1. Publish What You Pay
The global movement for extractives transparency
University of Dundee, 9 May 2012
Joseph Williams

2. Origins of PWYP
The PWYP campaign got started on the back of a
couple of hard-hitting exposés on Angola by London-
based Global Witness….

3. Global WitnessDecember 1999

4. 2002: Notion of “Publish What
You Pay”

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. 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. 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. National level

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. 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 do
Brand effectiveness
study
Who Strategy including : Alignment of
External 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 of
Publishing What MCs, NCs, (ex-) members Coordinators, MCs and governance structure
We Learned • Online survey
•
Africa Steering
EITI Evaluation Internal coalition
assessment Committee at National
Noble Networks
• Workshops (regional Coordinators / 10th Annual Strategy
Campaigning for and/or national) Anniversary Celebration Review
International • Strategy Development
Justice Advisory Committee
September – June September September-
……

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. 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. Publish Why You Pay
Options / 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. Publish What You Earn/Spend
Options / 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. 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. Example: EITI
Initial 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. EITI and Corporate Regulation (1)
• Complementary and mutually reinforcing
Difficulties 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. 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. Where there is no EITI process
Corporate regulation will...
• Ensure payment information is in the public domain
• Encourage EITI implementation in those countries (captured
companies may lobby for this)

20. What can EITI tell you about a
company?
Growing number of countries implement EITI. At least 30 have published EITI
reports, but BP operates in more than 80 countries, Shell operates in more than
90 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 have
put some voluntary data into the public domain in 2011)
2010? Azerbaijan: 400 million USD
2009? Azerbaijan 284 million USD + Norway 148 million USD = 432 million
BP taxes in 2009 = 10 billion USD
Therefore EITI date in 2009 sheds light on
< 5% country by country

21. Mandatory disclosure
PWYP 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. 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. 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

25. 25

26. 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…

27. 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

28. 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

29. 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

30. Growing support from the European
Commission/Parliament
Barnier, Barroso, Karel de Gucht, Pibalgs, Tajani
MEPs: Louis Michel, Sharon Bowles, Pascal Canfin, Sven
Giegold, etc

31. And at the national level too…
Sarkozy
Cameron
Osborne
Mitchell
Lagarde
De Raincourt

32. 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…

33. European Directives
“Energy companies are fighting efforts to
reveal payments to government”
25 February 2012

35. Key sticking points
PWYP Companies
Exemptions? None; to be effective -Exemptions foreign
law should cover all issuers.
companies, all -Exemptions from
countries. reporting data where
host country objects.
- EITI equivalence?

36. Key sticking points (2)
PWYP Companies
Project 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

37. Key sticking points (3)
PWYP Companies
Materiality As low as $15,000 per 1 million USD
threshold payment, to capture + some companies
revenues material to want reporting on
host country, „material‟ projects only
communities (cf EC)

38. For more information
Visit the PWYP website
www.publishwhatyoupay.org
Joseph Williams
jwilliams@publishwhatyoupay.org