Sea Launch - Concerns and Investigations

Concerns and Investigations

During project development in 1998 Boeing was fined ten million US dollars by the United States Department of State for technical violations of the Arms Export Control Act in handling of missile technology while dealing with its foreign Sea Launch partners. This is the largest civil penalty of its kind, although it could have been as much as 102 million US dollars. The Sea Launch project was suspended for two months during the investigation.

The Department of State found that between January 1994 and January 1998 Boeing illegally exported "defense articles" and "defense services", although no national security breaches were determined. The violations were uncovered by Boeing's internal investigation.

At about the same time United States Customs Service attempted to block Sea Launch from bringing Zenit 3SL rockets (classified as missiles) into California for assembly without a munitions import licence. The matter was settled in the company's favour.

Also in 1998, 16 member states of the South Pacific Forum issued a communiqué asking the United States to suspend the project indefinitely until and unless their environmental concerns are remedied. It was mostly criticized by the island nation of Kiribati.

The project was criticized in 1997 by International Transport Workers' Federation (ITWF) for registering its sea vessels in Liberia. In May 1999 Sea Launch reached an agreement with the ITWF, which allows crew members to use ITWF inspectors.