THE Global Financial Integrity (GFI) has lauded the European Parliament for adopting new transparency rules for all EU listed extractive industries companies as well as all large, privately held extractive industries companies incorporated in the EU. Announced informally by European leaders in April, the rules were officially adopted by the Parliament last Wednesday in what GFI referred to as a major victory for anti-corruption proponents. Also on Wednesday, the Canadian government announced that it intended to move forward to enact similar rules, a move lauded by GFI.
"The new transparency rules in Europe and the announcement from the Canadian Prime Minister are two key advancements for anyone who cares about fighting poverty, protecting investors, making markets more efficient, or reducing corruption,” remarked GFI Director Raymond Baker. "Our research shows that the developing world loses roughly US$1 trillion per year to crime, corruption, and tax evasion. This is a systemic problem caused largely by the opaque, secretive global financial system. For citizens of resource-rich countries, the new EU rules - as well as the potential Canadian rules—will shine a light in places that need it most."
The EU legislation requires large, privately owned European companies and all publicly held European firms operating in the oil, gas, mining, and logging sectors to disclose information on payments made to governments. All firms covered by the rules are required to disclose on a project-by-project basis all payments made to governments above €100,000 (approximately US$131,000) including taxes paid, royalty fees, and license fees.
|
