transparency

Gulf oil spill sparks transparency concerns in Mexico

March 25 (UPI) — Environmental organization Oceana has accused the Mexican government of maintaining an opaque response to an oil spill that has affected at least 390 miles of coastline in the Gulf of Mexico.

The oil has largely impacted the southern part of Veracruz state and the northern part of Tabasco state since early March, with dozens of contaminated sites still not receiving attention.

The spill has lasted nearly three weeks without an identified cause or confirmed responsible parties, affects the southwestern Gulf of Mexico reef corridor, a key ecological area that stretches along the coast between both states.

President Claudia Sheinbaum said the Office of the Attorney General is investigating, with support from environmental and energy agencies, while an interdisciplinary team analyzes the causel.

Sheinbaum stated that the spill originated from a private vessel, not state-owned oil company Pemex.

Veracruz Gov. Rocío Nahle said she will meet with officials from Petroleos Mexicanos to evaluate the installation of containment barriers in coastal areas following requests from fishermen.

Nahle said cleanup efforts are intensifying and that specialized mesh barriers are being installed at strategic points along the coastline to contain residues, with plans to expand the work depending on marine current movements.

Oceana warned that the situation constitutes a “crisis of transparency and accountability,” noting that official information has been insufficient and contradictory compared to the scale of damage reported by coastal communities.

“The opacity surrounding this spill generates impunity. Without clarity on those responsible, the causes and the impacts, it is impossible for authorities to be held accountable and guarantee reparations,” said Renata Terrazas, the group’s executive director.

According to citizen reports and local organizations, at least 51 sites with the presence of oil have been identified along the coastline, while more than two dozen have not yet received attention.

Reports also indicate impacts on key ecosystems. At least 14 marine species have died, including sea turtles, manatees and various species of fish, and thee has been damage to coral reefs and lagoon systems on which fishing communities depend.

Greenpeace Mexico released an interactive map with real-time reports on the expansion of the spill, including citizen records of thick residues and their impact on wildlife and coastal ecosystems.

However, Veracruz governor downplayed the impact, saying in interviews that it involves “traces” or small “drops” of oil on beaches and asserting that reports of dead wildlife were false — an assessment that contrasts with reports from communities and environmental organizations.

Oceana called on the government to establish “transparent, agile and binding” interagency coordination mechanisms and to adopt structural measures to prevent the Gulf from facing another environmental crisis without responsible parties or clear information.

“The Gulf of Mexico and its communities cannot continue to be treated as an environmental sacrifice zone,” Terrazas said.



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California governor candidate Matt Mahan unveils government reform plan

When he entered the race for California governor, San José Mayor Matt Mahan pitched himself as a pragmatic Democrat who would prioritize improving residents’ quality of life and government efficiency.

He unveiled a key part of that promise on Tuesday with an expansive plan to reform state government, including tying pay raises for elected officials and other top leaders to improvements on key issues, and pledging not to approve any tax increase until the state proves “that we can deliver better outcomes with the dollars we already have.”

Mahan also delivered a blistering rebuke of ballooning state spending — which, as he often points out on the campaign trail, has increased nearly 75% over the last six years. In 2020, amid the COVID-19 pandemic and accompanying economic uncertainty, California lawmakers approved a no-frills state budget that came in at $202 billion. Gov. Gavin Newsom’s latest spending proposal is nearly $349 billion.

“We have fallen into this lazy, reflexive mindset of always going back to voters and telling them that the only solution to every problem is a tax increase or a new bond or a new rule coming down from Sacramento,” Mahan said in an interview. “We need to step back and take a really hard look at our existing spending and increase the level of transparency and accountability in government.”

His eight-page plan includes ways to measure and track accountability, some of which are drawn from policies in other states. They include lobbying reforms, following up on audit recommendations and overhauling the state’s digital infrastructure and its procurement process — services Mahan described as “clunky and cumbersome.”

He also proposed a “California Performance Review,” inspired by a similar effort in Texas throughout the 1990s, that would review state agencies and solicit input from employees to eliminate waste and inefficiencies.

But near the top of the list is a proposal to tie pay raises for state officials including the governor, lawmakers and thousands of gubernatorial appointees to “measurable outcomes” in areas such as reducing homelessness and unemployment.

