The Keppel Corporation confirmed last Thursday that its Brazilian subsidiary, Keppel FELS Brasil, may be investigated for connections to the ongoing Petrobras corruption probe.
The company said that Brazil’s Parliamentary Commission of Inquiry (CPI) voted in favor of recommendations that include the indictment of agents, lobbyists and intermediaries of certain companies, political parties and former officers of Petrobras and Sete Brasil.
Sete Brasil is a state-owned shipbuilder established to provide vessel’s to Brazil’s Petrobras.
The CPI also recommended further investigation into ten companies involved in transactions with Petrobras and Sete Brasil, including Keppel FELS Brasil.
Singapore-based Keppel said it will “extend its full cooperation to the authorities if approached.”
“Keppel reiterates its zero-tolerance stance against any form of illegal activity, including bribery and corruption, involving its employees or associates, and will take all necessary steps to eradicate such conduct if discovered,” the company said.
Keppel has refuted media reports claiming the company was involved in bribery and graft tied to Petrobras contracts.
In June, former Petrobras director Pedro Barusco told a Brazilian court that a group of shipbuilding companies, including Keppel FELS and Jurong Shipyard, paid brides to win contracts with Sete Brasil.
Barusco, who also served as the director of Sete Brasil, alleged that the companies paid bribes to Sete through intermediaries in an effort to win contracts for 21 deepwater drilling vessels worth about $800 million a piece.
Keppel has denied any wrongdoing.
Brazilian prosecutors allege that Petrobras employees collaborated with other firms to inflate the cost of contracts and skim off the excess funds, a scheme that also allegedly included bribery and money laundering.
Petrobras has defended itself against the allegations, claiming that it was also a victim of fraud.
Brazilian federal prosecutor Deltan Dallagnol told Reuters earlier this month that Petrobras losses tied to corruption will likely reach over $5.3 billion, or about 20 billion reais.
Earlier this month, investment giant Pacific Investment Management Co. (Pimco) filed a lawsuit against Brazil’s Petrobras for allegedly knowing about a corruption scheme that has rocked the company and landed several executives in jail.