Dutch authorities are investigating financial transactions linked to a Dutch-based healthcare company involved in two hospital projects in Sri Lanka. The focus of the probe is on deposits made by the company into an offshore account registered in the British Virgin Islands, belonging to a prominent Sri Lankan businessman.
The Netherlands Financial Intelligence and Investigation Service (FIOD) has launched searches as part of a corruption investigation, according to an official press release. The agency confirmed that searches and witness interviews had been conducted in three other countries last year.
The investigation targets two companies, although their names were not disclosed in the press release. However, Dutch financial daily Het Financiël Dagblad (FD) identified them as Enraf-Nonius and AKM-International Project Development. The newspaper shared public documents related to the case with The Sunday Times.
The Sri Lankan projects under scrutiny involve the construction of hospitals in Hambantota and Nuwara Eliya, under an agreement signed between EN-Projects (a subsidiary of Enraf-Nonius) and the Sri Lankan Ministry of Health in June 2011.
Sri Lankan Financial Crimes Investigation Division (FCID) Links
Previously, Sri Lanka’s Financial Crimes Investigation Division (FCID) uncovered significant deposits made into a Singaporean bank account owned by Sabre Vision Holdings Ltd (SVHL), a British Virgin Islands company. This was during an investigation into potential fraud related to the lease of land in Fort to Krish Transworks Colombo (Private) Ltd.
According to documents, the beneficial owner and account holder of SVHL was Don Nimal Hemasiri Perera, a self-proclaimed stock market expert.
Between August 21 and October 31, 2012, multiple payments were made to SVHL accounts, including:
- A transfer from the Deutsche Bank Privat–Und Geschaeftskunden Ag account of Juga Bau GmbH, a German company.
- A payment from Aspen Medical Pty Limited, an Australian company, via an ANZ Bank account.
- A deposit from Enraf-Nonius (EN-Projects) via Rabobank Nederland, a Dutch bank.
The total sum transferred during this 42-day period amounted to €4,330,785.02 and US$536,909.80, allegedly for “consulting fees.” The FCID later discovered that Juga Bau GmbH had also received funds from EN-Projects in its own account.
Dutch Corruption Investigation Expands
In November 2019, under the Mutual Assistance in Criminal Matters Act, Sri Lankan authorities requested information from Dutch and Singaporean authorities regarding transactions involving the SVHL bank account.
Now, the FIOD, operating under the Dutch Public Prosecution Service, has confirmed that two companies are suspected of official corruption and fraudulent misrepresentation. Additionally, four individuals are suspected of orchestrating the illegal activities of these companies.
While the FCID investigation did not initially mention AKM-International Project Development, recent reports from FD suggest that IPD, a development arm of AKM, was involved in supervising technical designs, construction finance, and contracts for these projects.
IPD’s directors have admitted that they only recently discovered that Nimal Perera had misused their company’s name between 2012 and early 2015. They also claimed that Enraf-Nonius approved the payments in advance, and the procedures were discussed with Rabobank and Dutch tax authorities.
IPD has maintained that it had no knowledge of illegal activities and still has confidence in Enraf-Nonius’ previous management (before its sale to new owners in 2021).
Bribery Allegations and International Oversight
FIOD officials seized digital and physical evidence from three homes and two business premises in The Hague, Barendrecht, and Rotterdam as part of their investigations.
The agency suspects that bribes were paid over several years through suspicious companies to secure construction contracts for public buildings abroad. According to FIOD, these payments were funneled into foreign bank accounts of intermediaries and were allegedly intended for a high-ranking Sri Lankan official.
To obscure the illicit payments, false contracts and invoices were allegedly created.
While FIOD has not publicly named the high-ranking Sri Lankan official involved, the report states that the projects were funded by a Dutch bank and insured by the Dutch government. The investigation was triggered by a report on suspicious transactions filed with the Financial Intelligence Unit (FIU) and intelligence received from the International Anti-Corruption Coordination Centre (IACCC).
Simultaneous to the Dutch investigations, searches and witness interviews were conducted in three additional countries as part of the broader anti-corruption probe.
Millions in Bribes Allegedly Paid
The Dutch Attorney General’s office now suspects that the two companies involved in Sri Lanka’s hospital projects paid millions in bribes to secure contracts worth at least €100 million.
Investigative journalists at FD reported that bribes were often funneled to a high-ranking civil servant and that the payments were concealed through false contracts and invoices.
With authorities in both Sri Lanka and the Netherlands actively investigating these financial transactions, the case is expected to reveal further details regarding corruption in Sri Lanka’s healthcare infrastructure projects.
SOURCE :- SUNDAY TIMES