“People in the real world don’t get raises if they don’t do a good job,” Mahan said, “and I think it should be the same for the politicians and senior administrators who are allocating budgets, leading projects, making the big decisions on behalf of the people of California.”

Though the benchmarks would be created with input from the state Legislature, Mahan floated one example: reducing unsheltered homelessness by 5% to 10% within one year, something he said he’s accomplished three years in a row in San José.

It’s a solution one might expect from a former entrepreneur and mayor of a city in the heart of Silicon Valley. Mahan made a similar proposal at the local level last year, but it was rejected by the City Council.

“Tying pay to performance is nothing short of revolutionary in government. It’s a private-sector model that is overdue,” said former state Sen. Steve Glazer (D-Orinda), a Mahan supporter who sponsored several bills aiming to increase transparency in government.

Dozens of tech company executives are backing Mahan in the race for governor and have collectively donated millions to his campaign, as well as two independent expenditure committees supporting him.

That has raised concerns from some voters, and criticism from some of Mahan’s opponents, that he would be beholden to their interests and veto future regulations on tech or artificial intelligence companies.

Mahan has sought to dispel those concerns, arguing that he believes AI and social media platforms should be regulated. Of his plan to overhaul state information technology systems and infrastructure, he said that “whenever we spend public dollars, we have to run open, transparent and competitive procurement processes that ensure best value for the taxpayers.”

Though Mahan did not specify how he would link government outcomes to pay raises, state lawmakers have largely panned his campaign and are unlikely to get on board. The change probably would also require voter approval.

Currently, annual raises for elected officials are determined by a citizen commission that was added to the California Constitution in 1990. Changing how that panel works or imposing limits on when it can approve raises would require a constitutional amendment, which requires voter sign-off.

But Mahan contended it would be one of the fastest ways to fix a system that he says works for special interests at the expense of working people.

“I’m under no illusion that this will be easy, but I think it’s a necessary realignment of incentives,” he said. “We have to make ourselves as accountable to the people as we possibly can be.”

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Transparency in war spending lacks as Pentagon asks for $200 billion

March 24 (UPI) — Secretary of Defense Pete Hegseth plans to request $200 billion in funding from Congress as the cost of the United States’ war with Iran grows.

The request comes on top of an already record-setting Pentagon budget passed by Congress last year. Transparency over how funds are being spent continues to dwindle, experts told UPI.

As of March 15, 16 days into the war, it had cost the United States about $12 billion, Kevin Hassett, director of the National Economic Council, said in an interview on Face the Nation.

Linda Bilmes, a Harvard Kennedy School professor and former assistant secretary and chief financial officer of the U.S. Department of Commerce under the Clinton administration, told UPI the reported cost is “just the very tip of the huge iceberg.”

“The $11 billion or whatever it is that they’re quoting is just the immediate operational spend in terms of munitions and fuel and such in the first couple weeks,” Bilmes said. “That doesn’t cover any kind of medium-term expenditures around reset, repair, resupply, replenishment of weapons and systems and munitions and so forth, which is a much bigger number.”

“We’ve probably spent at least $40 billion if you bring into account already everything that has been spent and the fact that it needs to be restocked in the inventory,” Bilmes said.

There are also longer-term costs yet to come, such as the lifetime disability benefits that some 50,000 U.S. troops stationed in the Middle East will be eligible to receive.

“The vast majority of them have been exposed to toxins, contamination from oil fumes, formaldehyde, benzine, all of these things that are in the air,” Bilmes said.

In a 2011 study, Bilmes estimated that the U.S. Department of Veterans Affairs would pay up to $1 trillion in benefits to veterans of the wars in Iraq and Afghanistan in the subsequent 30 to 40 years. In 2021, that estimate increased to $2.5 trillion as the war in Afghanistan continued until August of that year.

During a press briefing last week, Hegseth said the $200 billion request to Congress would be to “ensure that our ammunition is refilled and not just refilled but above and beyond.”

“That’s like the [gross domestic product] of Hungary, the GDP of New Zealand. Medium-sized countries have GDPs the size of just this increase,” Bilmes said. “That’s $1,500 for every household in America.”

