01:00:03:20   This story begins November 29 last year, somewhere in Amsterdam Oud-West.

 

01:00:09:03   A car stops in front of a large house. It belongs to the boss of the multinational technology corporation, Philips.

 

01:00:14:24   The driver runs a company that supplies lamps to the Dutch cannabis production industry.

 

01:00:19:20   He is furious at Philips, and it's boss Frans van Outen.

 

01:00:24:21   He sends an angry text message to say that he wants to have a conversation with the boss of the electronics group.

 

01:00:30:24   Soon after, the emergency services get a message that Frans van Houten is being threatened.

 

01:00:36:18            The police arrive in force and drag the man out of his car.

 

01:00:40:16            He shouts out that Philips is involved in cannabis cultivation.

 

01:00:44:14   That same evening, the police send the man away saying there was      no serious threat.

 

01:00:52:01   So who was that man, what was he doing, and why was he so angry?

 

01:00:57:04            The Headquarters of Philips refused to discuss the event.

 

01:01:00:12            I am familiar with this case , but I have no comment.

 

01:01:03:16   because we at Philips never comment on business disputes between us and individuals.

 

01:01:15:08            A few weeks later an envelope arrives from an anonymous source.

 

01:01:20:17            It contains prints of e-mails, documents and written statements.

 

01:01:25:13   They detail an escalating conflict between Philips and a company that delivers Philips products to the cannabis industry.

 

01:01:33:13   One of the documents contains the name of a lawyer.

 

01:01:36:09            He represents the man who argued with Phillips.

 

01:01:39:07            I am a bit overwhelmed. Does this need to be recorded?

01:01:43:17            We have documents which also contain your name.

 

01:01:46:13            May I ask you some questions about it?

 

01:01:49:03   The lawyer agrees to speak briefly about the documents.

01:01:54:20            Who is your client ?

 

01:01:57:07            -I can not tell you.

-Could we talk to him?

 

01:01:59:14            -Definitely not.

-Why not?

 

01:02:02:12   Philips forced him not to say anything. There is an agreement with them.

 

01:02:09:02            -What happens if he does talk to us?

- That costs him 100,000 euros each time.

 

01:02:13:14            -100,000 euros ?!

-100,000.

 

01:02:16:13            What is it that he needs to keep his mouth shut about?

 

01:02:19:12            What exactly is going on here?

 

01:02:29:07            Back to the documents that were sent anonymously

 

01:02:32:22            Containing names of Philips staff, brokers and other stakeholders.

 

01:02:40:06   Nobody wants to talk in front of a camera. They all seem afraid of the consequences.

 

01:02:45:08            This is their story.

 

01:02:50:06   Sometime around 2002, Philips made contact with a man who says he can sell lamps to cannabis growers.

 

01:02:59:02            The Philips account managers are interested.

 

01:03:01:22            An insider says:

 

01:03:03:19   "The cannabis cultivation industry created a high demand for Philips-produced horticultural lamps.

 

01:03:06:03   In the past Philips had suffered from unreliable contacts within this business. 

 

01:03:11:02   This man seemed to be a good broker. He delivered lamps to cannabis producers across the country. This way, Philips didn't need to have a relationship with these people."

 

01:03:24:20            Another person says:

 

01:03:26:10   "Those lights went to grow shops supplying marijuana growers. Philips knew it.

 

01:03:30:20            But Philips did not want to associate with that sector.

 

01:03:34:24   After much deliberation and conviction that there were many opportunities for Philips, the company declared its interest.

 

01:03:41:01            Prices were agreed".

 

01:03:43:08            "Philips knew it was supplying products for cannabis cultivation.

 

01:03:46:13             That market was interesting for them."

 

01:03:54:18            Hello.

 

01:03:55:23   I have a question: When I want to grow plants at home, what do I need ?

 

01:04:01:07             First you need a root stimulator.

 

01:04:04:16            Something like Pokon, but different?

 

01:04:06:23            PH- and PH+ I have. The acidity of your water.

An EC meter.

 

01:04:12:17            -This is a secret garden.

-Secret garden?

           

01:04:16:18            Your own indoor garden.

 

01:04:18:12            Lights... and what is this huge thing above?

 

01:04:22:04            A carbon filter.

 

01:04:23:19            If I use this tent, no one sees that things are grown here?

 

01:04:28:10            No, exactly.

 

01:04:30:15            - And no one smells?

-You smell nothing at all.

 

01:04:32:17            The Netherlands has over 400 growshops.

 

01:04:34:20   Anyone who wants to grow weed can buy all the equipment from here.

 

01:04:39:05   I have heard 90% of the clients at growshops come for cannabis cultivation.

 

01:04:45:16            Yes, but just don't mention it.

 

01:04:49:24            -How many of those tents do you sell per month?

