Dutch authorities are investigating deposits made by a Netherlands-based healthcare company involved in two hospital projects in Sri Lanka. The deposits were made into the offshore account of a British Virgin Islands-registered company, whose beneficial owner is a prominent Sri Lankan businessman.
The Dutch Fiscal Intelligence and Investigation Service (FIOD) conducted searches as part of an investigation into corruption, according to a press release from the office. Additionally, searches and witness interviews took place in three other countries last year.
The investigation is focused on two companies, although their names were not disclosed in the press release. However, Dutch financial daily Het Financieele Dagblad (FD) confirmed that the companies under investigation are Enraf-Nonius and AKM-International Project Development. The newspaper shared public documents related to the probe with the Sunday Times.
The Sri Lankan projects in question involve the construction of hospitals in Hambantota and Nuwara Eliya. An agreement for these projects was signed between EN-Projects and the Ministry of Health in Colombo in June 2011. EN-Projects is a subsidiary of Enraf-Nonius of the Netherlands.
In a previous investigation, the Sunday Times reported that Sri Lanka’s Financial Crimes Investigation Division (FCID) uncovered significant deposits into the Singapore bank account of a British Virgin Islands company, Sabre Vision Holdings Ltd (SVHL), while investigating potential fraud in the lease of land in Fort to Krrish Transworks Colombo (Pvt) Ltd. According to documents, the beneficial owner of the account was stock market expert Wannakawattawaduge Don Nimal Hemasiri Perera.
Between August 21 and October 31, 2012, several payments were made into SVHL’s account. One deposit originated from the Deutsche Bank Privat-Und Geschaeftskunden Ag account of the German company Juga Bau GmbH. Another came from the Australia and New Zealand Banking Group Limited (ANZ) account of the Australian company Aspen Medical Pty Limited. A third deposit came from the Rabo Bank Nederland account of Enraf-Nonius (EN-Projects) in the Netherlands. These payments, totaling €4,330,785.02 and USD 536,909.80, were purportedly for “consultation.” The FCID traced the funds back to Juga Bau GmbH, which also received payments from EN-Projects.
Sri Lankan authorities reached out to the Dutch and Singaporean governments in November 2019 under the Mutual Assistance in Criminal Matters Act, seeking information regarding transactions to and from the SVHL bank account.
FIOD, under the supervision of the Dutch Public Prosecution Service, suspects that two companies are involved in “official corruption and forgery.” Four individuals are believed to have directed the companies’ prohibited activities.
While AKM-International Project Development is not directly mentioned in the FCID investigation, FD reports that IPD, a development branch of the architectural firm AKM from Barendrecht, was involved in supervising and monitoring technical design and construction finances, among other tasks. IPD signed contracts with Enraf-Nonius for this purpose.
IPD’s directors acknowledged that from 2012 to early 2015, they transferred payments to a company that they only recently learned might have been misused by Nimal Perera. IPD asserts that payments were checked and approved in advance by Enraf-Nonius, and the procedure was discussed with Rabobank and tax authorities. The company further emphasized that it has no knowledge of any unlawful activities and still has confidence in the former management of Enraf-Nonius, which was sold to new owners in 2021.
According to FIOD’s press release, searches were conducted at three homes and two business premises in The Hague, Barendrecht, and Rotterdam, where both digital and physical evidence were seized. FIOD suspects that bribes were paid for years through the involved companies to secure contracts for the construction of public buildings abroad. The payments were made to foreign bank accounts of companies acting as intermediaries, likely intended for a high-ranking foreign official. To conceal the payments, the suspects reportedly created false documents, including agreements and invoices.
FIOD did not identify the high-ranking foreign official involved. The foreign projects were financed by a Dutch bank and insured by the Dutch government. The investigation was initiated following an unusual transaction report to the Financial Intelligence Unit (FIU) and information from the International Anti-Corruption Coordination Centre (IACCC).
In parallel with the searches in the Netherlands, investigations, including witness interviews and searches, were carried out in three other countries.
FD’s investigative journalists report that Dutch prosecutors suspect that bribes were paid during the construction of the Sri Lankan hospitals. To secure these projects, valued at at least €100 million, millions of euros in bribes were allegedly paid to a high-ranking civil servant. The bribes were reportedly concealed through forged contracts and invoices.
