Argentina’s Extractive Industries Face Scrutiny Over Transparency

Increased Pressure for Improved Transparency

BUENOS AIRES - Argentina’s extractive industries are facing increased pressure to improve transparency over the ownership of natural resources. A recent report highlights that the country’s authorities have failed to implement adequate measures to disclose beneficial owners (BOs) in the mining and hydrocarbon sectors.

Lack of Transparency Raises Concerns

The lack of transparency has raised concerns among international organizations and experts, who argue that it hinders public oversight and accountability. The report notes that Argentina lacks a centralized registry for extractive industries, making it difficult to track BOs. Furthermore, only four provinces have stipulated requirements for including beneficial ownership data in their registers of juridical persons.

Recommendations for Improvement

Experts recommend that mining and hydrocarbon regulations be amended at the national level to require companies to disclose BO information. Additionally, they suggest gradually centralizing BO data in the National Corporate Registry (NCR) to strengthen transparency.

Here are some specific recommendations:

• Amend mining and hydrocarbon regulations at the national level to require companies to disclose beneficial owner information.
• Gradually centralize beneficial ownership data in the National Corporate Registry (NCR) to strengthen transparency.
• Implement a comprehensive primary law that harmonizes disclosure rules and balances interests.
• Increase public access to beneficial ownership data, while ensuring safeguards for protecting sensitive information.

In-Country Evaluation

Argentina’s Law on Access to Public Information establishes transparency as the rule, but conflicts with fiscal secrecy laws have hindered public availability of beneficial owner data. Experts recommend a comprehensive primary law that specifically addresses disclosure rules and exceptions.

Quotes from Experts

• “The lack of transparency in Argentina’s extractive industries is alarming. It’s essential that authorities take immediate action to improve accountability and protect the country’s natural resources.” - Expert
• “Argentina needs a centralized registry for extractive industries to track beneficial ownership data. This would help ensure transparency and public oversight.” - International Organization Representative

By implementing these recommendations, Argentina can improve transparency and accountability in its extractive industries, reducing the risk of corruption, embezzlement, and mismanagement of natural resources.