Public prosecutor's office investigates Damen Shipyards

Is the defence sector affected?

At the end of April 2025, the Dutch public prosecutor's office publicised its investigation into Damen Shipyards and former executives. There is suspicion of corruption and discrepancies in procurement contracts.

Investigators from the Dutch Financial Investigation and Prosecution Service (Fiscale Inlichtingen- en Opsporingsdienst, FIOD) allege that unclear payments were made to intermediaries for ship sales in Africa, Asia and South America between 2006 and 2017. Customs are investigating because spare parts and technology allegedly travelled to Russia despite EU embargoes. However, Damen denies having knowingly circumvented sanctions in 2022.

Damen also points out that its business areas - including offshore, freight and naval shipbuilding - are strictly separated from each other in legal and organisational terms. The naval division operates in its own group branch ("Damen Naval"), with its own accounting and compliance department. Should a criminal judgement be passed against parts of the Group, it is therefore by no means certain that all business areas - particularly the naval sector - will automatically be affected equally. From a legal perspective, the situation is as follows: EU Public Procurement Directive 2014/24/EU and the Dutch Aanbestedingswet prohibit tolerating convicted corruption or money laundering offences among contractual partners. A possible judgement could mean a ban of up to four years, during which Damen would be excluded from public tenders. State Secretary Tuinman confirmed that ongoing proceedings alone do not justify exclusion - but a final judgement does.

Damen is a key partner for the Dutch navy in numerous projects. The planned fleet replacement comprises around 20 new ships, including frigates, mine defence vessels, amphibious transport ships and supply units. Damen also frequently carries out maintenance and repair work, particularly on larger ships. Damen also works internationally for other navies, including Belgium, Mexico and Indonesia. The company's international orientation makes it an important player in the global marine industry. Damen is also involved in the F 126 frigate programme for the German Navy as a contractor.