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Ex-Keppel agent pleads guilty in massive Petrobras bribery scandal

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An ex-agent of the US branch of Singapore’s Keppel Offshore & Marine has pleaded guilty in a massive US$55 million bribery scheme involving Brazillian officials and Brazil’s state-owned oil company Petroleo Brasileiro SA (Petrobras) spanning over a decade.

Zwi Skornicki admitted in US court on Tuesday that he was part of a plot to bribe Brazillian authorise and officials in Petrobras to secure contracts for Keppel between 2001 and 2014. Bloomberg reported that Skornicki had admitted to agreeing to pay those bribes to Petrobras and that he “acted on behalf of KOM”.

It is alleged that Skornicki and several others had agreed to pay as much as US$55 million in bribes tied to 13 projects in Petrobras tenders in Brazil in order to “secure improper advantages and influence” with Brazillian officials as well as to obtain and retain business in Brazil for Keppel.

Bribery spanning decades

Back in December 2017, a US probe into illegal payments made by Keppel to Petrobras officials and the then-governing political party led to the company agreeing to pay US$422 million to end the probe. Prosecutors said that the payments were disguised as consulting agreements.

“The defendants used the global financial system –- including the United States banking system –- to disguise the source and disbursement of the bribe payments by passing funds through a series of shell companies,” Bridget Rohde, acting US Attorney in Brooklyn, said in a statement at that time.

The scheme, which ran for over a decade, violated a US anti-bribery law, the Foreign Corrupt Practices Act. Keppel USA pleaded guilty while its parent, the Singapore-based Keppel Offshore & Marine, entered into a deferred prosecution agreement with the government.

Skornicki faces a prison term of up to 5 years for conspiracy to violate the act. The Brazilian national has already been convicted in his home country and has paid US$25 million in fines. Assistant US Attorney Alixandra Smith said in court on Tuesday that the US will not seek additional penalties from him nor would they oppose his request for probation. He id set to be sentenced on 23 September.

Global fines

In a related case, the US said that Skornicki also provided consultancy services for TechnipFMC, a global oil and gas service provider. TechnipFMC and its subsidiary has also agreed to pay US$296 million in global fines to resolve criminal bribery investigations brought against them by Brazil and the US.

The company admitted that between 2003 and 2013 it has conspired with others, including Keppel, to violent the anti-bribery act by dishing out more than US$69 million in shady payments to companies associated with Skornicki who used the funds to bribe Petrobras officials in order to secure lucrative contracts.

Starting 2008 until 2013, TechnipFMC had also conspired to violate anti-bribery laws by sending payments to at least seven Iraqi government officials, including the Minister of Oil, and two Iraqi-owned oil companies through a Monoc-based intermediary company, said prosecutors. The payments were made to win lucrative projects in Iraq.

The Petrobras scandal

The Petrobras corruption scandal, biggest in South America, goes back more than five years and has involved banks, shipyards, construction companies and politicians. Dubbed Operation Carwash, a probe was launched to look into companies that paid officials of the company in order to win business.

In September 2018, Petrobras paid US$853.2 million to settle claims in Brazil and the US stemming from allegations that the companies top brass facilitated bribes to politicians and then masked those payments from investors.

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Reforming Singapore’s defamation laws: Preventing legal weapons against free speech

Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.

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by Alexandar Chia

This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.

Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.

Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.

Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.

As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.

Sadly, that is the case with regard to precedence in defamation suits.

Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.

If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?

In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.

Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.

And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.

This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.

These are how I suggest it is to be done –

  1. The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
  2. Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
  3. A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
  4. A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
  5. Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
  6. All defendants of defamation suit should be allowed full access to legal aid schemes.

Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.

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Man arrested for alleged housebreaking and theft of mobile phones in Yishun

A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.

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SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.

The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.

The authorities reported that they received a call for assistance at around 5 a.m. on that day.

Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.

The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.

The suspect was charged in court on Monday with housebreaking with the intent to commit theft.

If convicted, he could face a jail term of up to 10 years and a fine.

In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.

They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.

The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.

The investigation is ongoing.

Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.

Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.

The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.

Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.

However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.

The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.

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