Teo and several other executives at four of the world’s largest makers of shipping containers were indicted by the US justice department in a “global conspiracy affecting billions of dollars of commerce.” The indictment was filed in January and unsealed earlier this week.
Teo, the chief executive officer at Singamas Container Holdings Ltd, was alleged to have joined an agreement to restrict production through quotas and introduce penalties for exceeding output limits from 2019 to at least 2024, according to a court document.
China International Marine Containers, Dong Fang International Container and CXIC Group Containers and their top executives were also named in the probe.
The case adds to renewed scrutiny on Singapore’s maritime industry following a series of high-profile corporate scandals over the past decade.
The founder of Hin Leong Trading Pte was jailed after the oil trader hid losses from over 20 banks while Seatrium Ltd paid US$241 million to settle a long-drawn corruption probe in Brazil.
Teo did not reply to an email seeking comment. Hong Kong-listed Singamas said in an exchange filing on Wednesday it had engaged external legal advisers and that operations remained normal. The company added neither it nor Teo had been served by the US justice department.
Teo is a leading corporate figure in Singapore where he serves as the chairman of the Singapore Business Federation. He’s also a member of a government-led economic taskforce and sits on the board of a government agency. Teo was recently featured by the Maritime and Port Authority of Singapore in a social media video on his family’s shipping legacy.
Pacific International Lines Pte, the parent of Singamas, in 2021 received a US$600 million rescue package from a unit of Singapore state investor Temasek Holdings Pte.
US prosecutors said Teo was informed ahead of a December 2019 meeting in Shanghai to discuss the “healthy development” of the container industry. He was later allegedly briefed on plans to artificially curb production before a formal agreement was signed with the other alleged co-conspirators.
The indictment claimed efforts were made to conceal the collusion. Teo had allegedly said “we also need to keep low key” after the 2019 meeting as it could violate monopoly laws or lead to accusations of price manipulation.
Another Singamas board member said the discussion “appeared to be anti-competition” and suggested deleting the email chain after reading it. Teo responded: “Yes I feel the same.”