The cost of war continues to increase for U.S. taxpayers. The U.S. military is using some advanced weapons technologies, such as AI-powered systems in combat for the first time in the Iran war. Defense contractors are preparing to increase their production of weapons for the United States four times over, President Donald Trump said following a meeting with several earlier this month.

“They have agreed to quadruple production of the ‘Exquisite Class’ weaponry in that we want to reach, as rapidly as possible, the highest levels of quantity,” Trump posted on social media on March 6. “Expansion began three months prior to the meeting and plants and production of many of these weapons are already underway.”

Trump did not clarify which companies were a part of the meeting, nor did he define what “exquisite class weaponry” is.

Bill Hartung, senior research fellow at the Quincy Institute for Responsible Statecraft, told UPI it is becoming increasingly challenging to analyze defense spending as the Pentagon has become less transparent.

Hartung’s research focuses on the arms industry and the U.S. military budget. He is the former director of the Arms and Security Program and the Center for International Policy and co-director of its Sustainable Defense Task Force.

When the United States began sending defense aid to Ukraine in 2022, the government would periodically report what weapons it was sending and the types of training missions it was involved in. That is yet to take place for the war in Iran.

“In this war, really other than a leak, they really haven’t put out much in the way of justification or what exactly is being spent,” Hartung said. “They haven’t put out even a detailed budget this year the way they normally would. Normally an administration that’s been in power a while puts it out in early February. Now, we’re kind of flying blind as to what it’s exactly all going to.”

Transparency has waned from the Pentagon over the course of years. Funding put toward defense in last year’s budget reconciliation was marked in broad categories, rather than a more detailed, itemized budget.

Hartung said it was not the “normal budget process” and that hearings over the Pentagon’s budget lacked the same level of substance and oversight of years passed.

In July, the Office of the Under Secretary of Defense published its budget request for program acquisitions for the 2026 fiscal year. It requested $179.1 billion dedicated to research, development, test and evaluation of major weapon systems, $205.2 billion for procurement and $961.7 billion for total Department of Defense research and procurement. This accounts for about 40% of the department’s total funding.

The reconciliation bill passed by Congress added $150 billion in new defense spending, increasing the department’s total budget to more than $1 trillion.

Among the biggest expenditures approved by Congress were more than $25 billion for munitions and supply chain resiliency, $24 billion for integrated air and missile defense, $29 billion for shipbuilding, and $14 billion for enhancing resources for nuclear forces.

About $10 million was approved for department oversight.

The longer the war continues, the greater the cost will be to the United States. Then comes the matter of reconstruction.

The United States has historically been involved in reconstruction efforts following wars it was engaged in, including World War II and the Iraq and Afghanistan wars.

The U.S. government spent about $141 billion on reconstruction in Afghanistan between 2002 and 2021, the U.S. Government Accountability Office reported.

The war with Iran has spread beyond its borders already. As of Monday, Fatih Birol, head of the International Energy Agency, said that at least 40 energy sites have been damaged in the war, including sites belonging to U.S. allies.

Whether and to what extent the United States would be involved in reconstruction efforts in Iran and among affected allies is another variable that will not be known until the fighting stops.

Beyond the budget implications is the human cost of war. Hartung said, depending on the decision to put U.S. troops on the ground in Iran, the toll paid by service members could be larger yet. At least 13 U.S. troops have already been killed in action.

The Iran Health Ministry reported earlier this month that more than 1,200 civilians have been killed. Among them are at least 165 people killed in a strike on an elementary school for girls in Minab, Iraq. Many of the victims in the school bombing were children.

A preliminary investigation by the U.S. military has found that the United States is likely responsible for the deadly strike on the school by a Tomahawk missile on Feb. 28. The United States is the only country involved in the war that uses Tomahawk missiles.

The cost of the operation that killed the victims at the elementary school likely exceeds $1 million. A Tomahawk missile costs about $2 million.

“It could have been a million or two to hit that one target,” Hartung said. “They do have a small drone-like system they’ve been using that’s like $35,000 each but I don’t know exactly what they used. A cruise missile’s $2 million but then some of the other bombs could be a few hundred thousand but it’s remarkable how much even one strike can cost. Some of the planes are thousands or tens of thousands an hour.”

