|
|
|
Enter your email to receive monthly updates on Counter Balance events, publications and activities.
|
|
Media room
|
EIB & Tax Haven campaign letter to EIB Governor
9 June 2009 Dear Governor of the European Investment Bank,
The EIB has recently been given additional challenging tasks: to help tackle the financial and economic crisis and to become a leader in the fight against climate change.
I am very concerned that EIB development projects are being carried out by companies registered in tax havens and financial off-shore centres, potentially costing developing countries tens of millions in tax revenues and leading to corruption, capital flight and lack of transparency and accountability.
Evidences based on research of EIB documents plus accompanying analysis of companies and procedures show that there is major cause for concern when it comes to the EIB and tax havens. It identifies:
- Serious loopholes in the relevant EIB policies
- Lax implementation
- Specific suspicious projects and transactions.
A public bank should not facilitate private tax avoidance. The EIB should ensure that the recipients of its loans do not avail themselves of tax havens or use other practices such as abusive transfer pricing which may lead to tax evasion or avoidance.
Research reveals that there is a long list of EIB clients and projects in developing countries which use tax havens and similar secrecy jurisdictions. One of the most used tax havens in the African region is Mauritius. This is particularly contradictory to the development purposes the EIB claims to have in poor countries because secrecy jurisdictions foster tax competition, allow bank secrecy and therefore corruption, and facilitate tax evasion and tax avoidance.
It also reveals that the EIB’s capacity to assess its clients is limited. Combined with the dramatic lack of transparency in the EIB which prevents concerned citizens’ groups checking up on the due diligence procedures or the evidence that is used, the EIB fails to make a convincing case that its money is all well-used according to its policy on fraud and corruption.
Regarding the EIB's Public Disclosure policy, it should ensure that the EIB provides information on its operations to the widest extent possible and that this information is of high quality. The policy should strengthen the transparency of the EIB decision-making process and ensure that all important information and documents are released to the public before ultimate funding decisions are made. Vital in this is the urgent need to improve the transparency surrounding the EIB's Global Loans as they constitute a major part of the bank's commitments and still remain entirely out with public scrutiny.
I would like to ask you to establish a clear directive that will ensure the EIB takes concrete steps towards fighting tax avoidance.
Yours faithfully,
Tags: |
| |
|
|
  Press Release |
This website has been prepared with the financial assistance of the European Union. The contents of the website are the sole responsibility of CEE Bankwatch Network and can under no circumstances be regarded as reflecting the position of the European Union.