Transparency Disclosure Act Can Give the United States a Powerful Tool to Build Global Stability and Fight Corruption

FOR IMMEDIATE RELEASE
CONTACT: Jed Miller, jmiller@revenuewatch.org

NEW YORK—The Revenue Watch Institute today heralded a new U.S. bill that would require all foreign and domestic companies listed by the Securities and Exchange Commission to report oil, gas, and mineral payments made to foreign governments. 

The Extractive Industries Transparency Disclosure Act (EITD), introduced today by Representative Barney Frank (D-MA), Chairman of the House Financial Services Committee, would enable investors to assess risk by following the money paid to governments in regions where conflict, poverty, and instability are often fueled by the extractive industries.

Transparency of company payments—urgently needed in resource rich countries—can create a positive chain reaction in which public information and participation in revenue management leads to increased government accountability and a reduction in poverty and national conflict.

"Promoting national stability is good business," said Karin Lissakers, Director of the Revenue Watch Institute. "Extractive companies risk billions of dollars over several decades in volatile but resource-rich nations like Nigeria, or Equatorial Guinea. Country-by-country disclosure helps shareholders understand where their money is at greatest risk and how to seek a secure return on their investment."

Mandatory reporting requirements for the industry will also level the playing field for companies worried that "going it alone" on transparency could place them at a competitive disadvantage. Lissakers emphasized that transparency offers vital and urgent benefits for citizens in resource-rich nations.

"Too often, the developing nations richest in extractive resources suffer the weakest economic growth and the highest levels of corruption and authoritarian government," said Lissakers.

Revenue Watch and its partners in the international Publish What You Pay coalition praised Rep. Frank and the cosponsors of the EITD bill for introducing the measure.

"At a time when citizens in developing nations stand to gain from the global boom in oil prices, and national security concerns weigh heavily on the United States, this bill offers a powerful tool to build a more stable economic and security climate, both in the U.S. and abroad," said Lissakers.

To learn more about the Extractive Industries Transparency Disclosure Act and the international campaign for revenue transparency, please go to http://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

• PWYP US: Simple Rule Change at SEC Would Strengthen Energy Security and Stabilize Overseas Business Environment
• Ten Reasons the EITD Act Is Good for Companies, Governments and the United States (pdf)
• House Committee on Financial Services: Frank Introduces Extractive Industries Transparency Disclosure Act (www.house.gov)
• Letter to the Editor: Robert C. Offenheiser of Oxfam America on "Oil and Accountability" (The New York Times)