Maritime Anti-Corruption Network Launches Landmark Port Integrity Campaign in Indian Ports

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Copenhagen, July 4, 2019— With the support of the Government of India, the Maritime Anti-Corruption Network (MACN)—a global business network of over 110 companies working together to tackle corruption in the maritime industry—today announces the launch of a groundbreaking Port Integrity Campaign in India.

 The campaign, which aims to reduce and (in the long term) eliminate integrity issues and bottlenecks to trade during operations in Indian ports, is a collective action of MACN, the Government of India, international organizations, and local industry stakeholders. The pilot of the campaign will take place in Mumbai ports (MbPT and JNPT) and will run until October this year.

 Key activities of the campaign include the implementation of integrity training for port officials and the establishment of clear escalation and reporting processes. Following the pilot, MACN aims to expand the program to other Indian ports.

 Cecilia Müller Torbrand, Executive Director, MACN, says: “MACN’s experiences in locations including Nigeria, the Suez Canal, and Argentina show us that real change is possible when all parties are engaged. That’s why we are delighted to have the support of so many key stakeholders for this Campaign to improve the operating environment in Indian ports.” 

The Port Integrity Campaign has been made possible by strong commitment from the Indian Government to work with the private sector and to address integrity issues in Indian ports.

The Ministry of Shipping, India, stated: “We are committed to ensuring that vessels calling port in India do not face unnecessary obstacles or illicit demands. Tackling these issues is good for the shipping industry, for port workers, and for India as a trade destination. We are pleased to be joining forces with MACN and other stakeholders to implement concrete actions with the potential for real impact.”

 The MACN Port Integrity Campaign is also supported by: the United Nations Global Compact Network India (UNGCNI), the World Customs Organization (WCO), the Indian Customs and Central Excise, the Directorate General of Shipping India, the Indian Ports Association (IPA), the Indian Private Ports and Terminals Association (IPPTA), the Maritime Association of Nationwide Shipping Agencies India (MANSA), the Indian Shipowner’s Association (INSA), the Container Shipping Lines Association (CSLA), the Federation Of Indian Logistics Associations (FILA), the Danish Embassy, and the Norwegian Consulate General.

MACN Launches 2018 Annual Report

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We are pleased to share with you our 2018 Annual Report. This contains a comprehensive summary of our work and progress in 2018 under the three pillars of our strategy: Collective Action, Capability Building, and Culture of Integrity.

Below is the introductory letter from John Sypnowich, Chair of MACN:

Dear colleagues and friends,

After more than a year as Chair of the Maritime Anti-Corruption Network (MACN), two things are very clear to me. First, the growth and momentum of our Network gives us an unprecedented opportunity to progress in the battle to eliminate corruption in the maritime industry. Second, the need for action is high: our seafarers continue to face unacceptable risks in numerous regions.

There has been a lot to celebrate in 2018. Our growth to over 100 members makes us a clear leader in private-sector anti-corruption collaborations, and our collective actions have gone from strength to strength. As an example, following the implementation of new regulations in Argentina as a result of our collective action, reports of corrupt demands in Argentine port calls to MACN’s anonymous incident reporting system have dropped by 90 percent.   

That’s a big result that we should all be proud of. But we also continue to hear accounts from our seafarers—either directly or through our shared reporting system—of harassment and threats as they try to complete routine port calls. In our social media campaign last December, we shared some of these stories:

- “If facilitation is not paid we are threatened with detention or no port clearance.”

- “Cases of extortion, harassment, and threats of violence are frequent events.”

- “In many places the customs officers always try to find defects and threaten us with penalties. They waste a lot of time checking and harassing the crew.”

Changing the attitudes that create these situations is hard work. We, as a Network, have the numbers to make a difference and we have seen this year that our efforts are directly benefiting seafarers. As one put it:

- “There were a few initial attempts while we passed through, but after a documented and polite denial it was clear that the vessel was part of MACN and no more questions were asked.”

