Keppel Confirms Receiving Summons in New EIG Lawsuit

Singapore-based shipbuilder Keppel Offshore and Marine Limited (KOM) has been served with a summons within a civil action lawsuit filed by the eight funds managed by EIG Management Company (EIG) before the New York District Court for alleged racketeering.

“This new lawsuit comes after an earlier civil action commenced by EIG and eight of its managed funds in the United States District Court, District of Columbia against, among others, the company and KOM was dismissed on March 30, 2017,” Keppel Corporation said on Wednesday.

EIG launched the first legal case in 2016 on the grounds of an alleged conspiracy that led to EIG’s investment of USD 221 million in Sete Brasil Participacoes SA, a drillship contractor from Brazil which was involved in a bribery scheme with Petrobras and Keppel.

The new lawsuit was filed pursuant to the Racketeer Influenced and Corrupt Organizations Act (RICO) and is said to be targeting USD 660 million in compensation claims.

The case is linked to the bribery scheme KOM was embroiled in related to the Brazilian failed drillship venture.

In order to settle the bribery charges in the United States, Brazil and Singapore, Keppel Offshore & Marine agreed to pay a penalty of over USD 422 million in December 2017.

The settlement brought closure to the investigations into one decade-long corrupt payments made by a former Brazil-based agent of KOM.

As disclosed by the U.S. Department of Justice (DOJ) in December, KOM and its US subsidiary KOM USA paid over USD 50 million in bribes to Brazilian officials, which secured the companies USD 350 million of profit.

Specifically, payments were made to officials of Brazilian state-run oil company, Petroleo Brasileiro S.A. (Petrobras), and other parties, in order to win contracts with Petrobras and/or its related companies, the DOJ investigation found.

Keppel Corporation said that the new lawsuit was without merit and that KOM would “vigorously defend itself”.

Further updates on the matter would be provided when available, the company added.

World Maritime News Staff

 

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jul 2018 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

TRANSTEC 2018

TRANSTEC 2018 welcomes participants to explore Russian Ports and Shipping development opportunities…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

SMM 2018

This is a must-attend event – a unique opportunity to meet key players, display business strengths, establish new contacts and exchange…

read more >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >