Humiliation and difficulties experienced while getting DCE at MMD Mumbai

One of the most frequent inputs I get from seafarers, officer and crew, has to do with the issues faced by people at MMD and DGS offices all over the country. And of all these, one of the most frequent issues is the what should be simple job of getting a DCE endorsement from MMD.

Over here, the name of one specific person, "Captain Prashant Y. Manchalwar" keeps cropping up again and again. Not just from seafarers, but also from vetting inspectors abroad, who speak with the officers and crew.

Anybody else got any inputs on this before I publish the full report, please - because this one is seriously disturbing.

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Wow, got some more inputs including tapes on one Capt. R. Johri, also at MMD, Mumbai. What is happening? Need to check for authenticity as well as double check, but as of now, seems there is a price for everything at MMD.

Good heavens.

Why should LSA, FFA and Medical Chest upkeep NOT be shore responsibility?

When head-counts were reduced onboard, they went up by multiple ashore, and continue to do so. In addition, there is no shortage of external sub-contractors for everything, to assist the poor guys ashore clocking in their 40 hours a week with lunch and tea breaks thrown in.


The workload onboard, however, went way up there. The Master is now too busy counting bedsheets and pillow covers and it goes on from there.


So, here's what one suggests, also in the interest of getting a grip on realities.


Quick thoughts on maintenance of LSA and FFA equipment onboard ships, as well as Medical Chest and other specific emergency equipment, which is not in regular use but only on an "as required" basis when the need arises. Thanks to gCaptain for the idea, here:-

http://gcaptain.com/practicing-what-cant-be/?35165

Frankly, the workload onboard as well as the commercial pressures from ashore with increased communications are so heavy, that the first casaulty onboard modern ships are the LSA, FFA and medical chest requirements. A few small tests that I have used personally on the last ship I sailed on a few months ago, as well as by asking people who work on or visit ships, show me that things are worse than before.

There is no point in specifying details here, we all know about the lifeboat that will simply not be lowered except in the calmest of weathers in port, the rust expanded pins in the quick release lifebuoys, the provisions from the boat that were stolen in some port, the painters used for some other purpose, the fire-suit which makes movement impossible, and more.

As seafarers, unless we are working for companies where the work ethics and attention to details like this have over-riding importance, we know that in the rush to "get things done", LSA, FFA and medical chest take a back seat. Why we seafarers would put this aspect behind is something sociological I have never understood - till I came ashore at an early age and realised that the quality of life of the seafarer onboard and his safety is about the last thing on the mind of  most ship-managers and their staff.

Frankly, in many cases, it is almost as though there is some sort of hatred at the offices where people are dealt with, still called "crew department" or similar, for the man onboard the ship. None of the rapidly evolving concept of HR (Human Relations) for us - we don't even deserve a pension fund or Provident Fund with a company contribution. And nothing reflects this better than the way LSA, FFA and medical chest are treated like a survey to survey item by all and sundry.

So here's a solution that the DG Shipping may consider as an implementation item, to start with on all Indian flag ships and subsequently put up to the various bodies including the IMO which make up the maritime world's lawmakers - make the DPA of the shipping company absolutely responsible for the LSA, FFA and Medical Chest on Indian flag ships as a shore maintenance job.

Whether done by a shore workshop, or by the Marine Superintendent using external contractors when the ship is in port, there needs to be some specific accountabilities and responsibilites that the shore management need to take. As well as liabilities if things go wrong.

How about it, does it work for us, ashore? Or does human life onboard remain a line item, unchanged since the days of seafarers being kidnapped from bars ashore and being forced to work on sailing ships of yore?

Our fellow ex-seafarers working ashore will be the last to suggest this, the shipowners will obviously resist this, the regulatory bodies are thoroughly controlled by the shipowners, so it is left to those sailing onboard, or the maritime media, to PUSH this through with the authorities.


Those onboard are, obviously, worried about their jobs. So maybe, the authorities would help?

But then, will that work, when most of our "authorities"look forward to post retirement avenues in the same companies!!


Speak up, and as said before, confidentiality totally guaranteed. 


Soon publishing responses I have got from active seafarers.

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Sarosh Zaiwalla/s views on piracy and more

Cortesy ecoterra status on piracy dated 27/28 november 2011.

