Justice In Nigeria Now » ESTT

Victory! New Transparency Law Will Promote Corporate Accountability

jinn — Thu, 15 Jul 2010 19:24:27 +0000

The Senate, in a 60-39 vote today, gave its final approval to the Dodd-Frank Wall Street Reform and Consumer Protection Act–which includes a landmark provision requiring energy and mining companies to disclose how much they pay to foreign countries and the U.S. government.

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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Richmond City Council Passes Resolution Calling for Corporate Accountability and Diplomatic Talks in Nigeria

jinn — Thu, 17 Dec 2009 00:25:55 +0000

Council Urges U.S. to Pass Transparency Law To Force Chevron and Other Oil Companies to Report Payments to Nigeria and Other Foreign Governments

Mayor Gayle McLaughlin

Richmond, CA – On Tuesday December 15, 2009, the Richmond City Council voted unanimously in favor of a resolution urging the U.S. Senate to pass a bill that would require oil companies to disclose payments to foreign governments as part of a larger movement to increase corporate accountability across borders. Councilmember Nathaniel Bates was absent. A similar resolution was unanimously approved by the Oakland City Council and with one abstention in the Berkeley City Council in October.

The Energy Security Through Transparency Act (ESTT) Act was introduced by Senator Richard Lugar (R-IN) in September and if passed would effect oil companies in Nigeria as well as the rest of the world.

“Here in Richmond, we see the links between human rights and corporate accountability issues in our city as the same struggle as those that are demanding a right to their livelihood in Nigeria. Oil companies need to take responsibility where ever oil in produced and refined,” stated Richmond resident Jovanka Beckles who spoke at the meeting.

The Richmond resolution also calls on the State Department to support diplomatic peace talks in the Delta to negotiate a way forward to address the root causes of the current crisis—environmental destruction – particularly gas flaring – and lack of investment in the oil producing region. The city’s call contrasts with Secretary of State Hillary Clinton’s pledge in August to explore further U.S. military assistance to the government of Nigeria. The resolution along with the passage of the resolution in Oakland and Berkeley marks a new level of support to pressure the United States to adopt a foreign policy that promotes constructive change through dialog in alignment with the American values of democratic civic engagement, and freedom of speech and the press.

The resolution was co-sponsored by Councilmembers Jeff Ritterman and Tom Butt and was introduced to the Council by Mayor Gayle McLaughlin who worked with Bay Area-based Justice In Nigeria Now to draft the resolution.

“I was tortured and imprisoned by the Nigerian military for my peaceful protests against Shell Oil’s destruction of our land. I believe that Richmond’s support sends a strong message that communities in the U.S are concerned about the human rights abuses and environmental damage associated with oil extraction. I do not want to see my people continue to go through what I went through,” stated Suanu Kingston Bere, a Nigerian activist who also spoke at the City Council meeting.

Fifty years of oil exploitation in the Niger Delta has produced over $700 billion in oil revenues shared between the Nigerian government and oil giants like Chevron, Exxon Mobil and Shell. Nigeria is a key supplier of oil to the United States, to which it exports over 40% of its supply. Despite the immense wealth gained from oil in the Niger Delta, the quality of life for local residents has deteriorated. Oil companies have polluted the water villagers drink and the fish population that serves as their primary source of protein has been decimated. Little oil wealth is re-invested in communities from which it is extracted, most lack electricity, and access to education or healthcare facilities.

“Oil companies in Nigeria have had long a relationship with the notoriously corrupt and historically brutal Nigerian government where rampant corruption, fraudulent elections and violent suppression of peaceful protests are the norm in the Delta. The proposed ESTT Act in the Senate is an important step toward holding oil companies accountable for their collusion with the Nigerian government, which protects their profits while killing and injuring innocent local people and destroying the Delta’s fragile environment” stated Nigerian writer and activist Omoyele Sowore.

Sowore has also visited the city of Richmond and met with local activists who were working to hold Chevron accountable in their city.

Take Action: Tell your Senator to Support the Oil Company Transparency Bill

jinn — Wed, 21 Oct 2009 02:25:37 +0000

JINN is supportive of the efforts of the Publish What You Pay U.S. Coalition that helped get a new bill introduced into the the U.S. Senate of the “Energy Security through Transparency Act of 2009,” (ESTT) by Sens. Richard Lugar (R-IN) and Ben Cardin (D-MD). The Act, if passed, would require companies like Chevron and Shell to report how much they pay foreign governments for access to their oil, gas and minerals. This disclosure would apply to all companies that file with the SEC, regardless of where they are based. Most of the world’s extractive industries would be covered by this law, and would set a new international standard for corporate and state behavior. (Note: The ESTT act was formerly introduced as the Energy Transparency Through Disclosure Act).

Take Action: Write to your local member of Congress today asking them to support the fight against corruption.

Read the Press Release about the ESTT

Background information

Berkeley, Oakland Pass Resolutions Concerning Niger Delta, Corp. Disclosure

jinn — Mon, 19 Oct 2009 16:19:43 +0000

Berkeley, Oakland urge oil money transparency

By Josh Richman
Wednesday, October 14th, 2009 at 12:39 pm

Reprinted from The Contra Costa Times Political Blogger

Berkeley City Council last night approved a resolution urging the U.S. Senate to approve S.1700, the “Energy Security Through Transparency Act” by U.S. Sen. Richard Lugar, R-Ind., which would urge the Obama Administration to require that companies disclose payments to foreign governments for oil, gas and mineral rights. Oakland City Council passed a similar resolution last week.

“Good governance in extractive industries contribute to a better domestic investment climate for U.S. businesses, increase the reliability of commodity supplies, promote greater U.S. energy security and thereby strengthen our national security,” says the summary on Lugar’s Web site.

San Francisco-based Justice in Nigeria Now hails the cities’ actions as a moral victory.

“I was tortured and imprisoned by the Nigerian military for my peaceful protests against Shell Oil’s destruction of our land,” Suanu Kingston Bere, a Nigerian activist who spoke at the Berkeley City Council meeting, said in JINN’s news release. “I believe the City’s support sends a strong message that communities in the U.S are concerned about the human rights abuses and environmental damage associated with oil extraction. I do not want to see my people continue to go through what I went through.”

Berkeley’s resolution also calls on the State Department to support third-party peace talks in the Delta to address environmental destruction and lack of investment in the oil producing region. The resolution was co-sponsored by Councilmembers Jesse Arreguin, Darryl Moore and Max Anderson and was introduced to the council through the Berkeley Peace and Justice Commission, which worked with JINN to draft it.

JINN says 50 years of oil exploitation in the Niger Delta has produced over $700 billion in oil revenues shared between the Nigerian government and oil giants like San Ramon-based Chevron as well as Exxon Mobil and Shell. More than 40 percent of Nigeria’s oil is exported to the U.S. Yet despite the corporate oil wealth, local residents’ quality of life has deteriorated – their drinking polluted, their food fisheries poisoned, their access to education, health care and even electricity limited.

“Oil companies in Nigeria have had long a relationship with the notoriously corrupt and historically brutal Nigerian government where rampant corruption, fraudulent elections and violent suppression of peaceful protests are the norm in the Delta,” Nigerian writer and activist Omoyele Sowore said in JINN’s news release. “The proposed ESTT Act in the Senate is an important step toward holding oil companies accountable for their collusion with the Nigerian government, which protects their profits while killing and injuring innocent local people and destroying the Delta’s fragile environment.”