Call for Myanmar transparency

Murky ownership details for companies that have recently secured licence awards in Myanmar could serve as a veil for corruption and undermine the country's bid for business transparency, Global Witness has warned.

The Asian country earlier this year awarded 20 offshore blocks in shallow and deep waters on the heels of earlier awards of 16 onshore tracts last year, with heavyweights such as Chevron, ConocoPhillips and Total among the licence winners.

While the ownership of such multinationals is largely known, many of their partners in the blocks - including both local and international players – have failed to reveal who their ultimate beneficial owners are in a survey carried out by Global Witness.

The international watchdog group said that, out of 47 companies that have gained licence interests who were contacted with a request for information on ownership, only 13 provided feedback - and many of these gave only partial responses.

Global Witness stated that only two of the 16 local companies required to partner international players on onshore and shallow-water tracts disclosed their ownership information.

However, It commended Indian state-owned giant Oil Natural Gas Corporation (ONGC) and Myanmar-based partner Machinery Solutions for being transparent on their ownership

The group warned that secrecy over ownership structures raises "risks that revenues could be lost to the corruption that has long plagued the country's natural resource sector".

Global Witness campaigner Juman Kubba said: "Anonymous companies are the global getaway cars for corrupt politicians, gangsters and tax evaders.

"They can allow powerful individuals to hide who they are and what they are doing – creating the risk that they could effectively award themselves oil and gas riches at knock-down prices.

"There's a better chance of revenues reaching state coffers if citizens know who stands behind the companies that have won oil and gas blocks."

The group is now calling on the Myanmar government to require all licence participants to fully disclose their ownership details as part of its effort to join the Extractive Industries Transparency Initiative (EITI), a global scheme aimed at preventing corruption in the oil gas and mining sectors.

The government's application is due to be considered by the EITI board early next month.

Global Witness said the country's Ministry of Energy has also ready taken important steps towards transparency by publishing standard contract terms and the names and contact details of bidding companies.

It urged Myanmar to take a regional leadership role in promoting transparency in the hydrocarbon sector.

http://www.information.myanmaronlinecentre.com/call-for-myanmar-transparency/