Decision ID: 001235
In June 2001 the 1992 Fund Executive Committee and the 1971 Fund Administrative Council noted that prior to its sinking the Zeinab had been arrested by the multi-national Interception Forces after being suspected of smuggling oil from Iraq. Both the 1992 Fund Executive Committee and the 1971 Fund Administrative Council decided that, in view of the reservations expressed by a number of delegations regarding the circumstances surrounding the sinking of the vessel, in particular whether the Funds could be exonerated from paying compensation in accordance with Article 4.2(a) of the 1971 and 1992 Fund Conventions (ie due to the pollution damage having resulted from inter alia an act of war or hostilities), it was premature to authorise the Director to settle claims for compensation arising from the incident and that the matter should be given further consideration at their respective next sessions.