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MO Representative Speaks Out On The Piracy Of Freight Shipping Off Somalia (HandyShippingGuide)
Anger at the Current Situation Pervades the Industry Worldwide
Our article of a couple of days ago told of the Assembly of the International Maritime Organization (IMO) which is currently meeting in London and mentioned in passing that piracy remains high on the agenda. Now Sarosh Zaiwalla, a specialist in shipping law and a Permanent Representative to the IMO has commented on the current situation as regards the hijacking of bulk freight and container vessels passing through the troubled waters of the Gulf of Aden and beyond.
Mr Zaiwalla’s comments illustrate the increasing frustration which the global shipping community feels as year after year the problem of piracy worsens whilst little seems to be happening, either to address the political problems in Somalia, or to take internationally coordinated steps to deal with the situation directly using an armed response. Speaking to the Handy Shipping Guide Mr Zaiwalla said:
“In October, I addressed the Indian Shipping Summit in Mumbai. As a commercial lawyer who specialises in Shipping Arbitrations, I thought I would be asked about cargo disputes and Bills of Lading. The Indian Shipping Community however, despite always being a profoundly commercial group, had one thing on their minds that overtook even their bottom lines.
“International World Trade relies on the ability of traders to transport huge amounts of goods on giant moving structures across the most hostile seas in the world. These traders face enough challenges from nature and ill-fortune. It is nothing short of outrageous that, over the last few years, ship owners and seafarers have been forced to add the very real threat of violent piracy to the dangers of their normal lives. Piracy is a major threat not only to the shipping industry, but also to peace throughout the globe – if the world does nothing to stand up to people who use AK-47s and grenades to take the property of others, then what will stop thieves adopting the same tactics on the land?
“The Gulf of Aden off the coast of Somalia is now almost a no-go area for international ships. The most recent large scale act of piracy took place during the Indian summit, when the Italian ‘Monte Cristo’ was captured in this area. The crew managed to hide in their citadel, while the rest of the world wondered what could be done. It is a matter of great satisfaction that an international NATO force took charge and freed those men, but that is something that has not happened enough. More commonly, ransoms are paid for seafarers and cargo, meaning that expensive ‘Kidnap and Ransom’ insurance policies have added to the cost of shipping.
“The individual navy vessels from different countries that attempt to counter piracy are few in number and grossly inadequate for the task of patrolling the whole of the Indian Ocean. There is at present no coordinated approach. As a result, pirates are often captured only to be fed and returned to Somalia, free to go back to their old work of piracy.
“If international forces are to coordinate in order effectively to tackle piracy in the long term, I believe that they must combine their efforts into a UN Naval task force. This force could then concentrate on patrolling the coast of Somalia, from where the vast majority of the pirates emerge. I hope that we will all be surprised by the effect that could be brought about by such a force monitoring all small vessels leaving Somalia’s coastline to ensure they were genuine fishing vessels.
“With that in mind, I have used my position as a permanent member of the International Maritime Organisation (“IMO”) to force the issue. I had intended to move a resolution at the IMO for this purpose, but I will not now do so, as the Secretary General of the IMO has informed me that he himself with be moving this resolution. At the IMO’s General Meeting in November I hope to contribute to the pressure that will be required to create a Naval task force that may be able to save many lives, as well as a lot of money, by taking control of the Indian Ocean back from the pirates.
“Short of the creation of a UN naval taskforce, it is not going to be practical to control the plague of piracy. The Somalian pirates are effectively the same as any other terrorist. The only difference is that while international terrorists have so far indulged in acts of terrorism for the sake of their professed political causes, Somalia’s pirates indulge in terrorism only to fill their own pockets.
“Arming ocean-going vessels will go some way towards dealing with pirates, but for this course of action to work, many obstacles must be overcome. For example, Egypt will not allow vessels passing through the Suez Canal to carry on-board guns and ammunition. What also is of concern is the growing ‘industry’ around piracy. The total losses to the International Trade Community on account of piracy in the year so far is estimated to be US$2billion. Out of this US$2 billion, only about US$110 million represents ransom paid to the pirates, just over 1% of the total loss. The rest of the loss is mainly represented by increased insurance premiums, the cost of adapting ships to higher security standards and payments made to the specialist security companies which have sprung up to deal with piracy. At the end of the day, this additional cost falls on the consumer: they increase the freight charges and, consequently, the cost of the goods to the ultimate consumer.
“The 21st Century requires an enlightened approach to combat evils like piracy. It requires the countries of the world to come together, whether or not they share a coastline, to eradicate once and for all the Somalian piracy which has emerged in recent years. Any dragging of feet now would cause serious harm to the safety and livelihood of many innocent people, and would play right into the pirates’ hands.”
Mr Zaiwalla’s views, and those of his Indian shipping industry colleagues are perfectly reasonable but many other observers will be concerned at the thought that more freighters passing through these troubled waters might wish to carry arms, a move which may well lead to an escalation of violence by people who will have no hesitation in using extreme tactics as the disturbing video’s linked to one of our recent articles demonstrated.
Ideally a political solution to the troubles of Somalia together with an officially commissioned military response would be found, but, with the eyes of the world concentrated on a seemingly worsening financial global economy, the question will be if and when impassioned pleas from the likes of Mr Zaiwalla and his IMO colleagues can move this terrible situation on to a better place.

Official Indian Government Indian Navy position on piracy . .

http://neptunemaritimesecurity.posterous.com/admiral-nirmal-verma-draws-attention-of-chief

October 21, 2011 Admiral Nirmal Verma Draws Attention of Chiefs of Navies to Criticality of United Action Against Piracy
An International Seapower Symposium was held in New Port, Rhode Island, USA under the aegis of the US Naval War College . The theme of the 20th edition of the symposium was "Security and Prosperity through Maritime Partnerships."
More than 110 nations, with 75 heads of Navy and 22 heads of Coast Guard, attended the Symposium. Admiral Nirmal Verma addressed the symposium in its inagural session on 19 oct 2011. Drawing attention of the world leaders of Navies and Coast Guards to the need for united action against piracy, Adm Verma reflected the Indian stand that “the international efforts towards combating piracy would benefit if there were fewer disparate task forces and independent naval operations. India’s relative autonomy of efforts towards combating piracy offSomalia can be traced to its preference for a UN mandated operations which we believe if adopted would holistically enhance the efficacy of operations”.

