News / Africa

NGO Urges SEC to Act on Transparency

The fertile lands of Masisi in Eastern Congo contain important deposit of coltan, a metal which is needed for computer and mobile phone internal processors and which is subsequently booming on world market. One rebel group who controlled the resource-rich mountains said coltan made them 1 million dollars a month. (AP Photo/Arnaud Zajtman)
The fertile lands of Masisi in Eastern Congo contain important deposit of coltan, a metal which is needed for computer and mobile phone internal processors and which is subsequently booming on world market. One rebel group who controlled the resource-rich mountains said coltan made them 1 million dollars a month. (AP Photo/Arnaud Zajtman)

Multimedia

Audio
  • Listen to De Capua report on transparency in extraction sector

Joe DeCapua
A watchdog group is calling on a U.S. agency to act quickly to ensure transparency in the oil, gas and mining sectors. If new rules are finally enacted, companies would have to disclose how much they pay governments for the commercial development of natural resources.
 
Listen to De Capua report on transparency in extraction sector
Listen to De Capua report on transparency in extraction sectori
|| 0:00:00
...    
🔇
X

The Securities and Exchange Commission, SEC, has announced it plans to begin rule-making next year regarding legislation dating back to 2010. The Dodd-Frank Wall Street Reform and Consumer Protection Act was considered landmark legislation, demanding accountability from financial institutions and companies. However, it’s been plagued by a lack of funds and staff shortages. So, all of its elements have not been fully implemented.
 
But Section 1504 is of particular interest for those monitoring extraction industries, especially those in developing countries. 
 
Jana Morgan, national coordinator for the group Publish What You Pay, said, “Section 1504 of the Dodd-Frank Act requires U.S. listed oil, gas and mining companies to publish their payments to the federal and foreign governments for access to natural resources.”
 
Morgan said it would have dual benefits.
 
“It will, one, benefit investors by giving them the information to better assess and mitigate risk. This is especially important as companies begin extracting in more and more politically unstable environments. And, two, it will provide citizens of resource rich countries with the information necessary to hold their governments accountable for the money coming in from natural resource extraction,” she said.
 
But despite being part of the 2010 legislation, the section has not taken effect. Before that can happen, formal rules and regulations must be in place. The SEC had actually published proposed rules for Section 1504 in 2012. That followed a long process of gathering information from industry, civil society and academics. By the time the SEC had acted, it was already one year overdue in making the announcement. And once finally available for comment and review, the rules were challenged.
 
Morgan said, “The oil industry in the United States – led by the American Petroleum Institute – filed a lawsuit against the Securities and Exchange Commission. And the rule was subsequently vacated and sent back to the SEC for revision. So, right now we’re in a waiting period for the Securities and Exchange Commission to take action to begin a rule-making for section 1504.”
 
The SEC recently announced that as part of its official agenda, a rule-making process could begin in March of 2015. Morgan said that while the SEC recognizes the issue as a priority, it’s moving much too slowly.
 
“Publish What You Pay feels like this timeline is simply not aggressive enough. One of the reasons for that is that transparency disclosure legislation has begun to move forward all over the world. We’ve seen the European Union develop mandatory disclosure requirements that actually even go further than Section 1504 in that they require logging companies, in addition to oil, gas and mining companies,” she said.
 
The group wants the SEC to act much sooner – since the process could take more than a year to complete. Once published, there’s a comment and review period. And there’s always the possibility of another lawsuit.
 
“We’ve asked that the SEC to come out with a proposed rule before the end of this year. And we believe that the SEC – based on the previous rule-making and the information that we’ve put forward more recently – has all of the information necessary to do that,” said Morgan.
 
What happens in Washington, she said, will have major implications for many developing countries.

“For too long oil, gas and mining companies have been allowed to deal with the governments of resource-rich countries in relative secrecy. And the consequences have been devastating as these countries continue to fall prey to – what is known – as the resource curse. And the resource curse is a paradoxical situation in which countries rich in natural resources struggle with some of the most entrenched poverty and corruption on the planet.”
 
One example, she said, is the Democratic Republic of Congo.
 
“The DRC is one of the most resource-rich countries in the world with potentially $24-trillion worth of untapped minerals beneath its soil – including 30-percent of the world’s diamonds and 70-percent of the world’s coltan. Yet the DRC ranks second to last on the U.N.’s Human Development Index. And over 70-percent of the population lives in absolute poverty,” she said.
 
Publish What You Pay says in April, 500 civil society organizations from 40 countries wrote to the Securities and Exchange Commission. They urged it to act on transparency in the extraction sector.

You May Like

US Firms Concerned About China's New Cyber Regulations

New rules would require technology companies doing business in financial sector to hand over their source code, adopt Chinese encryption algorithms More

WHO Focus on Ebola Shifts to Ending Outbreak

Focus to be less on building facilities and more on efforts to find infected people, manage their cases, engage with communities and ensure proper burials More

US Scientist Who Conceived of Groundbreaking Laser Technology Dies

Charles Townes, Nobel laureate, laser co-creator paved way for other scientific discoveries: CDs, eye surgery, metal cutters to name a few technologies that rely on lasers More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid