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Australia bans Panama-flagged bulk carrier for underpaying crew

The case dates to Sept. 8, when the Maritime Safety Authority of Australia said it received a complaint alleging discrepancies in wage payments for the crew of the DL Carnation.

   A Panama-flagged bulk carrier has been barred from entering Australian ports for a year after the vessel was discovered keeping two sets of wage accounts, covering up the underpayment of crew, the Australian Maritime Safety Authority said Sept. 14.
   The case dates to Sept. 8, when the Maritime Safety Authority said it received a complaint via the International Transport Workers’ Federation alleging discrepancies in the payment of wages for the crew of the DL Carnation, which is owned by South Korea-based Carnation Maritime SA and managed by Seoul-based Daelim Corp.
   According to the Maritime Safety Authority, one of its surveyors boarded the vessel in Gladstone and found that the ship was operating with two sets of wage accounts on board.
   “One set of accounts showed the amount of pay the crew should have been receiving in line with their Seafarer Employment Agreements and the other showed what the crew were actually receiving,” the AMSA explained in a statement.
   A comparison of the accounts showed the crew were being underpaid more than $17,000 U.S. per month with records found reflecting this back to at least this past April, according to the Maritime Safety Authority. As a result, the vessel was immediately detained for breaching the Maritime Labour Convention.
   The keeping of two sets of accounts is extremely concerning AMSA Operations General Manager Allan Schwartz said.
   “By maintaining multiple accounts of wages, it demonstrates a knowledge and intent to not only withhold wages but to also actively deceive authorities,” Schwartz explained.
   On Sept. 14, the AMSA said it received confirmation that the outstanding wages had been received by the crew and the vessel was released from detention; however, upon releasing the vessel, the AMSA issued a direction notice banning the DL Carnation from entering or using any Australian port for the next 12 months.
   Schwartz said that a first breach AMSA’s response would normally be to detain the vessel until the problem is rectified, but in this case, given the existence of fake accounts and the intent to deceive authorities, AMSA decided to issue the yearlong ban and that it plans to increase inspections for all other vessels belonging to the same company.
   “AMSA takes a zero tolerance approach to the mistreatment of crew and all vessels coming to our shores should be aware of the consequences,” he said.