These stories inspire me and remind me of what we can achieve. However, effective action requires consistent engagement from us as companies and from our partners around the world. We must keep pushing: contributing ideas and reports, coordinating our activities, working with our internal teams.

I call on all of us to maintain our commitment to work with and for each other. Let’s all work together in 2019 to bring us even closer to our goal of a maritime industry free of corruption, and together we will create a safer environment for all of our crews.

 With warm regards,

John Sypnowich, The CSL Group, Inc.; Chair, MACN

REGISTER: MACN Member Meeting: October 30-31, 2019 | London, UK

Registration is now open for the Fall MACN Member Meeting in London, UK

The meeting will take place in London on 30-31 October, 2019 at the Bloomsbury Hotel.

MACN Member Meetings are open exclusively to members of MACN and select observers. Last year in London we welcomed over 100 participants for two days of discussion, analysis, best practice sharing, and strategy development. The meetings are regularly rated by members as one of the most significant benefits of membership, with the opportunity to learn from and network with peers while hearing from external experts on anti-corruption and compliance topics.

Please register here by Monday, September 30 to confirm your spot.

We look forward to seeing you there!

IMO To Include Anti-Corruption on Formal Agenda

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Last week, the International Maritime Organisation (IMO) showed massive support  agreeing to include maritime corruption as a regular work item on its agenda. A paper on the topic of maritime corruption was presented by the Marshall Islands with  many countries and international organizations  expressing their endorsement of a proposal to develop guidelines to assist all stakeholders in embracing and implementing anti-corruption practices and procedures at the 43rd meeting of the Facilitation Committee (FAL).  The IMO will now work on a Guidance document to address maritime corruption. This is expected to be completed by 2021.

 Danish Shipping welcomed the support from the international community for this initiative. “We have a long-standing commitment to stamping out maritime corruption.  Thanks to the targeted efforts of MACN, we have seen tangible change in locations such as the Suez Canal, where facilitation payments have decreased considerably. With the IMO’s 174 member states working together on this agenda, we will stand even stronger in the fight against maritime corruption. Putting maritime anti-corruption on the IMO agenda marks a significant milestone for the maritime community as a whole”, says Anne H. Steffensen, Director General and CEO at Danish Shipping.

 The Maritime Anti-Corruption Network applauds the efforts the IMO has taken to address maritime corruption as a regular work item. MACN’s Director, Cecilia Müller Torbrand, commented “It is important for the industry to have maritime corruption recognized as a problem by the IMO in its role as the international regulator for shipping. Issues such as the wide discretionary powers held by some port officials have the potential to impact all ship owners, managers, and operators. The requirements for port entry too often lack transparency, are deliberately misapplied, or widely interpreted for private gain.”

Background
In 2018, MACN, together with leading maritime associations, started to engage the IMO on the consequences and risks facing the maritime industry in relation to maritime corruption. An IMO submission was sponsored by 12 NGO’s and submitted to the IMO’s Facilitation Committee in June 2018 (FAL 42/16/3). The submission was supported by a presentation to IMO delegates from MACN and ICS.

Maritime corruption has far-reaching consequences, it is detrimental to shipping operations and port communities, can have damaging effects on trade and investment, which in turn can have a negative effect on social and economic development. The IMO Facilitation Committee requested the IMO Secretariat provide advice on how to address this problem and invited Member States and international organizations to submit documents to the next FAL meeting with suggested actions to address this problem.

What does this mean for the industry?
This is a significant milestone both for MACN’s work and for the industry to have the IMO recognising the damaging effect corruption has on shipping and trade” says MACN’s Director Cecilia Müller Torbrand.  “Our hope is that MACN’s work will gain more leverage with IMO member states and that we can further strengthen the public-private dialogue in MACNs collective action programs (i.e. in country work).”


Congratulations to the member states and organizations who submitted the proposal this year: Liberia, Marshall Islands, Norway, United Kingdom, United States, Vanuatu, ICS, IAPH, BIMCO, ICHCA, IMPA, IFSMA, INTERTANKO, InterManager, IPTA, IHMA, IBIA, FONASBA, ITF and NI.