-A lot.

 

01:04:54:00            -What is a lot?

-When you see how many pallets and lorries are coming into the country...

 

01:04:59:04            then you're talking about hundreds.

 

01:05:03:01            The market for products such as these is huge

 

01:05:06:22            The most important thing is a good grow lamp.

 

01:05:11:13            It's a strong light, no?

 

01:05:13:15            Why would anyone have such a strong Philips lamp?

 

01:05:15:12            There are many brands, but these are favourite in The Netherlands.

 

01:05:23:01            Back to our story.

 

 

01:05:24:11   According to our sources, Philips agreed on a price with the man who then resold their lights to the cannabis industry.

 

01:05:30:16            "The man got them for an exclusive low price from Philips.

 

01:05:34:04            This way he could build up his position in the market.

 

01:05:38:15            Philips was totally informed about the demand for lamps.

 

01:05:43:08            And about the prices that were being paid.

 

01:05:45:19   So by dealing with that man Philips had knowledge of that  particular industry."

 

01:05:49:22            He was Philips' eyes and ears in this market.

 

01:05:54:05   But Philips did not get into a written agreement...  and the man got the lights indirectly through a wholesaler.

 

01:06:00:08            There he must pay for the lamps in cash.

 

01:06:03:06   Surprisingly little was put on paper about this transaction that went on for years.

 

01:06:07:04            But can you confirm that there was an agreement?

 

01:06:09:12            Yes, he was one of Philips biggest customers.

 

01:06:13:20            -Did he have an exclusive agreement?

-From his point of view: yes.

 

01:06:17:24   We show our findings to Marcel Feifer, a Professor of accountancy at Nijenrode University.

 

01:06:24:05   It is a bit of a shame that a company like Philips has entered into such an agreement.

 

01:06:29:05            It is just a very very small part of their business.

 

01:06:32:16            So what are they doing it for?

 

01:06:34:08   This damages their image more than they can profit from it. So this is extremely unwise.

 

01:06:41:18            We call Philips.

 

01:06:44:02            Is it true that Philips has made a price agreement with a broker...

 

01:06:48:19   who Philips know he delivered these products onto the cannabis industry?

 

01:06:53:00            I have no comment on this.

 

01:06:55:18   I do not know about price fixing with who and when, and how or what.  I think it is nothing but suggestions.

 

01:07:05:21   In the 60's and 70's cannabis cultivation was the work of idealistic pioneers .

 

01:07:10:22            A few plants in the garden or in the attic.

 

01:07:13:20            Police!

 

01:07:14:21            Now however, cannabis cultivation has lost its innocence.

 

01:07:17:13            It is a great opportunity for organized crime

           

01:07:21:00            and they have turned it into a large-scale operation

 

01:07:24:03            It is said to be a larger market than that of tomato cultivation.

 

01:07:26:09            -Hundreds of millions?

-Maybe €1 billion, yes.

 

01:07:30:17            Last week newspaper NRC writes that solely in Tilburg...

 

01:07:34:12            €800 million worth of cannabis is being grown annually.

 

01:07:38:01            That is more than the budget of the city itself.

 

01:07:41:05            Criminologist Frank Bovenkerk already spotted 15 years ago that

professional crime syndicates were dealing with cannabis cultivation on a large scale.

 

01:07:51:20   It is absolutely clear that a number of serious criminal organizations are dealing with this business. Very unpleasant people."

 

01:08:00:24   Back to Philips and the broker that sold Philips lights to the cannabis industry.

 

01:08:06:03            The partnership proved to be a gold mine for both parties.

 

01:08:09:07            An insider says:

 

01:08:11:05            "that market proved to be a large, lucrative business.

 

01:08:13:21             Pretty soon it was no longer about a few lights.

 

01:08:16:13            Almost every day, the man paid 22,000 Euros cash.

 

01:08:22:09            I think his revenues are €5 to 6 million on Philips products alone.

 

01:08:26:10            Philips is THE brand in the industry. Everyone wants Philips."

 

01:08:30:07            You have the lamp itself, but this must be driven by a gear.

 

01:08:36:14   Around 2004 the partnership intensifies... as Philips and the broker talk about switches.

 

01:08:44:00            These are needed to provide power to the lamps.

 

01:08:46:15            This light can not be simply put in the mains socket.

 

01:08:51:01   According to our sources, Philips decided to deliver parts for switches to the businessman as well. One source said:

 

01:08:56:06   "He saw other things in the industry that were being made out of Philips components.

 

01:09:01:13   He said he could make them cheaper and sell them on a larger scale to the industry.

 

01:09:06:23   Philips thought this was a good idea and arrangements were made.

 

01:09:10:22   Philips supplied the components, he produced ​​the device, and Philips agreed."

