Public Prosecution Service prosecutes shipbuilder Damen for bribery and violation of Russian sanctions rules

The Public Prosecution Service makes it clear that these are two separate criminal investigations . "The investigation into bribery was conducted by the fiscal investigation service FIOD, and focuses on a period from 2006 to January 2017 and concerns the payment of high commissions to agents. These agents were used to sell ships to various countries in Africa, Asia and South America."

According to the judiciary, a 'large quantity' of false documents was used to 'conceal the high commission payments to agents and frustrate control over them'. This lawsuit will probably be able to start in the second half of this year.

The second case concerns the violation of sanctions against Russia. Damen is said to have sold goods and technology to the Russians over a period of several months in the second half of 2022, according to Customs investigations. In other words, after the Russian invasion of Ukraine that began on February 24 of that year.

These goods could 'contribute to the military and technological strengthening of Russia and/or to the development of the defense and security sector', the Public Prosecution Service wrote.

De Volkskrant has been writing about Damen's alleged dubious practices for some time now. "There's a strange breed of people around," a whistleblower told the newspaper last year about the working methods of some of the company's employees. "There's really no moral compass."

According to the Volkskrant, the directors who have been charged are the current chairman of the board Arnout Damen and his father Kommer Damen, the former boss who is still chairman of the board of directors. René B, who was chairman of the board between 2006 and 2019, is also being prosecuted. The Public Prosecution Service and Damen do not want to confirm this.

Damen Shipyards writes that the Public Prosecution Service, by presenting the two cases together, 'seems to suggest that Damen Shipyards is structurally pushing the boundaries of the law'. According to the company, the first case concerns projects from more than ten years ago, of which a number of cases have already been investigated. According to the company, measures have also been taken in the past decade.

"With regard to the suspicion of violating the sanctions law, Damen can report that it has always acted in accordance with the applicable sanctions packages and that full transparency has been exercised about its activities. Damen is therefore surprised that one case from June 2022 is now being brought before the court," the statement reads.

According to Damen, this is 'a case concerning the delivery of a very limited quantity of civil cranes to Russia'. According to Damen, this delivery took place within the sanctions legislation that was applicable at the time. The company says it is 'fully' defending itself against the 'suspicions of the Public Prosecution Service'. A spokesperson for Damen thinks that the lawsuit will take years.

The case could have major consequences for Damen. "European procurement legislation stipulates that a company must be excluded from a tender if it has been irrevocably convicted of certain criminal offences, including fraud and bribery, in the past four years," wrote State Secretary of Defence Gijs Tuinman (BBB) ​​earlier this year in response to parliamentary questions.

However, according to him, an ongoing criminal investigation and suspicions of fraud and bribery are not compelling grounds for excluding a company from a tender. At that time, Tuinman had not yet considered the possible violation of the 'Russia rules'. What the consequences of this are for the company is still unclear.