Damen Shipyards, a major naval supplier, is facing prosecution by the Dutch Public Prosecution Service (OM) for alleged sanctions violations, bribery, money laundering, and forgery. The OM is prosecuting the company along with its current CEO and two former CEOs.

The prosecution includes accusations of violating sanctions imposed in 2022 following the Russian invasion of Ukraine. Damen is accused of continuing to deliver goods that contributed to the military and technological strengthening of Russia. Damen denies these allegations, stating that only one delivery of civilian cranes occurred in June 2022, and that experts advised the company that these deliveries were not subject to sanctions at the time.

The case also involves suspicions of corruption. The OM suspects Damen and its board members of making excessive payments to agents abroad for securing orders. These agents allegedly received commissions of at least 15 percent of the total order price, raising concerns about potential bribery of officials. To circumvent limitations imposed by accountants and export credit insurer Atradius on agent rewards, the directors allegedly concealed extra expenses in the company’s administration. The suspicious transactions reportedly occurred in Sierra Leone, Indonesia, Ghana, Brazil, the Bahamas, Curaçao, and Trinidad and Tobago.

A conviction could lead to a four-year ban on tendering for government orders, which would be problematic because Damen is the largest supplier to the Dutch navy. The Dutch state recently ordered 5 billion euros worth of new ships from the company. Due to software issues, the company’s naval branch has experienced delays in delivering six naval vessels to Germany.