The $40,000,000 fine levied against Princess Cruises last week raises the issue of what cruise executives knew about the illegal dumping of oil-contaminated waste from the Caribbean Princess cruise ship and the other illegal practices which took place on the Star Princess, Grand Princess, Coral Princess and Golden Princess.
As the Department of Justice (DOJ) points out, this is not an isolated case involving a rogue ship employee. The criminal misconduct took place for eight years from 2005 to 2013 (involving the Caribbean Princess) and involved several other cruise ships as well. According to the DOJ, the illegal conduct included not only the "magic pipe" to circumvent the oily water separator on the Caribbean Princess but involved other other illegal practices on the Caribbean Princess as well the Star Princess, Grand Princess, Coral Princess and Golden Princess.
The DOJ suggested that the pollution crimes committed by Princess were motivated by avoiding the costs associated with properly offloading the oily waste in port. The DOJ says that subordinate engineers on the Caribbean Princess nicknamed the chief engineer (responsible for using the "magic pipe" to discharge oily waste in August of 2013) “braccino corto” (a person with short arms), which the DOJ explained is "an Italian expression for a cheap person whose arms are too short to reach his wallet."
According to the DOJ, some Princess engineers expressed the same opinion of the Princess shore-side superintendent.
Princess Cruises' reaction to the DOJ charges seems designed to isolate its shore-side managers and executives from direct responsibility. Although it admitted that its ship employees' conduct was "inexcusable," and that its oversight was "inadequate," it denied that its management in its headquarters knew anything illegal was occurring before August 2013.
Gauging from comments on social media, the public seems skeptical.
Consider some of the comments to the Miami Herald article Carnival-Owned Ship Caught in Pollution Scheme. Now They’re Paying $40 Million for It:
"Of course management knew. Why would a lowly worker come up with this idea? He could care less because he gets paid the same whether or not they follow regulations. Corporate wanted to save time and money . . . "
"Typical cutting corners to increase profits while exploiting foreign workers who work for paupers wages."
Similar comments were posted by readers of USA TODAY's article Princess Cruises to Plead Guilty to Polluting Ocean:
"Something this significant, all top executives had to have known. It takes money and time to dispose of waste. Were there no questions when time was dramatically saved and cost of waste management decreased drastically? Come on...."
A reader of our Facebook page commented:
"Financial penalties like this are a drop in the ocean for a company the size of Carnival; but does anyone up the chain get jail time? I work in the cruise industry, and I (we) don't need arrogant (executives) who are looking for their next bonus for "cost savings" thinking that international waters are their big dumping ground."
The purpose of an illegal "magic pipe" is to save costs. Pursuant to international requirements, oily bilge water from a cruise ship must be treated to the point that the oil content is below 15 parts per million before it is can be discharged into the ocean. The oil-water separators (OWS) are expensive to maintain and operate. The oil that is separated from the bilge water must be stored and then offloaded from the ship onto barges or pumped ashore to be incinerated at licensed facilities. But the "magical pipe" avoids the costs associated with maintaining the OWS and removing and disposing of the waste products.
Like other cruise lines, Carnival Corporation places considerable pressure on all its brands to reduce costs. The costs associated with the operation of a ship are carefully scrutinized and analyzed from ship to ship. A significant variation in costs between a ship offloading and disposing oil compared to a ship dumping oil at sea via a "magic pipe" should be readily observed by any corporation. It is doubtful that the low waste disposal costs of the Caribbean Princess, compared to a ship with a functioning oil water separator (OWS), didn't come to the attention of the shore-side managers as well as those in the company and parent corporation who audit the costs of operating the cruise line's fleet of cruise ships. My opinion is that someone on the corporate side probably knew what was really happening on one of the company's $500 million ships, or perhaps they turned a blind eye toward the monkey business.
The closest that the DOJ will come to holding the cruise executives responsible is saying that the illegal discharge "was the result of more than just bad actors on one ship. It reflects very poorly on Princess’s culture and management."
This slap on the wrist ignores the fact that when the Caribbean Princess started its eight years of discharging oily wastes into the oceans, Carnival was still on probation following a fine of $18,000,000. In 2002, as part of its felony plea agreement, Carnival and its "subsidiaries and operating companies" were required to undertake a five year court-supervised environmental program involving every "cruise ship and shoreline facility in the U.S. and abroad." Carnival was required to " . . . hire new personnel and managers, whose sole responsibilities . . . [were] to ensure compliance with local, state, federal and international environmental requirements . . . (and) subject their operation to an independent auditor, approved by the government."
Princess Cruises was not yet owned by Carnival in 2002 but Carnival took ownership and control of Princess Cruises the following year. It is less than clear whether Carnival took steps to ensure that Carnival-owned ships operated by its subsidiary Princess Cruises complied with the 2002 consent agreement with the DOJ after Princess Cruises came under Carnival's control in 2003 when Carnival was beginning the DOJ probation period. Regardless, shortly after it started service, the Caribbean Princess began a course of criminal conduct until 2013 which would make the ship's engineers the poster-children of maritime environmental criminals.
Is the public really expected to believe that the executives at Carnival or Princess didn't know anything about the cost-saving criminal conduct over the course of nearly a decade?
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Some people people have suggested that president Jan Swartz should resign but she was not the executive at the helm of Princess during the 2005 - 2013 time period. She worked for Princess as a vice president in sales, marketing, business development and customer service for some of the years in question before leaving the cruise line. She returned to Princess as the top CEO in December 2013, replacing President and Chief Executive Officer (CEO) Alan Buckelew who had been the CEO since 2007. He then moved into the COO role at Carnival. Perhaps Swartz's return to the cruise line was part of the reshuffling that took place after the illegal "magic pipe" was reported to the U.K. Maritime & Coastguard Agency (MCA) a few month earlier?
Photo Credit: Caribbean Princess in the Caribbean heading for Miami - Cruiser1210 - CC BY-SA 3.0, commons / wikimedia.
You can read our first article about the DOJ fines here: Deliberate Dumping, Cover-Up and Lies: DOJ Fines Princess Cruises $40,000,000.
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