Toronto's $92M ferry builder faces forgery charges, allegations of violating Russian sanctions

13 Hours ago 4

Toronto·Updated

The shipbuilder contracted to present Toronto’s long-awaited, $92-million electrical ferries is facing forgery charges and allegations of violating Russian sanctions successful the Netherlands that the metropolis lone learned of this week, according to Dutch prosecutors and a metropolis spokesperson.

Shipbuilder Damen said Toronto's declaration shouldn't beryllium impacted by ineligible issues

Lane Harrison · CBC News

· Posted: Nov 07, 2025 1:59 PM EST | Last Updated: 8 minutes ago

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A rendering of the city's caller ferries being built by Damen, the institution faces allegations of forgery and violating sanctions. (City of Toronto)

The Netherlands Public Prosecution Service is prosecuting planetary shipbuilder Damen for bribery, forgery and wealth laundering, focusing connected a clip play betwixt 2006 and January 2017, according to an April quality release. Prosecutors allege precocious committee payments to agents created a hazard of them bribing section officials.

The allegations person not been tested successful court.

The April quality merchandise says the institution was besides investigated for violations of sanctions concerning goods and exertion that could lend to the subject and technological strengthening of Russia “and/or the improvement of the defence and information sector,” according to a translation of the announcement successful Dutch.

Damen spokesperson Robin Middel called that a “separate lawsuit” regarding the transportation of vessel cranes to the Russian sportfishing manufacture successful aboriginal 2022, successful an email to CBC News.

“In retrospect, determination has been treatment astir whether this was permitted nether the [European Union]-sanctions bundle astatine the time,” Middel said. The charges against Damen were archetypal reported by the Toronto Star.

Forgery lawsuit could person consequences for aboriginal tenders, institution says

The forgery lawsuit could person imaginable consequences for aboriginal tenders, Middel said, if Damen is irrevocably convicted astatine the decision of ineligible proceedings

“The City of Toronto has nary crushed astatine each to presume immoderate implications for the ferry programme successful the coming years,” Middel said. The institution has “invested significantly” successful compliance since 2014 and has been gathering “the highest standards successful this country for years,” Middel said.

Damen volition person a pre-trial proceeding successful Zwolle, a metropolis successful northeastern Netherlands, connected Nov. 24.

WATCH | Long ferry lines frustrated galore successful the metropolis past summer:

Torontonians frustrated astatine agelong lines for land ferry

There are renewed calls for the metropolis to enactment toward gathering a span to the Toronto Islands pursuing a play of agelong lines astatine the ferry terminal. As CBC’s Britnei Bilhete reports, immoderate Torontonias said hold times were up to an hr and a half.

The metropolis wasn’t alert of the charges until Tuesday, a spokesperson said successful a statement.

The metropolis is expecting 2 electrical ferries, astatine the outgo of $92 million, to beryllium delivered successful 2026 and 2027, aft being built astatine Damen Shipyards Galati successful Romania.

Charges interest concern successful Africa, Asia and South America

The lawsuit brought against Damen by Dutch prosecutors concerns payments of precocious commissions to agents progressive successful vessel income successful Africa, Asia and South America.

Paying those commissions creates a “substantial” hazard of officials being bribed successful the countries wherever concern was being done, prosecutors allege.

“It is suspected that during respective years, a immense quantity of mendacious documents person been generated successful bid to conceal these precocious payments,” said a translation of the quality release.

The metropolis has “strict requirements” for vendors to disclose if they person “previous convictions,” a spokesperson said successful an email.

Damen has not been criminally convicted and the institution met each disclosure requirements for vendors erstwhile the declaration was negotiated, Mayor Olivia Chow said Wednesday.

'We request our ferries,' politician says

She said the declaration with Damen was awarded successful 2024. The politician said the metropolis takes the charges earnestly and has a third-party inspector astatine the shipyard providing updates connected the ferry project.

“If the concern changes oregon caller accusation comes forward, the metropolis volition respond appropriately,” the politician said astatine an unrelated TTC announcement.

“We request our ferries and they’re successful the mediate of gathering [them], truthful we’ll see,” the politician said erstwhile asked if a metropolis effect could see an effort to extremity the contract.

ABOUT THE AUTHOR

Lane Harrison is simply a newsman with CBC Toronto who chiefly covers municipal and provincial politics. Born and raised successful Toronto, helium joined CBC successful 2022 arsenic a Joan Donaldson Scholar aft an internship with the Globe and Mail. You tin scope him astatine [email protected]