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MARITIME ANTI-CORRUPTION NETWORK

MARITIME ANTI-CORRUPTION NETWORK. INCENTRA COUNCIL MEETING. Sr. legal counsel Stig Gunleiksrud PGS, 28.08.2012. Petroleum Geo-Services. PGS helps oil companies to find oil and gas reserves offshore worldwide Founded in Norway 1991 14 offshore seismic vessels 21 data processing centers

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MARITIME ANTI-CORRUPTION NETWORK

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  1. MARITIME ANTI-CORRUPTION NETWORK INCENTRA COUNCIL MEETING Sr. legal counsel Stig Gunleiksrud PGS, 28.08.2012

  2. Petroleum Geo-Services • PGS helps oil companies to find oil and gas reserves offshore worldwide • Founded in Norway 1991 • 14 offshore seismic vessels • 21 data processing centers • 35 offices worldwide • Presence in over 25 countries • Headquarter in Oslo • PGS’ Core Values and Commitments relatei.a. to transparency in all our dealing and thefull subscription to a high standard of business ethics • With our operations worldwide, PGS is faced with the challenges related to facilitation payments and briberies • PGS has for several years had policies and procedures related to this • In 2011 PGS decided to join the Maritime Anti-Corruption Network (MA-CN) • www.bsr.org/macn

  3. MACN – Vision and Mission Vision A maritime industry free of corruption that enables fair trade to the benefit of society at large. Mission To promote good corporate practice in the maritime industry for tackling bribes, facilitation payments and other forms of corruption by developing and sharing best practice, creating awareness of the challenges and collaborating with key stakeholders to develop sustainable solutions. MACN is a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large.

  4. MACN Core Activities MACN is a global business network working towards the vision of a maritime industry free of corruption that enables fair trade to the benefit of society at large. • Sharing of Best Practices: MACN members will share lessons learnt and best practices in implementing the Anti-Corruption Principles within their own operations; • Addressing Systemic Risks: Ongoing identification of where Members have the most challenges with facilitation payments and other forms of corruption (Hot spots); • Pilot Projects: MACN will initiate and deliver on pilot projects at hot spot locations to understand the challenges faced and provide recommendations for actions to mitigate risks; • Stakeholder Engagement: MACN will engage authorities and other key stakeholders in specific locations to collaborate on mitigating the risk of bribery and corruption as well as to support local efforts to tackle bribery and corruption. 10 % According to the United Nations, corruption adds 10% to the cost of doing business in many parts of the world.

  5. The Hot spots • MA-CN has identified hot spots; places where members experience most problems • Identified to focus on these places • The identified hot spots include ports in places such as Suez, Nigeria, Ukraine, India, China, Brazil • Currently initiating the first pilot study; recommendations for actions to improve the situation in one of the hot spots

  6. UK Bribery act (2010) and the Norwegian Penal Code • Both the UK Bribery Act and the Norwegian Penal Code have wide geographical applicability • UK Bribery Act section 7 – Liability for legal entities: • A company may be liable if a person associated with it bribes another person intending to obtain/retain an advantage in the conduct of business for the company • It’s a relevant defence under the UK Bribery Act if the company demonstrates that it had adequate procedures to prevent persons associated with it from bribing • Adequate procedures are also relevant under the Norwegian Penal Code regarding penalty for legal entities (foretaksstraff) • Relevance of membership in MACN: • Access to resources that support effective internal risk management • Sharing of best practice • Participation in an active commitment to the elimination of corruption affecting the maritime industry • Participation in a collective action aiming for the systemic root causes of corruption

  7. MACN Members

  8. MACN Member Benefits • Learning and sharing of best-practice from member compliance programs; • Responsible response to the UK Bribery Act; • Use of the MACN logo as a powerful mechanism to signal commitment to the MACN Anti-corruption Principles; • Contribution to reducing the risk of solicitation of bribes as well as strengthening of a company’s efforts to identify, monitor and mitigate bribery and corruption risk. MACN provides a unique platform to contribute to the elimination of corrupt practices in the maritime industry.

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