CVE 173

CIVIL ENGINEERING LAW CONTRACTS AND ETHICS

Final Project

Jowell Leshner C. Navarro

Student

Engr. Steve Anthony N. Lim

Instructor
 Bhopal Disaster

Bhopal disaster, also known as Bhopal gas tragedy is a gas leak incident in
India. This incident is considered the worst industrial disaster in the world. It
occurred at the night of 2-3 December 1984 in the pesticide plant of Union carbide
India limited (UCIL) in Bhopal, Madhya Pradesh, India. It happened when about
40-45 tons of extremely toxic MIC gas released to the atmosphere. More than 0.5
million Indian citizens exposed to Methyl isocyanate (MIC) and other gases in the
small towns and villages around the plant. The affected area was about 40 sq km.

There were different estimates about the number of victims. The official
number of immediate deaths was 2259. There were estimates about other 8000 died
after two weeks, and other 8000 died as a result of diseases related to the exposure
to the gas. Governmental estimates in 2006 talk about 558125 injuries include
38478 of temporary partial injuries and 3900 severely disabling injuries. Other
references stated that among the people, who were exposed to gas, 25000 people
died, 558125injured, 120000 continue to suffer of bad health effects. (UCIL) is the
Indian branch of Union Carbide Corporation (UCC). At the time of disaster, Indian
government al banks and Indian public were holding 49.1% stake. UCIL produced
pesticides and agricultural product s to cover the huge demand of Indian market.

Criminal cases were pending in Indian courts. At June 2010, it was found
that 7 of previous employees including the previous UCIL chairman were
convicted in Bhopal for causing deaths of negligence and got the maximum
punishment stated in the Indian law (two years in jail plus 2000$ fine). Other eighth
employee died in jail before the judgment.

Pre-event Condition

After the independence, the Indian policy was depending on attracting

foreign companies to invest in India by getting the benefits of cheap labor and low
taxes. UCC built the UCIL factory in Bhopal to produce the pesticide sevin using
the MIC as an intermediate material. MIC production unit was added at 1979 to
produce it on side rather than importing it. At that time the plant was considered as
a part of green revolution in India, as it clear in the poster below. The plant had a
capacity of 5,250 metric tons per year of MIC. After the MIC unit was added, Bayer
Company produced sevin without using the MIC. The new method was safer, but
more expensive. UCIL continue using the cheaper but dangerous MIC method.

In the year 1980 the demand for pesticide dropped but the company
continues producing MIC. This resulted in accumulation of unused MIC in the
tanks.

Methyl Isocyanate

In order to understand what happened in the disaster, we should know about

the lethal gas whose leakage caused that disaster. Methyl Isocyanate is a Clear,
colorless, sharp smelling liquid, extremely toxic, and highly flammable, its boiling
point is 40 degrees Celsius. It has a highly active volatile reaction with water. If
water comes in contact with MIC a run-away reaction starts which increases the
reaction temperature, as a result the reaction rate increases more and more. At a
certain temperature the MIC molecules start to combine with their selves with
generating more heat.

The Accident

On December 2, 1984, and in the absence of blocking device water found

its way to tank 610. Investigations done later indicate that about 1000-2000lb of
water entered the tank. This was enough to start a run –away violent reaction, its
rate increased by the existence of Iron Oxide impurities coming from corroded
carbon steel components. This increased the temperature gradually to 200C. The
MIC with a boiling temperature of 39C, started to boil and rise the pressure inside
the tank. At 11 p.m. one of the operators noticed that the pressure in the tank was
rising. But the gages were not trustful due to bad maintenance for a long period of
time. The right action was to open the valve connecting the tanks 610 and 619.
This was enough to halve the pressure till adding agents to neutralize as much MIC
as possible, and warn the people outside the plant to run away. At midnight the
MIC started to leak from the safety valves of the tank. The workers didn’t care and
went to the canteen for a tea. When they returned after two hours, it was too late.
In the original manual, the measures should be done each one hour not two. The
concrete around the tanks started to crack. Safety valve (rupture disk type) opened
and the gas found its way to the vent gas scrubber, and exit out of its stack. The
operator switched on the vent gas scrubber and the water curtain sprinkler to
neutralize the released gas. The scrubber failed, and the water curtain was not high
enough. The flare system was out of service. When the plant superintendent
reached after a short time, he activated the toxic gas alarm. This alarm was
switched off after 5 minutes. Many workers run away out of the plant escaping
from the gas. They warn some of the people outside the plant to escape.

