Liberian International Ship and Corporate Registry V ITF

Overview

NCP Decision Rejected
Current Status Closed
Date Submitted 01/11/2001
Date Closed 01/10/2002
Case Duration 47 weeks and 5 days
Host Country Liberia  (Non-adhering country)
Issue(s) Breach of UN arms embargo; money laundering
Provisions Cited II.2  II.7  III.1  VI.1  VI.2  VI.5   
Case Description In November 2001, the International Transport Workers’ Federation (ITF) raised a case with the US NCP concerning the activities of the Liberian International Ship and Corporate Registry (LISCR), a US registered company, A UN Security Council report showed that the LISCR had been used to transfer money to buy weapons for the Liberian government, in violation of the UN arms embargo. The ITF also contended that this constiuted a breach of the Guidelines. At the end of 2001, the UN Security Council adopted a Resolution 1343 (2001) concerning Liberia and the activities of LISCR, recommending the establishment of a special account (audited by the International Monetary Fund) to make sure that the revenue was used for development purposes.
Developments In May 2002, the US NCP replied that the US government was addressing the issue through direct contacts with LISCR and that it supported the new UN resolution 1408 (2002), which called on Liberia to establish a transparent and internationally verifiable audit regime to ensure that the revenues were used for legitimate purposes. The ITF renewed its request to the NCP to investigate the conduct of LISCR. A meeting between the NCP and the ITF was finally held in July 2002. The NCP also held a separate meeting with LISCR.
Outcome At the end of October 2002, the NCP concluded that further involvement was not warranted as the issue 'is being effectively addressed through other appropriate means'. Moreover, the NCP referred to the audit that was going to be carried out by the auditing firm Deloitte and Touche. However, in November 2002, the ITF and the human rights NGO Global Witness revealed that Deloitte and Touche had not carried out the audit of LISCR in a transparent manner. Furthermore, a secretive agreement had been signed between the government of Liberia and the Ghana-based Deloitte subsidiary. In December 2002, Deloitte in Ghana withdrew from the contract to undertake the audit.

Organisations

Lead NCP US NCP : Single Department with Interagency Working Group 

Companies

Multinational Company Liberian Int’l Ship and Corporate Registry (Home country: Liberia)

Complainants

Lead Complainant International Transport Workers' Federation (ITF) : Global Union Federation 

TUAC Analysis

Did the NCP publish its initial assessment? status-icon
Did the case involve parallel proceedings? status-icon
Was the existence of parallel proceedings an obstacle to the NCP accepting the case? status-icon
Was the businsess relationship other than that of a subsidiary? status-icon
Was the nature of the business relationship an obstacle to the NCP accepting the case? status-icon
Did the NCP inform other relevant government departments about its acceptance of this case? status-icon
Did the NCP offer mediation or conciliation? status-icon
Did the company accept the offer of mediation or conciliation? status-icon
Did the complainant(s) accept the offer of mediation or conciliation? status-icon
Was mediation or conciliation held? status-icon
Was mediation or conciliation conducted by a professional mediator? status-icon
Did the parties reach agreement? status-icon
If yes, did the NCP publish this agreement following the consent of the parties? status-icon
If mediation was refused or failed did the NCP make an assessment of whether the company had breached the Guidelines? status-icon
Did the NCP conduct in-host country fact finding? status-icon
Did the NCP make recommendations to the company on the future implementation of the Guidelines? status-icon
Did the NCP publish its final statement or report? status-icon
Did the NCP provide for follow-up of the agreement/recommendations? status-icon
Did the NCP inform other relevant government departments about its final statement or report? status-icon
Did the NCP inform public pension funds about its final statement or report? status-icon
Did the NCP apply any consequences in this case? status-icon
Did the NCP follow the indicative timescales set out in the procedural guidance? status-icon
Was there a positive outcome for the workers involved in this case? status-icon
Did the filing of the case under the Guidelines have a positive impact for the workers involved? status-icon
Did the lead NCP play a positive role? status-icon
If different, did the home NCP play a positive role? status-icon