Shipping companies operating in Argentina faced challenges in connection with the inspections of holds and tanks, customs declarations, and on-board inspection practices related to grain exporting. Data from MACN member companies highlighted a systemic issue with illicit cash demands for payment for grain holds inspections, including cases of extortion. Failing an inspection was costly since it meant ships were considered off-hire. Depending on market conditions, port costs and commercial delays accrued from each extra day in port could amount to more than $ 50,000 per day. To address this issue, MACN and national partner, Bruchou & Funes de Rioja, launched a collective action initiative with local industry and government stakeholders to investigate the root causes of the problem and to advocate for reforms to tackle corruption in the sector.
The initiative resulted in the modernization of the inspection system in line with international standards which reduced the possibilities for abuse of discretionary powers to extort vessels trading in Argentina. Further, the collective action partners put in place reporting and appeal mechanisms where both public and private players could report incidents or ask for a second opinion on a specific inspection.
Multi-stakeholder collaboration resulted in broader acceptance and more sustainable anti-corruption measures, reinforcing continued engagement among public, private, and civil society entities. As a result of the collective action, MACN observed a sustained 90% drop in reported corruption incidents with a particularly significant decrease in large cash demands. The initiative demonstrated that it is possible to address systemic corruption by building strong alliances between the public and private sectors.
Source : MACN, https://macn.dk/Argentina
