USA Africa Dialogue Series - Tough EU transparency laws could change lives in resource-rich Congo

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Tough EU transparency laws could change lives in resource-rich Congo

We don't know how much money the Democratic Republic of the Congo
government gets from the exploitation of our oil, gas, minerals and
timber. That must change

Joseph Banga
Monday April 30 2012
guardian.co.uk


http://www.guardian.co.uk/global-development/poverty-matters/2012/apr/30/eu-transparency-laws-resource-rich-congo


New EU legislation [http://europa.eu/rapid/pressReleasesAction.do?
reference=MEMO/
11/734&format=HTML&aged=0&language=EN&guiLanguage=en"
title="] introducing mandatory transparency for multinational
companies could do a lot to help billions living in poverty in
resource-rich countries. It could contribute to turning their natural
resource wealth from a curse to a blessing if approved in its current
form, but it would fail to make a difference if it is watered down.



My country, the Democratic Republic of the Congo (DRC), is rich in
oil, gas, minerals [http://www.guardian.co.uk/business/2012/apr/24/tax-
parliament-transparency-developing-countries" title="] and timber, but
most of us, especially my brothers and sisters living in poverty, do
not have a clue about our natural wealth. We don't know how much money
our government gets from companies for the right to exploit our
natural resources. We have no clue how much money ends up in the
pockets of government officials.



We do know one thing, however: money made by exploiting our natural
resources ends up abroad and in the pockets of unaccountable political
elites. The new European legislation [http://www.guardian.co.uk/global-
development/poverty-matters/2012/mar/30/greater-transparency-resource-
corruption" title="] could help to change this and that is why it is
so important to us.



The EU transparency [http://www.ec.europa.eu/internal_market/
securities/docs/transparency/modifying-proposal/20111025-provisional-
proposal_en.pdf" title="] (pdf) and accounting [http://ec.europa.eu/
internal_market/accounting/docs/sme_accounting/review_directives/
20111025-legislative-proposal_en.pdf" title="] (pdf) directives that
are supposed to be adopted by June can only make a difference if they
are not watered down. Our friends in the EU must demonstrate their
commitment to Africa's development and turning the tide on poverty and
injustice by not hindering the passage of these two directives.




Financial dealings

First, companies must be required to report on payments not just on an
aggregated, country basis [http://europa.eu/rapid/
pressReleasesAction.do?reference=IP/
11/1238&format=HTML&aged=0&language=EN&guiLanguage=en"
title="] but also on every financial dealing with official instances,
with respect to all projects: leases, licenses or other ventures ?
including small ones. Even a "small" ?10,000 ($13,257) project could
have huge repercussions for surrounding communities. In addition to
the impacts on the environment, various small mining projects employ
children [http://www.guardian.co.uk/business/2012/apr/14/glencore-
child-labour-acid-dumping-row" title="], who should be at school, in
very poor working conditions.




Forest management

Second, our forests [http://www.guardian.co.uk/environment/gallery/
2009/sep/29/daniel-beltra-princes-rainforest-project" title="] are as
valuable a resource as our oil, gas and minerals. Forests in the DRC
are cut at an alarming rate and beyond any control. According to the
Food and Agriculture Organisation (FAO) of the UN, 706,000 hectares
(1,744,000 acres) were lost in the Congo basin between 2000 and 2010.
These green lungs of our country and planet are a vital global public
good and deserve to be managed carefully as such. Requiring timber
companies to be transparent about all their financial dealings with
official instances is a first step in the right direction.




Public accountability

Third, the information the companies are disclosing should be accurate
and able to stand up to scrutiny. This is best ensured by making
companies liable for the information they publish to meet reporting
requirements. This information should be audited and included in their
annual financial reports. The data should be available publicly and in
an accessible format, which is needed to allow adequate monitoring by
African citizens.



These are crucial concerns. Yet they are just a starting point. If my
brothers and sisters living in poverty in the DRC and all over the
world are to fully enjoy their countries' riches and benefit from
commercial investment, companies will have to become far more
transparent. Companies operating in all sectors will have to provide
accurate and publicly accessible information on all their financial
accounts (not just payments to governments), information on their
subsidiaries, the number of people they employ, their annual turnover
and profits, and this on a country and project basis.



What may seem a highly technical matter to some will determine the
odds for a better future of many. It is time to shed light on opaque
business.



- Joseph Banga is a Roman Catholic bishop from the Democratic Republic
of the Congo. He works with the international alliance of Catholic
development agencies [http://www.cidse.org/" title="]CIDSE to
advocate more transparency in the management of Africa's natural
resources



guardian.co.uk Copyright (c) Guardian News and Media Limited. 2012

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