Unwrapping the importance of transparency during COVID-19
Over the weekend whilst many of us unwrapped and enjoyed Easter Eggs in isolation, the economic and health impacts of COVID-19 continued to flame out across the world. Analysis by one of Publish What You Pay’s founding organisations, Oxfam used data from the Imperial College in London to predict that 40 million women, men and children could die from the virus without urgent intervention. That’s 8 times the population of Melbourne. Australian National University modelling suggests that more than half of the world’s population could be living in poverty by the time the pandemic ends.
Whilst this global humanitarian crisis impacts of all us, the stark inequalities within, and between, societies will become deep ravines in which many will fall and never return.
Australians have almost 4 hospital beds per 1,000 women, men and children. Africans have just 1.2 hospital beds per 1,000 people. In developing countries, two in three women work in the informal economy without sick leave and unemployment benefits. No work means no food. 780 million people don’t have access to clean water and might not be able to protect themselves from the virus.
Debt, Repayments and Extraction
Many low-income countries, including Australia’s neighbours Papua New Guinea (PNG), Solomon Islands and Vanuatu, have poor health systems and are strangled by debt and repayments to foreign governments and institutions. This means less money for clean water, personal protective equipment (PPE) and providing hospital treatment for women, men and children who become critically ill. As G20 nations prepare to meet over the weekend to discuss the crisis, Publish What You Pay members and other civil society groups are calling for wealthy nations, IMF and others to cancel debt payments and issue grants not loans for many low-income countries.
People living poverty in resource rich countries, like Indonesia, Myanmar and Timor-Leste will be hit by both the health crisis and a drop in oil and gas revenues due to lower prices and demand. This means less money for their governments to spend on essential services like doctors, teachers and hospital beds. This raises further questions on the extractive model of economic development that many low income countries are hooked on.
What’s the role of ASX listed companies?
Low income countries also host many Australian companies. Our research shows 139 ASX listed mining, gas and oil companies operating in 34 countries in Africa, 31 companies in PNG and 14 companies in Indonesia.
Giants like Rio Tinto and BHP have made generous donations and are fast tracking payments to small business suppliers. AngloGold has handed two company owned hospitals to provincial governments in South Africa. Other companies are providing in-kind donations of PPE. Some ASX companies will hold AGMs online limiting transparency and the ability of shareholders to ask important questions. There are reports of violence between armed forces and community members at the site of OceanaGold’s mine in the Philippines as the company allegedly tries to restart operations. The mine was put on hold due to community opposition and an ongoing legal process.
Map Locations of ASX listed extractive companies across Africa. Source: PWYP Australia
Role of Transparency and Revenue
Whilst most of us can stay safely in our homes, governments and business need to be more open, caring and accountable than ever. The mining, gas and oil sectors are not immune from this.
Governments must ensure that companies follow the rules and respect the human rights of communities and civil society. This includes the men and women who work for extractive companies.
At a time when governments need to scale up spending on doctors, nurses, ventilators and hospital beds, revenue is critical. So governments should be introducing progressive tax measures, including special levies on industries that are still operating. like the mining sector in Australia, and making large profits. Communities also have a right to know if companies are contributing their fair share of revenue to help address crisis. Detailed and transparent reporting that shows how much Australian companies are paying to governments on a project-by-project level is a must for accountability. Low income countries shouldn’t be shackled by debt and repayments when they need revenue for health care to save lives.
COVID-19 is a reminder that we are all part of one global community. It's clear that our safety is dependent on our neighbours and the communities we work, live, and do business in. Transparency is at the heart of this.
By Clancy Moore, National Director, Publish What You Pay Australia