This is a legacy page. Please click here to view the latest version.
Tue 3 Apr 2018, 16:29 GMT

Shipping firms could have undue influence over IMO policymaking: Anti-corruption report


NGO urges IMO to reform its governance structure to promote transparency.


The International Maritime Organization's (IMO) headquarters in London.
Image credit: Flickr
With just days left before next week's 72nd Marine Environment Protection Committee (MEPC) meeting, a new study by anti-corruption NGO Transparency International (TI) has warned that private shipping companies and the five top ship registry nations could have undue influence over the policymaking process at the International Maritime Organisation (IMO).

TI's paper, which is due to be published in full next month, assesses three dimensions of the IMO's governance structure: transparency, accountability and integrity.

A summary report released on Tuesday raises key concerns, with TI pointing out that the IMO does not regulate the way governments appoint their delegations. TI notes that governments are therefore able to appoint employees of private companies to their delegations who are then able to determine their government's position on IMO policy - without being subject to conflict of interest rules or a code of conduct.

Citing Brazil as an example, TI notes that the South American country appointed five 'advisors' from Vale S.A - a multinational company with substantial shipping interests - to its national delegation at the IMO's most recent Marine Environment Protection Committee (MEPC 71) meeting, in July 2017.

TI also mentions that eight of the 12 representatives of the Marshall Islands at MEPC 71 were employees of a private shipping registry, International Registries Inc (IRI) Group, which is contracted by the Marshall Islands to manage its registry.

"The employees of private companies who represent member states at meetings can determine their government's position. This typically happens when states with open registries outsource registry management to private companies," TI says.

"There is no requirement for delegates to publicly declare conflicts of interest such as other sources of employment. Thus the IMO, its member states and indeed the public are unaware of the full extent to which private interests are representing governments at meetings," TI adds.

The report also warns that Panama, Liberia, the Marshall Islands, Malta and the Bahamas - which together contribute 43.5 percent of the total funding from the IMO's 170 member states and make up 52 percent of the world's registered commercial fleet - "potentially have exaggerated weight in the IMO policymaking processes, particularly when no mechanism exists to protect against undue influence".

TI's study also posits that NGOs with consultative membership of the IMO "can face expulsion if they criticise the agency or report on country views", and "journalists indicate that they are unable to report freely on IMO meetings".

The paper does note, however, that transparency about the IMO's administration is high, and that information about the remit, powers and rules of procedure of its assembly, council and committees is easily accessible. The IMO itself is not responsible for who member states appoint to their delegations.

"The IMO was assigned the task of limiting and reducing emissions from shipping under the Kyoto Protocol back in 1997," says Brice Bohmer, coordinator of the Climate Governance Integrity Program at Transparency International. "However, it took until 2016 for the IMO to even agree on a roadmap towards an initial strategy, due in 2018, and a revised strategy, due only in 2023. A well-functioning organisation's governance structure should enable decisive action, but the governance flaws identified by our research suggests that this is not happening at the IMO because policy-making could be overly controlled by private companies."

TI urges the IMO to establish a stronger governance framework and engage in a transparent process of open dialogue with its external stakeholders (including civil society and industry), to improve transparency, ensure decision-making processes reflect the public interest, and apply robust integrity rules and measures.

"There should be no delay on action to combat climate change. The Intersessional Working Group on GHG Emissions from Ships meeting in London today should set ambitious targets for reducing emissions in line with the Paris Agreement, and begin taking measurable action now," TI says.

"A guiding principle of UN system is that member states must represent citizens' interests. At the IMO, this could end up being undermined by corporate participation in the place of nation states," comments Rueben Lifuka, vice chair of Transparency International and an environmental consultant. "The IMO has an integral role in helping the shipping industry meet UN Sustainable Development Goal 13 on climate change, and Goal 14 on oceans. Ultimately, it must reform its governance structure to promote transparency and ensure the voices of citizens - alongside industry - are heard."


Typewriter job application. Oilmar DMCC seeks bunker traders for Singapore office  

Dubai-based trader recruiting mid-level and senior professionals to expand Asia-Pacific marine fuels operations.

CMA CGM Monte Cristo vessel. Bureau Veritas delivers first 15,000-teu methanol dual-fuel container ship for CMA CGM  

Classification society completes delivery of CMA CGM Monte Cristo built by DSIC Tianjin.

IBIA MFM bunkering training course graphic. IBIA announces new date for mass flow meter training course in Rotterdam  

Training scheduled for 12 May follows mandatory MFM implementation at Rotterdam and Antwerp-Bruges ports.

A Maersk vessel, pictured from above. Maersk and Hapag-Lloyd suspend Strait of Hormuz transits amid Middle East security crisis  

Container carriers reroute services around the Cape of Good Hope as military conflict escalates.

Map of Middle East. Operations continue as normal at most Middle East ports  

Most facilities operating normally, with exceptions in Bahrain, Oman and Saudi Arabia.

Photograph of the 93,000-cbm very large ammonia carrier (VLAC) Gaz Ronin. Naftomar takes delivery of 93,000-cbm dual-fuel ammonia carrier  

Gaz Ronin features a MAN dual-fuel engine with high-pressure selective catalytic reduction technology.

Aurora Botnia leaving harbor. AYK Energy completes world’s largest marine battery retrofit on Wasaline ferry  

Aurora Botnia receives 10.4 MWh battery system, bringing total capacity to 12.6 MWh.

Steel cutting ceremony for an LNG dual-fuel 307,000-tonne crude oil tanker with builder's hull no. 113. Dalian Shipbuilding begins construction on LNG dual-fuel crude tanker  

Development is one of a number of milestones reported by parent company over the past few days.

Photograph of Sallaum Lines' Ocean Breeze vessel with 'Introducing The Blue Corridor' overlaid text. Sallaum Lines launches Blue Corridor sustainability initiative for Europe–Africa ro-ro trade  

Company deploys LNG-capable vessels with AI routing and eco-speed protocols on new green shipping corridor.

The platform supply vessel Viking Energy. Eidesvik Offshore signs yard contract for ammonia retrofit of PSV Viking Energy  

Halsnøy Dokk to convert platform supply vessel as part of EU-backed Apollo project.


↑  Back to Top