Group seeks transparency in local mining, oil, gas sectors
Advocates for increased transparency in the mining, oil and gas sectors are pushing for legislation that would make it mandatory for companies to open their books to the public, as well as waive their privacy rights over income declarations.
This proposal, if passed, may end decades of inequity in so-called “extractive” industries that have allowed firms to profit from the country’s national resources without paying back their fair share to society.
Marie Gay Ordones, national coordinator for the Philippine Extractive Industries Transparency Initiative (EITI), said talks had taken place on mandating more transparency in the mining, oil, and gas industries.
Efforts, however, may face stiff opposition. Some of the biggest mining companies have completely ignored calls for more openness, while government agencies have shown varying degrees of support.
“We want to make this mandatory, or at least incentivize participation,” Ordones told a briefing this week.
EITI is an international campaign involving nongovernment organizations, and the private and public sectors, which aims to promote better disclosure practices in extractive industries. EITI’s Oslo-based secretariat supervises the creation of multilateral reporting standards in these sectors.
Locally, the goal is to ensure that the government and the taxpayers earn their fair share from extractive industries.
At the moment, participation in EITI, which would have companies open their books to the public, is voluntary. In the Philippines, companies that agree to EITI provisions also have to sign waivers to lift the secrecy of their income tax returns.
Ordones said only Nigeria and Liberia had made EITI participation mandatory. She admitted that on one hand, the “beauty” of the EITI program was its voluntary nature, which shows companies that participate are more serious about transparency. However, she said benefits from more transparency in extractive industries should not be contingent to the whims of companies.
Ordones said the group hoped to have a bill filed in Congress by the third quarter of the year.
So far, 30 mining companies, and six oil and gas firms have agreed to participate in EITI.
