Following the cancellation of the F126 type frigate project, which was planned to be produced for the German Armed Forces (Bundeswehr), the main contractor, Dutch Damen shipyard, requested a progress payment of 4 billion 679 million 663 thousand 394 euros from the German government.
The suspension of the F126 frigate program, one of the largest modernization projects of the German navy, turned into a military-industrial crisis between Germany and the Dutch company.
According to BILD newspaper, Damen shipyard's lawyer Peter Gauweiler sent an official letter to the members of the Budget and Defense Commission of the German Bundestag and conveyed the payment request.
Gauweiler emphasized that the approximately 4.7 billion euros requested are not an additional compensation case, but are direct payments contractually committed by the German federal government.
Peter Gauweiler said in the letter, "These are requests for the federal government to cover the costs that it has contractually promised to pay to the Damen shipyard. The fact that Defense Minister Boris Pistorius has terminated the contract does not change this obligation. Moreover, a large part of this money will be transferred to the shipyard's hundreds of subcontractors in Germany."
Gauweiler stated that the amount of compensation may increase further in the future and noted that the damage assessment studies have not reached the final stage.
"ABUSE OF OFFICE" ACCUSED AGAINST THE MINISTRY OF DEFENSE
Attached to the letter sent to the MPs was an official letter written to German Defense Minister Boris Pistorius on September 22.
The letter claimed that "suspicions of abuse of duties and powers by the senior management of the German Ministry of Defense have seriously intensified."
In line with these allegations, the Dutch Damen shipyard demanded that the ministry sign a legally binding undertaking for all damages arising from violations of authority and that may arise in the future.
COST COULD REACH 18 BILLION EURO
In the background of the billion-euro crisis is the termination of the 6 F126 type frigate projects planned to be built for the German navy.
Although the Dutch company Damen was the general contractor of the project, the ships were planned to be built entirely in Wolgast, Kiel and Hamburg shipyards in Germany.
German Defense Minister Boris Pistorius decided to stop the project completely on June 24.
The Ministry of Defense cited serious delays in the project, huge cost increases and unforeseen risks as reasons for the cancellation decision. According to ministry calculations, it was reported that if the project continues, the total cost could reach 18 billion euros.
MINISTRY IS PREPARING FOR LAWSUIT AGAINST DAMEN
Damen shipyard, on the other hand, rejects the claims of the German government and argues that the cancellation decision was taken entirely for "political reasons". It is also noted that the federal government has ordered two additional frigates depending on the project in June 2024.
Defense Minister Pistorius, who rejected the accusations, said in his statement in July that the termination decision was entirely due to the "bad and incomplete performance" of the contractor company.
While Pistorius argues that the decision was taken meticulously to protect taxpayers' money, the German Federal Government is preparing to file a counter-damage lawsuit of 2.3 billion euros against the Damen company.
