Category Archives: corruption/Illegal markets

How the Shipping Industry Gets its Way: pollution from ships

Do not give the regulated power over the regulators, unless you want consumers to lose out and producers to game the system. ..That lesson has been learned in many places around the world. National regulators are increasingly independent of the firms they regulate. But international ones still have further to go—and none further than the specialised agencies of the United Nations, such as the International Maritime Organisation (IMO) for shipping where the interests of the shipping industry are upheld d in several ways. The first is the distribution of voting rights between countries. At the IMO, for example, Panama and Liberia, with populations of just 4m and 4.8m respectively, can automatically get seats on its decision-making body as they have the world’s biggest merchant fleets.

The second is the assignment of those voting rights by individual countries. Remarkably, many governments have handed voting rights to private-sector firms… At the IMO least 17 countries have assigned their voting rights to flag registries operated by private firms, reckons Transparency International, an anti-corruption group; that adds up to about a tenth of delegates. At an IMO environmental-committee meeting in 2017, almost a third of countries were represented, at least in part, by business interests.

The third way in which producer interests are protected is through a spectacular lack of transparency. The agenda of the IMO’s council in November 2018 in London is available only to those with a password. Journalists are forbidden to report what delegates say or how they vote. There are no rules on the suitability or conflict of interests of delegates. In 2014 St Lucia appointed a Saudi billionaire without previous shipping experience as its IMO representative; a court in London judged in 2016 that the appointment was obtained in order to gain diplomatic immunity against divorce proceedings. There are no limits on the amount of gifts that can be showered on representatives. Goodies put on top of desks at an IMO assembly meeting last year were so heavy that they broke 137 sets of headphones underneath.

Such swampiness matters. The IMO is responsible for limiting emissions from ships, which were excluded from the Paris climate deal.   Some countries are interested in reform. At the imo council meeting this week Australia proposed allowing journalists to report on its meetings as a first step. The Marshall Islands has taken back some of its votes from the private firm that runs its flag registry. But more radical change is needed. Countries should send civil servants, not private actors, as their representatives. The un’s rules on conflicts of interest should be imposed. And voting rights should be allocated with the interests of consumers in mind. These lessons have been widely absorbed within borders. They ought to cross them, too

Excerpts from UN Regulatory Bodies: Agency Problems, Economist, Nov. 24, 2018, at 15

Amazon Turtles are Back! Thanks to Local Vigilantes

The historically over-exploited Giant South American Turtle is making a significant comeback on river beaches in the Brazilian Amazon thanks to local protection efforts, say researchers at the University of East Anglia.  Their results, published in Nature Sustainability, show that Giant Turtle populations are well on their way to full recovery on beaches guarded by local vigilantes. There are now over nine times more turtles hatching on these beaches than there were in 1977, equivalent to an annual increase of over 70,000 hatchlings.  The beach survey showed that, of over 2000 turtle nests monitored on protected beaches, only two per cent were attacked by poachers. In contrast, on unprotected beaches, poachers had harvested eggs from 99 per cent of the 202 nests surveyed.The beach protection programme along the Juruá river is part of the largest community-based conservation programme in the Brazilian Amazon. Beaches are guarded on a shoestring budget by local communities carrying out round-the-clock beach surveillance throughout the five-month turtle breeding season.

Prof Carlos Peres, from UEA’s School of Environmental Sciences and a senior author on the study, said: “This study clearly demonstrates the effectiveness of empowering local management action by stakeholders who have the largest stake and a 24/7 presence at key conservation sites. The beaches protected by local communities represent noisy islands of high biodiversity, surrounded by lifeless unprotected beaches, which are invariably empty and silent.”

Excerpts from Amazon turtle populations recovering well thanks to local action, Nov. 3, 2018

Preserving Snow Leopard for Eternity

The breeding of the highly-endangered snow leopard in the Himalayan nature park Himachal Pradesh resort (India) is set to begin with zoo authorities in Darjeeling agreeing to lend it a pair.  “The Padmaja Naidu Himalayan Zoological Park in Darjeeling is providing us a pair of snow leopards for conserving bloodlines of the highly endangered species in the participatory zoos,” state Chief Wildlife Warden S.S. Negi told IANS….

In 2004, snow leopard Subhash and his sibling Sapna were brought to Kufri, 15 km from the state capital Shimla, from Darjeeling under an exchange programme.Officials said the breeding programme couldn’t be initiated as they belonged to the same bloodline. Sapna died of disease in 2007…

The Darjeeling zoo is internationally recognised for its 33-year-old conservation breeding programme for the snow leopard, with 56 births.

