Pwyp dundee university

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  • Also PWYP “Chain For Change”
  • ExxonMobil and other oil and mining companies were well aware of this provision long before it was included in the final conference Dodd-Frank Act conference report. Stand alone legislation with the same SEC requirement was introduced in the House and Senate in 2008 and was the subject of a full House Financial Services Committee legislative hearing (no oil company agreed to testify). In 2009, the bipartisan Energy Security through Transparency Act, which is the foundation for the provision, was introduced by Senators Lugar and Cardin and the American Petroleum Institute, of which ExxonMobil is a member, met with Senate staff and others and expressed their objections. The provision was also offered as an amendment to the Senate financial reform bill earlier this year and Senators Dodd, Durbin, Cardin and Lugar all gave floor speeches in favor. Oxfam America and other members of the global Publish What You Pay coalition met with API, Exxon, Chevron and other companies on numerous occasions over the last several years. Far from being a secret, last minute action, this provision was subject to extensive debate and the oil industry had every opportunity to make its views known with lawmakers.
  • ExxonMobil and other oil and mining companies were well aware of this provision long before it was included in the final conference Dodd-Frank Act conference report. Stand alone legislation with the same SEC requirement was introduced in the House and Senate in 2008 and was the subject of a full House Financial Services Committee legislative hearing (no oil company agreed to testify). In 2009, the bipartisan Energy Security through Transparency Act, which is the foundation for the provision, was introduced by Senators Lugar and Cardin and the American Petroleum Institute, of which ExxonMobil is a member, met with Senate staff and others and expressed their objections. The provision was also offered as an amendment to the Senate financial reform bill earlier this year and Senators Dodd, Durbin, Cardin and Lugar all gave floor speeches in favor. Oxfam America and other members of the global Publish What You Pay coalition met with API, Exxon, Chevron and other companies on numerous occasions over the last several years. Far from being a secret, last minute action, this provision was subject to extensive debate and the oil industry had every opportunity to make its views known with lawmakers.
  • Pwyp dundee university

    1. 1. Publish What You PayThe global movement for extractives transparencyUniversity of Dundee, 9 May 2012Joseph Williams
    2. 2. Origins of PWYPThe PWYP campaign got started on the back of acouple of hard-hitting exposés on Angola by London-based Global Witness….
    3. 3. Global WitnessDecember 1999
    4. 4. 2002: Notion of “Publish What You Pay”
    5. 5. Snapshot of PWYP• Global coalition of civil society organisations launched by a group of NGOs in June 2002 – Global Witness, CAFOD, Save the Children UK, Oxfam GB, Open Society Institute, Transparency International UK – Now 650 organisations in over 50 countries (many organised as national coalitions)• Campaign for transparency and accountability in the extractive industries, with a focus on oil, mining and gas. (Fisheries & forestry??)
    6. 6. PWYP International Secretariat• The PWYP international secretariat coordinates and supports the global coalition/campaign in advocacy, capacity building and coalition outreach.• The PWYP international office consists of 6 full-time staff members: – International Director – Senior Advocacy and Communications Officer – Programme Officer – Africa Coordinator (based in Accra) – MENA Coordinatior (based in Beirut) – Communications Assistant• The PWYP international office is hosted by the Open Society Foundation in London
    7. 7. Regional level• Due to massive growth of the PWYP coalition in Africa, a full- time Africa Regional Coordinator is based in Accra, Ghana and hosted by the Catholic Relief Services.• May 2011: new governance/advocacy structure adopted for Africa. Includes an Africa Steering Committee• 2012: MENA coordinator (current focus onIraq and Yemen)• The PWYP international office manages outreach to PWYP campaigners and national coalitions in Europe, Central Asia/Caucasus, Asia-Pacific, North America and South America.
