Transcript Dutch NewsHour broadcasting, researching BIBOB (I will translate this article too, below).
The Bibob Act
The Bibob Act (Promoting Integrity Assessments by the Public Administration) is intended to keep crime out of the upper world. Under this Act, municipalities, provinces and the State can exchange information with investigative agencies.
The annual report shows that 320 recommendations were requested from the National Bureau on BiBob, where the government can request an investigation if there are doubts about a person, an enterprise or an organization. Of these, 304 were requested by municipalities and provinces, and only 16 by the national government. That is 5 percent of all requests. In 2021, there were 467 requests, 25 of which came from the national government. That is 5.3 percent.
Transcript and translations by Cora Westerink
Introduction by a Voice-over NewsHour journalist (0:00 – 0:47 minutes): “When we think of undermining crime we often think of serious, organized crime, but there are many degrees such as the use of public licenses and subsidies for criminal activities. If you have amassed black money through your shady business, it is handy if you can launder it through a sandwich shop, for example. But then, of course, you have to get a license from the municipality. Or the criminal sets up a fake company with which he improperly applies for a subsidy. The intention of the Bibob Act is that the government investigates all these kinds of activities in advance to examine whether an applicant has integrity, and then whether or not to grant that license. A preventive tool to combat fraud and undermining.”
Broadcast proceeds in the NewsHour Studio
Jeroen Wollaars (0:47 minutes), Anchor NewsHour: “Municipalities, provinces and the state can exchange information with investigative organisations on the basis of the Bibob to prevent licenses and subsidies from being granted too lightly to criminal organisations. But research by NieuwsUur shows that in practice there is a big difference in the implementation of the Bibob Act between the national government and the municipalities.”
Videomessage by Ferd Grapperhaus, Former Minister of Justice and Security (CDA-politician…): “The fight against subversion is pioneering work. It is a constant learning process. A year or two ago, I still regularly heard administrators say, “Undermining crime? No, we don’t have that here.” I don’t hear that anymore. By now, we have all figured it out.”
Voice-over NewsHour journalist Ger van Westing: “The previous cabinet put urgency in tackling crime. Behind the alarming words is everyday practice. Take this business park in Utrecht-Noord. Formerly better known as the autoboulevard. You don’t have to tell Bob Scherrenberg, board member of the entrepreneurs’ association, what undermining crime means.”
Board business’ Association North-Overvecht Bob Scherrenberg to journalist Ger van Westing: “We have had an illegal cigarette factory here, drug-related activities. Recently, a batch was dismantled that was engaged in manufacturing materials for explosive robberies.”
Utrecht Mayor Sharon Dijksma (PVDA) to journalist Ger van Westing: “Unfortunately, we noticed that there were many problems that touched on criminal undermining. This was evident from police figures, 40% more registration, of cases. Three times as often, these were also related to subversion. So the situation was just not good enough.”
Voice-over NewsHour journalist Ger van Westing: “Based on the Bibob Act, the municipality of Utrecht pulls the strings. This month, all 97 car companies must have applied for a licence, and will be investigated, whether they like it or not.”
Utrecht Mayor Sharon Dijksma (PVDA) to journalist Ger van Westing: “We can then use this investigation to determine whether we are right to issue a licence or whether there is a risk that criminal activities will also take place in such a building, for example.”
Board business’ Association North-Overvecht Bob Scherrenberg to journalist Ger van Westing: “For most people, it will not have any consequences but for those who have a certain criminal past, it may mean that entrepreneurship stops here.”
NewsHour journalist Ger van Westing to Utrecht Mayor Sharon Dijksma (PVDA): “How important is the Bibop Act to you as a mayor?”
Utrecht Mayor Sharon Dijksma (PVDA) to journalist Ger van Westing: “For me as a mayor, the Bibob Act is crucial because it ensures that I can determine much better at the front end whether I might be dealing with criminals or with criminal activities. I need that in a city that is vulnerable to subversive crime.”
Voice-over NewsHour journalist Ger van Westing: ” For the mayor, the Bibob Act is crucial. But how is it for the national government? AlbertJan Tollenaar, Professor of Administrative Law and the Netherlands’ number one Bibob expert, questions this.
