Decision ID: 003964
In October 2013, the 1992 Fund Administrative Council, whilst noting the differing views that had been expressed in relation to CLC certificates, endorsed the legal opinion provided by Professor Sarooshi regarding the implementation of the Conventions into national law. It noted that the Director, in consultation with the Audit Body, intended to examine the possibility of developing a new policy, similar to that adopted by the 1992 Fund Assembly in respect of outstanding oil reports, to address the failure by Contracting States to correctly implement the Conventions.
The Council decided that, in the event that the 1992 Fund had suffered a loss as a result of the incorrect implementation of the Conventions into national law, the 1992 Fund should always first engage in dialogue with the Contracting State concerned, provide an opportunity for the State to inform the 1992 Fund Assembly of the manner in which the Conventions were implemented into domestic law, and how it intended to rectify the situation.
The Council decided that if the Contracting State’s proposals to rectify the situation were not satisfactory in the view of the 1992 Fund Assembly, the Assembly could consider whether it wished to instruct the Director to bring a legal action against a Contracting State to recover the loss resulting from the incorrect implementation of the Conventions.