Tainted Company to build Amaravati
- Singapore companies gave bribes in Brazil
- Naidu describes them lily white
Vundavalli Arunkumar, former MP, reiterated on Monday that Singapore is not a heaven as being propagated by Andhra Pradesh Chief Minister Nara Chandrababu Naidu. The CM was talking about Singapore in the context of building Amaravati as new capital of Andra Pradesh. Two major private companies- Singapore Semb Corp and Ascendas Sing Bridge are praised to the sky. They are being partners in the venture.
To know the manipulative and corrupt nature of Semb Coro, one has to understand the way Brazil went down from the top. Petroleo Brazelero was the oil company founded by Brazil in public sector. It is commonly called Petro Bars. The major shareholder in this venture was the government itself. Many citizens of Brazil invested in this company from their small savings. The company was also listed in New York Stock Exchange. But the company was partially privatised in 1993. The company found huge deposits of minerals in 2007. The pre-salt oil fields discovered by the company are the largest in the world. The Brazikian economy had got a kick start with this development.
Many multinational companies came forward to invest in the company in a big way. Corruption took roots at the same time. There were many executives in Oetro Bras who belonged to Workers’ Party. About three percent of contracts were give to party leaders. Billions of dollars were syphoned out. Companies vied to bag contracts for building rigs and other infrastructure facilities. Leaders of the ruling party in Brazil were paid hefty bribes. The estimates were escalated and every other corrupt method was followed. Companies paid huge amounts of tainted money. People revolted. The leaders were angry with the executives of Petro Bras.
Brazilian government had launched investigations against the companies that had corrupted the system thoroughly. The government, unlike Indian governments, could find out the persons who have deposited black Money in Swiss Banks. So far the government of Brazil could identify 6.2 billion (one billion is hundred crore) dollars (one dollar is worth about Rs 70).
There are two Singapore companies among the companies facing charges of corruption. Semb Corp, which is partnering in Amaravati venture, is one of them.
The other Singapore company is Kepoel corporation. These two companies bagged the contracts to build rigs in the sea. In the first instance both the companies had rejected the charges outright. But as investigation went deeper new information had surfaced. The investigative agency had recorded the statement made by an official who was involved in corruption. Both Seb Corp and Keppel Corporation paid through middlemen bribes to the tune of 800 million dollars. These companies did not get any new contracts after the charges were made.
One estimate says Brazil lost about 42 billion dollars in account of fraud by Petro Bras. About 180 political leaders and executives were arrested in this scam so far. 93 persons were sentenced. The courts decided that the accused shall spend the rest of their lives behind the bars.
This is the reputation of Semb Corp which is going to build Amaravati, thanks to Naidu who made it a point to praise the virtues of dealing with the company. The civil society in AP is truly concerned about it.