[NMS Note: The Admiral's full speech follows below:]



CNS’ ADDRESS AT THE 20TH INTERNATIONAL SEA POWER SYMPOSIUM

Admiral Jonathan Greenert, the Chief of Naval Operations, United States Navy , Chiefs of Navies and Coast Guards present with us this morning, Admiral Christenson: President of the United States Naval WarCollege- our gracious host, Flag Officers, Distinguished Delegates, Ladies and Gentlemen. It is always wonderful to be back at the Alma-Mater. From what I remember, Newport weather has always had the reputation of a temperamental lover – warm, wonderful, or, chillingly cold –most definitely, almost always – delightfully unpredictable. Today has been wonderful so far and let us all share our optimism for the rest of the week!



At the outset, I would like to thank Admiral Jonathan Greenert and all the organisers of the International Sea Power Symposium for affording me the opportunity to speak to this august audience on a subject that has affected mariners since times immemorial and yet is very contemporary - maritime piracy.



The difference today is that piracy at sea which was previously primarily robbery has now morphed into an elaborate network of operations to extract enormous quantities of ransom. Ransom amounts have increased to an average of 5.4 million USD per ship, from just 150,000 USD five years ago. According to a recent study by One Earth Future the economic cost of piracy maybe as high as 12 billion USD a year. This translates into increased operating costs, environmental expenses view rerouting of ships and most importantly, tremendous human costs. Even as we speak, 09 ships with over 300 seafarers of a range of nationalities, including 53 of my own countrymen are presently hostages in this contentious conflict. Lethal force and physical abuse are increasingly being used by pirates to leverage ransom negotiations.

The roots of Piracy are diverse; predominantly, political instability which has created a void of governance and economic opportunities ashore resulting in the manifestation of this menace at sea. Also worth reflecting upon, are the Somalian claims that the origins of piracy can be traced back to illegal fishing by other countries and dumping of toxic waste in their EEZ. Given the complications involved, no single response will solve the problem. While there may be some ambiguities about what we can or should do, there is no doubt that the fundamental prerequisite to any solution is the collaborative engagement of a wide range of maritime nations and littoral states. In this context I would highlight the work of the Contact Group on Piracy off the Coast of Somalia (CGPCS) under the aegis of the United Nations, which we believe is doing sterling work for coordinating international cooperation particularly information sharing. In the similar vein are the efforts of the Shared Awareness and Deconfliction (SHADE) initiative and that of UK Maritime Trade Operation (UKMTO) which functions from Dubai. These engagements have facilitated an agreement between independently deployed navies like Japan and India to coordinate their anti piracy operations, so that international shipping has more flexible options for escort schedules.

Beyond piracy’s complex genesis, it is interesting to highlight the metamorphosis of pirate activities. Despite multinational efforts, the number of incidents and net effects of piracy are on the increase with seasonal variations on account of the monsoons and geographic shifts dependent on the presence of naval units. The international efforts off the Gulf of Aden have resulted in piracy spreading to other areas of the Indian Oceanwhich had not experienced these attacks earlier. Some of these areas have been not too distant from India’sLakshadweep and Mincoy group of islands and naturally therefore this has been a cause of concern to us. It has become evident that pirates are changing their modus of operations as they have been observed to use hijacked merchant vessels as mother ships. This has given them an extended reach of over 1000 nautical miles from the Somali coast.

Given their changing tactics and operations, it is as Clausewitz would tell us imperative to strike at their centre of gravity, ‘the hub of all power and movement, on which all else depends’. To my mind, their Centre of Gravity is the elaborate network of financers that fund operations and facilitate revenue collection. A recent UN report revealed that of the ransom paid in each incident of piracy only 20% reaches the pirates, while financers and sponsors hive off 50%. The question that begs to be answered is that how do they manage to divert funds in so unfettered a manner? Therefore, there is a need to build a strategy beyond multinational maritime counter piracy operations to facilitate tracking of the fiscal trail.



It is important that our efforts be cultivated before what is at present a relatively benign problem of piracy, develops a nexus with radical terrorism which has a cancerous potential.



Moving on to what we are doing and some thoughts about what it is that we can collectively achieve.



What we are seeing today is a hitherto unprecedented, full and willing cooperation between a wide range of navies to combat piracy by providing credible deterrence thereby enhancing commercial confidence and facilitating the freedom of navigation in the global commons.



What is required is the collaborative engagement of both major maritime powers as well as the littoral states. The importance of littoral states towards a viable solution was best amplified by the success of the South-East Asian countries to combat piracy. While it is obvious to highlight that Somalia is a failed State, in stark contrast to the economically vibrant Southeast Asia, nevertheless, Somalia does have comparatively stable neighbours who could contribute to a regional response and international efforts could provide impetus to the fledgling Somali Coast Guard. Larger maritime forces could facilitate training of local navies and coast guards.

