Fraudster’s firm linked to NZ Navy
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.’’