Government Update
gram should be established. In addition, there should be a reporting system whereby crewmembers and employees can disclose non-compliances without fear of retribution. Sixth, there must be some type of enforcement or disciplinary mechanism to address both violations and failure by supervisory employees to detect violations. This does not mean that any and all violations lead to dismissal. Depending on the nature of the violation, a documented admonition may be sufficient. Finally, the company must have a mechanism for responding to violations. The violations must be reported to appropriate government officials (this is the focus of the Coast Guard's voluntary disclosure policy) and the company must cooperate with those officials in their enforcement efforts. The compliance program then may have to be revised so as to reduce the likelihood of future similar violations. What does the company get out of this? A fair question! There is the strong probability that the company's commitment to compliance will significantly reduce the occurrence of a violation of applicable law. If the crewmembers and employees see that the company is not only talking the talk, but also walking the walk, they will make the extra effort to conform their conduct to the required standard. If there is a violation and the company takes action under the Coast Guard's voluntary disclosure policy, the agency has committed to not recommending to the Department of Justice that criminal charges be brought against the company. The Department of Justice has a formal policy that companies with qualifying compliance programs should not be prosecuted unless the violation is part of a pattern that demonstrates a prevalent management policy that conceals or condones such violations or high-level company officials are personally involved or willfully blind to the violation. Thus, the likelihood of prosecution for the violation is greatly reduced. If, despite the implementation of a qualifying compliance program, a violation occurs and the Department of Justice prosecutes and the company is convicted, the company is generally entitled to a significant reduction (possibly up to 80%) in the sentence. In these days of multi-million dollar criminal fines, this aspect alone could save large sums of money. If the company is convicted despite the existence of the compliance program, the company will generally be able to avoid the imposition of a court-monitored thirdparty audit program. Such third-party audit programs are now a usual (and onerous) part of the sentence imposed on companies convicted of violating federal criminal laws. Finally, for corporations based in the U.S. or listed on U.S. stock exchanges, implementation of a qualifying compliance program will provide the same benefits to corporation officers and directors as it does to the corporation itself. Under U.S. law, senior corporate officials may, in some circumstances, be personally liable for criminal offenses of the corporation. Additionally, corporate officials may be subject to suit by stockholders for diminishment in the value of the stock due to criminal violations of the corporation that might have been avoided if the company had implemented a compliance program. It is thus clear that even the best-managed company can benefit from the implementation of a qualifying compliance program. After all, the federal policy of dispensation for companies with qualifying programs applies not only to intentional crimes (such as the midnight dumping of oily waste and falsification of the oil record book) but to negligent violations and even to violations of strict liability crimes (such as the Refuse Act of 1899 and the Migratory Bird Treaty Act). Having a qualifying compliance program increases the likelihood that one's P & I Club or other insurer will compensate the company for any fines or penalties that may be imposed in the event of a violation. At least one P & I Club has instituted a policy that it will consider covering fines imposed on members "provided the Member has satisfied the [Club] that he has taken reasonable steps to avoid the event giving rise to the fine." Conclusion Formal adoption of this voluntary disclosure policy by the U.S. Coast Guard represents a major step forward in removing the threat of criminal prosecution from maritime companies seriously interested in compliance with applicable environmental laws. It is now up to those companies to implement the steps necessary to take advantage of this opportunity.
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Vietnam Begins Complex In Haiphong Vietnam broke ground over the Shinec-Vinashin Industrial complex, which will be home to several major industries. The anchor industry on the 791-acre property will be the shipbuilding sector. Other locators are those in the agriculture, construction, warehouse and trading sectors. A total of $46.7m is allocated for the development of the complex. The shipbuilding sector got 37 acres where it will build a wharf capable of accommodating maritime vessels up to 6,500 tons, 7.4 acres for office buildings and a trade center, and 12.3 acres for housing. The complex will also have a sewage water treatment center, safe water plant with a daily storage capacity of 10,000 cubic meters of water, an information center and other service facilities. Haiphong is Vietnam's third most populous city. It is 62 miles from the capital city Hanoi and is the main seaport for the country's northern region. (Source: AHN) Maritime Reporter & Engineering News