Administration Sounds Death Knell for Transparency Initiative - Global Trade Magazine
  April 14th, 2017 | Written by

Administration Sounds Death Knell for Transparency Initiative

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  • The US is withdrawing its efforts to be validated under the EITI Standard.
  • Congress used the Congressional Review Act to void an anti-corruption rule that complemented EITI.
  • Many US-based oil and gas companies have refused to make tax payment disclosures under the US EITI.

The Department of the Interior has halted US efforts to seek validation by the Extractive Industries Transparency Initiative (EITI), a global anti-corruption effort to bring openness and accountability to the oil, gas, and mining sectors.

A Department of the Interior official confirmed that the United States is withdrawing its efforts to be validated under the EITI Standard. The standard requires companies and governments to disclose the payments they make and receive for extracting oil, gas, and minerals. The goal of the initiative is to ensure citizens and governments are getting their fair share of revenues from natural resource extraction. The United States had been working towards complying with the standard since 2012, when it established a multi-stakeholder group of civil society, industry and government members to guide the process.

The news comes on the heels of action by Congress and President Trump to use the Congressional Review Act to void an anti-corruption rule that complemented the EITI Standard. The rule, which implemented the Cardin-Lugar Provision of the Dodd-Frank Act, set out how US-listed companies were to disclose tax and project-level payments they make to governments for the commercial development of oil, gas, and minerals. Many US-based oil and gas companies have refused to voluntarily make tax payment disclosures under the US EITI that would have been required by the now-voided rule.

“As civil society members of the US EITI, we are saddened and alarmed that the United States will no longer comply with the standard of a crucial transparency initiative that it has supported since 2003,” said a statement from US EITI members. “Though we are deeply disappointed the United States is no longer a candidate for validation under the EITI Standard, we remain committed to the principles of openness and accountability in the extractive industries, and we will continue to support our allies around the world in their efforts against corruption.”