Intertanko Guidelines for a Company Whistle-Blowing Policy

INTERTANKO GUIDELINES FOR A COMPANY WHISTLE-BLOWING POLICY

BACKGROUND

At the INTERTANKO Executive Committee meeting in February 2013, the Committee discussed the whistle-blowing incidents that had recently occurred in the United States. The following is some information about whistle-blowing in the United States.

1. Under several US laws, including the Act to Prevent Pollution from Ships, the US Coast Guard may board and investigate a vessel if they have a reasonable suspicion that a vessel has engaged in activity in violation of US law. 2. When a possible violation is reported by a crewmember, the US Coast Guard will investigate the reported incident to determine if a violation has occurred. If the US Coast Guard has probable cause to believe that a U.S. law has been violated, they may detain the vessel. All evidence is provided to the US Department of Justice (DOJ) who determines whether to prosecute the case. 3. In determining whether to prosecute a case, DOJ evaluates all evidence, including any information that was provided by a crewmember. 4. Whether or not the information provided by a crewmember is used in prosecuting the case is assessed on a case by case basis, taking into account a number of factors, including the credibility of the crewmember and the information provided. In addition, DOJ determines whether the information provided by the crewmember is needed for a successful prosecution. The information provided by a crewmember may not be considered necessary for a successful prosecution and may not be used. 5. If DOJ determines that a crewmember falsified information, they will prosecute that crewmember. 6. Evidence is presented by DOJ during a hearing before a US Federal judge who is totally independent of the DOJ. The judge rules on the outcome of the case based upon the evidence presented. 7. The Act to Prevent Pollution from Ships (33 USC 1908(a)) contains a provision that individuals who report pollution violations aboard ships may collect up to half of a criminal fine assessed to the ship owner. 8. If the information provided by the crewmember is used in the prosecution of the case, the DOJ makes a recommendation to the judge as to whether or not the crewmember should receive an award and also recommends how much this should be. The judge makes the final decision as to whether the crewmember should receive an award and how much. 9. DOJ does not maintain statistics on how many cases are successfully prosecuted using evidence provided by a crewmember or how many successful prosecutions using evidence provided by a crewmembers result in an award to the crewmember. 10. If a case is successfully prosecuted and a fine is assessed against the shipowner, none of the money is given to the US Coast Guard or DOJ.

The Executive Committee was concerned that the whistle-blowing laws in the US were encouraging the wrong behavior by some seafarers. Rather than reporting a violation to the Master, the company and/or the flag state under the ISM Code requirements as soon it was detected, some crewmembers were waiting for the tanker to come to a US port to report the matter to the US Coast Guard in the hopes of receiving an award. However, the Committee agreed that INTERTANKO should not attempt to change the US whistle-blowing laws.

The Executive Committee was of the opinion that many members may not be fully aware of the whistleblower laws in the US or the impact a whistle-blowing incident in the US could have on their tanker operations. The Committee felt that all members should be made aware of this matter and be provided guidance that could assist them in protecting themselves against such incidents in the US. As a result, the Executive Committee requested the Secretariat to develop guidance that members could use to develop their own company whistle-blowing policy, to assist in encouraging the proper behavior by all crewmembers.

V-ships has developed its own company whistle-blowing policy and graciously agreed to share their policy with the Secretariat to assist in the development of INTERTANKO guidelines. The below guidelines were developed by the Secretariat for appropriate use by members.

GUIDELINES FOR DEVELOPING A COMPANY WHISTLE-BLOWING POLICY

It is recommended that a Company Whistle-blowing Policy consist of two documents:

1. The Company’s Whistle-blowing Policy. This should contain:

a. the Company’s commitment to comply with all applicable requirements; b. a requirement for all staff to report a violation; c. the process to report a violation, and; d. the Company’s commitment that there will be no repercussions to anyone that reports a violation.

Annex 1 provides a sample of a Company Whistle-blowing policy.

2. A Declaration of Compliance. This should contain:

a. the Company’s policies; b. a declaration of compliance, and; c. a signature line for the crewmember.

Annex 2 provides a sample Declaration of Compliance.

