Centre for Public Integrity Newsletter 6: Mozambique moves to implement EITI
June 2010
Centro de Integridade Pública Moçambique
All payments and receipts in the mining and oil and gas sectors starting from 2008 will be published in detail, the Extractive Industries Transparency Initiative (EITI) Coordinating Committee decided in a workshop in Maputo 19-20 May 2010.
Mozambique was admitted as a candidate member of EITI in May 2009 and must submit its first report to the EITI Secretariat in Oslo by 14 May 2001. EITI is based on comparing payments made by mining companies with receipts reported by government, and the committee decided that its first report should be for 2008, which is the most recent year for which data is available. Results will be reported on a reconciliation basis, with each side reporting by company and type of payment, for example: Company: Sasol; Payment type: Company tax; Amount: X.
All companies in the sector are covered, including those doing investigation and prospecting, and both state and private companies are included. All payments and receipts are to be reported, including taxes, contract signing bonuses, contributions by companies to training and capacity building, community funds, and social responsibility payments.
Any discrepancies between company and government reports will be investigated by an independent auditor (so long as the cost of the investigation is not more than the amount in question). Under rules set out by the EITI Secretariat in Oslo, the reconciliation and audit must be done by a recognised international audit firm, chosen by public tender. The Maputo workshop instructed the Committee Secretariat to draft terms of reference for selecting the audit firm.
The Coordinating Committee is headed by the Vice Minister of Mineral Resources, Abdul Razak, and has four representatives each chosen by government, civil society, and the mining companies. It has a five person secretariat, who were hired by open competition and the posts were advertised in the daily Notícias. Candidates were interviewed and chosen by three members of the Committee.
The Executive Secretary is an auditor by profession and before joining EITI was internal auditor of the Nampula roads and bridges company (ECMEP - Empresa de Construção e Manutenção de Estradas e Pontes). One member of the staff is a driver, although the Committee has no car.
The participants in the Maputo workshop came from various places in Mozambique and included representatives from mining and oil and gas companies, ministries, national directorates, universities and civil society organisations. Guests came from East Timor and Liberia, and included the EITI director for English and Lusophone Africa, Eddie Rich.
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