 

01:09:15:21            But again, nothing was put on paper.

 

01:09:18:07            And everything was sent through a wholesaler.

 

01:09:22:10            "Everyone knew what these products were intended for.

 

01:09:25:22            But it was tremendously good business too."

 

01:09:29:05   And part of good business is a good relationship.

 

01:09:31:22   Philips treated the man to a football match in the corporate box of the Philips Stadium.

 

01:09:37:03   Furthermore, the multinational advised the man on how to best use the lights according to an email from a Philips account manager which instructed:

 

01:09:47:04   "To get this amount of light with SON-T Plus, 50,000 lux should be installed."

 

01:09:53:22   But the mail does not specify which crop the advice is intended for.

 

01:09:57:12   We show this correspondence to Ep Heuvelink , scientist at Wageningen University.

 

01:10:01:21   The circumstances of the letter are kept secret.

 

01:10:04:08            Heuvelink does not know that the advice comes from Philips.

 

01:10:07:13            Nor that the recipient supplied lamps to the cannabis industry.

 

01:10:11:01            In The Netherlands we do not grow at such high light intensities in               greenhouses.

 

01:10:15:10   Because 50,000 lux is 2-4 times higher than what is normally used in greenhouse cultivation.

 

01:10:21:22            And does this occur in commercial horticulture?

 

01:10:25:03            -No it doesn't .

-Why not?

 

01:10:28:10   Because we would have very expensive tomatoes or cucumbers if they were cultivated this way.

 

01:10:32:17   An anonymous scientist confirms our suspicions, saying

 

01:10:36:11            "there can be no doubt about which crop is meant here".

 

01:10:39:14   According to another of our sources there is nothing else the crop could have been.

 

01:10:45:00            "There were tests carried out with Philips lamps.

 

01:10:48:17   How else do you ensure that the lamps are used best for cannabis cultivation?

 

01:10:53:04            This was discussed with a botanist from Philips."

 

01:10:56:23   "When you know that these lamps are being used in an illegal industry, and you have been advised about that...

 

01:11:01:10   and you know who your customers are, then, yes, you contribute to cannabis cultivation."

 

01:11:11:17   Growing cannabis in Holland is illegal. However, providing products for growing it is not.

 

01:11:17:16            But a new law will also criminalize that.

 

01:11:22:01   Therefore, Philips has changed its policy, according to a recent email from the company. It says

 

01:11:28:10   "Philips has decreased supplies to alternative horticulture because deliveries to this sector will become illegal in the near future."

 

01:11:38:24   A bit hypocritical.

 

01:11:42:04            They should and could have known about this for a long time.

 

01:11:45:07            I also understand that this particular moral question is not new.

 

01:11:48:19   So you should not stop your business activities because legal affairs might occur, or bad publicity.

 

01:11:53:13            If you have principles, practise what you preach.

 

01:12:04:05   Philips rejects the request for an interview on camera.

 

01:12:13:11            Instead they make the following statement:

 

01:12:15:19   "Philips decided two years ago that it would not do business with company's that supply our lamps to the cannabis industry. Philips supply to these companies has now finished. When we have evidence that Philips lamps are being used for cannabis cultivation, we act by stopping supplies to the customer."

 

01:12:34:21   Back to the man who was caught by the police in front of the house of the Philips CEO. He sells Philips lamps to the cannabis industry.

 

01:12:42:20            Why was he so angry?

 

01:12:45:01   If Philips starts to reduce its business with so-called alternative horticulture, the company will have to closes its dealings with the broker.

 

01:12:50:23            They delivered one final batch of 100,000 lamps to the man.

 

01:12:54:18            In return, he signed an agreement.

 

01:12:57:22     One last time he got lights at a bargain price, but he promised to keep his mouth shut.

 

01:13:02:05            That was the deal.

 

01:13:04:01   Philips then introduced a mass of reduced price lamps to the market...

 

01:13:07:07            causing prices to plummet, explains his lawyer.

 

01:13:11:05            -So he can not do anything with those lights?

-No, that is why he is so angry.

 

01:13:19:06            Philips suggests otherwise in their response :

 

01:13:22:21            The conflict has arisen because the man still asks for lamps.

 

01:13:25:05            The company wishes to distance itself from criminality.

 

                        (PTC - should  be ok to cut)

For years, Philips made good business

in the world of cannabis.

 

 

But now that criminality seems to occurs, Philips

withdraws from what they call

'alternative horticulture'.

 

01:13:36:14   In The Netherlands, cultivation of cannabis is not legalized, it is illegal.

 

01:13:40:01   They're in a position that is conducive to crime, often organized crime.

 

01:13:45:17            Soon it becomes about tax evasion and black money circuits.

 

01:13:49:08   These are criminal activities that a business cannot be associated with.

 

01:13:54:02

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