Oxfam America supports mandatory disclosure to empower communities
affected by oil, gas, and mining development

    WASHINGTON, May 15 /PRNewswire-USNewswire/ -- With high oil prices
squeezing consumers and global instability wreaking havoc on the oil
industry around the world, international agency Oxfam America welcomed
House Financial Services Committee Chairman Barney Frank's (D-MA)
introduction of key legislation aimed at reducing corruption and insecurity
in the oil, gas, and mining industries.

    The Extractive Industry Transparency Disclosure (EITD) Act of 2008
introduced today would require oil, gas, and mining companies to publicly
disclose payments made to foreign governments. With more than half of the
world's poorest people living in countries rich in natural resources, this
legislation would provide citizens with vital information to hold their
governments accountable for how these so-called "extractive industry"
revenues are used.

    "Corruption and mismanagement thrive in environments characterized by
secrecy. Access to information is a fundamental aspect of development,"
says Raymond C. Offenheiser, president of Oxfam America. "Representative
Frank has taken an important step to ensure that communities know how
mining and oil projects will impact their lives and lands and how money
generated for their governments can contribute to the long-term reduction
of poverty."

    With record high oil prices and diminishing reserves, companies are
increasingly operating in new areas of developing regions, including West
Africa, the Amazon basin, and Southeast Asia. Given the weakness of
government oversight in many of these countries, it is even more important
that oil and mining companies be transparent. In Angola, for example, more
than $4 billion in state oil revenues could not be accounted for between
1997 and 2002 - an amount roughly equal to the entire sum spent on social
programs by foreign donors and the government in the same years.

    Countries dependent on oil and mineral wealth also face a much higher
rate of internal conflict and violence. In Africa's Great Lakes region -
which includes parts of Burundi, Rwanda, the Democratic Republic of Congo,
Uganda, Kenya, and Tanzania - five million people were killed in violent
conflicts in the last decade, most of which were directly and indirectly
funded by resource extraction.

    "It is no secret that lack of transparency in the extractive industry
often goes hand-in-hand with government corruption and internal conflict.
The industry suffers as a result with company investments at risk and
higher energy prices for consumers," said Offenheiser. "This legislation
would foster accountability in nations where secrecy has undermined
development, democracy, and human rights."

    The EITD Act would apply not only to US companies, but to all oil, gas,
and mining companies registered with the US Securities Exchange Commission
(SEC). This includes European companies, such as Shell and BP, as well as
those in emerging markets like China, India, Brazil, and Russia. Like the
Foreign Corrupt Practices Act of 1977 and the National Environmental
Protection Act of 1969, this legislation could have a ripple effect around
the world and would be an important complement to voluntary initiatives
that may take hold in only a few countries.

    "This legislation is an opportunity for the US to take leadership in
the international community," said Offenheiser. "Mandatory revenue
disclosure has the power to weed out corruption in developing countries
making way for stability and real solutions to poverty that the oil, gas,
and mining industries can support."

    Oxfam America is working in support of the EITD Act by calling on
international extractive companies to show their respect for communities'
right to revenue information as well as their right to decide whether they
want companies to begin or expand operations on their land.

    "Revenue disclosure will give communities the tools they need to have a
say in how extractive projects affect their lands and livelihoods. If
communities know how much extractive companies are paying their governments
for natural resources, they can advocate for a fair share of the benefits
to address community needs like education, health care, and jobs," said
Offenheiser.

    Background on Oxfam America

    Oxfam America is an international relief and development organization
that creates lasting solutions to poverty, hunger, and injustice. Together
with individuals and local groups in more than 120 countries, Oxfam saves
lives, helps people overcome poverty, and fights for social justice. Oxfam
America is an affiliate of Oxfam International.

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