A shipbuilding company tasked with supplying Toronto’s long-awaited $92 million electric ferries is under scrutiny for alleged forgery and breaching Russian sanctions in the Netherlands. Dutch prosecutors and a city spokesperson revealed the recent discovery of these issues. The Netherlands Public Prosecution Service is pursuing international shipbuilder Damen for suspected bribery, forgery, and money laundering during a period spanning from 2006 to January 2017, as mentioned in an April press release. The case revolves around substantial commission payments to agents, creating a potential risk of bribery involving local authorities.
Additionally, Damen is being investigated for potential violations of sanctions related to items supporting Russia’s military and technological advancement. The company’s spokesperson, Robin Middel, referred to a distinct legal matter concerning the delivery of ship cranes to the Russian fishing sector earlier this year. Middel acknowledged ongoing discussions regarding compliance with European Union sanctions at that time. These charges against Damen were initially reported by the Toronto Star.
The ongoing forgery case could impact future tender processes, according to Middel. However, the company emphasized its commitment to compliance since 2014 and assured that the City of Toronto’s ferry program would not be affected. Damen is scheduled for a pre-trial hearing in Zwolle, the Netherlands, on November 24.
The city only became aware of these charges on Tuesday. It anticipates receiving two electric ferries, costing $92 million, in 2026 and 2027, manufactured at Damen Shipyards Galati in Romania. The legal proceedings against Damen involve alleged irregular commission payments in ship transactions across Africa, Asia, and South America, risking potential bribery of officials in those regions. The prosecutors suspect the fabrication of numerous false documents to conceal these payments over several years.
The city spokesperson mentioned stringent vendor requirements, including disclosing any prior convictions. Mayor Olivia Chow confirmed that Damen had met all disclosure obligations when the contract was awarded in 2024 and emphasized the city’s vigilance in overseeing the ferry project through a third-party inspector.
Mayor Chow reiterated the city’s reliance on the timely completion of the ferries and assured appropriate action if circumstances change or new information surfaces. She underlined the importance of the ferry service and the ongoing construction process, indicating a willingness to respond accordingly to any developments regarding the contract status.