Georgetown: The Government is conducting a study for the potential adoption of the Extractive Industries Transparency Initiative (EITI) in Guyana.
The study will be conducted by Moore Stephens International and a report will be submitted to the Natural Resources and the Environment Ministry by January 2015. The undertaking is costing over $17 million.
In May 2012, the Government signed a Memorandum of Understanding (MoU) aimed at adopting the EITI global transparency standard.
Natural Resources and Environment Minister Robert Persaud noted that conducting the study demonstrates Government’s political will and its commitment to transparency.
Emphasising the need for transparency and accountability and the responsiveness to citizens’ call for this, the Minister cited the late Dr Cheddi Jagan’ urging on the issue during Guyana’s return to democracy.
He explained that transparency is seen in the Auditor General’s annual reports which are submitted directly to the National Assembly and examined by the Public Accounts Committee, chaired by the Parliamentary Opposition.
The Minister said that the project could not have been possible without the macro and societal framework to accommodate it. He added that there are other projects which have reporting mechanisms to satisfy accountability.
Minister Persaud explained that when Guyana in 2012 had applied to join EITI, stakeholders were consulted and attended several discourses and events to enable their understanding of the process. He pointed that this groundwork had to be done if Guyana’s candidacy was to be considered favourably.
The Minister noted that consultations have been held with international partners including the Inter-American Development Bank, the World Bank, the US Embassy and the Kingdom of Norway. Additionally, local partners have also been consulted, as well all targeting the accelerating the process.
Forestry sector included
Observing that the extractive industry continues to grow, the Minister said that the project is not confined to mineral extractions.
“If we do not adequately prepare to deal with issues of transparency, in terms of how we manage and utilise the resources… we will be doing an injustice to this country and future generations…,” Minister Persaud said.
He pointed out too that investors are comfortable in countries where standards are maintained. The Natural Resources Minister insisted that the EITI activity is aimed at taking Guyana to an international benchmark while positioning it to face the effects of the “resource curse” which has plagued bigger countries.
Adding that focus is also being placed on transparency in the forest sector, he reiterated that all such processes required the involvement of national stakeholders. As he encouraged stakeholders, the Minister reiterated Government’s commitment to joining EITI.
Guyana Gold and Diamond Miners Association (GGDMA) President Patrick Harding acknowledging the purpose of the EITI, said that the GGDMA wanted all monies accounted for. He stated that EITI was best suited to conduct the study.
Guyana Geology and Mines Commission (GGMC) Chairman Clinton Williams noted that the study comes at an opportune time and would seek to ensure that deliverables are being distributed across the country as they should be.
EITI sets global standards for revenues for natural resources and is run by a coalition of Governments and Associations working together. It will conduct the Guyana study in several phases. Guyana’s extractive industry is thus moving closer to acquiring greater transparency through the participation of representatives from all levels of the extractive industries, including miners.
The principles and criteria of the EITI will allow Guyana to adopt international standards for the mining sector and promote greater transparency for the various sub-industries.
It is anticipated that the implementation of the EITI in Guyana will give investors more confidence in the country’s mining industries while providing a framework for full accountability and transparency to all stakeholders.
Stakeholders who are involved in the study are drawn from the GGMC, the Private Sector Commission (PSC), the GGDMA, the Environmental Protection Agency (EPA), The Amerindian Action Movement of Guyana (TAAMOG), the Amerindian Affairs Ministry, Iwokrama International Centre, the Guyana Women Miners Association (GWMA), the Finance Ministry, the Guyana Revenue Authority (GRA), the Audit Office of Guyana, the Legal Affairs and Local Government and Regional Development Ministries, representatives from bauxite, sand and stones companies, as well as representatives from the Natural Resources and the Environment Ministry.
The EITI global transparency standard has been implemented in 35 countries since its launch in the United Kingdom in 2002. Over the years, it has grown tremendously to include the world’s largest oil, gas and mining companies.
It increases transparency over the payments by companies from the oil and mining industries to Governments.
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