EN Official Journal of the European Union CE 88/77

(2004/C 88 E/0085)

WRITTEN QUESTION E-2308/03

by José Ribeiro e Castro (UEN) to the Commission

(14 July 2003)

Subject: Africa — oil — poverty

According to a study by ‘Catholic Relief Services’, an American NGO, the new investments being made in oil in Africa are unlikely to eradicate poverty in the oil-producing countries, despite the fact that African oil production is expected to double in ten years.

This is a shocking conclusion.

According to press reports the study was published on the Internet on the day that the British Prime Minister met directors of petroleum companies in London (17 June this year) and urged them to make their business dealings in Africa more transparent.

Can the Commission therefore say:

— whether it has a copy of this study or other reliable reports on the subject;

— what information it has regarding the activities of oil companies and the transparency of their business dealings with the African oil-producing countries;

— what measures it has taken or envisages taking to promote greater transparency on the part of the oil companies based or operating in the Union who exploit petroleum resources in Africa, in order to monitor the management and distribution of the wealth generated by oil, and what measures it has taken or intends to take vis-à-vis the African countries in the context of existing cooperation relations;

— whether it agrees that it should prevent or restrict in any way the activities within the Union of oil companies who are unwilling to clarify openly their commercial and industrial dealings with African countries?

Answer given by Mr Nielson on behalf of the Commission

(10 September 2003)

The Commission is not aware of the specific study published by the Catholic Relief Services on the incapacity of the investments in the oil sector to eradicate poverty in the oil producing countries. However, the findings of the report, as they are published on the Catholic Relief Services' web-site confirm an existing trend. In fact, oil and mineral dependence are strongly associated with unusually bad conditions for the poor. Oil development tends to further concentrate wealth among political and military élites, which may be associated with undermining democracy and deteriorating human rights situations. Once states become dependent on oil or mineral exports, they have difficulty diversifying their economy and promoting sectors like agriculture and manufacturing, which provide greater direct benefits to the poor. Finally, oil and mineral dependence becomes an obstacle to pro-poor types of economic activity.

The Commission does not have a detailed overview of the activities of oil companies in Africa. However, several direct contacts with some proactive multinationals in the field of the oil and mining sectors have taken place in the framework of the Commission strategy on Corporate Social Responsibility.

The Commission President Mr Prodi wrote a letter in 2002 to express his support for a campaign launched in June 2002 to call on multinational companies to disclose payments they make to governments in poor countries. This so-called ‘Publish What You Pay’ campaign is headed by Mr Soros and endorsed by more than 30 lobby groups, including Amnesty International, Friends of the Earth and Save the Children. The recently established European Multi-Stakeholder Forum will take note of the campaign and of companies' best practices in its next Development Roundtable meeting on 29/30 September 2003. The Parliament is part of the Forum as an observer. The issue of promoting Corporate Social Responsibility was identified also by the report of the Catholic Relief Services as the most efficient way to tackle the problems provoked by the oil and mining sectors in Africa.

It is not possible to restrict or prevent the activities of oil companies unwilling to publicise their payments. Nevertheless, it is needed to promote more the concept of Corporate Social Responsibility and the role of Civil Society at national level that could be a sort of watchdog with respect to those companies. Moreover, the Commission expresses its full support for the Organisation for Economic Cooperation and Development (OECD) Anti-Bribery Convention where the bribery of foreign public officials in the context of international business transactions is a punishable offence.

Finally it should be pointed out, that the Commission, in its regular political dialogues with several partner countries, discusses issues relating to oil and mineral revenues, advocating clear and transparent integration of these revenues in state budgets.