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EITI’s disclosures hit $1.6 trillion in 2015

By Roseline Okere
10 June 2015   |   12:45 am
Extractive Industries Transparency Initiative (EITI) has so far disclosed $1.6 trillion worth of government revenues from oil, gas and minerals as at April this year.

american dollarExtractive Industries Transparency Initiative (EITI) has so far disclosed $1.6 trillion worth of government revenues from oil, gas and minerals as at April this year.

EITI, which stated this in its report on key figures on the progress of the agency, stated that about 48 countries are now EITI compliant. It noted that there are now disclosures on oil sales, social payments and more details on budget allocation and transfers.

“We are also seeing EITI countries embrace contract transparency and the first examples of beneficial ownership disclosure”.

The report stated that wealth from natural resources could lead to economic growth and social development in a country. It said that not disclosing information about this wealth can increase the risk of distrust, weak governance and conflict.

“Openness about how a country manages its natural resources is necessary to ensure that the resources benefit all citizens”, it added.

The report added: “Implementing the EITI standard improves government systems and can lead to improved tax collection and budgetary planning. It signals commitment to the transparent and accountable management of the country’s natural resources. A transparent and open government enhances citizens’ trust.

All companies are required to disclose the same information. “Companies also benefit from an improved and more stable investment climate in which they can more effectively engage with citizens and civil society.

Citizens benefit from receiving reliable information about their country’s natural resources and enable them to hold the government and companies to account.

Civil society is an essential partner in implementing the EITI”. The report stated that over 90 major companies involved in oil, gas and mining are committed to supporting the EITI, through operations in implementing countries, international-level commitments and industry associations.

It disclosed that the EITI has won the support of over 90 global investment institutions that collectively manage over $19 trillion. A broad coalition of governments, civil society and international organisations supports the EITI, including 400 NGOs, World Bank, International Monetary Fund, International Council on Mining and Metals and the regional development banks.

These organisations provide technical and financial support to implementing countries, and support EITI outreach. It listed EITI standards to include effective oversight by the multi-stakeholder group; timely publication of EITI Reports; EITI reports that include contextual information about the extractive industries; the production of comprehensive EITI reports that include full government disclosure of extractive industry revenues, and disclosure of all material payments to government by oil, gas and mining companies.