SINGAPORE (June 23): Keppel Corp strongly refuted allegations of its involvement in a scheme that paid bribes to secure multi-million dollar rig-building contracts from a company linked to Brazilian national oil company Petrobras.

“We strongly refute allegations made regarding Keppel FELS’ involvement in the payment of bribes relating to the ongoing investigations surrounding Petrobras in Brazil,” Keppel Corp said in a statement to theedgemarkets.com.

A Bloomberg report today cited testimony released by a Brazilian court alleging that Estaleiro Jurong Aracruz, a unit of Sembcorp Marine, and Keppel FELS were among several companies that paid bribes through intermediaries to win 21 rig building contracts worth $800 million each from Sete Brazil.

The report said the allegations were made by Pedro Barusco, a former Petrobras and Sete Brazil director who has agreed to return to authorities about $97 million that he said he earned from bribes, including payments from shipyards to win work with Sete Brazil.

Keppel Corp said it has a Code of Conduct which prohibits, among others, bribery and corruption. “Our employees are required to conduct themselves with integrity, in an ethical and proper manner, and in compliance with the applicable laws and regulations of the countries in which we operate, including anti-bribery laws,” it said.

Sembcorp Marine is also standing by its denial of the allegations. A company spokesman referred theedgemarkets.com to two statements it released earlier this year when the allegations first arose.

In its Feb 8 statement, the company said it did not make any illegal payment and that its policies and contracts prohibit bribery and unethical behavior. In its March 30 statement, the company reiterated its anti-bribery policy and said it was conducting internal investigations.

As at 3.10 p.m., shares of Keppel Corp are unchanged at $8.41 while shares of Sembcorp Marine are trading 2 cents lower at $2.86.