does matter (US vs Spore) although i don't know the differences nor the culture enough (eg. clash with Mgt). I guess it depends on the profile of the investor/s, how disgruntled they are and how they decide to frame their lawsuits.

Looking at Keppel Corp's shareholder statistics, North America/Europe owns ~18.3% of its stock and so i wouldn't be too surprised if some lawsuits are coming up.
http://www.kepcorp.com/annualreport2016/...tions.html

[AQ.]

i doubt sembmarine will escape easily.

SGD 500mio on Keppel equity of 12bio = 4.2%
SGD 500mio on SMM equity of 2.6bio = 20% - no small impact.

[Stocker]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

You know the money can appear to be used for legitimate purpose. That is where intermediaries come in. There are always agents, subcontractors, distributors etc, and they may be asked to sign an agreement that they will not engage in corrupt practice.  These people will charge agent fees, consultation fees, negotiate addiitonal discounts, have payment tied to successful closure of contract etc. Over they years it add up. Unless the top management rose through the ranks and have worked in third world countries (especially in sales related roles), they may not be aware.  CFO's who have minimal contact with customers normally will not know. For some, they just "act blur" and "don't want to know". In fact Keppel's denial specifically is against the allegation they authorized the bribe. Of course they did not.

How guilty are these companies if they did not authorize the bribe and the intermediary whose behaviour they cannot always control, ran afoul of the law? Even if they are guilty, what are they guilty of? Corruption or lax in control? Any legal or ethics expert can comment?

If it was the agents , subcontractors or distributors etc., initiated the bribery and not endorsed by Keppel , why should keppel agree to pay for the combined total penalty of more than US$422 million to resolve charges with authorities in the United States, Brazil and Singapore . Is the management of Keppel that niave or generous ?