Forest Minister Thakur Singh Bharmouri said the central government-funded Snow Leopard Conservation Project of Rs.5.15 crore ($758,000) is under way in the Spiti Valley, which lies in the state’s northernmost part and runs parallel to Tibet.The programme would take care of restoring the snow leopard’s habitat, he said. Studies by the state wildlife department show the presence of seven to eight snow leopards per 100 sq km in the Spiti Valley.The department is already monitoring the habitat, range and behaviour of snow leopards in the Valley through camera traps (automatic cameras).As per the information gleaned from these devices, the snow leopard population is estimated to be 28 in Spiti and its nearby areas, and 29 in the rest of the state.

“We will soon start radio-collaring five to six snow leopards in Spiti and other areas to monitor their behaviour and, of course, habitat and range,” an official of the state’s wildlife wing told IANS.  Each radio collar costs around Rs.300,000 and can send signals for at least 18 months. “But the cost of procuring data sent through radio collars is quite expensive,” he said.

The problem of starting the radio collar installations is the non-availability of tranquillising drugs in India as prescribed by our international partner, Snow Leopard Trust,

Excerpt from Himachal to begin breeding the highly-endangered snow leopards,  India Live Today, June 28, 2016

Fixing the Holes of Nuclear Security

The Trump administration’s decision to withdraw from the Intermediate-Range Nuclear Forces (INF) Treaty…is the most recent upset in a series of escalating tensions between the two superpowers. ..

Today, a new framework is needed to tackle risks posed by nuclear material in transit, to track small quantities of fissile material used in testing equipment, and to address the approximately 150 metric tons of weapons-grade uranium fuel designated for use in naval propulsion.  Nuclear material security in the naval sector represents an increasingly salient issue for all states—particularly as a number of governments announce plans to develop nuclear navies or face pressure to do so. Tony Abbott, a former prime minister of Australia, argues that a nuclear naval program is necessary to address the future security challenges in his country’s part of the world. South Korea has a similarly renewed interest in a nuclear navy. In the Middle East, Iran is purported to be planning a reactor for nuclear propulsion and in South America, Brazil has had an active program to develop nuclear-powered attack submarines for more than a decade. Beyond the planning phase, India recently commissioned its first nuclear submarine, the INS Arihant, using a Russian design…

There are a number of potential institutional configurations for plugging the holes in the nuclear security system. One approach might involve further bolstering the cooperative measures included in the Convention on the Physical Protection of Nuclear Material—the only legally binding document that outlines government obligations to protect nuclear facilities and nuclear material in transit. Another proposal calls for a so-called Supplemental Protocol within an IAEA-supported and state-sponsored committee process. The benefit of both of these approaches is that their implementation would use the IAEA’s institutional framework (relying on expertise and legal precedence emanating from the existing safeguards regime) rather than starting from scratch. A third approach may involve using the Global Initiative to Combat Nuclear Terrorism as a diplomatic vehicle to pioneer an international materials accountancy system similar to those that national governments use to keep track of their fissile material.

Excerpts from Andrew W. Reddie, Bethany L. Goldblum, Why the security of nuclear materials should be focus of US-Russia nuclear relations, Bulletin of Atomic Scientists, Nov. 13, 2018

The 500 Cases of Marine Pollution

An international law enforcement operation against maritime pollution has revealed hundreds of violations and exposed serious cases of contamination worldwide.  Codenamed 30 Days at Sea, the month-long (1-31 October) operation saw some 276 law enforcement and environmental agencies across 58 countries detect more than 500 offences, including illegal discharges of oil and garbage from vessels, shipbreaking, breaches of ship emissions regulations, and pollution on rivers and land-based runoff to the sea.  More than 5200 inspections have resulted in at least 185 investigations, with arrests and prosecutions anticipated.

“Criminals believe marine pollution is a low-risk crime with no real victims.  This is a mistake and one which INTERPOL and our partners are addressing as demonstrated by this operation,” said INTERPOL Secretary General Jürgen Stock.  Cases of serious contamination included the dumping of animal farm waste in Philippine coastal waters where local communities collect shellfish and children play.  In Germany, a vessel discharged 600 litres of palm oil into the sea. Ghana uncovered gallons of waste oil in large bottles thought to be illegally dumped at sea.  Authorities prevented an environmental disaster in Albania by securing waters around a sinking vessel containing some 500 litres of oil. Similarly, the pollution threat resulting from the collision of two ships in French waters was contained thanks to preventive action during the operation.

