NGO urges France to push for transparency in oil sector

Global Witness has called on the French government to push for greater financial transparency in the oil sector of the Republic of Congo as "an essential condition for alleviating poverty, promoting just and equitable development, improving corporate social responsibility, and reducing corruption" in the resource-rich country. The UK-based NGO, which studies the links between the exploitation of natural resources and the funding of conflict and corruption, made the call in a statement issued to coincide with the arrival on Tuesday of French Foreign Minister Dominique de Villepin in the Congolese capital, Brazzaville. "Given France's major historical and economic links with Congo, Mr de Villepin's visit is the perfect opportunity for his government to begin implementing its commitments on revenue transparency," Global Witness campaigner Sarah Wykes said. "He should use his time in Congo to encourage the government to begin piloting disclosure of its oil revenues through the EITI [Extractive Industries Transparency Initiative], and to respond to civil society's concerns about where the oil money is going," Sykes added. The EITI was launched by UK Prime Minister Tony Blair at the World Summit on Sustainable Development in Johannesburg in September 2002. Its aim is to increase transparency over payments by companies and revenues to governments in the extractive industries. [For more information on EITI, go to www.dfid.gov.uk] Global Witness recalled that at the EITI launch, France's representative stated that his government stood fully behind the initiative and was prepared to enter into a dialogue with states and companies to make headway on this issue. It said that France played a leadership role at the recent Evian Summit, where the G8 recognised the need for improved transparency in the management of revenues from oil, mining and gas in resource-rich-but-poor countries. "This includes disclosure of payments made by extractive companies and of revenues received by governments, as advocated by the international Publish What You Pay coalition," the NGO said. [For more on the campaign, go to www.publishwhatyoupay.org] "The Congolese government has now committed to improve transparency under an IMF programme, but serious question-marks remain about the pace of reform," it added. "The IMF itself has noted recently that 'improving transparency and accountability in the transactions of the national oil company remains an important challenge." The NGO said that France had a particular responsibility to help, as questionable dealings of former state oil company Elf in the Congo contributed to the country's indebtedness - currently US $6.4 billion, according to the IMF and World Bank, with servicing of oil-backed loans accounting for one-third of total government revenue - and bad government. France, the former colonial ruler of the Congo, is today its main trading partner and provider of bilateral aid.