We in India are particularly concerned about the safety of mariners in the Indian Ocean since we are geographically centred aside the major shipping routes in the region. Units of the Indian Navy have been tasked to carry out escorts in the Gulf of Aden, irrespective of their nationality, since October 2008. So far, of the nearly 1800 ships that have been escorted by the Indian Navy in the Gulf of Aden, more than 80% have been flying flags other than Indian. I had mentioned about the shift in the areas of operations of the pirates closer to our island territories and consequently we have had to increase our anti piracy deployments. This resulted in four pirate mother ships being intercepted by the Indian Navy and Coast Guard earlier this year. Consequently, there has been a reduction of piracy incidents in the area and we intend to maintain this posture to assure international shipping.

Subsequently, we also noticed a shift in the ISLs in the Arabian Sea as merchant vessels attempt to avoid piracy prone areas. Some of these new routes are 15 to 20 nautical miles off our coast and there have now been instances wherein regular fishermen have been mistaken as pirates. In this cycle of ‘cause-effect-cause’, there is a real danger of innocent casualties on account of mistaken identities. We have therefore issued advisories on this aspect.



If piracy is to be deterred, the present ‘risk versus reward quotient’ must be inverted exponentially by the development of appropriate laws and Rules of Engagement. These require both national and international consensus which can be facilitated by an exchange of the first hand operational experience of navies presently involved in anti piracy operations, beside ideas from legal and academic circles as well as the expertise and local knowledge of the regional players.



Naval forces have been facing a major dilemma about apprehending pirates at sea, due to the inadequacy or ineffective legal mechanisms to prosecute pirates who have been arrested. It is estimated that 9 out of 10 apprehended pirates benefit from the 'catch and release' policy followed by most navies till now. In India we are presently faced with the challenge of prosecuting over a hundred pirates apprehended by the Indian Navy and held in our country. We have moved to make new and effective domestic laws, and we hope to have these in place. I am sure similar challenges are being experienced by other countries as well and if we can share experiences in this regard, it will be a positive step in our collective fight against piracy.

While many of these are policy issues that may take time to craft consensus, there are operating procedures that can be adopted immediately.

The Best Management Practices that have been published suggest a variety of planning and operational practices for ship operators and masters of ships transiting through high risk areas. This is a noteworthy initiative which includes suggestions such as having high freeboards, proceeding at high speeds, use of barbed wire and water cannons, employment of sentries and establishing ‘citadels’ or ‘safe rooms’ onboard. One measure that is increasingly gaining preference is the use of armed security guards. In this context the maritime community has to be cautious of cases of mistaken identity which I had alluded to earlier.

To mitigate such risks we have been using acoustic devices that have long range capability with built inphraselators that facilitate passing instructions in Somali language.



Towards minimising the possibility of situational escalation we have resorted to a rather unique measure of using our ship’s life rafts. Once the mother ship has been forced to stop, the pirates and crew are made to leave the mother ship and get on the life rafts released by the naval ship. This ensures that the pirates cannot carry arms; after which, they can be brought onboard for further investigation.



The shipping community could consider installation of mechanisms to disable their engines once it becomes evident that pirates are succeeding in gaining control. This may discourage their attempts to commandeer the vessel with of course the attended risk of force escalation by the pirates on account of their frustrations. This reemphasises the importance of establishing a citadel onboard.



Finally, I would conclude with the reflection that, the international efforts towards combating piracy would benefit if there were fewer disparate task forces and independent naval operations. India’s relative autonomy of efforts towards combating piracy off Somalia can be traced to its preference for a UN mandated operations which we believe if adopted would holistically enhance the efficacy of operations. Our Prime Minister in his speech at the UN General Assembly last month called upon the comity of nations to evolve a comprehensive and effective response to the problem of piracy and has assured the world of India’s readiness to work with other nations in this regard.

With these thoughts I conclude my remarks.

This article was posted by Neptune Maritime Security via pib.nic.in. To find out more, please visit www.neptunemaritimesecurity.com

Taxation and the Indian seafarer - NCV, FG, NRI - impact India and elsewhere . . .

While the plight of the Indian seafarer is slowly but steadily becoming one of the more important subjects on this medium, along with the subject of maritime fatigue and the larger effect it has on seafaring as a career option, another subject which draws the numbers is taxation.

This article written by me, almost a year ago, still draws in regular readership as well as questions:-

http://matescabin.blogspot.com/2010/11/so-are-you-nri-or-what.html

Aimed more at the NRI seafarer, spending 6 months or more at sea on foreign or Indian flag, there is still nothing new on the subject of how the new Direct Tax Code will impact the Indian seafarer seeking NRI status. At the same time, great movement in the world on international taxation and especially in context with the tax havens where shipping companies are often registered, is bringing major changes. And the Indian seafarer is not going to be immune from these vital changes.

