Keppel Limited

[kichialo]

I will be more worried if Top Mgmt really dunno as so much money are involved.

Cory

You know the money can appear to be used for legitimate purpose. That is where intermediaries come in. There are always agents, subcontractors, distributors etc, and they may be asked to sign an agreement that they will not engage in corrupt practice.  These people will charge agent fees, consultation fees, negotiate addiitonal discounts, have payment tied to successful closure of contract etc. Over they years it add up. Unless the top management rose through the ranks and have worked in third world countries (especially in sales related roles), they may not be aware.  CFO's who have minimal contact with customers normally will not know. For some, they just "act blur" and "don't want to know". In fact Keppel's denial specifically is against the allegation they authorized the bribe. Of course they did not.

How guilty are these companies if they did not authorize the bribe and the intermediary whose behaviour they cannot always control, ran afoul of the law? Even if they are guilty, what are they guilty of? Corruption or lax in control? Any legal or ethics expert can comment?

If it was the agents , subcontractors or distributors etc., initiated the bribery and not endorsed by Keppel , why should keppel agree to pay for the combined total penalty of more than US$422 million to resolve charges with authorities in the United States, Brazil and Singapore . Is the management of Keppel that niave or generous ?

I am just trying to explain how it is possible for the top management to be kept in the dark despite the amount of money involved. But you have raised a  valid question. Let me ask another question, can a person or company found guilty of corruption resolve the charges in this manner without a trial? To be found guilty of corruption has serious consequences. At the individual level, I think some KOM staff may have to face trial. Why not the company? Perhaps the company is guilty of something else and not corruption. Again comments from legal experts will be most welcome.

With this latest news on the senior lawyer that make a deal, are we still so naive to still insist ? Maybe is our system or education but Singaporeans need to wise up to the "ugly side of humans".

Cory

No wonder Keppel settled.