Revenue Watch Hails Senate Transparency Bill as a Vital Tool to Protect U.S. Energy Investors and People in Oil-Rich Nations

FOR IMMEDIATE RELEASE
CONTACT: Julie McCarthy, (212) 548-0648, jmccarthy@revenuewatch.org

NEW YORK—The Revenue Watch Institute today applauded the introduction of legislation that will be essential in the fight to stabilize energy markets and end corruption in developing nations.

Introduced on Friday by New York Senator Charles Schumer, the Extractive Industries Transparency Disclosure Act (S. 3389) would require companies registered with the Securities and Exchange Commission to publish payments made to foreign governments for oil, gas and minerals. By making their payments more transparent, companies can protect investors seeking to understand risk, and help foster stability in the resource-rich countries that are the core of the energy industry. The bill will cover U.S. companies and their largest international competitors.

"The EITD Act is a win-win proposition for investors and for people in some of the world's poorest nations," said Karin Lissakers, Director of the Revenue Watch Institute. "Oil, gas, and mining companies operate in some of the most unstable and corrupt countries on the planet. With the industry information provided under these new rules, local communities can more easily keep their governments honest, and the resulting stability will yield safer investments and more security of supply for consumers."

The Senate bill is companion legislation to the House version of the EITD Act, introduced in the House Committee on Financial Services in May by Chairman Barney Frank (D-Mass.). Lissakers testified before the committee in support of the House bill on June 26.

"This is a critical time for new company reporting rules," said Sarah Pray of the Publish What You Pay U.S. coalition. "Prices and profits are skyrocketing in the oil business, while corruption in countries like Nigeria and Gabon undermines security and stability."

Revenue Watch applauded Senator Schumer for his sponsorship of the EITD Act and urged both houses of Congress to support this step toward transparency and energy security in an industry that has been historically opaque and too often volatile.

To learn more about the Extractive Industries Transparency Disclosure Act and the international campaign for revenue transparency, please go to www.OpentheBooks.org, or contact Sarah Pray of Publish What You Pay US at (202) 721-5623 or spray@pwypusa.org.

READ MORE ABOUT THE EITD ACT

• SEC Rule Change Introduced in Senate Benefits Investors and U.S. Energy Security
• Revenue Watch Tells Lawmakers: Disclosure Fosters Security and Economic Stability
• Testimony of Karin Lissakers to the U.S. House Committee on Financial Services (as submitted), June 26, 2008 (pdf)
• VIDEO: H.R. 6066, The Extractive Industries Transparency Disclosure Act, June 26, 2008 (U.S. House of Representatives)
• Fact Sheet: The Extractive Industries Transparency Disclosure Act (Global Witness, pdf)
• House Committee on Financial Services: Frank Introduces Extractive Industries Transparency Disclosure Act (U.S. House of Representatives)