UNITED STATES/AMERICASbusiness & finance newsGAO Takes Federal Governmentto Task Over Security MeasuresThe federal government must do more toimprove the security of cargo headed forthe U.S., and to bolster cybersecurity—both key issues for the chemical industry,according to two separate reports recently publishedby the GovernmentAccountability Office(GAO). One report chargesthat two Customs andBorder Protection (CBP)programs aimed at addressingthe threat posed byterrorists smuggling weaponsof mass destructioninto the U.S. are not beingeffectively implemented.Another report criticizes theDepartment of HomelandSecurity (DHS) for notfully addressing national cybersecurity risks,including providing and coordinating incidentresponse and recovery planning efforts.At issue in transportation is CBP’s Customs-Trade Partnership Against Terrorism(C-TPAT) program, which grants preferentialtreatment to participating importers toencourage them to improve security in theirsupply chains through measures includingself-assessments. In return, program participantsface fewer inspections and may qualifyfor fast-track privileges at border crossings.A heavy load: More CBPstaff needed at ports.The GAO report found several problems withthe program, however, including that CBPgrants benefits before program participantsundergo a validation process verifying thattheir security measures are reliable, accurate,and effective. The programeffectively reduces the cargosecurity of participantimporters, and providesonly limited assurance ofimproved security, the reportsays.GAO says that anotherCBP program, the ContainerSecurity Initiative (CSI),has, among other problems,a significant staff shortage.The program aims to targetand inspect U.S.-bound,high-risk cargo containers at foreign ports.However, 35% of U.S.-bound shipmentsfrom CSI ports were not targeted and notsubject to inspection overseas last year—thekey goal of the CSI program—partly due tostaff shortages, GAO says. Also, CSI ports usenonintrusive inspection equipment that variesin detection capability, and there are no minimumtechnical requirements for equipmentused as part of the program, GAO says.One of the benefits of the CSI program,however, is that it has resulted in improvedSherwin Williams Executive to Head OMGOM Group (OMG) has named JosephScaminace president and CEO.Scaminace, formerly presidentand COO at Sherwin-Williams(SW), will also be on the company’sboard of directors. He was with SWfor 22 years.Scaminace takes over OMG afterthe abrupt resignation of CEOand chairman, James Mooney, inJanuary (CW, Jan. 19, p. 9). Boardmember Frank Butler has held theCEO duties on an interim basissince Mooney left the company. Changesbegan in OMG’s management team in late2002 when the company’s share price fellScaminace: Takeshelm at OMG.more than 90% in October 2002 (CW, Nov.6, 2002, p.9). OMG stock jumped 7% lastweek on news of the appointment(p. 48).Mooney’s resignation followedOMG’s restatement of financialfilings from 1999-2003, and delaysreleasing 2003 and first-quarter2004 financial statements to theSEC (CW, March 24, 2004, p. 9).OMG has previously stated thatit will file its 2004 10-K in June,and its first-quarter 2005 resultsby late July, which would make the companycurrent with all SEC filings by August 1.—RYAN W. SMITHinformation sharing between U.S. and foreigncustoms operations, and has heightened thelevel of international awareness about securingthe global shipping system, GAO says.Meanwhile, another GAO report saysthat DHS has not fully addressed any ofits key cybersecurity responsibilities forcritical infrastructure protection. Theseinclude improving public-private informationsharing involving cyber attacks, threats,and vulnerabilities. DHS created the U.S.Computer Emergency Readiness Team(US-CERT) in 2003, a public-private partnershipto improve response to Internetsecurity risks and breaches. However, it hasnot yet developed national cyber threat andvulnerability assessments, or governmentindustrycontingency recovery plans forcybersecurity, the report says.—ESTHER D’AMICO■ Degussa Completes Purchase of CyroDegussa says it has completed the purchaseof the 50% stake in Cyro Industriesit did not already own from joint venturepartner Cytec Industries for $95 million incash (CW, May 4, p. 5). Cyro had sales of$317 million in 2004. The deal includes manufacturingfacilities at Fortier, LA; Osceola,AR; Sanford, ME; and Wallingford, CT; aswell as R&D assets, and sales and technicalservice locations in North America. Cytecsays it will use proceeds to pay down debt.■ Elemica Names McGuigan as CEOElemica, an online back-office clearinghouse for the chemical industry, has namedMike McGuigan president and CEO. Hereplaces Kent A. Dolby, who has retired.Dolby joined Elemica as its first CEO inDecember 2000. McGuigan was previouslyv.p./digital and communications technologyfor BP’s chemical business, as well as chairmanof Elemica’s board.■ DuPont Names NASA Chief to BoardDuPont says that Sean O’Keefe, currentchancellor of Louisiana State University(Baton Rouge) and former administrator ofthe U.S. National Aeronautics and SpaceAdministration (NASA), has been electedto its board, effective July 1. O’Keefe alsopreviously served as deputy assistant to thepresident and deputy director of the Officeof Management and Budget in the currentBush administration.www.chemweek.com <strong>Chemical</strong> <strong>Week</strong>, June 8, 2005 9
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