Albertjan Tollenaar, Professor of Administrative Law to journalist Ger van Westing: “If you look at the development of the Bibob Act in recent times, in which the Act has gained a much broader scope, certainly the central government too should and can make use of the Bibob Act in all its capacities. In any case, that is what the legislator thought at the time.”
Voice-over NewsHour journalist Ger van Westing: “The Bibob Act thus gives the national government many opportunities to investigate subversive crime in advance. But does this also happen as we saw in Utrecht? We ask the national Bibob Bureau. We ask the national Bibob agency, which governments can approach for advice on the Bibop Act. It turns out that in 2020, out of 320 advisory requests, 304 were requested by municipalities and provinces and only 16 by national administrative authorities. That is 5% of all requests. In 2021 it concerned 467 advisory requests, 25 of which were submitted by the national administrations. That is 5,3 % of all requests. […] The national government therefore hardly uses the Bibop Act. We put it to the test and investigated the largest subsidy providers in the Netherlands.”
The government is committed to an excellent entrepreneurial climate. The ministries formulate policy for this. The task of implementing this policy is entrusted to the government agency for entrepreneurial Netherlands.
Voice-over NewsHour journalist Ger van Westing: “We ask the government department for entrepreneurial Netherlands, responsible for 15 billion euros in subsidies per year, how often the Bibob Act was used between 2019 and 2021.”
The government department for entrepreneurial Netherlands: “In principle, Bibob is not applied within the Government agency for entrepreneurial Netherlands for grants financed from national resources. Bibob is also not applied to EU subsidies.”
Albertjan Tollenaar, Professor of Administrative Law to journalist Ger van Westing: “I find that frightening. Especially with those bigger pots, I bet that people with lesser credit / integrity make use of them.”
Journalist Ger van Westing to Albertjan Tollenaar, Professor of Administrative Law: “You mean criminals?”
Albertjan Tollenaar, Professor of Administrative Law to journalist Ger van Westing: “Yes, especially in networks. You could also be dealing with someone who finances an organisation that launders money, which you can accelerate with a grant. That is not what you want.”
Voice-over NewsHour journalist Ger van Westing: “What this means in practice, explains lawyer Nathan Gradisen, specialized in the Bibob Act and advisor of governmental bodies.”
Lawyer Nathan Gradisen to journalist Ger van Westing: “I discover that the government agency for entrepreneurial Netherlands (RVO). I see, for example, that the RVO provides subsidies for solar parks. Well, some of the solar park plots are built with subsidies. But some of it will, of course, need other funding. There are examples of criminals investing in such solar parks. With criminally acquired assets. This means that black money is being laundered through this solar park. If you grant a subsidy for this as the RVO, then yes, you are actually participating in this.”
Voice-over NewsHour journalist Ger van Westing: “The Ministry of Economic Affairs, to which the RVO falls, recognises that the Bibob assessment deserves more attention. The Ministry of Economic Affairs, to which the RVO belongs, recognises that the Bibob check deserves more attention, but also says that systematic checks are made afterwards on the spending of public money. Attorney Gradisen does not consider this a strong defence.”
Lawyer Nathan Gradisen to journalist Ger van Westing:“No, this cannot be compared with a Bibob procedure, because in that case financial processes are examined in particular. Are they in order? If you, as the RFO, spend 15 billion on subsidies, then I think it is better to give less of a subsidy and to ensure that the subsidy you give does not end up with criminals, rather than necessarily not applying the BiBob Act.”
Voice-over NewsHour journalist Ger van Westing: ” The government department for entrepreneurial Netherlands (RVO) thus provides 15 billion on subsidies without applying the Bibob Act. They are not the only ones who fail to check. The Ministry of Social Affairs also has a subsidy provider called, “SZW DSU Implementation of Policies. This service provides 2 billion in subsidies per year. What is the policy here?”
Answer Ministry of Social Affairs: “SZW DSU Implementation of Policies did not carry out any Bibob assessments.“
Voice-over NewsHour journalist Ger van Westing: “So, also the Ministry of Social Affairs does not apply a Bibob investigation in advance of a subsidy being granted, despite of the passionate call of Ferd Grapperhaus, a few years ago, it turns out that the two major Dutch subsidy providers, hardly use the Bibob Act.”
