Mr. President-- Up to 5 minutes? Mr. President, I rise in opposition to the resolution before us, which really ought to be titled the ``Kleptocrat Relief Act.'' My Republican colleagues today are…
Mr. President--
Up to 5 minutes?
Mr. President, I rise in opposition to the resolution before us, which really ought to be titled the ``Kleptocrat Relief Act.''
My Republican colleagues today are trying to repeal a critical bipartisan rule initiated by Senator Lugar, a Republican from Indiana, and Senator Cardin, a Democrat from Maryland. It is a critical bipartisan rule to prevent corruption.
This transparency rule is part of the Dodd-Frank Wall Street reform law. It is one of the best anti-corruption tools that President Trump now has to keep his promise to, in his words, ``drain the swamp'' in Washington and around the world.
But now, in just week 2 of his Presidency, Republicans are racing to use an obscure law called the Congressional Review Act to wipe it out. The CRA was not intended to hand a new President the power to roll back regulations that protect workers, protect the environment, protect investors, and protect consumers.
In this case, Republicans are using the CRA to target rules that have gone through extensive years-long administrative and public review, including on issues that agencies were specifically ordered by this Congress to study and address.
Republicans' unprecedented use of the CRA is not about Congress performing due diligence or agency oversight, it is a gross abuse of power to make their big corporate allies happy. I heard my friend from Idaho talk about the Chamber of Commerce and the American Petroleum Institute. That is just a start.
The rule they are trying to repeal protects U.S. citizens and investors from having millions of their dollars vanish into the pockets of corrupt foreign oligarchs. It does that by requiring all oil, gas, and mineral companies listed on U.S. stock exchanges to disclose the royalties and the bonuses and the fees and the taxes and other payments they make to foreign governments.
This kind of transparency is essential to combating waste, fraud, corruption, and mismanagement, as Senator Isakson talked about the poverty he sees in these resource-rich countries.
Yet Rex Tillerson, whom this body just, I believe yesterday, confirmed with a pretty much partisan vote--Rex Tillerson and congressional Republicans want to strip it away. Rex Tillerson, in his years as CEO of ExxonMobil--and we will talk about that in a moment-- strongly opposed this rule, almost by himself, with ExxonMobil as the head of that company.
At Mr. Tillerson's confirmation hearing, Senator Kaine from Virginia introduced into the record a 2008 report by Republican Senate Foreign Relations Committee staff. That report was the basis--Republican staff, I assume at the behest of Senator Lugar and others--that report was the basis for what eventually became section 1504 of Dodd-Frank, known as the bipartisan Cardin-Lugar amendment to fight corruption in mineral- rich developing countries. That report concluded that many resource- rich countries are poor because their vast mineral resources often breed corruption. That corruption lines the pockets of the kleptocrats--read ``thieves''--increases poverty, increases hunger, and increases instability.
As Senator Lugar said:
Paradoxically, history shows that rather than a blessing,
energy reserves can be a bane for many poor countries,
leading to fraud, corruption, wasteful spending, military
adventurism and instability. Too often, oil money that should
go to a nation's poor ends up in the pockets of the rich or
is squandered on the trappings of power and massive showcase
projects instead of being invested productively and
equitably.
That is called the resource curse. It prevails all over the world today. For example, oil-rich Venezuela is running out of food and medicine. Resource-rich Nigeria is in an economic mess wracked by terrorism and poverty. Armed groups have fought for years
over mineral wealth in the Congo and elsewhere in Africa.
Resource-rich countries in Asia have similar problems. The natural resource sector in so many countries is famously corrupt--the world's single most corrupt industry, according to the Organisation for Economic Co-operation and Development. But oil companies can no longer hide behind the excuse of confidentiality. Increasingly, companies are expected to disclose what they pay in taxes and other payments to governments whose natural resources they extract. That is what this language from Senator Lugar, Senator Cardin, and Senator Leahy did. That is what the rule does. That is what we should do. This Congress wants to undo that. This is now required under the laws of the United States and 30 other countries, as well as international initiatives. In other words, what we did here was followed by 30 other countries, and a number of more responsible energy companies, I would say, passed this language and began to implement these laws.
The Extractive Industries Transparency Initiative is a global standard that aims to put information about government revenues from natural resource deals into the public domain in 51 countries, including ours. This includes telling us what taxes the companies pay, which is key to ensuring citizens know what benefits they get--from Venezuela or Nigeria or Congo--from their own natural resources.
