The provision, based on the Energy Security Through Transparency Act (S. 1700), covers all oil, gas, and mining companies registered with the U.S. Securities and Exchange Commission. This applies to companies from around the world like the major oil companies operating in Nigeria: Chevron, Shell, and ExxonMobil.

For the people of the Niger Delta, this legislation will provide access to information that can be used to combat corruption, seek a fair share of revenues from oil extraction, and bring communities a step closer to holding companies accountable for paying the brutal Nigerian military to suppress dissent.

On June 30, the House of Representatives passed the same legislation that the Senate passed today. President Obama is expected to sign the bill into law next week.

JINN and its members pioneered a U.S. grassroots strategy in support of the work of the U.S. and global Publish What You Pay Coalition, by mobilizing support from the cities of Berkeley, Oakland and Richmond, California. Each of these municipalities adopted a resolution in support of the Energy Security Through Transparency Act (which was the basis for the language that was passed today). These resolutions were used by the lobbying team on Capitol Hill.

More information below:

FOR IMMEDIATE RELEASE
July 15, 2010

CONTACT:
Abby Rubinson, abby@justiceinnigerianow.org, (415) 990-0792
Isabel Munilla, imunilla@pwypusa.org, (202) 525-2754 / (202) 680-4606

U.S. legislation shines light on billions in oil and mineral payments

Measure sets new global standard for corporate transparency

WASHINGTON, D.C., July 15, 2010 — The Senate gave final approval today to the Dodd-Frank Wall Street Reform and Consumer Protection Act with a landmark provision requiring energy and mining companies registered with the U.S. Securities and Exchange Commission to disclose how much they pay to foreign countries and the U.S. government for oil, gas, and minerals.

This historic measure gives citizens in resource-rich countries information they need to combat corruption in the oil and mineral sector and to demand government accountability for responsible resource use. The House passed the same legislation on June 30, and it is expected to be signed into law by President Obama next week.

The provision was based on the Energy Security through Transparency Act (S. 1700), which was championed in the U.S. Senate by a bipartisan group of legislators led by Senators Benjamin Cardin (D-MD) and Richard Lugar (R-IN). Sen. Patrick Leahy (D-VT) introduced the provision as an amendment during the conference negotiations for the financial services reform bill. Critical support came from Senators Tim Johnson (D-ND), Russell Feingold (D-WI), Charles Schumer (D-NY) and Richard Durbin (D-IL). Both the Senate Banking Committee Chairman Christopher Dodd (D-CT) and the House Financial Services Committee Chairman Barney Frank (D-MA) supported the Senate amendment during conference negotiations.

“This provision is a critical part of the increased transparency and corporate responsibility that we are striving to achieve in the financial industry,” said Senator Cardin. “Given the catastrophic events in the Gulf of Mexico, oil companies, in particular, should well understand that secrecy fosters instability, corruption and greater risk. We now have the tools to help people in resource-rich countries hold their leaders accountable for the money made from their oil, gas and minerals.”

“Transparency empowers citizens, investors, regulators, and other  watchdogs and is a necessary ingredient of good governance for countries and companies alike. The Cardin-Lugar amendment brings a major step in favor of increased transparency at home and abroad. It empowers investors to have a more complete view of the value of their holdings. It brings more information to global commodity markets, which would benefit price  stability. Most importantly, it helps empower citizens to hold their governments to account for the decisions made by their governments in the management of valuable oil, gas, and mineral resources and revenues,” said Senator Dick Lugar, Senate Foreign Relations Committee Ranking Member in a Senate Floor Statement.

The measure is a major victory for the global Publish What You Pay coalition, which includes over 600 faith, human rights and development groups working in over 55 countries.

“This is a game changer,” said Isabel Munilla, Director of Publish What You Pay United States. “This legislation sheds light on billions in payments from oil and mineral companies and to governments. Citizens now have a powerful tool they can use to scrutinize the levels of public spending on economic development, environmental protection and health and human services.”

The measure covers hundreds of companies, including 90% of the world’s largest internationally operating oil and gas companies, and eight of the world’s ten largest mining companies. It will provide citizens in nearly every country around the globe with much needed information.

