Reprehensible SEC Decision on Conflict Minerals Rule Undermines Global Efforts to Source Minerals Responsibly

Apr 11, 2017 | Global Witness
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According to Global Witness, SEC Acting Chairman Michael Piwowar and the SEC Division of Corporation Finance’s recent actions questioning enforcement of an important aspect of the Conflict Minerals Rule are irresponsible and only serve to benefit the criminal and corrupt seeking to profit from Congo’s minerals trade. The SEC April 7 statements that cast doubt on enforcement of the Rule’s supply chain due diligence requirements cite a 2015 court decision that found one component of the rule to be unconstitutional – a legal interpretation with which Global Witness strongly disagrees.

Investors worth over almost US$5 trillion have written in support of company supply chain due diligence disclosures. Major US companies have also been recently quoted in support of the conflict minerals rule.  However, Acting Chairman Piwowar is now directing the SEC to develop recommendations for “future Commission action,” which appears to have been decided unilaterally without consultation with the other SEC Commissioner, Kara Stein.  If this is the case, the Commissioner’s unprecedented decision – made after a 45-day comment period in which almost 300 submissions were made from companies, industry groups, Congolese and international civil society and investors – would be a clear overreach from a Commissioner who is only Acting Chairman for a limited amount of time.