Let me offer some concrete examples of the kind of corruption we are talking about. This just turns your stomach.
In Equatorial Guinea, according to anti-corruption groups, oil companies, including Exxon, have had a long history of problems on this front. The regime of President-for-life Obiang, who executed his brutal uncle to gain power almost 40 years ago, has been tarnished with allegations of corruption, cronyism, brutal political repression, routine human rights violations, and drug trafficking for years and years.
Years ago, the Senate Permanent Subcommittee on Investigations released a report and held a public hearing which revealed that a number of oil companies--again, ExxonMobil; they keep coming up in this--were making direct payments into an account in the name of the Republic of Equatorial Guinea located at Riggs Bank in Washington, DC. Virtually all of the money in the account, tens of millions of dollars, consisted of royalties and other payments from oil companies, primarily--surprise--ExxonMobil, to the country of Equatorial Guinea for the right to explore and produce oil in that country. But instead of paying the money to the government or the national treasury of Equatorial Guinea, the companies sent the money to the account at Riggs Bank. That account was controlled by President-for-life Obiang and two of his relatives. The account signatories were the President-for-life, his son, and his nephew. Imagine that. Instead of paying the national treasury, the oil companies made payments into this account in another country, controlled by a dictator and his relatives. I can't believe we in this body support that. How could the citizens of Equatorial Guinea know how much royalty money was coming in for their oil in their country and where it was going when it was in a secret account controlled by a dictator? The answer, obviously, is they couldn't.
The report from the PSI--the committee that investigated--documented that some of the funds from that account were used to make suspicious transactions. The United States then investigated the President-for- life's family finances. Prosecutors noted that President-for-life Obiang's son ``received an official government salary of less than $100,000 a year but used his position and influence as a government minister to amass more than $300 million worth of assets through corruption and money laundering.'' He paid himself $100,000 but found a way to amass $300 million more--all in violation of the laws of his country and our country both.
In 2014, the son settled a case brought by Federal prosecutors. He agreed to sell his $30 million mansion in Malibu, his Ferrari, and various items of Michael Jackson memorabilia he had collected.
The New York Times reported earlier this month that he is still working to delay his trial on corruption charges in France, where prosecutors say he amassed a personal fortune of $115 million, which he used to indulge his tastes.
When he served as Agriculture Minister of Equatorial Guinea, prosecutors say he used his influence over the timber industry--next to oil, the most important export industry in the country--to line his pockets.
Last November, prosecutors in Switzerland seized luxury cars belonging to him, and last month, at the request of the Swiss, the Dutch authorities seized his 250-foot, $100 million yacht named the ``Ebony Shine'' as it was about to sail to Equatorial Guinea. He said the yacht belonged to his country's government. All the while, his people are starving.
You can't make this stuff up. If the bill before us were adopted, the Obiang family would be celebrating. They would be celebrating in Washington, in California, and in Equatorial Guinea.
In Nigeria, again according to Global Witness, a major oil deal struck by--surprise--ExxonMobil with the Nigerian Government is being investigated by Nigeria's Economic and Financial Crimes Commission, a law enforcement agency that investigates high-level corruption. The probe centers on a protracted and controversial deal agreed to by ExxonMobil and the Nigerian Government in 2009 to renew three lucrative oil licenses, which at the time accounted for around a quarter of Nigeria's entire oil production.
ExxonMobil agreed to pay $600 million to renew the licenses and construct a powerplant at a cost of $900 million to the company, making a total contribution of $1.5 billion. Yet documents suggest that the Nigerian Government may have valued the licenses at $2.5 billion and that the Chinese oil company CNOOC offered to pay $3.7 billion for the same licenses--over six times the amount reportedly paid by ExxonMobil.
Other incredible and notorious examples abound. It would be reason enough for us to act to try to help the millions of people around the world who are victims of this corporate collusion, but in today's world, the resource curse doesn't just impact far-off countries; it affects Americans every day. It has empowered anti-American dictators in Iraq, Libya, and Syria, situations which cost American lives and American taxpayer dollars. It worsens global poverty, which can be a seedbed and a fertile growing ground for terrorism against us and our allies. It leads to the instability that threatens global oil supplies. It raises gas prices at home.