In the early hours of December 3, 1984, 40-45 tons of MIC released out of
the vent gas scrubber. Because the gas is heavier than the air it settled down and
pushed by a gentle wind towards Bhopal city. The people started to wake up when
the gas started to suffocate them. There was no warning or any emergency plan to
evacuate the people as soon as possible. When victims arrived to the hospitals, the
doctors didn’t know what to do for them. The only thing done for most of those
poor people was drops in their eye. On December 5, total died people were more
than 2,000 and the UC plant had been locked. The parent company’s chairman,
Warren Anderson was arrested by Indian authorities when he visited India shortly
after the incident. Later in 1985 the Indian Government cancelled UC’s operating
license.

Immediately after the disaster, UCC began attempts to dissociate itself from
responsibility for the gas leak. Its principal tactic was to shift culpability to UCIL,
stating the plant was wholly built and operated by the Indian subsidiary. It also
fabricated scenarios involving sabotage by previously unknown Sikh extremist
groups and disgruntled employees but this theory was impugned by numerous
independent sources.

The toxic plume had barely cleared when, on December 7, the first multi-billion-
dollar lawsuit was filed by an American attorney in a U.S. court. This was the
beginning of years of legal machinations in which the ethical implications of the
tragedy and its effect on Bhopal's people were largely ignored. In March 1985, the
Indian government enacted the Bhopal Gas Leak Disaster Act as a way of ensuring
that claims arising from the accident would be dealt with speedily and equitably.
The Act made the government the sole representative of the victims in legal
proceedings both within and outside India. Eventually all cases were taken out of
the U.S. legal system under the ruling of the presiding American judge and placed
entirely under Indian jurisdiction much to the detriment of the injured parties.

In a settlement mediated by the Indian Supreme Court, UCC accepted moral

responsibility and agreed to pay $470 million to the Indian government to be
distributed to claimants as a full and final settlement. The figure was partly based
on the disputed claim that only 3000 people died and 102,000 suffered permanent
disabilities. Upon announcing this settlement, shares of UCC rose $2 per share or
7% in value. Had compensation in Bhopal been paid at the same rate that asbestosis
victims were being awarded in US courts by defendant including UCC – which
mined asbestos from 1963 to 1985 – the liability would have been greater than the
$10 billion the company was worth and insured for in 1984. By the end of October
2003, according to the Bhopal Gas Tragedy Relief and Rehabilitation Department,
compensation had been awarded to 554,895 people for injuries received and 15,310
survivors of those killed. The average amount to families of the dead was $2,200.

At every turn, UCC has attempted to manipulate, obfuscate and withhold scientific
data to the detriment of victims. Even to this date, the company has not stated
exactly what was in the toxic cloud that enveloped the city on that December night.
When MIC is exposed to 200° heat, it forms degraded MIC that contains the more
deadly hydrogen cyanide (HCN). There was clear evidence that the storage tank
temperature did reach this level in the disaster. The cherry-red color of blood and
viscera of some victims were characteristic of acute cyanide poisoning. Moreover,
many responded well to administration of sodium thiosulfate, an effective therapy
for cyanide poisoning but not MIC exposure. UCC initially recommended use of
sodium thiosulfate but withdrew the statement later prompting suggestions that it
attempted to cover up evidence of HCN in the gas leak. The presence of HCN was
vigorously denied by UCC and was a point of conjecture among researchers.
As further insult, UCC discontinued operation at its Bhopal plant following the
disaster but failed to clean up the industrial site completely. The plant continues to
leak several toxic chemicals and heavy metals that have found their way into local
aquifers. Dangerously contaminated water has now been added to the legacy left
by the company for the people of Bhopal.

How did Water Enter the Tank?

