In an interview with Maritime Gateway, Deepak Shetty, Senior Adviser & Head of Operations (India) for the Maritime Anti-Corruption Network (MACN), discusses the critical role of MACN in combating corruption within the maritime industry, particularly in the Indian context.
Shetty acknowledges the prevailing perception that the shipping sector is notably corrupt but argues that this view is overly simplistic. Corruption is a pervasive issue in various industries, often mirroring broader societal problems. He notes that while corruption exists in shipping, there is no comprehensive empirical evidence to suggest it is the most corrupt sector.
Corruption in the maritime industry is a serious matter, especially in the Indian subcontinent. Established in 2011 by Maersk, MACN has evolved into a global movement with over 220 companies dedicated to enhancing business integrity. Shetty emphasizes that addressing corruption is essential for India’s economic ambitions and improving its ease of doing business ranking. India ranks between 70 and 100 on Transparency International’s Corruption Perception Index, underscoring the need for reforms.
To address corruption, MACN employs a meticulous process for handling complaints. They require substantial evidence, such as ship logs and CCTV footage, while ensuring confidentiality through a whistleblower mechanism. MACN escalates issues involving corrupt officials swiftly, often resolving complaints within hours.
Shetty highlights that the shipping industry’s predominant grievances involve customs and immigration, notably delays in port clearance and demands for bribes. While some issues stem from inaccurate declarations by shipmasters, there are frequent instances where officials exploit situations for personal benefits. Customs has emerged as the most commonly reported area of extortion, resulting in disciplinary actions against several officials.
To combat systemic issues, MACN has proposed significant reforms to the Indian government. Their recommendations include digitalizing the port clearance process to enhance efficiency and reduce corruption. This proposal is being implemented as part of the National Logistics Portal (Marine). Moreover, they advocate for a single-window reporting system to streamline information submission to various agencies, reducing redundancy and inefficiency.
Shetty emphasizes that collaboration between public and private sectors is crucial in curbing corruption. MACN has engaged with numerous stakeholders, conducting over 155 industry interactions and 128 meetings with government representatives. They encourage private companies to report Pre-Arrival Notices (PANs) regularly, as current submissions are insufficient compared to the number of port calls.
The impact of MACN’s initiatives in India has been notable. They have successfully resolved 41 cases, recovering millions for the industry and preventing costly delays. These actions have potentially saved the maritime sector around $6 million. While challenges remain, MACN’s efforts are paving the way for a more transparent and efficient maritime sector in India. Shetty acknowledges that transforming the industry is a long-term endeavor, but progress is being made in the right direction.
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