Investigation Launched into Dutch Companies Suspected of Bribery in Sri Lanka Hospital Projects

Dutch authorities are investigating two companies for alleged bribery linked to hospital construction projects in Sri Lanka, valued at over €100 million. Millions in bribes were reportedly concealed through fraudulent contracts. The investigation involves entities such as Enraf-Nonius and IPD, with over €2 million having been seized in ongoing probes.

The Dutch Public Prosecutor is currently investigating two companies suspected of bribing officials for hospital construction projects in Sri Lanka. According to the Dutch financial newspaper, FD, these companies allegedly paid millions in bribes to secure contracts valued at over €100 million, likely involving a high-ranking civil servant. The bribes were reportedly disguised through forged contracts and invoices.

The investigation revolves around three hospitals with a total of approximately 2,000 beds, which includes a children’s clinic that was inaugurated two years ago. Funding for these projects was provided by Rabobank, and the construction was backed by Dutch government export credit insurance from Atradius Dutch State Business.

The Dutch Fiscal Intelligence and Investigation Service (FIOD) has verified that the investigation remains active, including the execution of raids across four countries last September, where over €2 million was seized. The alleged corruption pertains to transactions between Enraf-Nonius, a Dutch medical equipment company, and a firm located in the British Virgin Islands, which received around €5 million from multiple stakeholders in the hospital projects.

Moreover, in addition to Enraf-Nonius, a second Dutch entity named IPD, linked to the architectural firm AKM from Barendrecht, also plays a role in the scrutiny. IPD was responsible for overseeing the technical design and construction finances, having established agreements with Enraf-Nonius for this oversight. Both IPD and its directors are now under investigation by the Public Prosecution Service.

In their defense, the IPD directors acknowledged in writing that, between 2012 and early 2015, they made payments to a company, recently learned to have been exploited by businessman Nimal Perera. IPD has asserted that all payments were subjected to prior approval and verification by Enraf-Nonius and discussions were held with Rabobank and tax authorities.

In conclusion, the ongoing investigation by the Dutch authorities highlights serious allegations of bribery in Sri Lanka’s hospital construction projects. With millions of euros involved, the inquiry sheds light on the potential misuse of contracts and the roles of various companies, including Enraf-Nonius and IPD. As investigations progress, it remains crucial to uphold integrity in international development projects.

Original Source: sundaytimes.lk