There are two theories explaining how water entered the tank Human Error and
Sabotage theory taken by UCC.

Human Error

At the time, workers were cleaning out a clogged pipe with water about 400
feet from the tank. They claimed that they were not told to isolate the tank with a
pipe slip-blind plate. The operators assumed that owing to bad maintenance and
leaking valves, it was possible for the water to leak into the tank. The water was
supposed to be drained through drainage nozzles.

Due to the existence of large quantities of rust in the pipe, these nozzles
were plugged with dirt. Then the water started to accumulate in the pipe till finding
its way inside the tank 610 because the slip blind plate wasn’t in its place also
because the tank 610 wasn’t pressurized enough {Nitrogen pad} due to the leakage
of many valves connected to the tank. It was found that if water accumulated to a
height of 6 meters above the cleaning area, it could drain by gravity flow into the
tank.

Sabotage theory taken by UCC

Union Carbide depended on investigation done by the engineering

consulting firm “Arthur D. Little”, which concluded that an angry employee (laid-
off that day) secretly introduced a large amount of water into the MIC tank by
removing a meter and connecting a water hose directly to the tank through the
metering port. Carbide claimed that such a large quantity of water could not enter
the tank by accident, available safety systems couldn’t deal with intentional
sabotage.
Conclusion

The Bhopal tragedy is still a cautionary tale that is both disregarded and
heeded. For developing nations in general, and India in particular, Bhopal and its
aftermath served as a warning that the road to industrialization is paved with risks
to people's health, the environment, and the economy. Some actions taken by the
Indian government, such as the establishment of the MoEF, have contributed to
some degree of public health protection from the harmful practices of local and
multinational heavy industry and grassroots organizations that have also
contributed to the opposition to unrestrained development. Due to the continued
pollution from both large and small businesses across the subcontinent, the Indian
economy is expanding at a phenomenal rate but at a great cost to public safety and
environmental health. To demonstrate that the lessons of the enormous numbers of
Bhopal victims who died have genuinely been heeded, much more work needs to
be done in the area of public health in the context of industrialization.

Bhopal Gas Tragedy occurred due to, poor management systems, bad
copying of safety process design, ignoring process and personnel safety
regulations, there is a need for the improvements in safety equipment (manual to
automatic), and stricter enforcement and personnel training must be followed. This
event cause death and injury of hundreds of thousands of people
 Former USA VP Spiro Agnew Construction Projects Kickbacks

In the history of American politics, Agnew Spiro has left a legacy of

corruption. He has undoubtedly made a significant amount of money for his
campaign through his unlawful conduct and dealings with the contractors.
However, he resigned from his post and damaged his reputation and personality
via his own actions. Then, he was involved in numerous cases of tax evasion and
bribes. Vice President Spiro Agnew ought to be penalized and put in jail for bribery
and tax evasion. Agnew should have been imprisoned in addition to being fined
and barred because of his role as vice president. Severe bribery is punishable by
both a fine and jail under the governing bribery law under Agnew's administration
(Kickback, Law Library-American Law and Legal Information). Agnew engaged
in serious bribery in this instance. It is because he was holding the second highest
position of the land. In addition, as a public official, he is expected to act
righteously and legally. However, by receiving kickbacks he abused his power and
acted in fraud in awarding contracts. Additionally, the acts of Agnew are against
Foreign Corrupt Practices Act of 1977 and Anti-Kickback Enforcement Act of
1986 (Kickback, Law Library-American Law and Legal Information). Having
violated two laws governing public officials, Agnew can be disbarred from public
office for life.

Furthermore, his fine should have been higher in the income tax evasion
case against him. Furthermore, the decision in the case involving Childs and Matz
may be seen as appropriate. Although the vice-president instigated kickbacks, the
contractors had relevant participation. However, the fine payable to the state should
have been greater by virtue of his political involvement.

