Repealing Dodd Frank Act bad for Africa – ACEP

The African Centre for Energy Policy (ACEP) has expressed worry about moves to repeal the rules on the Dodd Frank Act by the US government.

The existing Act requires US companies abroad to disclose payments made through taxes, royalties, contract fees and all other payments for infrastructure development and corporate social responsibility to host government.

However, ACEP believes that a repeal of the Act will affect global efforts of ensuring transparency in the governance of the extractive sector.

Speaking to Class News, Dr Ismael Ackah, head of policy Unit and Energy Policy Advisor at ACEP called on African governments to individually and collectively condemn the move and act to protect the interest of Africa.

“What we are saying is that it is unfortunate because it is going to affect the transparency and accountability in the extractive sector. …Also, other countries started following the same process – Canada, Norway and others. …We are calling on African governments to have their own laws, maybe at the continental or sub-regional levels either at the ECOWAS level or the AU level that when you are coming in, any payment that you make, you have to declare them because one of the main reasons [this is] very serious is that if they make a payment of maybe GHS2, they can record that they made GHS4 payment and because of that they are under-taxed, they pay less tax to the state. Apart from the bribes and other things, it will also lead to under-invoicing, transfer-pricing and so many other instances which will affect African countries”.