So a word of caution - as a resident or an NRI seafarer working on foreign or Indian flag ships, the requirements to be fulfilled by the Indian seafarer were mainly as per Indian laws. This will change soon, has been changing, and very soon compliances of flag state of vessel, flag country of management company, flag country of vessel owner, and flag country of beneficiary owner, will also in many ways impact the status of the seafarer working onboard a ship.

To give two examples:-

1) You could be a resident of anywhere in India, but if your shipowner or shipmanager was from Maharashtra, then sure as day follows night, a deduction for Maharashtra State Professional Tax will be made in your accounts - especially if your articles, agreement and other documents were signed on a Mumbai address. (Whether the shipmanager or owner actually remitted that money to the Maharashtra Government or not is another question altogether . . .) It does not matter if the vessel was registered in Mumbai or Mongolia, you will pay a few hundred rupees every month.

2) The 'front" or even the beneficiary owner of your ship could be an entity whose eventual citizenship or domain is in any of the developed countries, after passing through one Flag of Convenience address and maybe one or two tax haven addresses, but eventually, the owners are individuals or corporates based somewhere. Their taxation adherences and evasions are increasingly being passed on to their custodians, employees, agents - and have you, especially as a Master, read about your liabilities lately? Not just pollution related . . .

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It is a very serious matter, this business of signing two or more contracts as a seafarer. Apparently, it has become the norm, especially on Indian ships, to sign one lower figure for the official Government articles and another higher figure as a separate agreement nullifying the first to some extent. And after showing it to friends in the IRS, their considered opinion is that it is a very dangerous matter, and needs to be investigated further.

Situation being like this:- what happens when the taxman uses the second agreement, loads it with all kinds of demands basis perceived income when in reality you may not even have been paid, and then presents you with a demand? Leave aside the sheer illegality of making a seafarer work on two separate agreements which is for the DGS to look into - where in the MSA does it say that an Indian seafarer on an Indian flag ship or otherwise has to sign two agreements?

To start with, and this needs to be implemented by all shipowners and management companies immediately, there should be only one agreement for one seafarer working on one ship. And that is the articles. If union wages are low, which they are, and a higher wage or salary has to be paid, which is often the case, then so be it - let the higher wages be reflected on the articles. There is no rule that prohibits this.

And you, as an individual seafarer, have everything possible to lose by signing two separate agreements for one job. Another view the income tax department can take is that you were actually due to get paid both amounts, so now sit and explain why you got paid only one, meanwhile please deposit . . . yes, it can happen.

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So here's a brief primer on the latest taxation scenario for seafarers working onships with all sorts of possible documents, and getting paid by legitimate means.

1) Are you an "employee" as defined by the company hiring you? In which case, you need to be on their rolls, get TDS deducted as an "employee", have EPFO subscriptions or equivalents and in general, satisfy the conditions applicable to other employees in the same company. That's a given. Yes, I know, the ship-owner and the ship-manager will convince you otherwise, but.

Since most seafarers on floating staff basis are not shown as employees by the shipping company or shipmanagement company, they don't realise it, but they as far as taxation is concerned end up being shown in the company's books as "consultants".

So now, it seems that you are a consultant, an Indian person in an Indian company, so what are your liabilities from the income tax point of view?

1) Nature of income as a consultant is classified as income from profit and gains of business. So now you start claiming deductions of expenses and depreciation while calculating the taxable income, which you can not, as an employee. Works fine, till the Income Tax authorities can ask you - where else were you a consultant. Nowhere else? Uh-oh, this can be classifed as income. Pay tax, no deductions for expenses and depreciations.

2) Books of accounts. Especially if you were claiming to be a "consultant" as an engineer. And remember, once you cross 15 lakhs, then all become mandatory.

3) Advance Tax. Ouch, forgot that one, almost?

And finally, very soon, expect all "consultancies" to come within the ambit of "service tax" too, which is not under Income Tax but Excise Department.

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Indian seafarers working in Indian companies are supposed to be under the protection of the Directorate General of Shipping, who are supposed to be looking after their welfare, not sending them into deeper trouble.

The root of this problem is the issue of dual (or even more) agreements between seafarer and shipowner/shipmanager. This has to be brought to an end right away.

And Indian seafarers working on Indian ships need to be employees, with proper tax adherences and the full protection that goes with it.

That's step-1 in improving matters for Indian shipping. Otherwise, if the shipowner and shipmanager couldn't care less about the people on board their ships, then the rest is somuch hot air.

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A request to all those with complaints against Owners, Agents, DGS-MMD or others.

http://matescabin.blogspot.com/2011/10/blacklist-of-defaulting-owners-and.html

The number of hits and views on this article are surprising me. I agree, the authorities have been their usual delightfully vague selves as usual, that is what the truth is so what else is new - and so many of you appear to have no other avenues to take your issues to. It is well known that matters are reaching a point of intense frustration with seafarers for a variety of reasons and there often seem to be no options/

Agreed, I shall help, to the best of my resources.

But in all fairness, anonymous and slanderous complaints will not be entertained. And violence is certainly not an option.

I would like to see signed hard copies of complaints, if any, and shall protect identities wherever required. This is the least one can do, because more than a few messages of complaint appear to be motivated, and also appear to be from competitors trying to give other management companies a bad name. How do I know this?

