Clipper Group ship charged with oily water discharge

Clipper Group ship charged with oily water discharge    The U.S. Justice Department said it has indicted three companies that own and operate the oceangoing chemical tanker 'Clipper Trojan' for an attempt by crewmembers to cover up the illegal dumping of oily waste in international waters during an inspection in Port Newark, N.J.
   The 11-count indictment named Clipper Wonsild Tankers Holding A/S and Clipper Marine Services A/S, both Danish companies that operate and manage the 'Clipper Trojan,' and Trojan Shipping Co. Ltd., a Bahamas company that is the registered owner of the 'Clipper Trojan,' as defendants. All three companies are part of The Clipper Group A/S, a Danish global shipping consortium.
   According to the indictment, the tanker's crewmembers dumped oil sludge directly overboard on two occasions in May and June 2006, and regularly dumped oil-contaminated bilge water overboard between March and June 2006. Furthermore, crewmembers attempted to prevent the U.S. Coast Guard from learning of the illegal discharges during an inspection of the ship at Port Newark on June 15, 2006.
   Engine room operations on board large oceangoing vessels such as the 'Clipper Trojan' generate large amounts of waste oil. International and U.S. law prohibit the discharge of waste oil without treatment by an oily water separator. Also, all overboard discharges are required to be recorded in an oil record book, a required log that the Coast Guard regularly inspects.
   On Feb. 2, Fernando Magnaye, 45, of Quezon City, Philippines, the chief engineer on the 'Clipper Trojan,' pleaded guilty to charges of presenting a false document to the Coast Guard and attempting to obstruct a Coast Guard inspection. During his plea hearing before U.S. District Judge Mary L. Cooper, in Trenton, Magnaye admitted that he knew about illegal discharges of oil sludge and contaminated bilge waste, but nonetheless failed to record those discharges in the 'Clipper Trojan’s' oil record book. Magnaye also admitted that he presented the false oil record book to the Coast Guard and falsely claimed to Coast Guard inspectors that the book was accurate. Mangaye further admitted that he asked the ship’s fourth engineer to fabricate a pipe that would ensure that the Coast Guard would take a false reading of the contents of the ship’s bilge sludge oil tank, in which oily waste was stored.
   The indictment alleges that crewmembers acted as agents for the three corporate defendants in attempting to cover up the illegal discharges of oily waste; that the three companies failed to provide sufficient training to the crew and failed to diligently enforce company policies concerning the handling of oily waste; and that the companies caused some crewmembers to execute affidavits falsely stating that the crewmembers had received briefings on the MARPOL Protocol, an international treaty regulating the handling and disposal of oil waste at sea, and U.S. laws concerning oil pollution.
   The indictment charges each of the companies with one count of conspiracy, one count of violation of the MARPOL Protocol, one count of making and using materially false writings and documents, seven counts of obstruction of justice, and one count of concealment of a tangible object to obstruct an investigation.
   If convicted, the companies face statutory maximum fines of $500,000 on each count or, alternatively, twice the amount of any gain to the corporations that inured as a result of the criminal conduct.
   The case is being prosecuted by Assistant U.S. Attorney Bradley A. Harsch of the U.S. Attorney’s Office for the District of New Jersey and H. Claire Whitney, Senior Counsel for the U.S. Justice Department's Justice Environmental Crimes Section. The investigation was conducted by U.S. Coast Guard Investigative Service.