time to jump ship

US charges Sanford with pollution

MICHAEL FIELD 07/12/11

One of New Zealand's major fishing companies, Sanford, has been charged in the US with pollution, conspiracy and obstruction of justice.

If convicted the company and faces a maximum fine of US$3.5 million ($4.4 million).

Sanford's vessel San Nikunau is accused of discharging oily bilge waste into the sea and presenting false documents to American Samoan authorities and the US Coast Guard.

The seven-count indictment was announced in Washington by Assistant Attorney General Ignacia S Moreno and US Attorney Ronald C Machen, Jr.

A statement said San Nikunau routinely delivered tuna to a cannery in American Samoa.

"The indictment describes a conspiracy where the crew of the vessel routinely discharged oily bilge waste from the vessel directly into the sea during its fishing voyages since at least 2007," it said.

"Sanford Ltd was also charged with violating the APPS for failing to accurately maintain an oil record book for the vessel and with obstruction of justice for presenting false documents and deceiving the Coast Guard during an inspection."

If convicted Sanford could be fined up to US$500,000 per count, or twice the gross gain or loss that resulted from the criminal conduct.

The indictment also seeks a penalty of more than US$24 million for proceeds derived by Sanford as a result of the criminal conduct.

In a statement to the stock exchange this afternoon, Sanford said it had learned of the indictments today.

''We have been conducting our own investigations in conjunction with our legal advisers since July 2011 when the US detained the San Nikunau in American Samoa. We will be vigorously defending all the charges and continuing our efforts with authorities in American Samoa to get the vessel released to enable it to return to fishing,'' it said.

The company said it took its responsibilities seriously ''and would never permit discharges of pollutants into the ocean and nor would we obstruct any reasonable investigation into any allegations made against the company.''

Sanford operates three big freezer tuna purse seiners in the Pacific, including the San Nikunau.

Catches of skipjack tuna were often unloaded and sold into one of the two canneries based in Pago Pago, American Samoa.

The ship was bought from American owners in 2001 and has 19 crew.

Announcing its annual result two weeks ago, Sanford said two of its ships had been detained in Pago Pago over legal issues.

As well as San Nikunau, the San Nanumea was detained on issues related to injury claims from a number of current and former crew.

The ship has since been released under bond and Sanford said the claims were being dealt with through lawyers appointed by insurers.

Sanford said legal costs of the investigations and defending any charges were covered by insurance and other costs had been provided for in the accounts to 30 September.

- © Fairfax NZ News