Tag Archive for: Argentina

Updated Resources for Argentina

MACN is hereby sharing an updated guide about pre-loading inspections for vessels exporting grain products in Argentina. This guide is an updated version of the guidelines first published by MACN in 2017.

MACN has since 2014 implemented a collective action initiative in Argentina to tackle corruption related to inspections of holds and tanks. As a result of this initiative a new regulation to reduce discretion in the inspection process was introduced in 2017. To help MACN members and industry players navigate the new regulation, we are pleased to make available the following documents for download:

  • Resource Guide for Industry (PDF)     

  • Sign for Vessels (PDF)

Learn more about MACN’s work in Argentina here:

Reported Corruption Incidents down 90 Percent in Argentina

iStock-139540669-cropped.jpgAccording 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.

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Case Study on MACN’s Argentina Collective Action Published

MACN is pleased to share a new case study outlining the process and outcomes of our collective action in Argentina.
In line with its strategy and in an effort to reduce corrupt demands, MACN pursued a collective action in Argentina beginning in 2014, which resulted last year in the successful adoption of a new regulatory framework for dry bulk shipping that reduces corruption risks for the industry and elevates the country’s culture of integrity.

Read the case study here

MACN-shipping-corruption

MACN Helps Pass Regulation to Tackle Critical Dry Bulk Challenges in Argentina

Copenhagen, Denmark, October 26, 2017: The Maritime Anti-Corruption Network (MACN)—a global business network of 90 companies working toward the elimination of corrupt practices in the maritime industry—celebrates the passing of a new regulation as a successful outcome of its collective action in Argentina. The new regulation modernizes the inspections system for dry cargo and has the potential to dramatically increase the efficiency of port clearances.

Three years ago, MACN members agreed to establish a collective action to promote the reform of the vessel clearance process for loading grain in Argentina, which had been flagged as an issue by MACN members. MACN partnered with Governance Latam—a local law firm and well-recognized integrity champion—to drive this effort.

MACN and 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. Together, this coalition developed and agreed on the key points for a new regulatory framework that would improve operating practices for the vessel inspection process. Working closely with SENASA[1], MACN and Governance Latam ensured that the Argentinian authorities were engaged and were active drivers of the change.

The new regulatory framework[2] approved by SENASA Resolution 693-E/2017, published on October 19, 2017 and going into effect on November 1, 2017 for a testing period of one year, reduces discretion in the inspection of holds and tanks, establishes a system of cross-checks to increase integrity, provides an escalation process when disputes occur, and creates an e-governance system to underpin the framework. Inspections will be conducted by registered private surveyors, and in case of conflict, bulk carriers will be able to request supervision from SENASA.

MACN believes that these changes will increase the efficiency, integrity, and transparency of inspections, reducing the possibility of ships being delayed for unclear or unfounded reasons.

The development of the regulation was supported by a wide range of organizations, including BIMCO; CADECRA (the Association of Private Inspection Agencies of Argentina); CEC (the Grain Exporters Association of Argentina); Centro de Navegación (the Maritime Agencies Association of Argentina); CIARA (the Argentine Oil Industry Chamber); the International Chamber of Shipping; and the International Group of P&I Clubs.

MACN and Governance Latam are now conducting integrity training of local public and private stakeholders and providing fact sheets for industry to ensure successful ongoing implementation of the regulation.

John Sypnowich, The CSL Group Inc., Vice-Chair of MACN, commented: “This successful collective action highlights the benefits of a strong and committed network, with members sharing information to highlight a problem, mobilizing to take action, and utilizing their combined expertise and influence to develop an impactful solution, together with the government. I would call on all shipping companies to work with MACN in collective actions that improve our maritime operating environment.”

Fernando Basch, Partner at Governance Latam, said: “This process was a truly collaborative effort, which would not have been possible without the strong commitment shown by SENASA and the support of all the industry associations involved. Improving port governance increases maritime transparency and efficiency, reducing trade barriers.”

Angie Farrag-Thibault, Director at BSR (the secretariat of MACN) and lead coordinator for this effort, stated: “This outcome shows MACN’s global collective action strategy is working. We are very happy to prove that it is really possible to drive improvements in the operating environment when industry and government come together so effectively. Thank you to our partners for this great achievement.”

[1] Servicio Nacional de Sanidad y Calidad Agroalimentaria (SENASA)—the agency that guarantees the quality and healthiness of Argentine agricultural products.

[2] The regulatory framework follows international standards to modernize the inspections system, balancing the government’s responsibility to ensure the cleanliness of vessels exporting agricultural products with the necessary conditions for integrity in the context of foreign trade relations.

For more information please see the joint statement agreed by the participants in this Collective Action.

About BSR (Business for Social Responsibility)

BSR serves as the secretariat of MACN. BSR is a global nonprofit organization that works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, BSR develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration. Read more.

About Governance Latam

Governance Latam is a law firm specialized in corporate governance, integrity and asset recovery, which has provided solutions to fraud and corruption to companies, governments and multilateral organizations for more than 20 years. Based in Buenos Aires, Governance Latam has influenced the definition of public policies in many Latin American countries. Read more.

Tag Archive for: Argentina