Brazil’s Office of the Comptroller General (CGU) has launched an investigation into alleged irregularities practised by the Brazilian subsidiary of Singapore’s Sembcorp Marine.
Sembcorp Marine revealed on Friday, 24 March 2023, that the Office of the Comptroller General of Brazil had published a notice in the Official Gazette about the initiation of a preliminary administrative liability proceeding against the company’s subsidiary, Estaleiro Jurong Aracruz Ltda (EJA).
This has been launched to investigate alleged irregularities practised by EJA, however, as the notice did not provide further information, Sembcorp Marine was unable to assess the matter or impact, if any. On the other hand, the firm did confirm that EJA is cooperating fully with the authorities.
Sembcorp Marine underlined that it would continue to monitor developments in Brazil and make appropriate announcements in the event of “any material developments.”
Regarding Sembcorp Marine’s recent activities in Brazil, it is worth noting that the firm’s Rigs & Floaters unit inked a deal with Petrobras for the construction of the P-82 FPSO in October 2022 for operations on the Búzios field in the Santos Basin pre-salt area offshore Brazil.