Strukton settles corruption case with 10 million euro payment after Saudi metro bribery scandal
Dutch construction giant Strukton has paid a 10 million euro settlement to close a corruption case linked to bribes for a Saudi metro project. The scandal, involving $31 million in bribes, highlights risks of international corruption and its impact on fair trade and Dutch business reputation.
| Key Fact | Details |
|---|---|
| Company Involved | Strukton |
| Settlement Amount | 10 million euros |
| Bribe Amount | Approximately 31 million dollars |
| Location | Riyadh, Saudi Arabia |
| Project | Construction of a metro line |
| Agent Payment Concealed | 1.5 million dollars (actual: 27.5 million dollars) |
| Investigation Period | February 2013 – June 2021 |
| Investigation Authority | Fiscal Information and Investigation Service (FIOD) and Public Prosecution Service (OM) |
| Compliance Measures | Implemented by Strukton to prevent recurrence |
The Public Prosecution Service (OM) is responsible for investigating and prosecuting criminal offenses in the Netherlands, including corruption and fraud. In this case, the OM worked with the FIOD to hold Strukton accountable for bribery and forgery in an international context, reinforcing the integrity of Dutch businesses abroad.
Openrijk has no cookies or ads
But could use some support
external link to whydonate.comRead the full translated article below
Strukton pays high transaction of 10 million euros following corruption investigation
Construction company Strukton has accepted a high transaction of 10 million euros offered by the Public Prosecution Service (OM). The OM accuses Strukton of foreign official bribery and forgery in connection with the construction of a metro line in Saudi Arabia. By accepting the high transaction, the criminal case against Strukton has been concluded.
Official bribery and forgery
In April 2018, the Tax and Customs Administration reported to the Anti-Corruption Centre of the Fiscal Information and Investigation Service (FIOD) on suspicion that Strukton had paid bribes to secure a contract for the construction of a metro line in the Saudi capital Riyadh. Following this, in July 2018, the FIOD, under the authority of the OM, launched a criminal investigation into possible foreign official bribery by Strukton in Saudi Arabia. During the investigation, suspicions also arose regarding forgery in the application for an export credit insurance for the contract with credit insurer Atradius Dutch State Business N.V. (Atradius).
Findings
The investigation reveals that between February 2013 and June 2021, Strukton engaged in foreign official corruption by paying a total of approximately 31 million dollars in bribes to a company acting as its agent. The bribes secured Strukton a portion of the contract to build the metro line. Additionally, Strukton deliberately provided incorrect information on the final application form for export credit insurance with Atradius. The form stated that Strukton had paid 1.5 million dollars to this agent, instead of the agreed 27.5 million dollars. This forgery concealed the payment of bribes to the agent in exchange for securing part of the construction contract.
Severity of the facts
Strukton was aware that doing business in Saudi Arabia was corruption-prone. Despite the significant corruption risks, Strukton was willing to do business in Saudi Arabia by bribing (via the agent) a high-ranking member of the ruling family. Bribery has a strongly undermining and corrupting effect on society and negatively impacts (international) trade, creating unfair competition. Such criminal conduct also damages the reputation of Dutch businesses. Strukton actively attempted to conceal the bribery and provided false information to others, including the external accountant and Atradius.
High transaction
The OM considers Strukton’s actions to be particularly serious. The criminal resolution must therefore be effective, proportionate, and dissuasive. The OM views the payment of 10 million euros in the form of a high transaction as an appropriate resolution. Strukton has implemented remedial and compliance measures to prevent the recurrence of criminal offences. The company acknowledges the facts and expresses regret. None of the employees directly involved at the time are still employed by Strukton. Strukton has no prior convictions for similar offences. The OM took into account the time elapsed since the offences were committed and Strukton’s financial capacity when determining the amount of the transaction. Since mid-2023, Strukton has cooperated with the FIOD investigation and has had an active compliance programme in place since 2017, which is regularly reviewed. In court, the OM would have sought the same penalty. By accepting the transaction, the criminal case has been concluded.
Natural persons
The criminal investigation has identified several natural persons within Strukton who were likely involved in the criminal offences. The investigation into these individuals has been completed. The OM believes there is sufficient evidence to prosecute a number of these individuals and intends to do so.