April 14 2003
$25 million for Title XI
Originally, the Senate was looking for $50 million for the program, while the House was looking for zero. Conferees agreed the $25 million with a proviso that MARAD comply with the recommendations of the recent Department of Transportation audit by the Office of the Inspector General..
In summary: the OIG found:that MARAD needs more effective oversight of the loan-application process, borrowers, vessels and shipyards constructed under loan guarantees, and foreclosed assets. It recommended that MARAD: (1) analyze the risks presented when it modifies criteria used to approve loans and impose provisions to mitigate those risks; (2) establish processes for external independent reviews of projects; (3) improve oversight of its borrowers' financial condition; and (4) establish a process to monitor the physical condition of assets over the term of a loan guarantee; and (5) improve its return on foreclosed assets through better tracking of vessels and property constructed with loan guarantees. MARAD agreed with the recommendations.