IMPLEMENTATION OF THESE GUIDELINES

INTERTANKO member companies are encouraged to develop a Company Whistle-blowing Policy using these guidelines, as may be appropriate. If appropriate, the samples provided in the Annexes may be combined with other company policies and/or declarations.

Annex 1 – SAMPLE COMPANY WHISTLE-BLOWING POLICY All staff are required to comply with International Law as mandated by IMO conventions, such as SOLAS and MARPOL, and the National Laws of the Port State the vessel is in.

If, at any time, a member of staff knows of, or suspects, any of the occurrences listed below, they must report the matter immediately so that steps can be taken to deal with it appropriately. Failure to notify in these circumstances is considered as grounds for disciplinary procedures which includes up to dismissal.

The following are examples of matters which qualify as information which may be raised under this policy:

 A crime is being, or has been, committed, is suspected, or is likely to be committed;  Non-compliance with legislation and/or Company procedures, particularly in relation to health and safety at work;  The environment has been, or is likely to be, damaged;  Dishonesty, either verbally, written or through intentionally maintaining official log books or records inaccurately;  Malpractice or unethical conduct;  A breach, or likely breach, of any legal obligation or regulatory requirement;  Miscarriages of justice; and  The deliberate concealment of any of the above.

Notification

If a member of staff has a legitimate concern in (and holds a reasonable belief that the information he/she has relates to) one of the above areas and he/she wishes to raise the concern in good faith, it should be raised with his/her Head of Department for resolution.

If a member of staff prefers not to raise the matter with his/her management or the member of staff feels his/her management has not addressed the concern adequately and he/she wishes to raise the concern in good faith, he/she should raise this concern either by: 1. Sending an email to: 2. Calling: 3. SMS text to:

Commitment to no repercussions

Reports shall be made without fear of reprisal and may be anonymous. Any victimization of a member of staff who “whistle-blows”, or any attempt to deter him/her from “whistle-blowing”, will be regarded as a serious disciplinary offense and will result in action under the Disciplinary Procedures.

[Signed] Company Managing Director

Annex 2 – SAMPLE DECLARATION OF COMPLIANCE Attached to this document is a copy of the Company Whistle-blowing Policy. When this document and the attachment have been read and understood, the declaration at the foot of this page is to be signed confirming understanding and compliance.

It is essential to note and understand the following key policy points.

 Compliance is a condition of employment. Staff must not knowingly participate in any unsafe or illegal activity and must comply at all times with all mandatory rules and regulations. The company operates a zero tolerance policy for deliberate discharges in breach of MARPOL. Misuse of the oily water separator (OWS) by any form of tampering and/or the use of by-pass pipes (‘magic pipes’) is strictly forbidden. All log books, environmental records and working record books must be carefully and accurately maintained and be in agreement where applicable. This includes (but not limited to) Deck and ER logbooks, oil record books, garbage record books, ballast management records, seal records and sounding books. Failure to follow SMS procedures relating to the protection of the environment, is a dismissible offence If any violation is observed, this must be made known to the Master immediately or reported through the Whistleblower policy.

Authorities now impose severe penalties both on the Owners and on individuals found guilty of causing pollution and this may include personal fines and imprisonment. In addition, any crewmember, after appropriate disciplinary procedures have been completed, is found to have knowingly violated any of the above listed items will be considered guilty of “Serious Misconduct” and as such may be instantly dismissed from the vessel.

DECLARATION: I confirm that:

a) I have read, understood and will comply with the policy attached to this document. b) I understand the warning given above and that I fully understand the penalties relating to this subject. c) Employment is offered to, and accepted by me on the understanding that I will comply with the company procedures (SMS) while serving on board the vessel. d) If I believe that undocumented procedures, unsafe and/or illegal practices are being followed or are taking place, I shall bring this to the notice of the Master or other Company representative without delay. e) I understand the Whistle-blowing policy and will use this if necessary if reporting as per section (d) above is not appropriate or involves risk. f) I will not delay reporting in order to notify a third party prior to notifying the company.

Signature Date

Rank Vessel

On leaving vessel: I confirm compliance with the above during my time onboard the vessel and am aware of nothing reportable as required by section D in the Declaration.

Signature Date