That is why we need this rule--all of the above--to protect American national security interests by combating the corruption and secrecy, with all these oil companies at the table with them. That has caused conflict, instability, and violent extremist movements in Africa and the Middle East. As ISIS has demonstrated, nonstate actors benefit from trading natural resources in order to finance their terrorist operations.
Despite all this, the Republican-led House of Representatives, as Senator Crapo said, voted yesterday to repeal this bipartisan initiative--an initiative that holds Big Oil accountable and protects the American people. Today, the Senate Republican leadership is following suit. It is a little ironic in light of the fact that Candidate Trump, at almost every rally in my State, almost every rally in State after State after State where he was campaigning, talked about draining the swamp.
Since the rule's creation, ExxonMobil, led by Mr. Tillerson--now the Secretary of State--and Big Oil allies, such as the American Petroleum Institute, the U.S. Chamber of Commerce, and the Heritage Foundation, have fought to kill it.
Who else opposes this rule besides Senate Republicans, House Republicans, and President Trump? There are the autocrats in Russia. We know about the connections between Russia and the Secretary of State. We don't know quite enough about the connections between our President and President Putin because we can't get the President's tax returns. We know something is going on. Everybody knows it. Nobody knows quite what.
Who else opposes it? Autocrats in Iran, where Advisor Flynn made some interesting and provocative comments today, autocrats in Venezuela, autocrats in Africa with oil wells, gasfields,
or copper mines who want to keep their payments a secret. It is working for them. It is working for the autocrats. It is working for Exxon. Apparently it is working for Republicans in the House and Senate too. I am not sure exactly how, but I know it is working.
More than 30 countries--mostly the United States, Canada, and European nations--have adopted similar anti-corruption standards. Senator Lugar, Senator Leahy, and Senator Cardin's law passed as part of Dodd-Frank, and the SEC is adopting this rule. More than 30 other countries in the world followed our lead, and some of the more responsible oil companies were prepared to comply. So to be clear, with Europe and Canada in the same disclosure system, the playing field is now level. It is working.
Many companies already report such payments under European rules and are doing just fine, so this is hardly causing them undue burdens in the regulatory framework that my colleagues like to talk about. That is why many in industry support the rule, despite the actions of Exxon, the bad actor here, and the CEO of Exxon--now, amazingly, our Secretary of State.
BP and Shell--two major, large oil companies--have publicly endorsed payment reporting and lining up U.S. rules with those in other markets. Foreign and state-owned oil companies from China and Brazil, including CNOOC, PetroChina, Sinopec, and Brazil's Petrobras, are required to disclose under U.S. rules, leveling the playing field for U.S. companies. Gazprom, Rosneft, BP, and Shell already report under UK rules. The largest mining companies in the world, including Newmont Mining, BHP Billiton, and Rio Tinto, have supported similar reporting. Oil, gas, and mining workers unions, such as United Steelworkers, back the rule.
Notice who doesn't back the rule: Exxon, the American Petroleum Institute, and autocrats in Iran, Russia, and Venezuela.
Investors also support it--including investor groups with $10 trillion under management--so they can better understand and manage the reputational, expropriation, sanction, and other risks facing firms in which they invest. It is supported by the American Catholic bishops, the Presbyterian Church--all kinds of religious groups.
Who is against it? Republicans in the House, Republicans in the Senate, the President of the United States, ExxonMobil, the Secretary of State, who used to be CEO of ExxonMobil, and autocrats in Iran and Venezuela. We get the picture.
All these groups who care about justice, who care about fair play, who care about doing business with predictable and fair rules, like BP and Shell, all of them support it--Global Witness, the ONE Campaign, Oxfam, and Publish What You Pay.
We need to be clear on one other thing my friend from Idaho said: This rule won't cost a single American job. Everything oil companies can legally do today is still allowed under the anti-corruption rule. They only have to do one more thing: They have to report their numbers to the Securities and Exchange Commission. How can that cost millions of dollars?
The Cardin-Lugar rule makes Big Business and government more transparent, fights corruption, and does it all without hurting taxpayers. It is a creative approach to global problems that our leaders did embrace until we had a President who wants to ``drain the swamp,'' he says--should be embracing, not rejecting at the behest of just a few actors.
Again, who is lobbying to overturn this rule? It is autocrats around the world. It is Exxon. It is the American Petroleum Institute. It is a very small number of companies, when so many people are on the other side.
