2001 Maritime

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November 9, 2001

House-Senate Conference allocates $33 million for Title XI
The Commerce, Justice, State and Judiciary Appropriations Bill conference committee yesterday finalized the bill that both Houses of Congress will vote on. The bill includes $33 million for the Title XI ship mortgage loan guarantee program. With the $7 million that rolls over, MARAD will have $40 million for FY 2002.

DOT Inspector General to audit Title XI
The U.S. Department of Transportation's Inspector General is initiating an audit of the Title XI loan guarantee program. The audit is in response to the request of the Senate Committee on Commerce, Science, and Transportation and the House Appropriations Committee

The Office of the Inspector General says the short-term objective will be to assess the impact of American Classic Voyages, Co. (AMCV) bankruptcy filing on October 19, 2001 on its Title XI loan guarantees.

"AMCV presently has approved loan guarantees totaling over $367 million that are now at risk," says a memo from theo ffice of the Inspector General to MarAd. "We will determine what immediate actions, if any, the Department of Transportation and MARAD can take to better protect the interests of the United States."

"We will also perform a comprehensive review of the Title XI program," continues the memo. "Specifically, we will determine (1) if procedures for submission, review, approval, and monitoring of selected Title XI loan guarantees comply with applicable laws and regulations; and (2) if these procedures are adequate and effectively implemented in order to protect the interests of the United States."

"The audit will be conducted primarily at MARAD Headquarters," says the memo. "However, we will also visit selected companies that have received approved Title XI loan guarantees and shipyards where their ships are being built."