Friends of the Earth, networks Counter Balance (1) and Eurodad (2) today published a new report, "Flying in the Face of Development : How EIB loans enable tax havens "(3), highlighting the involvement of the European Investment Bank (EIB) in tax havens. This study reveals that the Bank of the European Union is investing billions of euros in associates at offshore centers. NGOs denounce this outrageous situation and call upon European states to be consistent with their declarations against tax havens by requiring that the EIB should end this practice and adhere to its development mandate.
past five years, the EIB has lent 5.66 billion euros to banks French, Dutch and English were most involved in tax havens (4), while 210 million went to African funds using tax havens in their investment strategies. In addition, major infrastructure projects such as the West African Gas Pipeline in Nigeria (5), Tenke Fungurume mine in Democratic Republic of Congo (6) or the Mopani mine in Zambia (7) are related to Bermuda or the Virgin Islands, known tax havens. Anne-Sophie
Simpere Friends of the Earth, said: "Our study shows that many projects financed by the EIB involve tax havens and multinational using offshore centers. Yet the investment policies of the Bank are decided by its Board of Directors, composed of Member States of the EU whose makers enchaînent declarations against tax havens. How can they claim to fight against these practices while at the same time, they overwhelmingly endorse the public with the bank of the European Union? "Desislava Stoyanova, Coordinator of Counter Balance, said:" This situation is unacceptable from a public institution. And in particular the EIB, including gaps in transparency and accountability are well known, whereas they are two crucial aspects in the fight against tax havens. "
The report recalls that the use of tax havens is a hindrance to development, as shown by numerous studies, including the recent Norwegian government report on the subject (8). Anne-Sophie Simpere concludes: "The Norwegian Government has proposed a series of measures to ensure that the Investment Fund does not contribute to tax havens. European states will they stay behind, leaving their bank to continue to fund development projects in dubious financial centers in the opacity? "Friends of the Earth and Counter Balance asking the EIB and the European states not to support projects related to tax havens and ensuring full transparency of the EIB loans to financial intermediaries, to ensure that these flows do not contribute to fuel tax evasion .
Press contact: Caroline Prak 01 48 51 18 96 / 06 86 41 53 43
Notes:
(1) www.counterbalance-eib.org
(2) www.eurodad.org
(3) Report downloadable here (English): http://www.amisdelaterre.org/La-Banque-europeenne-d, 4372.html
(4) It is the Barclays Bank, Royal Bank of Scotland, BNP Paribas, Societe Generale and ING.
(5) The West African Gas Pipeline Consortium Company Limited (WAGPCo) is registered in Bermuda. The EIB has provided EUR 75 million loan to Ghana for the implementation of this project.
(6) Tenke Holdings Ltd. / Lundin Holding, registered in Bermuda, is part owner of the proposed mining of copper and cobalt Tenke Fungurume in the Democratic Republic of Congo for which the EIB has conditionally approved a loan of 100 million in 2007.
(7) Mopani Copper Mines Plc (Mopani Copper Mines), which has received loan of EUR 48 million from the EIB, is majority owned by Carlisa Investments Corporation, located in the BVI.
(8) See Commission on Capital Flight from Developing Countries, Tax Haven and Development, Summary of the Preliminary Study , June 2009, page 4: "Illegal capital flight corresponds to ten times Roughly The Financial Assistance Given to Developing Countries."
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