Spiro Agnew, a member for the Baltimore Country Board, took advantage
of his position to give roadwork to engineers in exchange for the right kind of
kickbacks. Agnew expanded on this practice when he was elected governor of
Maryland. The scheme's members included a number of engineers, public officials,
and businesses. Maryland's governmental engineering contracts at the time were
not decided upon by open competition. The selection of engineers for the contracts
was solely at the discretion of the governor and the members of the State Roads
Commission. According to the report prepared by the Department of Justice,
several engineering firms were awarded state contracts with the understanding that
they were to pay Agnew a percentage of the amount of the contract. Some
engineers made this payment through a go-between who also received a share of
the payment, while others made the payment directly to Agnew while he was
Maryland's governor. When he became Richard Nixon's vice president, Agnew
continued to collect kickbacks, some of which were delivered by engineers in plain
brown envelopes to the basement of the White House. Clearly saying that engineers
were involved in a dirty circulation money within the circle politics that time.
When Spiro Agnew made his declaration of income tax as a vice president, he did
not include the kickbacks from every contract made with the engineers. Then the
whole issue burst into pieces, on October 3, 1973 Spiro Agnew decided to admit
evasion of Federal Income under an agreement with the Department of Justice that
he will avoid imprisonment.

In response, Matz paid Agnew kickbacks for each contract they were given.
Due to his cooperation with the prosecution, Matz is not being criminally
prosecuted. The majority of contracting companies could no longer obtain
contracts without engaging in such behavior in Maryland. Their complaints and
"whistle blowing" expose the payments received from Spiro Agnew and
Construction. Despite being widespread in Maryland, this practice must stop.
According to the core tenets of the Engineer Ethics Code, engineers must place the
welfare of the general public above all else as they carry out their professional
responsibilities and excel in their areas of specialization.

They should also build professional reputation on merit of their services

and compete fairly with others. This practice is unfair since there is no fair
competition for contracts. Whistle blowing is the best action. The engineer should
alert relevant persons on the legal or moral corruption. This is a controversial issue
that is challenging because of repercussions that the engineer might face. The legal
body together with good political will help in such like situations. Competitive
bidding creates a level playground for contractors participating in a bidding
competition.

For this case, competitive bidding could not have solved the problem
because of misuse of office by the politicians and engineers as well (Fleddermann,
2011). What is the ethical status of a campaign contribution given to a politician to
secure future business? Is this a bribe? Is it the same as a kickback? Perhaps line
drawing would help answer this question. Many times, kickbacks are offered from
an appreciation point of view after award of a contract. It is secretly given, mostly
in terms of money for a particular assistance or work given.

From this issue, Civil Engineers who were involved evidently violated
some engineering ethics. First, Civil Engineers shall act in professional matters for
each employer or client as faithful agents or trustees, and shall avoid conflict of
interest. High public official such as Spiro Agnew benefiting financially for civil
engineers to have their contracts was an example of conflict of interest. Secondly,
Civil Engineers shall build their professional reputation on the merit of their
services and shall not compete unfairly with others. In the issue, engineers who
gave money to win a contract compete unfairly with others who did not. Lastly, as
a Civil Engineer one must act in such manner as to uphold and enhance the honor,
integrity and dignity of the civil engineering profession. Clearly the latter was
violated as engineers in the issue were involved in the dirty circulation of money.
References

Dhara V.R. and Dhara R. (2006). Bhopal Disaster. ScienceDirect. Retrieved June
30, 2022 from https://www.sciencedirect.com/topics/medicine-and-
dentistry/bhopal-disaster

phdessay.com (2021). Vice President Spiro Agnew and Construction Kickbacks in

Maryland. PhDEssay. Retrieved June 30, 2022 from
https://phdessay.com/vice-president-spiro-agnew-and-construction-
kickbacks-in-maryland/

Erlandson R. (1996). Agnew took hundreds of thousands of dollars in contractors'

kickbacks Envelopes filled with cash given to him in his office detailed in
40-page report. TheBaltimoreSun. Retrieved June 30, 2022 from
https://www.baltimoresun.com/news/bs-xpm-1996-09-19-1996263146-
story.html

Broughton E. (2005). The Bhopal disaster and its aftermath: a review. BMC.
Retrieved June 30, 2022 from https://ehjournal.biomedcentral.com/
articles/10.1186/1476-069X-4-6