Well, it is quite evident by the pattern - there appear to be some set group or groups which are targetting other management companies, and so, not over my shoulder.

If you are an individual seafarerer, however, please feel free to write to me, and I shall take it from there, step by step, to my best abilities.

Thank you and humbly submitted.

FAIRCHEM BOGEY pirated from Salalah Anchorage

http://thoughtso.wordpress.com/2011/08/20/thats-a-dare-pirates-catch-omanis-napping-21-indians-to-pay-the-price/

Here's Jugal Purohit's blog on the subject of the FAIRCHEM BOGEY piracy from Salalah (Oman/Muscat) anchorage in broad daylight.

More follows.


Pirates of the Somali basin, early this morning, took their prowess a notch above when they managed to whisk out a chemical/oil tanker right from under the nose of the authorities at the Port of Salalah. The MT Fairchem Bogey (IMO: 9423750; GRT: 15190; Flag: Marshall Island) was at anchorage, barely 4-5 nautical miles from the shore after entering the port in the early hours of August 18.
The Fairchem Bogey was to load 20,000 tonnes of methanol later today and sail out on August 21.
Even though the disease of piracy has forced the Europeans and Chinese to deploy naval assets to safeguard their economic interests, it was only today that this neighbouring port which claims to be a ‘worldclass transshipment hub’ was woken up to the reality of being in a conflict zone. Unfortunately though, the price for this folly is being paid by the hijacked crew of 21 Indians on board the ship.
Latest positions reveal the ship as travelling south-west, towards Somalia and has logged atleast 90 nautical miles since being taken over. As far as the news of this development, which can affect ‘business interests’, it is learnt that it may just be relegated to the cold storage in Omani media.

Sequence of events
According to a source, it was a dhow (Ocean-going trawler) which was used by the pirates to work its way up to the ill-fated ship and hijack it. “For a dhow to be in the anchorage is very normal, unlike in the other ports. That is because, this area sees a lot of unregistered trade which dhows carry out. The reach of these dhows extends from the Gujarat coast in India till the Horn of Africa,” said a source located in Salalah.
However, an alert sailor on watch duty onboard the Fairchem Bogey actually detected something amiss and raised an alarm. “Immediately, the crew hurried to the strong-house or citadel and locked themselves up. From there, they pleaded with the port authorities for help,” the source added. Simultaneously, an unknown number of pirates’ managed to climb onboard the ship. “It was the crew’s misfortune that one or two crew members could not make it to the citadel and were left out. This worked to the pirates advantage as the well-armed bandits apprehended the isolated crew members,” the official added.
A practice followed very religiously is that once even a single crew member falls into the hand of an armed pirate, then all means of using force to secure their fate are withdrawn. This is done to avoid risking the life/lives of the crew member/s.
With that act of apprehending, the fate of the 21 Indians onboard, thus was sealed.
In addition to this, the pirates also got two full hours to force the remaining crew out of the citadel and complete their mission. Once done, the ship charted its course to the Somali badlands. As per information available, the captain of the ship also communicated to the authorities that armed pirates had taken charge of the ship and thus all action be suspended.
Security Level 1
Speaking to a local operator, aware of the inner-workings of the Salalah port, it was understood that despite the proximity to the Somali and Yemeni coast – the springboards of the modern-day piracy – the state of alert at the port was at level one. Effectively, this would translate into a ‘normal’ state of affairs with hardly any enhanced security measures in place. Could this have been averted? “Of course. The authorities here have rather been lax as something as daring as this has never even been conceived,” he stated.

“At present, the authorities are desperately seeking clues on this spectacular raid. Inquiries are being made and rumours mills are working over-time. But the fact remains that they have little or no lead,” added the source.
Helpless in such cases: DG Shipping
In a document accessed, the DGS, which has often attracted flak for being unable to react effectively to this malaise, has admitted that it has virtually no jurisdiction to tackle cases like this even where Indian interests are involved.
The port authorities meanwhile did not immediately offer a comment.

Record keeping at the DG Shipping office in Mumbai . . .

To give you an idea, for an incident involving fire on board a ship from one of the "leading" management companies, which also resulted in loss of life as well as total constructive loss of the ship. One asked for a copy of the enquiry reports and other documents - said enquiry continuing for a few years after the incident and pertaining to a lot that could be learnt for future generations of seafarers.

But what do you know? The answer I got to an RTI application filed almost 4 months ago, after due follow-up and First Appeal, has this to say:- "Being an issue over 11 years old, relating to the year 2000, the concerned files on this issue have to be traced from the official records of this organisation. Efforts are underway to do so, still. However, they have not been located, as yet, despite earnest efforts made towards that end by this office."

What does one say to this reality? Sure, the Joint DGS assures me of his best efforts to locate and retrieve, but is that what we have dropped down to at this office?

