EXTRACTIVES: Anti-Corruption rules for extractives companies
28 September 2014
In August the UK Business Minister announced that Britain was on track to implement the EU Accounting Directive by the end of 2014 https://www.gov.uk/government/consultations/extractives-industries-reporting-implementing-the-eu-accounting-directive . The Accounting Directive obliges extractive companies to publish accounts of the payments made to governments around the world for access to natural resources. A critical issue is that the published accounts must disclose information on a company-by-company and a project-by-project basis for all countries without exceptions.
Over a number of years the PSG has commended the push for the Extractives Industry Transparency Initiative (EITI) and the acceptance in principle by the UK government of its aims. Now at last, through the Accounting Directive and similar legislation in the United States, we may see its aims realised. The implementation of the US rules is, however, being delayed at least to March 2015. Oxfam America is now suing, for the second time, the US Securities and Exchange Commission for the delays in issuing rules on disclosure. http://www.ft.com/cms/s/0/4e40dca0-3eb6-11e4-adef-00144feabdc0.html#axzz3DlaKkwBA . We hope that the US rules once agreed will not be watered down but will also insist on company-by-company and project-by-project disclosure.