Unlike the Vietnam and Korean War and those that preceded them, the United States does not pay for its modern war efforts by raising taxes. Instead, it incurs an ever-growing debt that now accounts for about 17% of the government’s budget in fiscal year 2026.

Bilmes is writing about the changing approach to funding war in her upcoming book The Ghost Budget: Paying for America’s Wars. It is due to be released in the fall.

“We’ve borrowed every penny that has been spent right now. We’re just adding to the debt,” Bilmes said.

As the United States takes on more debt to fund a growing defense budget, it has also cut taxes, reducing revenues.

“Arguably, our approach to this, in engaging in another war of choice, is positioning us closer to another major economic crisis,” Bilmes said.

President Donald Trump presents the Commander in Chief’s Trophy to the Navy Midshipmen football team during a ceremony in the East Room of the White House on Friday. The award is presented annually to the winner of the football competition between the Navy, Air Force and Army. Navy has won the trophy back to back years and 13 times over the last 23 years. Photo by Bonnie Cash/UPI | License Photo

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Nordea’s Juho Maalahti: Strengthening Transparency And Alignment

Juho Maalahti, head of Sustainable Finance Advisory at Nordea—this year’s Best Bank for Sustainability Transparency in Western Europe—discusses the next phase of sustainable finance and the impact of regulatory uncertainty.

Global Finance: What do you expect will be the biggest challenge for the sustainability market in 2026?

Juho Maalahti: While global ESG headwinds created some volatility in the sustainability market during 2025, we found that these were mostly reflected in headlines rather than in underlying market sentiment. What was particularly encouraging was seeing Nordic companies and institutions maintain their approach to sustainability despite the regulatory uncertainty that characterized much of the last year.

The fundamental need for a transition to a more resilient and sustainable economy has not disappeared. Looking ahead in 2026, we see a market where the real-economy transition continues to advance on multiple fronts, from critical infrastructure to industrial decarbonization investments. Rather than focusing on just one challenge, the key will be addressing all these areas while maintaining momentum.

GF: What are you seeing as the next “evolution” of KPIs?

Maalahti: Transparency and simplification are important factors for scaling the market further, and we’ve seen consolidation in KPI-linked facilities over the past few years. Companies are increasingly moving toward harmonization between their public non-financial reporting and financing arrangements.

We see sustainability as a natural part of Nordic DNA, and many Nordic companies—especially the large ones—have a long history in sustainability, coupled with targets to reduce climate emissions. Consistency in reporting—whether to financiers, investors, or the public—is important for transparency and market growth. We see companies wanting to ensure their sustainability metrics are aligned across different use cases.

GF: How resilient is investor demand for sustainable assets if rates stay high or politics turn? And what does that mean for issuance timing and terms?

Maalahti: Despite market volatility and uncertainty in 2025, we continued to see green bonds attracting slightly higher order books compared to conventional bonds, especially in the euro market. This demonstrates that investor appetite for sustainable assets has remained resilient even in challenging conditions.

We continue to provide financing and solutions that support our clients’ investment goals. While political and economic headwinds may create short-term volatility, the underlying demand for sustainable investments appears to be holding firm.

GF: Which risks related to sustainability will most affect company balance sheets over the near term? And what should CFOs tackle first in response?

Maalahti: While there has been uncertainty around the regulatory landscape recently, climate risks have not disappeared and continue to pose real threats to company balance sheets. We have developed our own maturity ladder concept to evaluate our customers’ climate transition plans, which helps us better understand how our customers are adapting their business models and strategies to the shift toward a low-carbon economy.

Rather than waiting for regulatory clarity, companies should focus on developing robust transition plans that address both physical and transition risks. One of our 2025 KPIs was to have 90% of our lending exposure in climate-vulnerable sectors covered by transition plans, reflecting the importance we place on proactive risk management in this area.

GF: What’s your bar for calling financing sustainable, and how do you prevent label inflation as the market grows?

Maalahti: Much of market growth, especially during the pre-Covid period, was attributable to new labels being introduced. Since then, we’ve seen harmonization and increased scalability as the market has matured. As a European bank, we adhere to global standards and European regulations. We set ourselves a target to facilitate more than €200 billion of sustainable finance by 2025, and we well exceeded that target. This achievement reflects our commitment to maintaining rigorous standards while scaling our sustainable finance offerings.

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