EPFO and the Indian Seafarer - a perspective (and opening gambit - service tax)

Some of us may recall the big scandal with the Seaman's Provident Fund, which had vanished as part of the even bigger Home Trade scam, some slight details of which are here:-

http://www.dnaindia.com/mumbai/report_sailors-get-back-their-lost-pf_1067316

This was, in value terms, amongst the top 10 scams - considering that the Bofors scam was about all of about 25-40 crores. Ofcourse, scam levels have gone up now, and just one small builder EPFO scam in Delhi (kashyaps) has a figure of about 170 crores to it.

As far as Indian seafarers working on Indian or foreign flag ships are concerned, the matter is now moving up rapidly, and exemption granted to shipping companies and shipmanagement companies as a special case under the Seaman's Provident Fund Act and Amendment is being looked into. In any case, it is not possible that a "special" act for Indian seafarers should provide lesser provident fund for Indian seafarers!!

More on that later, there are many angles to it, including the definition of the word "employer", but here's an article I wrote on EPFO issues which might be of interest. As Indian seafarers, you may wish to ask your employer, too, about this.

http://moneylife.in/article/your-epfo-savings-could-be-at-risk-unless-you-secure-some-important-aspects-yourself/18329.html

The bigger issue here is this - for many Indian seafarers working on Indian or even foreign flag ships on contractual basis, the issue of service tax to be levied by the contractor (seafarer) on the shipping company / shipmanager, is being looked at. So, in other words, if you are working on "contract" wages, then be aware that you may be liable to charge service tax. Please do check with your tax consultant here, too.

And the question to our friends at DGS, soon in the form of an RTI, will be this:- how is the Seaman's Provident Fund giving lower returns than the Employees Provident Fund Organisation (EPFO)? The whole concept of an "exempted" category under the various Acts and Rules underlines the simple fact that a "special" provident fund will provide better returns than the "normal' EPFO.

Big question, that. If you look at the answer carefully, then Indian seafarers, whether on Indian flag or foreign flag, are served far better by being covered under the EPFO - just like any other "international worker". More on that soon, too . . .

Flag of Convenience offices in India do not have diplomatic immunity . . .

It appears that the so-called self-acquired "diplomatic immunity" assumed by many of these Flag of Convenience/Open register companies and their offices issuing certificates, collecting payments and doing other documentation in India is being questioned rigorously by the authorities in Delhi.


That many of the people who in the past or present represent or consult with or even have stakes in these foreign FOC offices happen to be ex-seafarers who have spent time at various levels in the regulatory and other Government bodies is not escaping this investigation, too, seems they have even gone into the close relatives aspect too.


It starts with Panama, is what I am told, including their business of issuing equivalent certification of all sorts on a price-list.


Some effect of this passing of the buck on the piracy issue, I guess, will cause this corrupt core to crumble from within. I believe two close relatives have already "resigned" and one is going back to writing books, in a nutshell?

Indian Government's Official Position on Maritime Piracy

This is what our kachraa munceepaltee gormint has to say about what their position in context with piracy - you there now, drink your tulsi ka juice, sit in the corner, gormint munceepaltee of the Jahaz Bhavan chowkidar will not let you in but ALL IS WELL? Sorry for the hyperbole, but dealing with the human element of 3 separate sea piracy episodes, is enough to drive people round the bend. And worse.


http://www.dnaindia.com/india/report_govt-rules-out-talks-with-pirates_1539467


""decided to "wait and watch" ""


Now I really know why Captain Ramdas K. Menon from the RAK ARIKANA / RAK SINDBAD world in Ras al Khaimah died. His heart literally broke when he heard about the truth. And I know why another very dear batchmate looks and sounds so tense all the time. And why these are some of the realities in connection with piracy, not really revealed . . .

#  balls being burnt off.

# legs being tied with your face in a gunny bag with rats inside being dipped head first into water and AK47s being fired around you.

# being tied naked into the freezer room (minus 17 degrees centigrade) and hung up with your hands behind you.

# fed only plain rice with no salt/veggies/daal anything for 11 months.

# being regularly sodomised or threatened with same.

# owner trying to skim off the insurance money for himself

# being left naked on hot steel decks face down while birds peck you

 

#  And then, come back to India, and die.

 

+++

 

The chiefmost negotiator on the ground, wait for this, the famour "Ali" - is reporedly a Filipino. On to around 8-10 negotiations at any given time.

 

More than one release has been delayed because the various people in between have tried to skim off the insurance ransom pay-out.

 

Families of the ASPHALT VENTURE stranded and distressed officers yet not released have never been contacted by the DG Shipping, and more than once, were unable go up to meet anyone there.

 

And as for the late Capt. Prem Kumar of RAK AFRIKANA, bravest of the brave from 1980-81, his batchmates and he are proving once again the strength of the "batchmate bond" - which is confusing to some, but understood by a few.+

 

 

+++

 

 

I have attended a few piracy seminars, and have now stopped going there, choosing to read up on the reports and papers circulated - as well as network separately. My own association with seafaring and the commercial as well as fiduciary elements of trade including especially shipping also extends to some work done in assisting and providing intelligence on the recovery of moveable stolen assets of any sort - especially when they cross international borders - automobiles is one of them.

