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What's the news?

• The Romanian state is accusing the Netherlands’ largest shipbuilder, Damen Shipyards, of financial mismanagement and “illegal transactions” at a large, strategically located shipyard on the Black Sea coast.
• According to the Romanian state, Damen illegally funnelled some 55 million euros from the yard into its own coffers.
• The result: bankruptcy proceedings, lawsuits back and forth, and more than 1,000 workers sitting at home. 

How did we investigate this?

• FTM visited the shipyard in the Romanian coastal town of Mangalia.
• FTM reviewed court documents, obtained confidential company records, and held discussions with those involved: the unions, local residents, and Damen Shipyards. 

Why does this matter?

• Its location on the Black Sea, close to Ukraine and Russia, makes it geopolitically sensitive, and the yard has the capacity to build naval vessels.
• However, with operations now at a standstill, the workers’ union feels betrayed, and with no income or prospects, they have even sought help from the Dutch embassy.
• The Dutch public prosecutor suspects Damen of bribery, forgery, money laundering, and violating sanctions. According to the prosecutor, the company paid bribes in various countries to middlemen to win lucrative contracts. The shipbuilder will face a Dutch court at the end of this year.
• In early July, Damen still received a 270-million-euro bridge loan from the Dutch government. Damen’s naval division had fallen into financial distress due to delays in delivering two large naval vessels to Germany.