Lugar, Cardin Welcome SEC Vote on Transparency Rules

By CnAgri2012-07-03 20:04:30 Print

Senators Dick Lugar (R-IN) and Ben Cardin (D-MD) welcomed announcement that the Securities and Exchange Commission (SEC) will vote on a final rule to implement the "Cardin-Lugar Amendment" on extractives industry transparency on August 22, 2012.

Monday's announcement comes just days after Senators Lugar and Cardin requested an SEC Acting Inspector General investigation into why the SEC has failed to meet statutory deadlines for implementing the Cardin-Lugar Amendment.

"Information is power. It is power for shareholders and power for citizens living under oppressive regimes. With the Cardin-Lugar Amendment, the U.S. is leading the world in the moral and economic necessity to choose transparency over shadow, rule of law over corruption," Lugar said.

"The vote on this rule is long overdue. Revenue transparency helps hold leaders accountable, increases energy security and creates American jobs by reducing the operating risk U.S. companies face in inherently unstable markets. The Cardin-Lugar Amendment is a critical part of the increased transparency and corporate responsibility the SEC should be promoting. I look forward to the Commissioners approving a strong and clear rule that helps accomplish the purpose of the bill," said Senator Cardin.

The Cardin-Lugar Amendment became law in 2010 and is currently undergoing final rule-making at the Securities and Exchange Commission. The Cardin-Lugar Amendment requires transparent reporting of payments made to governments for the extraction of oil, natural gas, and minerals by companies that otherwise must file disclosures with the SEC. Once fully implemented, the Cardin-Lugar Amendment will help empower investors to have a more complete view of the value of their holdings and encourage capital formation. It will bring more information to global commodities markets, which would benefit price stability. And it will help empower citizens to hold their governments to account for the decisions made by their governments in the management of valuable oil, gas, and minerals resources and revenues.