USAID funding to fight transnational maritime sector corruption

The Maritime Anti-Corruption Network (MACN) has received two-year project funding from the United States Agency for International Development (USAID) to strengthen the fight against transnational maritime sector corruption.

These funds are part of USAID’s ‘Doing Business with Integrity’ activity and the collaboration will be part of its ‘Countering Transnational Corruption Grand Challenge for Development’.

This initiative is also supported by match funding from private sector leaders including Maersk Line Ltd, Maersk, Lauritzen Fonden, DS Norden, Hafnia, Odfjell, JM Baxi, the Institute of Export Operations and Management in Nigeria, as well as members of the MACN Advisory Committee in India.

Through USAID’s backing, MACN and its implementing partners Eldib Pandi and the Convention on Business Integrity, will dramatically increase the number of companies and vessels using MACN’s HelpDesk and will engage in dialogue with governments to address the root causes of maritime sector corruption.

The HelpDesk is the only global mechanism that provides the maritime industry with a real-time escalation and resolution channel for corruption incidents in ports.

To date, over 3,000 vessels have utilized the HelpDesk, with over 200 cases escalated due to bribery attempts. Some 99 percent of these cases have been resolved without any bribery payments.

Over the course of this project, HelpDesk access will be expanded in India, Egypt, and Nigeria.

The project will be implemented beyond the major international hubs of India (Mumbai, Chennai), Nigeria (Lagos), and Egypt (Suez Canal) to engage more local companies and activities. Coverage will be expanded into 12 major ports in India, the major port cities in Egypt (Alexandria, Port Saïd), and Nigeria (Lagos, Calabar, and Port Harcourt).

It is estimated the expanded HelpDesk will provide essential support to more than 200 vessels in Nigeria, 1,600 vessels in India, and 180 vessels in Egypt, allowing companies and their local supply chain partners to resolve corrupt incidents in partnership with government agencies.

MACN claims that shipowners in Nigeria using the HelpDesk have seen a dramatic reduction in operational costs, with savings from approximately $150,000 to $20,000 per port call by avoiding delays, unnecessary paperwork, and corrupt demands.

^{Source: MACN}