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G8 wants oil, mining companies to report payments made to gov’ts

The European Union and the G20 should promptly press for new rules for greater public disclosure of payments by oil, gas and mining companies to governments, following the G8’s endorsement today of mandatory as well as voluntary steps toward greater transparency.

“The G8 wants oil, gas and mining companies to report the payments they make to each and every government,” said Vanessa Herringshaw, director of RWI’s London office. “That is real progress toward allowing citizens to track how their governments use that money.”

“More and more governments realize that transparency is vital to cutting corruption and ensuring the stability of supply of these vital resources, and this cannot be left to voluntary approaches alone,” Herringshaw said.

The G8 comprises Canada, France, Germany, Great Britain, Italy, Japan, Russia and the United States.

The G8 announcement reinforces steps taken by the U.S. Congress, which in 2010 passed legislation requiring companies registered with the Securities and Exchange Commission to report the amounts they pay to governments, country-by-country and project-by-project, for access to oil, gas and minerals. This promises investors and citizens new tools to hold companies and governments accountable.
The president of the European Commission, Manuel Barosso, has already pledged to issue legislative proposal for mandatory disclosure of payments.

“European members of the G8 pushed for requiring county-by-country disclosures by companies, and this is to be commended,” Herringshaw said. “The EU itself must also help shine light on whether countries are getting a fair share from their extracted resources. This requires company reporting, on a country-by-country basis, to show where profits are generated and whether companies are paying what they should."

Other important steps fall to the G20. “The G8’s decisions should encourage the G20 to endorse greater transparency,” said Karin Lissakers, director of Revenue Watch. “Economies such as China, Brazil, India and South Africa are vital to the oil, gas and mining industries, and there is a clear opening for their leadership.”

The Revenue Watch Institute promotes the transparent and accountable management of oil, gas and mineral resources for the public good.

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