Journalist Ger van Westing to Albertjan Tollenaar, Professor of Administrative Law: “What conclusion can you draw if you have the Bibob Act at your disposal, but do not use it?”
Albertjan Tollenaar, Professor of Administrative Law to journalist Ger van Westing: “We call that “window-dressing”. So then you have a law that makes you think, “well, it’s all arranged nicely, we have an instrument arranged. Tackling undermining is not a problem, because we have the Bibob Act.” But meanwhile you do nothing with it.”
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researching BIBOB translation:
Ministries fail to use most important tool against criminal undermining
While organised crime is gaining a foothold in the Netherlands, ministries that provide subsidies worth billions are barely making use of the most important instrument for tackling criminal undermining: the Bibob Act.
Under the Bibob Act, governments may screen entrepreneurs when applying for licences, government contracts and property transactions. If there is a “serious risk” of abuse, the government can refuse a licence.
17 billion
However, an investigation by Nieuwsuur shows that the two largest ministerial subsidy providers barely carry out a Bibob investigation when applying for subsidies. These are the Government department for entrepreneurial Netherlands (RVO) and the Beleid Uitvoering (Implementation of Policy) agency. These two agencies together provide 17 billion euros in subsidies per year.
After questions by Nieuwsuur, RVO let it be known that the ministries themselves determine whether they use the Bibob in subsidy applications. “RVO has not made any agreements with the various ministries about this. Bibob investigation is therefore not applied to national subsidies nor to EU subsidies.
The Ministry of Economic Affairs informs us that there is no Bibob assessment because control “takes place after the fact”. “Bibob is not the only means of ensuring the actual use of public funds and is also expensive.” Internal checks take place on the spending of public funds, the ministry says.
It is shocking, says Albertjan Tollenaar, professor at the University of Groningen and the Bibob specialist in the Netherlands. “The amounts involved are enormous and the recipients of subsidies are large. I would like to know: who are we going to do business with? With Bibob you can check whether you are not inadvertently facilitating a criminal.”
The Ministry of Economic Affairs admits that it is strange that Bibob testing happens so rarely: “We are working on better arrangements.”
‘Amazing’
Nieuwsuur also asked the Policy Implementation Department how many Bibob assessments had been carried out on subsidy applicants in the last three years: in the period mentioned there were zero.
Lawyer Nathan Gradisen worked for years as a lawyer for a provincial authority. Now he advises municipalities on the application of Bibob. “It’s amazing that the national government ignores this instrument. Because Bibob is a very good instrument to ensure that a subsidy does not end up with criminals and is not misused for money laundering.
He considers ex-post control to be insufficient. “In a Bibob investigation you can access closed sources: judicial and police data. If a government does not request these, they are not known and will not surface during inspections and audits.”
‘Lack of curiosity’
Criminal activities may involve, for example, laundering drug money, dubious property transactions or fraudulent use of subsidies. Methods by which the underworld nests in the upper world. In The Hague, they call this “undermining crime” and it is one of the biggest administrative problems in our country.
Tollenaar says that there are many crime-inducing sectors in which subsidies play a role. “The waste sector and investments around the energy transition. These attract parties who are willing or able to launder money. And if you can get a subsidy on top of that.”
A lack of curiosity at RVO and naive, is how Tollenaar characterises it. “Then you have a law that can tackle undermining, but you do nothing with it. By doing so, you leave the risk that subversive crime will take place with your subsidy.”
When we think of undermining crime, we often think of serious crime. But there are many gradations.
For MPs, the findings are reason to ask the responsible ministers for clarification. “It is distressing that RVO does not use the law,” says VVD MP Ingrid Michon. “We can only tackle ruthless organised (drug) crime if all relevant government organisations pull out all the stops to get criminals in the picture at an early stage.”
Pub owner
D66 MP Joost Sneller also finds it very strange that RVO hardly checks whether the hundreds of millions of euros in subsidy do not end up in the wrong hands. “The Minister of Justice calls on municipalities to make more use of Bibob and the law will soon even be extended. Meanwhile, the central government itself has opportunities to keep criminals out, but does not use them.”
SP MP Michiel van Nispen finds it “double standards”. “A pub owner in Breda is completely vetted for a licence, but when it comes to billions in subsidies from the central government, apparently nothing happens.”