Publish What You Pay is calling on other governments to follow suit. “Citizens on the Gulf coast of the U.S., in the Niger Delta, and all around the world deserve to know how much their governments receive for the  development of natural resources,” Munilla said. “That’s why we are calling on other governments, such as the United Kingdom, Canada, and Australia, to adopt similar requirements, so that we can build on the leadership of the U.S. Congress.”

For more information: www.OpentheBooks.org

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PWYP US Member Organizations: ActionAid International USA · Amnesty International USA · Bank Information Center · CARE · Catholic Relief Services · Columban Center for Advocacy and Outreach · CorpWatch · Crude Accountability · EARTHWORKS · Earthrights International · EG Justice · Environmental Defense Fund · Friends of the Earth · Gender Action · Global Financial Integrity · Global Rights · Global Witness · Globalization Challenge Initiative · Government Accountability Project · Human Rights Watch · International Budget Project · International Labor Rights Forum · Justice in Nigeria Now · ONE Campaign · Open Society Policy Center · Oxfam America · Pacific Environment · Presbyterian Church USA · Project On Government Oversight · Revenue Watch Institute · Robert F. Kennedy Center for Human Rights · Sierra Club · Sustainable Energy & Economy Network

Nigeria is known for its fraudulent elections and politicians who employ armed thugs to ensure votes are cast in their favor. The Nigerian government faces a crisis of credibility that has the potential to become volatile, if members of minority communities and residents of the politically disenfranchised economic engine of the Delta continue to feel that they do not have any real power or say in their own governance. In fact, the armed insurgency that gained world attention by disrupting oil operations in the Delta has its roots in the gangs armed by political candidates. Electoral integrity and the ability for all citizens of Nigeria’s democracy to participate meaningfully should be high on Secretary Clinton’s agenda.

Legendary for its high levels of corruption, Nigeria must institute real reform. For those living in the Niger Delta, corruption means that the majority live in poverty while the approximately $700 billion in oil revenues earned over the last fifty years was split between the Nigerian government and the oil companies, with which the government partners. Although the Nigerian government claims to send a small percentage of its oil revenues to the communities where it is extracted, and although oil companies claim to provide local community benefits, the majority of those living in the Delta’s oil producing communities live on less than $1 per day and have seen their living standards decline over the years. Secretary Clinton must insist that the Nigerian government institute measures to ensure greater transparency and accountability, which are critical to ensuring that the country’s revenues benefit the many and don’t just line the pockets of a few. Ultimately, U.S. businesses will also find it easier to operate in a less corrupt environment.

The Niger Delta and its oil resources fuel the Nigerian treasury, which depends upon oil for 80% of government revenue. The oil of the Delta is important to both countries. In 2006 more then 40% of Nigeria’s oil was exported to the U.S. and it represented 15% of the U.S. supply. However, a political militancy has reduced Nigerian output for the last few years. Output has been even more dramatically reduced since May of this year when militants began blowing up oil installations in reprisal for an ongoing series of attacks by the Nigerian military claiming to be rooting out militants, but destroyed local villages and displaced, killed and injured innocent civilians who still cannot return home. The political militancy of the last five years arose after 45 years of peaceful protest by villagers yielded no major improvements for local communities whose quality of life was decimated. When Secretary Clinton meets with President Yar’Adua it is imperative to U.S. economic and energy security, to the stability of Nigeria and to the lives of those who live in the Delta that she urge President Umaru Yar’Adua to:

• Withdraw the Nigerian military forces from the Niger Delta and institute an official ceasefire;
• Initiate third party monitored diplomatic talks that include all stakeholders;
• Allow free and unfettered access to all parts of the Delta by journalists, humanitarian aid groups and human rights organizations;
• Make real investments in the development of the Niger Delta and rebuild villages destroyed by the recent military attacks.

Electoral integrity, transparency and accountability and addressing the root cause of the troubles in the Niger Delta are interconnected issues that we applaud the Obama administration for publicly stating are on its agenda. JINN hopes that in her discussions regarding the Niger Delta that Secretary Clinton recognizes the imperative of seeking long term solutions that will meet the real needs of villagers in oil producing communities while once again increasing production output and oil revenues.