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UK to back SBM Offshore despite bribery investigations UK to back SBM Offshore despite bribery investigations
(about 3 hours later)
The UK government will provide significant financial support to a major Dutch company despite the company being under investigation for its involvement in a multibillion dollar corruption scandal in Brazil. The UK government will provide significant financial support to a major Dutch company despite the company being under investigation for its involvement in a multibillion-dollar corruption scandal in Brazil.
Engineering company SBM Offshore – which is being investigated by Brazilian authorities over bribery allegations – confirmed that one of its flagship oil projects in Brazil will receive £34m worth of financial support from the UK.Engineering company SBM Offshore – which is being investigated by Brazilian authorities over bribery allegations – confirmed that one of its flagship oil projects in Brazil will receive £34m worth of financial support from the UK.
Whitehall trade officials have backed the Dutch company despite the ongoing investigation into its part in a sprawling corruption scandal that has ensnared Brazil’s state-owned oil company Petrobras, scores of senior politicians and business figures.Whitehall trade officials have backed the Dutch company despite the ongoing investigation into its part in a sprawling corruption scandal that has ensnared Brazil’s state-owned oil company Petrobras, scores of senior politicians and business figures.
The announcement appeared less than 24 hours before David Cameron delivered a speech in Singapore on Tuesday this week, arguing that global corruption is “the enemy of progress” and the world has “looked the other way for too long”.The announcement appeared less than 24 hours before David Cameron delivered a speech in Singapore on Tuesday this week, arguing that global corruption is “the enemy of progress” and the world has “looked the other way for too long”.
The UK’s generous support for SBM’s project follows dramatic developments in Brasilia last month when a parliamentary inquiry repeatedly summoned SBM’s former agent in Brazil to answer questions about allegations he acted as a middleman for contractors, paying bribes to Petrobras executives and politicians. The UK’s generous support for SBM’s project follows dramatic developments in Brazil last month when a parliamentary inquiry repeatedly summoned SBM’s former agent in the country to answer questions about allegations he acted as a middleman for contractors, paying bribes to Petrobras executives and politicians.
SBM have admitted to paying over $120m to the agent in Brazil between 2007- 2011 but insist the company has severed all ties with the Brazilian national, Julio Faerman, who is believed now to be living in London. SBM have admitted to paying over $120m to the agent in Brazil between 2007- 2011 but insist the company has severed all ties with the Brazilian national, Julio Faerman, who is believed to be living in London.
Earlier this year Brazil’s Folha de Sao Paulo newspaper reported that SBM transferred around $77m to the Swiss bank accounts of two offshore companies owned by Faerman, according to documents provided by the Swiss attorney general. Earlier this year, Brazil’s Folha de Sao Paulo newspaper reported that SBM transferred around $77m to the Swiss bank accounts of two offshore companies owned by Faerman, according to documents provided by the Swiss attorney general.
The Petrobras scandal – one of the largest corruption scandals in Brazil’s history – has weighed on the Brazilian economy for much of this year.The Petrobras scandal – one of the largest corruption scandals in Brazil’s history – has weighed on the Brazilian economy for much of this year.
Last year SBM paid out $240m in a settlement with Dutch prosecutors investigating alleged bribery in Angola, Equatorial Guinea and Brazil. Prosecutors established that payments were made from SBM’s agent in Brazil to government officials. Last year, SBM paid out $240m in a settlement with Dutch prosecutors investigating alleged bribery in Angola, Equatorial Guinea and Brazil. Prosecutors established that payments were made from SBM’s agent in Brazil to government officials.
The company, which builds and operates specialist ships for the oil and gas industry, insists the settlement “closed a chapter from the past”.The company, which builds and operates specialist ships for the oil and gas industry, insists the settlement “closed a chapter from the past”.
Speaking months before the company agreed to cooperate with the Brazilian attorney general and comptroller general’s inquiries, a senior SBM director told the Dutch press: “I really think we paid our dues … We refuse to be Brazil’s smelly kid in the classroom.”Speaking months before the company agreed to cooperate with the Brazilian attorney general and comptroller general’s inquiries, a senior SBM director told the Dutch press: “I really think we paid our dues … We refuse to be Brazil’s smelly kid in the classroom.”
But SBM was dealt a blow last year when Petrobras, one of its biggest customers, refused to award the company with any new contracts while SBM was under investigation. But SBM was dealt a blow last year when Petrobras, one of its biggest customers, refused to award the company any new contracts while SBM was under investigation.
The Dutch multinational had previously won major deals with Petrobras for expensive oil production and storage ships which it owns with joint venture partners. The UK’s export finance agency (UKEF) will provide a £34m tranche of insurance for one of these ships.The Dutch multinational had previously won major deals with Petrobras for expensive oil production and storage ships which it owns with joint venture partners. The UK’s export finance agency (UKEF) will provide a £34m tranche of insurance for one of these ships.
A spokesman for UKEF defended its support for the SBM project, stating that the agency follows strict international guidelines on anti-bribery and corruption.A spokesman for UKEF defended its support for the SBM project, stating that the agency follows strict international guidelines on anti-bribery and corruption.
“Far from looking the other way, UKEF has taken careful account of the reforms undertaken by management at both SBM and Petrobras, before deciding that our support could be given,” he said. “Far from looking the other way, UKEF has taken careful account of the reforms undertaken by management at both SBM and Petrobras before deciding that our support could be given,” he said.
A spokeswoman for SBM Offshore directed the Guardian to the company’s previous statements regarding the affair and emphasised that the company has put in place measures to improve compliance and transparency.A spokeswoman for SBM Offshore directed the Guardian to the company’s previous statements regarding the affair and emphasised that the company has put in place measures to improve compliance and transparency.
Responding to the reported payments using Swiss bank accounts, the spokeswoman added: “Since 2012 we have been very transparent on all the steps we have taken to get our house in order and we’re not going to comment on any speculation made by any journalist.” Responding to the reported payments using Swiss bank accounts, the spokeswoman added: “Since 2012, we have been very transparent on all the steps we have taken to get our house in order and we’re not going to comment on any speculation made by any journalist.”