The trial against Damen Shipyards has begun in Zwolle. The shipbuilder is accused of corruption and violating Russia sanctions. The company denies the allegations.
The allegations became known in April. The trial against Damen Shipyards, the largest Dutch shipbuilder, began on Monday.
The Dutch public prosecutor’s office made its investigation into Damen Shipyards and former managers public in April . This was prompted by suspicions of corruption, discrepancies in procurement contracts and the alleged circumvention of economic sanctions against Russia. The trial began on Monday at the court in Zwolle. The company rejects the accusations.
The case is being heard in two separate proceedings. The first is about bribery. Three managers have been charged with bribery, forgery and money laundering in connection with the sale of ships in Africa, Latin America and Asia between 2006 and 2017. According to media reports, the files include alleged payments to employees of the Brazilian oil company Petrobras and to port authorities in Curaçao, Ghana, Togo and Sierra Leone.
The second case concerns the alleged violation of economic sanctions against Russia. The shipyard is alleged to have delivered goods and technologies to Russia in the second half of 2022 despite EU sanctions. According to the public prosecutor’s office, these were civilian cranes that may have contributed to Russia’s military and technological strengthening. The company denies the allegations and states that the deliveries were made in accordance with the law in force at the time.
The shipyard, which is classified by the Dutch government as a company of strategic national importance, builds warships not only for the Netherlands, but also for other NATO countries, including frigates for the Netherlands, Belgium and Germany. In the event of a conviction, Damen Shipyards faces fines of up to 10% of its annual turnover. Damen Shipyards Group employs around 12,000 to 12,500 people worldwide and operates around 35 to 36 of its own shipyards as well as repair and service locations worldwide.
Damen Shipyards denies allegations
In the run-up to the start of the trial and in response to an article that appeared in a Dutch newspaper, Damen Shipyards published a statement.
It states that the Damen Shipyards Group was investigated by the Public Prosecution Service for activities that took place between 2006 and 2016. This investigation covered a period of eight years and led to proceedings on suspicion of falsification of documents in connection with a number of projects. These allegations relate to a period in which Damen carried out around 1,500 complex shipbuilding projects worldwide.
Damen is disappointed about the long duration of these investigations and expects a lengthy legal dispute. However, the shipyard is confident about the outcome of the court proceedings and will finally have the opportunity to explain that the prosecution’s suspicions are unfounded. As soon as the main trial begins, Damen will defend itself fully in court – and not in the media, according to the statement.
The shipyard also intends to defend itself in the second trial exclusively to the court and not to the media. However, in a statement published back in April, the shipbuilding company stated that it had always acted in accordance with the applicable sanctions packages and that its activities had been completely transparent. Damen is therefore surprised that a case from June 2022 is now being brought before the court. This involved the delivery of a very limited number of civilian cranes to Russia. This delivery was made within the framework of the sanctions laws in force at the time.
