The shipbuilder responsible for supplying Toronto’s highly anticipated $92 million electric ferries is currently facing charges related to forgery and alleged breaches of Russian sanctions in the Netherlands. This revelation, brought to light by Dutch prosecutors and a city spokesperson, was only recently made known to the city.
The Netherlands Public Prosecution Service has initiated legal action against international shipbuilder Damen for offenses including bribery, forgery, and money laundering. The focus of the investigation spans from 2006 to January 2017, as detailed in an April press release. Prosecutors claim that substantial commission payments to agents posed a risk of them bribing local officials.
Although these allegations have yet to undergo judicial review, the April announcement also mentioned that the company was under scrutiny for potential violations of sanctions related to goods and technologies that could bolster Russia’s military and technological capabilities, or contribute to the defense and security sector.
Responding to these claims, Damen’s spokesperson Robin Middel referred to a distinct legal matter concerning the supply of ship cranes to the Russian fishing industry in early 2022. He highlighted ongoing discussions regarding the compliance with European Union sanctions at that time. The Toronto Star initially reported the charges against Damen.
Potential Ramifications on Future Business Tenders, Warns Company
Middel emphasized that the forgery case could impact future tenders if Damen is definitively convicted following legal proceedings. However, he assured that the City of Toronto should not anticipate any negative effects on the ferry program in the upcoming years. Since 2014, Damen claims to have made substantial investments in compliance and upheld the highest standards in this domain.
A pre-trial hearing for Damen is scheduled in Zwolle, a city in northeastern Netherlands, on Nov. 24.
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