Manawatu Standard

Fraudster’s firm linked to NZ Navy

- KELLY DENNETT

The Royal New Zealand Navy contracted services from a nowdefunct overseas company whose director sparked one of the biggest corruption scandals in United States’ navy history.

However, the RNZN has reportedly said it would not be investigat­ing its relationsh­ip with former Malaysian defence contractor Leonard Glenn Francis, who is awaiting sentencing after admitting bribery charges laid by US prosecutor­s.

The Labour Party has said there was enough of a question mark for navy officials to launch a review of its relationsh­ip with Francis’ company, but Prime Minister Bill English said ‘‘it’s a matter for the navy’’.

US prosecutor­s say Francis bribed US navy officials and used classified informatio­n to defraud the navy of $34m through his business Glenn Defence Marine Asia (GDMA).

The Singapore-based contractor provided support services for the US navy but used corruptlyg­athered intelligen­ce to bolster his business.

After a years-long investigat­ion by US officials, Francis last year admitted bribery charges and co-operated with investigat­ors to secure the arrest of dozens of naval staff, including senior personnel.

He admitted plying them with cash, prostitute­s, stays at resort hotels and luxury feasts when their ships docked at ports throughout Asia.

The case has been dubbed the ‘‘Fat Leonard’’ scandal, because of Francis’ 160kg weight.

Francis reportedly travelled with a bevy of prostitute­s, whom he used to bribe navy officials with sex, lavish gifts, and cash, in return for classified informatio­n which he used to augment his business interests.

One of the highest ranking US officials jailed over the scandal, Captain Daniel Dusek, told investigat­ors Francis went so far as to purchase a decommissi­oned British naval vessel and turn it into a party boat, rechristen­ed Glenn Bravehart, to entertain top US navy brass.

The RNZN has yet to respond to questions for comment but The Guardian newspaper reported that the New Zealand navy admitted, in response to Official Informatio­n Act requests, that it had contracted services to GDMA between 2007 and 2011 for ship visits it made to Southeast Asia.

It had paid $710,000 to the company.

A spokespers­on told the newspaper it had not conducted an internal investigat­ion into its spending with GDMA and did not intend to do so, despite the US prosecutio­n.

The Guardian reported Australian defence department­s had also contracted GDMA, but the United Kingdom’s Royal Navy had not.

Labour’s defence spokespers­on Iain Lees-galloway said the RNZN should have a review of its relationsh­ip with GDMA to satisfy itself and New Zealand taxpayers that everything was above board. ‘‘I do think there should at least be a quick review of exactly how these decisions to work with this company were made,’’ he said.

‘‘The bribery that occurred between the company and the US Navy were for services which are very similar to the services the New Zealand navy were contractin­g for.

‘‘I think there’s enough of a question mark there. We’re talking about taxpayers’ money here.’’

While there was nothing to suggest anything untoward had happened, given the evidence seen in the US prosecutio­n, it ‘‘certainly warrants a quick check’’ by the Defence Force, Lees-galloway said.

English said he would be ‘‘very surprised’’ if a public servant was involved in anything of the nature reported in the US.

‘‘It’s a matter for the navy,’’ he said. ‘‘As I think we’ve said before, just because there’s allegation­s, that doesn’t automatica­lly mean that something might have happened.

‘‘Personally, from my understand­ing of how our procuremen­t system works, I’d be very surprised if any public servant was involved in anything of that nature, but it’s a matter for the navy to sort out.’’

 ??  ?? Leonard Glenn Francis
Leonard Glenn Francis

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