Innovative technologies permitted authorities to detect offences, including the use of satellite images (in Argentina and Sweden), aerial surveillance (Canada and Italy), drones (Nigeria, Indonesia and Pakistan) and night vision cameras.

Excerpt from Marine pollution crime: first global multi-agency operation, Interpol Press Release, Nov. 13, 2018

 

Military Bunkers for the Rich

Deep in the Swiss Alps, next to an old airstrip suitable for landing Gulfstream and Falcon jets, is a vast bunker that holds what may be one of the world’s largest stashes of gold. The entrance, protected by a guard in a bulletproof vest, is a small metal door set into a granite mountain face at the end of a narrow country lane. Behind two farther doors sits a 3.5-ton metal portal that opens only after a code is entered and an iris scan and a facial-recognition screen are performed. A maze of tunnels once used by Swiss armed forces lies within.

The owner of this gold vault wants to remain anonymous for fear of compromising security, and he worries that even disclosing the name of his company might lead thieves his way…

Demand for gold storage has risen since the 2008 financial crisis. Many of the wealthy see owning gold as a hedge against the insecurity of banks and a reasonable investment at a time when markets are volatile and bank accounts and low-risk bonds pay almost no yield. It may also be a way to avoid the increasing scrutiny of tax authorities. In high-profile cases, U.S., French, and German prosecutors have gone after citizens of those countries with undeclared Swiss bank accounts.

Swiss storage operations such as these don’t have the same obligation that Swiss banks do to report suspicious transactions to federal regulators. Americans aren’t required under the U.S. Foreign Account Tax Compliance Act to declare gold stored outside financial institutions.
Of the roughly 1,000 former military bunkers still in existence across Switzerland, a few hundred have been sold in recent years, and about 10 are now storage sites holding gold as well as computer data, according to the Swiss defense department.

Few match the opulence of the airstrip setup, whose owner claims to run the largest store of gold for private clients—and the seventh-largest gold vault in the world. Near the runway sits the VIP lounge and a pair of luxurious apartments for clients. The walls of the apartments are lined with aged wood from Polish barns. South African quartzite was chosen for the floors to match the faded gray timber, and the amenities—bathroom mirror, TV screens—can retract into the ceiling, counter, or wall. The owner offers a place for clients to sleep and eat, because “many do not want to leave a paper trail of credit card receipts and passports” at hotels and restaurants…

Some miles away, Dolf Wipfli, the founder and chief executive officer of a different company, Swiss Data Safe, is one of the few operators willing to be interviewed about his business. The gold Swiss Data Safe stores for clients is kept in a mountainside bunker outside the hamlet of Amsteg.

Excerpts from Secret Alpine Gold Vaults Are the New Swiss Bank Accounts, Bloomberg, Sept. 30, 2016

Fishing in the Arctic: Banned

The Agreement to Prevent Unregulated High Seas Fisheries in the Central Arctic Ocean (CAO) in Ilulissat, Greenland was adopted on October 3, 2018.  The historic agreement represents a collaborative and precautionary approach by ten countries to the management of high seas fish stocks in the Central Arctic Ocean. The agreement covers approximately 2.8 million square kilometers, an area roughly the size of the Mediterranean Sea.

Ice has traditionally covered the high seas of the central Arctic Ocean year-round. Recently, the melting of Arctic sea ice has left large areas of the high seas uncovered for much of the year. The Agreement bars unregulated fishing in the high seas of the central Arctic Ocean for 16 years and establishes a joint program of scientific research and monitoring to gain a better understanding of Arctic Ocean ecosystems. It also authorizes vessels to conduct commercial fishing in the CAO only after international mechanisms are in place to manage any such fishing. This effort marks the first time an international agreement of this magnitude has been proactively reached before any commercial fishing has taken place in a high seas area.

Signatories include the United States, Canada, the Kingdom of Denmark, the European Union, Iceland, Japan, the Republic of Korea, the Kingdom of Norway, the People’s Republic of China, and the Russian Federation.

Excerpt from U.S. Signs Agreement to Prevent Unregulated Commercial Fishing on the High Seas of the Central Arctic Ocean, NOAA Press Release, Oct. 3, 2018