Oceanco fined over illegal Myanmar teak on Jeff Bezos’ superyacht
Dutch boatbuilder Oceanco says it has ‘deep regrets’ after it was issued with a penalty order of €150,000 for using illicit Myanmar teak on Jeff Bezos’ superyacht Koru.
The Dutch Public Prosecution Service (Openbaar Ministerie OM) has confirmed that a settlement was reached with a “Dutch yacht builder” for breaching the EU Timber Regulation (EUTR). Oceanco has confirmed to MIN in a statement that it is the builder in question.
Just days prior, Sunseeker International, the UK’s largest luxury yacht builder, was fined more than £350,000 for a violation of teak regulations.
Koru, the world’s largest sailing yacht and one of the most expensive ever built, with an estimated $500m price tag, was commissioned by Bezos in 2019 from Oceanco in Rotterdam.
The EU Timber Regulation (EUTR) prohibits the entry of illegally harvested timber into the EU market. It requires those placing timber on the market to conduct due diligence to verify the legality of its sourcing. Since 2020, the EU Commission EUTR Expert Group has maintained that it is nearly impossible to meet EUTR requirements for imports of timber from Myanmar.
During a criminal investigation that began in March 2022 into the sourcing of timber for Koru, it was found that Myanmar teak had been used for the yacht’s deck, imported into the EU market by a German timber merchant, Alfred Neumann GmbH.
Concerns over these imports had originally been raised by the non-profit Environmental Investigation Agency (EIA) to German authorities in 2019 via the EUTR’s substantiated concern mechanism.
While Oceanco was not held directly responsible for violating the EUTR due to the German company’s role in placing the teak on the market, the information was forwarded to German authorities for further action.
It was also a German company, Wolz Nautic GmbH, that was linked to illegal teak in the Sunseeker case.
The investigation into Koru also revealed that wooden furniture and finishing products for the yacht were made from Myanmar ‘blood’ teak, a phrase that refers to teak wood illegally harvested in Myanmar, often linked to human rights violations, environmental destruction and funding for the military regime.
These items were purchased from a Turkish company in 2022, and since Oceanco was the first to place these products on the EU market, it was found to be in violation of the EUTR for not conducting due diligence on the timber’s origin.
The press release from the Dutch Public Prosecution Service notes that Oceanco “recognises the importance of the EUTR legislation and deeply regrets that this has happened.” It adds that the company decided in 2019 to stop using Myanmar teak for new orders. Koru is the last vessel built by Oceanco using this timber, with construction beginning before 2019.
Oceanco acknowledged its failure to carry out proper due diligence on the origin of the teak used in the furniture and finishing products, which led to the €150,000 penalty order.
EIA Forests Campaign leader Faith Doherty says: “This is the second criminal fine issued in the past two weeks involving traders illegally purchasing and using Myanmar teak in the EU and UK markets … EIA urges the authorities to implement sanctions targeted at Myanmar teak by investigating those who have recently been found in violation of the EUTR for Myanmar timber imports.
“These sanctions have been in place for more than three years and possible sanctions breaches must be investigated in parallel with EUTR cases.”
Oceanco statement
Oceanco provided a statement to MIN about the case, which can be read in full below:
“Oceanco acknowledges the conclusion of the recent investigation by the Dutch Public Prosecution Service regarding the use of Myanmar teak in one of our projects. We fully accept the findings and have reached a settlement of €150,000.
“We like to highlight that the investigation revealed that Oceanco had all the required documentation for the wood used on the yacht’s decking in proper order. However, it was also established that in 2022, Oceanco imported pieces of teak furniture through a Turkish supplier, in that case without fully adhering to the EUTR’s due diligence requirements for importing teak into the EU.
“Oceanco deeply regrets these oversights and reiterates that it has never intended to violate EUTR regulations. Recognizing the importance of sustainable practices, we ceased the use of Myanmar teak for all new orders in 2019, and this case pertains to a yacht project initiated before this policy change.
“As a leading yacht builder, Oceanco is steadfast in our commitment to compliance, sustainability, and environmental responsibility. We have enhanced our due diligence processes to ensure this does not occur again and will continue to work closely with our partners to uphold the highest standards of ethical sourcing.”
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