The IMF, the World Bank and Debt

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Researching the Mozal aluminium smelter
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Freedom of Information Act

• Gives you the right to request any recorded
  information held by a public body

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Freedom of Information Act

• Gives you the right to request any recorded
  information held by a public body
• This does not include requesting information from
  a private company receiving public money or
  carrying out public services

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Freedom of Information Act

• Gives you the right to request any recorded
  information held by a public body
• This does not include requesting information from
  a private company receiving public money or
  carrying out public services
• But it does include asking for information held
  by public bodies about private companies

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Freedom of Information Act

• Submit a request in writing
• They are meant to respond within 20 working days
  either with the information, or saying why they
  will not disclose the information

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Absolute exemptions

• If any of these things apply, they do not have
  to release the information. Key ones

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Absolute exemptions

• If any of these things apply, they do not have
  to release the information. Key ones
• Would take more than 3.5 days of someones time
  to find and retrieve the information
• So need to make the request very targeted

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Absolute exemptions

• If any of these things apply, they do not have
  to release the information. Key ones
• Would take more than 3.5 days of someones time
  to find and retrieve the information
• So need to make the request very targeted
• Others include security matters, contained in
  court records, breaches data protection act

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Qualified exemptions

• Judgement made whether releasing information in
  the public interest. Exemptions include

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Qualified exemptions

• Judgement made whether releasing information in
  the public interest. Exemptions include
• Prejudice commercial interests

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Qualified exemptions

• Judgement made whether releasing information in
  the public interest. Exemptions include
• Prejudice commercial interests
• Prejudice international relations

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Qualified exemptions

• Judgement made whether releasing information in
  the public interest. Exemptions include
• Prejudice commercial interests
• Prejudice international relations
• Prejudice the economic interests of the UK

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Appeals

• If they refuse to release the information, you
  first have to appeal to the same public body.
• If they still dont release the information, you
  can then appeal to the Information Commissioner
• Information Commissioner can look at
  information, and order it to be released.
  Ministers can still veto it (been used six times
  since 2005, eg, Iraq Cabinet Minutes, NHS Risk
  Register)

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Back to Mozal

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Documents released showed that

• Exempt from virtually all taxes in Mozambique
• Price paid for electricity (this was redacted in
  some places, but they forgot to redact in others)
• Financial information on the structure of loans
• BHP Billitons expected rate of profit

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CDC FOI requests

• Over the course of three requests, showed made
  an average interest rate return of 15.6 out of
  Mozal
• Extrapolation made similar requests of other
  public investors such as World Bank, German
  government. They refused to provide same level of
  information, so assumed they made money at the
  same rate as CDC

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Multiple FOI requests

• Making requests with the aim of finding out what
  to make requests for is a key technique. Eg
• - Ask for list of meetings between government
  ministers and particular companies
• - Then ask for minutes of most interesting
  looking meetings
• Is also a way of getting round the time block

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Other FOI regimes

• EU EU citizens have right to access all EU
  documents. Again, there are exemptions to prevent
  release of some info.
• Mozal found out that EIB was getting some of
  the Mozambique governments profit
• US like the UK Act, US Act can be used by any
  person, dont have to be a citizen

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Following the money
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Other sources of information

• UN Comtrade database
• http//comtrade.un.org/db/
• BHP Billiton Reports and Accounts
• http//www.bhpbilliton.com/home/investors/reports
  /Documents/2008/financialResultsFy08.pdf
• (Page 29)

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Corporate profit

• Extrapolation Knew BHP Billiton profit, based
  estimates of other shareholders profits on this
  ratio
• Extrapolation Need evidence to justify. But can
  enable you to say This is what we estimate, you
  tell us the true figure.
• But defamation.

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Mozal summary

• Half the investment for a factory was from the
  public sector
• The factory also received subsidised electricity
  taking resources from elsewhere
• Yet it pays virtually no tax
• Provides few jobs
• Whilst making large profits for the investors