News and Events

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.

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

According to the latest data from the Maritime Anti-Corruption Network’s (MACN) Anonymous Incident Reporting System, corruption incidents in Argentina where MACN has engaged in collective action have decreased by more than 90 percent. This drop follows the development of a new regulatory framework with the National Service of Health and Agri-Food Quality (Senasa), the development of a new IT system for processing and registering hold/tank inspections, and high-level government support. These developments are part of the collective action project MACN created to support reforms initiated by Senasa, other local stakeholders, and the broader shipping community in Argentina back in 2014.

MACN Program Director Cecilia Müller-Torbrand highlighted this as one of the organization’s real success stories: “In 2014, when we started this project, shipping companies operating in Argentina faced challenges in connection with the inspection of holds and tanks inspection practices. Data from MACN’s Anonymous Incident Reporting System highlighted a systemic issue with demands for payment for unclean grain holds, including cases of extortion.”

Using this data as a starting point, MACN and local partner Governance Latam conducted a fact-finding mission to fully understand the nature of the problem before building a strong coalition of local and global stakeholders.

Governance Latam Partner Fernando Basch noted the vital role of the National Service of Health and Agri-Food Quality (Senasa): “The rapid fall in corruption incidents is a direct consequence of the leadership and regulatory changes Senasa was able to put in place. The 2017 redrafting and clarification of regulations for approval of a vessel’s holds or tanks for the loading of agricultural products greatly improved operating practices for the vessel inspection process. This also allowed us to develop comprehensive training for public and private stakeholders to further reinforce the required change in behavior.”

Cecilia Müller-Torbrand commented: “The Argentine authorities demonstrated the importance of the authorities’ role. Following industry feedback, they put in place key changes to processes, systems and standards, which resulted in clarity and transparency in the inspection of warehouses and vessel tanks and holds.”

John Sypnowich, Chair of the Maritime Anti-Corruption Network, noted that the shipping community was providing a best-practice template to fight corruption: “MACN’s Argentina project should be seen by the international community as an exemplary case of public-private collective action against corruption. The results we have achieved, in a relatively short time-frame, set the benchmark for future collective actions.”

The new regulatory framework entered into force on November 1, 2017 for a one-year pilot period. Given the success and impact achieved to date, Senasa is now taking steps to maintain the new system. MACN’s support and incident data have been key drivers behind this decision and there is recognition within the industry of the ongoing need to confront corruption risks, leveraging the same collective action approach used with Senasa.