Dutch prosecutors and a city spokesperson revealed this week that the shipbuilder responsible for delivering Toronto’s eagerly awaited $92 million electric ferries is facing charges of forgery and alleged violations of Russian sanctions in the Netherlands. The Netherlands Public Prosecution Service is pursuing international shipbuilder Damen for accusations of bribery, forgery, and money laundering spanning from 2006 to January 2017, as stated in an April news release. Prosecutors claim that substantial commission payments to agents posed a risk of them bribing local officials.
Moreover, Damen spokesperson Robin Middel addressed a separate incident involving the delivery of ship cranes to the Russian fishing industry in early 2022, stating that there have been discussions regarding compliance with European Union sanctions at the time. The City of Toronto was reportedly unaware of these charges until recently.
The forgery case could potentially impact future tenders, according to Middel, if Damen is convicted following legal proceedings. However, Middel reassured that the City of Toronto’s ferry program should not be affected in the upcoming years, emphasizing Damen’s significant investment in compliance since 2014 and adherence to high standards in this area.
Damen is scheduled for a pre-trial hearing in Zwolle, a city in northeastern Netherlands, on Nov. 24. The charges against Damen involve alleged irregularities in business transactions in Africa, Asia, and South America, where high commissions to agents were suspected to pose a risk of bribery to officials in those regions. The city maintains stringent requirements for vendors to disclose any past convictions, as confirmed by a city spokesperson.
Mayor Olivia Chow emphasized that Damen had not been criminally convicted and had met all vendor disclosure requirements during the contract negotiation in 2024. The city takes the charges seriously, with a third-party inspector overseeing the ferry project at the shipyard. Mayor Chow stated that the city will respond appropriately to any changes or new information that may arise.
The anticipated electric ferries, costing $92 million, are expected to be delivered in 2026 and 2027 after construction at Damen Shipyards Galati in Romania. Despite the ongoing legal issues, the city remains committed to the ferry project, with Mayor Chow stressing the importance of the ferries for Toronto’s transportation system.