    8. 8. National level
    9. 9. Transitioning to a new strategy and governance structure…• After 10 years – time to consolidate• Revisit initial assumptions, protect the PWYP brand and ensure the values we espouse are also reflected in our own governance and working practices
    10. 10. International Strategy Development Process 2012-2016 Recognition Choice Endorsement Alignment Learn what others Learn what our Commit to what Publish what we say members say we will do will doBrand effectiveness study Who Strategy including : Alignment ofExternal assessment How we are What Advocacy targets organisational of coalitions structure Governance structure (staff retreat) Where Why Membership standard Interviews with Brand Excellence policy external partners Fundraising Alignment of national Methodology coalition strategies Desk review • Africa Steering Committee including: • CSO input EITI Strategy WG • Interviews with Endorsed by National Implementation ofPublishing What MCs, NCs, (ex-) members Coordinators, MCs and governance structureWe Learned • Online survey • Africa SteeringEITI Evaluation Internal coalition assessment Committee at NationalNoble Networks • Workshops (regional Coordinators / 10th Annual StrategyCampaigning for and/or national) Anniversary Celebration ReviewInternational • Strategy DevelopmentJustice Advisory Committee September – June September September- ……
    11. 11. Options to focus on: 1. Publish What You Pay 2. Publish Why You Pay 3. Publish What You Earn and Spend 4. Practice What We Preach
    12. 12. Publish What You Pay Mandatory disclosures with extra-territorial implications through listing regulations in capital intensive markets (Globalising ‘Dodd-Frank and EU Directives’) Mandatory disclosures through regulations either at regional or national level – implications mainly confined to national level Mandatory disclosures through international accounting standards regulation Mandatory disclosures through embedding EITI in national legal frameworks EITI reports need to be disaggregated by project and company at minimum
    13. 13. Publish Why You PayOptions / targets Transparency and accountability around the decision to extract, including Free Prior and Informed Consent. Contracting process is open and competitive from tendering to award. This includes ‘beneficial ownership’ of all companies who are bidding. Contract transparency in a format that is accessible, comparable, and comprehensible. Mandatory extended country-by-country reporting at national and/or regional level (which will reveal issues around ‘fair deal’, tax avoidance and capital flight)  Profits  Sales  Costs  Production
    14. 14. Publish What You Earn/SpendOptions / targets Government ‘ask’. Advocate for an EITI that is embedded into broader budget and accountability processes. Work on linking EITI/other data to broader budget monitoring processes in country at national and sub-national level.
    15. 15. Our Approach To Advocacy• Support voluntary measures as a first step and encourage use of mandatory mechanisms to consolidate gains• View mandatory mechanisms as vital in order to – Avoid dependence on a moment of political will; – Entrench transparency in long-term – Complement initiatives such as EITI
    16. 16. Example: EITIInitial policy response to PWYP which…• Builds trust amongst stakeholders• Is a unique forum that allows civil society often unprecedented access to engage in policy with corporate and government decision-makers• Can lead to laws at the national level. Moves it away from voluntary and gives the initiative teeth. • Liberia• Strategy review currently taking place
    17. 17. EITI and Corporate Regulation (1)• Complementary and mutually reinforcingDifficulties with EITI alone:• Hasn’t worked in STP (Too early? Conditions not right?)• Angola is not a member (despite it raising the issue)• Nigeria (flagging commitment since 2006)• Equatorial Guinea (no longer a candidate)• Uganda, Burma/Myanmar, BRICS, etc
    18. 18. EITI and Corporate Regulation (2)Corporate regulation will...• Provide genuine timely disclosure of information (annual basis). 2006 is most recent year for all EITI countries• Help provide disaggregated data (Azerbaijan, Congo B)• Data would be more easily searchable, comparable and comprehensible• Potentially provide contextual information on reserves, production volumes, production revenues, costs (IASB)
    19. 19. Where there is no EITI processCorporate regulation will...• Ensure payment information is in the public domain• Encourage EITI implementation in those countries (captured companies may lobby for this)
