SembMarine filed suspicious transaction report over former Brazil subsidiary president

Sembcorp Marine said Monday it lodged a suspicious transaction report with the Commercial Affairs Department of the Singapore Police Force over the activities of Martin Cheah Kok Choon during the time he was employed as president of the company’s Brazilian subsidiary.

The report was filed in response to Brazilian authorities’ investigation into Cheah,  SembMarine said in a filing to SGX.

Last week, SembMarine said Brazilian authorities had executed a search warrant on subsidiary Estaleiro Jurong Aracruz Ltda, or EJA, as part of the Operacao Lava Jato corruption investigation.

Operacao Lava Jato, or Operation Car Wash, has been investigating allegations of corruption at state oil company Petrobras.

SembMarine also said last week it understood the search was related to investigations against Guilherme Esteves de Jesus, a former consultant to EJA who was arrested by the Federal Police. But added that for the first time, Cheah was also under scrutiny.

Cheah’s role as EJA’s president was terminated in June 2015, SembMarine said in the filing Monday.

“Other than [Cheah], the company is not aware that any director or management of the company is a subject of the current investigations being conducted by the Brazilian authorities,” SembMarine said.

Shenton Wire didn’t immediately receive a reply to a message seeking comment sent to a LinkedIn account which may belong to Cheah.

The company says it is committed to complying with anti-corruption laws and won’t condone or tolerate improper business conduct.

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