If we repeal this measure today, shareholders, investors, and poor communities around the world will continue to see their money and natural resources stolen by crooked oligarchs. We will be undoing the moral leadership. This is in so many ways a moral question that Senator Cardin, Senator Lugar, and Senator Leahy brought to us bipartisanly, with broad support by both parties. We will be turning a blind eye to corruption, we will be betraying our principles, and we will be undercutting our allies in Europe and Canada who followed our lead and crafted their own rules based on ours.
Under the terms of the Congressional Review Act, any future ``substantially similar'' rule will be forever prohibited from being written by the SEC. That makes no sense.
I hope this effort fails. I know my Republican colleagues understand this because enough of my colleagues recognize the merits of this anti- corruption measure and they refuse to kowtow to the dinosaur wing of Big Oil. It is not even all of Big Oil; it is the dinosaur wing of Big oil. It is the autocrats. It is the American Petroleum Institute. It is the Chamber of Commerce. It is ExxonMobil.
I thank Senator Cardin and Senator Leahy for their work, and I thank former Senator Lugar from Indiana for the important work he did on this measure.
Mr. President, I appreciate the comments of my friend from Alaska--also from Cleveland--and those of my friend from Cincinnati, Senator Portman, about opioids. I appreciate his leadership in my State, the work he has done, and the work we have done together on opioid addiction. It is a tragedy, and I don't go much of anywhere in the State without finding someone who is affected, someone who is addicted in a family, or a close friend who has died.
As Senator Portman said, Ohio has more opioid deaths than any State in the country. We are the seventh largest State, but the State with the most deaths. It is troubling, and clearly we are not dealing with it as well as we should.
Mr. President, I rise to close the debate on this motion today on the Congressional Review Act to wipe out the SEC rule. I rise in opposition to the bill, as a number of colleagues on my side of the aisle have very strong feelings on it. With the exception of my friend from Idaho, the chairman of the Banking Committee, there weren't many Republicans who wanted to come to the floor for this, in part because I think it is just the supporters they have on their side don't make you want to rush to the floor and support them. Some called this the Kleptocrat Relief Act. I will give you a real quick history before I wrap up.
There is a provision in Dodd-Frank to deal with giving the President and others the best anticorruption tools we could have around the world, where countries that have lots of natural resources have been countries with all the wealth from natural resources. They are some of the most corrupt governments with some of the worst poverty anywhere on Earth.
This legislation in Dodd-Frank, and the rule that came out of it from the SEC, was going a long way to preventing corruption. What we saw was the support. Thirty countries in the world followed suit from our country. The companies that were affected, with a few very notable exceptions, were beginning to do what they knew they needed to do and should have done and that the rule called for. As a result, we were going in the right direction until this new administration, this new Congress.
I ask unanimous consent to have printed in the Record relevant letters from investors.
Mr. President, on one side of this argument, one side of this rule, we see in the end--and this kind of sums it up. We have these 30 countries that followed us and passed the rules and the laws the same as we did. We have on our side, the American Catholic Bishops, the Conference of Bishops, the Presbyterian Church, groups like the One Campaign and Oxfam--public interest groups that made their mission trying to end corruption and deal with the economic and social distress and devastation brought on by some of these companies and some of these kleptomaniacal--for want of a better term--governments. That is on the one side.
On the other side, we have my Republican friends in the Senate and House. We have Rex Tillerson, the new Secretary of State, who lobbied vigorously and unceasingly against this rule as president of Exxon. We have Exxon on the other side. We have the Chamber of Commerce and the American Petroleum Institute. And on that side for this bill--against the rule--we have autocrats in places like Russia, Iran, Venezuela. You can bet on this vote tomorrow morning, if 7 a.m. comes out the way it looks like it will, you can bet there will be celebrations in Russia, in Iran, and Venezuela, in all these countries where these kleptocrats, where these leaders who are so corrupt, where they benefited so much.
I think that really sums it up, how important it is that we defeat this bill, how important it is that this President, who came to town and has been in office less than about 2 weeks, his second week in office--his campaign was all about drain the swamp, and one of the first things he did, with his Republican House and Senate Members following along like sheep, they have done this. It is just incredible how they moved so quickly to side with the autocrats, to side with the Russians, to side with Big Oil, to side with ExxonMobil and these autocrats in places like Iran and Russia. It is not a good commentary on this body. I am sorry to see it.
I ask my colleagues to vote no.
I yield back my time.