–a pre-requisite for Guyana’s EITI membership

A STUDY for the potential adoption of international standards for accountability and transparency in the extractive industries, specifically the mining sector, began last week.

During an inception workshop held at the Herdmanston Lodge Friday last, Minister of Natural Resources and the Environment (MNR&E) Robert Persaud announced that the study is being conducted by Moore Stephens International Limited, a leading global accountancy company at a cost of $17M, provided by the Government.

EITI
The scoping study is a pre-requisite for Guyana’s participation in the  Extractive Industries Transparency Initiative (EITI ), a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources.
Under EITI, the government will work hand-in-hand with the company and civil society representatives to produce reports that help citizens understand how the government manages its extractive sectors.
The reports include parallel public disclosures by both governments and companies of the payments that companies have made to governments for their oil, gas, and mining development.
These figures are then reconciled by an independent administrator.
In addition to increased transparency, EITI strengthens accountability and empowers citizens by enhancing the accessibility of information available about the revenues generated from natural resource development.
The EITI does not address transparency and accountability in forestry since this sector is regulated by the Forest Law Enforcement, Governance and Trade programme of the European Union (EU FLEGT).
The inception workshop was attended by several stakeholders in the mining industry, members of the diplomatic corps, representatives of indigenous organisations, Transparency International (Guyana), and the Guyana Human Rights Association, among others.
The scoping study will allow Guyana to determine to what extent it needs to prepare for EITI and what measures should be put in place to adopt its standards.

BECOMING EITI-COMPLIANT
Minister Persaud said that funding of the study was a demonstration of Government’s political commitment and political will to the principle of transparency and its willingness to accelerate the process of getting on board the EITI.
He noted that one of the definite benefits of being EITI-compliant was that this status for Guyana would attract larger amounts of private and international investors.
“These will come to a country where there are gold standards being pursued for accountability and transparency and they will feel very comfortable in doing so,” he said.
He disclosed that Government through the MNR&E had signalled to the EITI Secretariat that it wanted to join the EITI in May 2012 and has been guided by the Secretariat in its actions from the formation of a Multi-Stakeholder Group since then to Friday’s launch of the scoping study.
He assured that every effort will be made to ensure that all stakeholders and every other Guyanese understand what is involved in membership of the EITI, not only to allay suspicions but to achieve buy-in and support for the initiative.
Bobby Gossai Jnr., Senior Policy Analyst and Advisor at the MNR&E, disclosed that there is a timeframe of two and a half years from the  time of application to Guyana becoming EITI-compliant.
“So,” he added, “from the time you announce your intention there is this time frame which you must work towards because you are being tracked to see whether you will actually implement EITI or its just a talk shop.”
Moore Stephens International staffer, Mr. Ben Toorabally who will be conducting the study said that it will be done in three phases starting this new week.
PHASE 1: activities to promote general awareness among stakeholders and the wider society.
PHASE 2:  a comprehensive study of the mining sector, including identification of all the companies and individuals who are involved in mining; the agencies that are involved and the preparation of a report which will represent a snap shot of Guyana’s status, including the constraints the country might have with respect to becoming EITI-compliant.
“Then we will compare Guyana with other countries that have implemented the EITI and adopt a best practices guide to implement the EITI here,” he said.
He told participants at the inception workshop that his company intends to present its report on the results of the scoping study by the third week in January, 2015.

(By Clifford Stanley)