    20. 20. What can EITI tell you about a company?Growing number of countries implement EITI. At least 30 have published EITIreports, but BP operates in more than 80 countries, Shell operates in more than90 countries; Total is in over 130.What can EITI tell us about BP?No data for 2011 (even though major companies like Rio Tinto and Shell haveput some voluntary data into the public domain in 2011)2010? Azerbaijan: 400 million USD2009? Azerbaijan 284 million USD + Norway 148 million USD = 432 millionBP taxes in 2009 = 10 billion USDTherefore EITI date in 2009 sheds light on< 5% country by country
    21. 21. Mandatory disclosurePWYP has been pushing for:• National laws and regulations• Accounting standards (IASB)• Bank/IFI lending policies• Stock market listing requirements and Accounting laws • London AIM and Hong Kong (HKEx) • US Dodd-Frank and EU legislative proposals
    22. 22. Accounting Standards• Work on an IFRS has been painfully slow• Call for an IFRS by European Parliament in 2007• Extractives Team set up in 2008 to look at an IFRS which would supersede IFRS 6• Range of „users‟ which IASB listens to is limited, which explains why more accountable regulators have been more reactive.• Would provide a level playing field
    23. 23. Dodd-Frank Section 1504• “Lugar-Cardin” Provision 1504 in Dodd-Frank Act of 2010 (Wall Street Reform Act) – Signed into law by Pres. Obama, July 21• Based on stand-alone “Energy Security through Transparency Act” – bipartisan support
    24. 24. 25
    25. 25. Dodd-Frank Section 1504• Multiple hearings / opportunities for industry input• Full White House backing• Investor / Company / Civil society support• All US-listed EI companies must disclose payments to governments in SEC filings starting in 2013/2014 • Still waiting for final rules… • SEC has been in violation of Congress since 17 April 2011…
    26. 26. What it means• Covers around 90% of internationally operating oil companies – US and foreign• 8 of the world’s 10 largest mining companies• Country-by-country, in all countries of operation• For each “project”• Disaggregated by payment type (royalties, signature bonuses, production entitlements, taxes, fees and other benefits)• US and foreign governments• Online in annual reports
    27. 27. What it means• New tool to empower civil society in EI-dependent developing countries (online, tagged, searchable)• Disclosure will not wax/wane based on host government political will (Nigeria)• Complements EITI and is part of the package of measures needed
    28. 28. Whitehouse Press Statement“The United States is committed to working with other countries to ensure the implementation of similar disclosure requirements in other financial markets and will make this a priority in the year ahead.” 23 July 2010
    29. 29. Growing support from the European Commission/ParliamentBarnier, Barroso, Karel de Gucht, Pibalgs, TajaniMEPs: Louis Michel, Sharon Bowles, Pascal Canfin, SvenGiegold, etc
    30. 30. And at the national level too…SarkozyCameronOsborneMitchellLagardeDe Raincourt
    31. 31. European Directives• Proposed by European Commission on 25 October, 2011 as amendments to Transparency and Accounting Directives • Includes large private companies (turnover 40 million USD) and text in Accounting Directive • Includes Forestry• Currently with European Parliament and European Council. Political agreement in June 2012?• Then to Member States for implementation (up to 18 months)Industry has been lobbying hard…
    32. 32. European Directives “Energy companies are fighting efforts to reveal payments to government” 25 February 2012
    33. 33. Key sticking points PWYP CompaniesExemptions? None; to be effective -Exemptions foreign law should cover all issuers. companies, all -Exemptions from countries. reporting data where host country objects. - EITI equivalence?
    34. 34. Key sticking points (2) PWYP CompaniesProject Reporting in relation to Project =definition legal agreements which -Country give rise to payments -Geologic basin/province -Level of govt. where payments are reported to
    35. 35. Key sticking points (3) PWYP CompaniesMateriality As low as $15,000 per 1 million USDthreshold payment, to capture + some companies revenues material to want reporting on host country, „material‟ projects only communities (cf EC)
    36. 36. For more information Visit the PWYP website www.publishwhatyoupay.org Joseph Williamsjwilliams@publishwhatyoupay.org

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