Bono: Transparency Policy in Banking Bill Battles Corruption Abroad, Helps World’s Poorest Hold Leaders Accountable

Washington, DC – Today, the Senate passed financial regulation legislation which included the Cardin-Lugar amendment, The Energy Security Through Transparency (ESTT) Act.  The amendment requires all companies listed on the New York Stock Exchange to disclose what they pay to foreign governments for extracting resources such as oil and gas, mining materials, gold, and diamonds. The Transparency Act will be a valuable tool to advance good governance and to promote economic growth.

“This proposal is a great lever to support more transparency and healthier governance in poor countries,” said Bono, co-founder of the anti-poverty group ONE and U2 lead singer. “It will empower activists, media and good-governance watchdogs, both south of the equator and north, to ensure the continent’s vast riches end up in service of its people, not lining the pocket of some kleptocrat.

“Senators Cardin and Lugar and Chairman Frank deserve tremendous credit, as do the many activists who brought this idea to fruition. And thanks to Senators Leahy, Chairman Dodd and Congresswoman Waters for their unflagging support of the world’s poorest – this time through support for better transparency and governance,” said Bono.

Transparency in resource payments is an important tool to help improve the lives of people in poor countries.   It ensures that payments received by governments for natural resources go towards meeting the poverty-fighting Millennium Development Goals (MDGs) like increasing access to healthcare, education and clean water, rather than into the pockets of corrupt public officials.

In September at the United Nation’s Millennium Development Goals Summit, ONE will strongly encourage President Obama and world leaders to place transparency and anti-corruption initiatives at the center of a renewed global action plan to fight extreme poverty.  ONE will also urge these leaders to forge partnerships that encourage investment and promote economic growth in Africa.

Examples of how ESTT Act will help fight extreme poverty in the developing world:

• Leaders already battling corruption within their own governmentswill be able to compare what payments are reported by companies to payments reported by the relevant government agencies.

• Media, citizens and governance watch-dog groups will have access to an new source of reliable information that cannot be controlled by leaders in corrupt and repressive regimes. Such open-source information makes it much more difficult for corrupt officials to pocket revenues rather than use them to benefit citizens.

• Easy access to this informationwill also help companies that are wrongly accused of exploiting local lands and giving fees to governments that don’t benefit local citizens. NGOs and other watchdogs will now be able to show if corporate fees paid to the government are being used to provide services to citizens or if they are being used corruptly by government leaders, thereby showing the fault is that of the government, not the company.