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Vulnerabilities in the Maritime Industry: corruption

1 July 2021/in News, RMSC Activities

Recap webinar June 18

The Maritime industry is international by nature, and with that, different ways of doing business, both cultural and legal occur. This can expose companies and employees alike to corruptive activities. A great topic to discuss with a criminologist, employment lawyer and a criminal defence lawyer.

During the live session, Erik Witjens of Mount Law discussed multiple projects that reportedly might have been secured through corruption, the increased focus on corruption because of the new European Public Prosecutor’s Office and the possible penalties. Monetary penalties are but one of the options, while other consequences can have direct impact on doing business, like disqualification for new public tenders, letting go of personnel involved and damage to the public image.

Allegations of corruption can come to light via compliance regulations addressing banks and other financial institutes, international cooperation or for example whistle-blowers. Maritime companies can be vulnerable because of a number of reasons, like the countries they work in, multiple actors and contracts organizing payments and multiple sub-contractors.

Petty corruption is a bit of a disguised term, as on a global scale large sums of money are involved, as Professor Dr Richard Staring pointed out.

In order to prevent these vulnerabilities, Emiel de Joode of Ten Holter Noordam explained a six point model, where companies can take action, mostly through adequate procedures:

  • Policies and procedures that are effectively implemented
  • Top level management commitment (Tone from the top!)
  • Risk assessment
  • Due Diligence practices
  • Training and communication
  • Monitoring and review

All of these show the importance of human capital development; train and educate your personnel well, so they know wat is expected of them.

The ‘Tone from the Top’ was extensively discussed; as Professor Dr Richard Staring (Erasmus School of Law) emphasized the prevention of corruptive practices has to start from leadership within companies. A good example states more than a thousand words, you might say. To effectively reduce corruption, other global issues will have to be addressed, too.

A great discussion under the guidance of Mrs Lisette Smit-Bennemeer took place, so this makes it an excellent webinar to look back to or listen to via the podcast channel of the Erasmus School of Law.

Rotterdam Maritime Services Community looks back on a fruitful event and the complete recording is available via the button below.

Open the recording

Photo: Clair Droppert

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