The ONE Campaign laments the Senate’s repeal of important anti-corruption rule

WASHINGTON — The Senate voted 52-47 today to void a rule that implemented Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The rule would have required all U.S.-listed oil, gas, and mining companies to report the payments they make to governments for the extraction of natural resources. This vote follows the House’s move Wednesday to overturn the same rule.

The ONE Campaign issued the following reaction from Tom Hart, ONE’s North America Executive Director:

“We are extremely disappointed by Congress’ vote today to void this bipartisan, common-sense rule aimed at curbing corruption, fighting extreme poverty, and promoting US national security. This rule was a potent tool to ensure the legitimate payments from American companies don’t end up in kleptocrats’ Swiss bank accounts. This tool wasn’t anti-corporate, it was anti-corruption.

“Today’s repeal also threatens to set us behind the global transparency standard and enable corruption at a time when we should be trying harder to stop it. To ensure a level playing field globally, the SEC must draft a new rule that aligns with laws already in place in 30 countries around the world.

“Corruption keeps people in poor countries trapped in poverty. The publication of oil, gas, and mining payments empowers citizens to hold their governments accountable and curb corruption and mismanagement of revenues.

“This action sends the wrong message about U.S. leadership in countering corruption around the world, to our allies who follow the example we set and citizens in poor countries who look to us for support as they try to hold their own governments accountable. We will continue to fight for a strong rule to implement this anti-corruption law, and we urge President Trump to veto it and stand up for anti-corruption efforts around the world.”

Notes to editors

• Equivalent mandatory disclosure legislation has been enacted in 30 other countries around the world, including in Canada, the European Union, and Norway.

• Major oil, gas and mining firms such as Total, BHP Billiton, Newmont Mining, and Eni have publicly supported Section 1504, recognizing the benefits of transparency and a U.S. law that aligns with the global transparency standard.
• This Congressional action, if signed by President Trump, does not repeal the underlying anti-corruption law, which still stands. The Securities & Exchange Commission will be required to write a new rule to implement it.