July 19, 2010,
PHNOM PENH — The Cambodians for Resource Revenue Transparency welcomes the adoption of the US financial reform legislation that requires oil, gas and mining companies listed on US stock exchanges to disclose their payments to countries where they operates, which includes Cambodia, in their annual financial reports. The types of payments required to be disclosed by this law include taxes, royalties, fees (including license fees) production entitlementsand bonuses.
“We believe that the disclosure of information from oil, gas and mining companies will enable our people to access information about revenues and will empower them to hold the government accountable for using natural resource revenues for economic development and basic social services like education and healthcare,” Mam Sambath, Chairman of the CRRT, said.
This law is coming at the right time as Cambodia expected oil to start flowing from Block A by December 2012. Access to information about the amount and each type of payments is essential for the public to balance the looming, dubious economic benefits and possible social and environmental risks for their communities. This transparency mechanism empowers citizens, investors, regulators, and other watchdogs to ensure good governance of countries’ natural resources, and disclosure of payments will increase transparency and corporate responsibility of oil gas and mining companies.
As part of the US financial reform legislation, the provision will apply to all entities registered with the US Securities and Exchange Commission that have oil, gas and mining operations. Cambodia hosts several of the companies including Chevron, ConocoPhillips, Total, Petronas, China National Offshore Oil Corp, and Mitsui & Company Ltd.
“Public disclose of companies’ payments to governments will enable the Cambodian National Assembly—parliamentarians and policymakers—to have better position in monitoring and discussion about government plans for revenue management and disbursement for development work,” Sambath said.
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Further inquiry, please Contact:
Ms. Thy Heang, CRRT Communications Officer
855-23 217 607 mobile: 012 500 922