12 Nov 2019
The Netherlands is investigating alleged bribery involving the Christie administration’s acquisition of nine defence force vessels in 2014 and has been receiving co-operation from local officials for its investigation since June of last year.
Dutch officials suspect corruption related to the shipbuilding services this country received from Damen Shipyard Group (DSG), which is based in Gorinchem, Netherlands.
The Christie administration borrowed $149m in 2014 for DSG to build nine defence force vessels as part of its Sandy Bottom Project which aimed to enhance the capacity of the Royal Bahamas Defence Force.
The Tribune understands that the Dutch investigation centres on commissions the government paid to NSG Management & Technical Services Ltd, a company based in Barbados that acted as DSG’s agent to the Bahamian and Trinidad & Tobago governments.
The Bahamas paid NSG $13m in commissions between 2014 and 2016. This included $6.6m in 2014, $4.7m in 2015 and $2.94m in 2016. The commission fees represented more than 12 percent of DSG’s total contract value – and that raised red flags among officials.
Investigators also obtained documents showing that DSG’s external auditor, EY, raised concerns over the contracts. EY believed the commissions were too high and noted they exceeded the five percent of a contract’s value prescribed by DSG’s own internal documents.
Auditors also struggled to determine what work NSG performed to warrant the commissions. When they tried to audit the company, NSG was non-cooperative, The Tribune understands.
The Dutch began a global corruption investigation into DSG in 2015 based on information received from the World Bank and EY.
Investigators raided DSG’s offices in Gorinchem and Rotterdam in January 2017, seizing large amounts of administration and digital data. It was those materials that sparked their investigation into DSG’s alleged bribery of public officials in the Caribbean.
NSG’s beneficial owner is Stephen Robert Hobson, a UK citizen living in Barbados.
Auditors, reviewing NSG’s financial statements for 2014 and 2015, found that the company paid $11.8m in 2014 and 2015 to SRH Consultancy Services Inc.
According to the International Consortium of Investigative Journalists’ offshore leaks database, SRH Consultancy services Inc was registered in The Bahamas and Stephen Robert Hobson was listed as its director/president.
By Rashad Rolle, The Tribune, 11 November 2019
Read more at The Tribune
RiskScreen: Eliminating Financial Crime with Smart Technology
Count this content towards your CPD minutes, by signing up to our CPD WalletFREE CPD Wallet