 

But I have not been as shaken up as on hearing reports from seafarers, Indian seafarers, returned from piracy episodes, in my whole life, and I have seen some terrible things, like:-

 

# children trapped in a school-bus that went off a bridge and sank underwater in a river.

# college girls being burnt in a bus.

# a man being taken off a bus, beaten and burnt by a crowd.

# been at the New Delhi Railway Station when a post 1984 train came in.

# hangings after stonings in public.

# the trade in human body parts and foetuses

# bodies on the ground after massacre of "natives" in Laurenco du Marques.

 

Many of my friends will say -oh, don't even think of these things. But does that make them go away, does that give the government the right to say "wait and watch".

 

+++

 

What can you do as a seafarer?

 

The option of a "strike" is laughable. Our same wait and watch Government will not think twice before declaring ESMA and arresting a few. In any case, are we united enough to do so?

 

What you can do, however, is this:- work only on ships where flag state provides you some element of safety. The larger issue with piracy is that it is mostly the FOC / tax haven registered kind of ships which are caught and where negotiations are pro-longed.

 

Next, simply avoid and refuse to sail in the affected waters, and if you must - then ensure that your conpany and ship's insurance and P&I provide ample cover. One piracy episode will probably spell an end to your maritime career. There are currently marine engineers and deck officers who returned or otherwise willingly working as cargo surveyors at salaries paid to tally clerks.

 

Make a noise. Join hands with the impacted families. Go to the nearest MMD and/or DGS office near you and organise regular protests. Enter into their daily routine with full legal clarity to  pose questions on their day to day activities. File RTI Applications of all sorts.

 

If you are ashore this and reading this, then start today - make your presence felt. Because otherwise, if you don't, then you too will become a statistic in the 'wait and watch' government of ours.

 

 

 

 

 

 

 

 

 

FOC ships, piracy, dear DGS, who or where is the real shipowner?

Very often, in cases involving Indian seafarers working on foreign flag ships, through RPS companies operating under DG Shipping auspices, the big question arises:- WHO is the real ship-owner? Leave alone fraud issues like fake class, absent P&I cover, lack of insurance, sub-standard rust buckets. The big question is nobody can answer - who is the real ship-owner?

The RPS company, more often than not like in the DGCA scams, are in some way or the other related or otherwise 'friendly" to people at DGS. Same old boy network, yeah, sure. Worked wonders for all of us.

But now our old boys are getting tortured, kidnapped, imprisoned and injured, maimed, even killed. Gone too far. Time to look around and put an end to this, time to fix the rot at DGS before a scam of the DGCA sort hits the ceiling, and media.

One set of simple solutions coming from a few people I spoke with, which is another thing - here in Delhi, the fear of DGS is so all-pervasive, that everybody wants to keep their identity hidden. But OK, so this is it, especially where the real owner can not be traced, and all sorts of other entities come in front:-

1) Indian flag ship wners are covered under MSA and can easily be held  traced and liable under Indian Law.

 

 

2) Issue arises in the case of foreign flag ships which are FOC and through RPS agencies where actual ownership is not known since front company is hidden in tax havens. This is absolutely illegal under Indian laws, for Indian entities to do business with entities who are hiding behind tax havens, and DGS complicity in this needs to be investigated. How is it that our own DGS extends some sort of recognition to companies which are often nothing more than suitcases and laptops hidden in secret offices in tax havens, have they not heard of people going to jail lately, for all this? Better ask around, Shri DG and NA, and soon.

 

 

3) But interim, for immediate relief, we need to demand for Indian seafarers working on foreign flag ships through RPS companies that DGS simply ceases some of these illegal practices and just complies with Indian laws to the maximum effect so that:-

 

 

a) All bank guarantees with RPS companies be increased to Rs 50 lakhs per seafarer instead of present Rs 10000.oo per seafarer. Alternately, a policy for value of Rs 50 lakhs per seafarer be made and deposited with DGS for the next of kin. This number is basis the amount of minimum insurance and under-writing for a junior Government functionary going to Afghanistan on deputation, by the way. Add to that pension and the rest of it.

 

 

b) #Where flag of vessel is same as nationality of owner of vessel, then full KYC guidelines as set down by Ministry of Finance be complied with, before permitting Indian seafarers onboard.

 

 

     #Where flag of vessel is different from nationality of owner of vessel, then full KYC guidelines as down by Ministry of Finance be complied with for both entities, before permitting Indian seafarers onboard.

 

 

c) A separate kidnap and ransom cover to be taken for each Indian seafarer to the value of USD .5 million SDRs for usage towards ransom payments.

 

 

d) A separate death and disability insurance cover to be taken for each indian seafarer to the value of full payments til the age of 65 or 10 years, whicher is longer, in case of death or disability due to piracy/kidnap.

 

 

+++

 

Let us face it, DGS is not in a position to reconfirm the genuine-ness of P&I cover or documents of ships calling Indian ports, so trying to do so for ships trading exclusively abroad will be even tougher. Keep the added insurance in India, through Public Sector Insurance companies or GIC, all of us seafarers know that we are living and working in a dangerous profession with our eyes open - but please organise some protection for our families if we get kidnapped or fall afoul of pirates?