Call for strong transparency rules for oil, gas, mining and logging companies

Arlene McCarthy

EU and US united in call for strong transparency rules for oil, gas, mining and logging companies.

Arlene McCarthy MEP who is drafting the EU transparency rules for the extractive industries will today be holding a joint event at the US Congress with Senator Cardin (co-author of the bipartisan Cardin-Lugar Amendment) and the NGO Coalition Publish What You Pay USA.

The US law currently requires all listed companies as well as large private oil, gas, mining and logging companies to disclose the payments they make to governments around the world on a project by project basis.

On the 22 August the US Securities and Exchange Commission (SEC) will vote to finalise these rules.

Euro MP, Arlene McCarthy said: "This is a key moment in the global drive for greater transparency. The US Securities and Exchange Commission must come out with strong rules including a clear definition of project level reporting. Project-level disclosure allows local communities in resource-rich countries to expose any corruption and hold their governments accountable for using revenues towards development.

"There is a strong majority in the European Parliament to overturn the 27 member state proposal for weak rules and weak reporting requirements. Those companies lobbying for weaker rules or play of the EU against the US should take note that we are united in our commitment to bring in strong global rules on transparency.

"It is clear that with the current lack of confidence in today’s global markets, investors are demanding more transparency and information on companies’ activities.”

"Transparency is essential to good governance wherever you live on the globe. The U.S. shares a commitment with our E.U. partners to support local citizens and level the playing field for all companies by harmonizing requirements to decrease corruption through greater transparency in resource-rich countries," said Senator Ben Cardin (MD).

Congress voted through in July 2010 and the European Parliament will vote in September on stronger transparency laws for oil, gas and mining companies.