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Key CbC Reporting Legislation Introduced in US Senate

September 23rd, 2009

A key piece of legislation aimed at requiring corporations to report on a country-by-country basis any payments made to foreign governments or the US governments when it comes to natural resource extraction. ┬áTitled the “Energy Security through Transparency Act of 2009,” the bill draws bipartisan support with Senators Richard Lugar (R-Ind.) and Ben Cardin (D-Md.) as its official sponsors. From the Revenue Watch Institute:

Revenue Watch Director Karin Lissakers said the adjusted reporting guidelines are “a win-win proposition for investors and for communities in resource-rich countries,” where corruption and the suspicion of corruption frequently undermine the public trust, efficient oil and mining operations, and even national stability. “When companies publish what they pay to governments, they give investors decision-useful information, help local communities keep their leaders honest, and foster the stability that keeps investments flowing and secure,” said Lissakers.

The rule change, if approved by Congress, would mark the first time energy companies were required to release raw materials expenditures on a country-by-country basis.

Sarah Pray, of the Publish What You Pay-US coalition, said the improved reporting rule is an idea whose time has come. “Citizens in the poorest nations shouldn’t pay the price for their government’s mismanagement of their most valuable resources. With these simple changes, Congress can help improve the lives and livelihoods of communities in the developing world while also enhancing U.S. energy security.”

Written by Clark Gascoigne

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