Mobilising people – connecting agents for change in the oil and mining sectors

7 November 18:00 – 20:00

Far too often the revenue from oil and mining production continue to be squandered, failing to bring benefits to its owners, the citizens. Secrecy has often led to corruption, inefficiency and lack of accountability. Mistrust has followed.

Tackling the challenges involved in the extractive sectors requires a wide range of reforms.
From concessions and licensing to regulations, the collection of revenues, distribution and final use for sustainable development- there are plenty of obstacles to overcome – from outright corruption, badly-designed regulatory frameworks to lack of capacity- .

Countries all over the world face challenges in at least one os these areas, more often across all of them. Some countries, like many in Latin America, have adequate centralized collection of revenues from extractive companies and the problems are originated when those revenues are transferred to sub-national levels of governments with weak administrative capacity, more exposure to corruption opportunities and less capacitated citizenry to monitor budgets and public projects. In Brazil, this is perhaps an issue that will be more salient when the pre-sal revenues will be distributed in the future. The “pre-sal bonanza” might end up being distributed widely and losing the potential for development. Other countries, such as Nigeria, have an intricate web of regulatory bodies mixed with operational arms that make scrutinizing the industry an extremely complicated endeavour.

Solutions to tackle all these challenges vary from country to country and depend on the intricacies of each area. Universal agreement is that transparency is essential in all these solutions. Information needs to be credible, accessible and timely to allow proper understanding, comparisons and scrutiny. There have been global responses as well. The Extractive Industries Transparency Initiative (EITI) with its disclosure of payments by companies and collected revenues by countries is based on an in-country process involving civil society. With 36 countries implementing the EITI and 100 reconciliation reports published, inroads are being made. In a growing number of countries, notably the US and it is expected the EU, listings requirements are also being introduced, requiring companies to report payments to foreign governments. These processes in big capital markets will require complementary efforts at country level.

Much remain in exploiting the possibilities of collaborative approaches such as the EITI. More is possible in ensuring that credible and timely data is picked by citizens and it is used in active monitoring, proper scrutiny and in informing reforms. “Mobilising people” cannot be more relevant here.

This session aims at taking stock of recent developments, how listings requirements and the EITI may assist in the fight against corruption, early results and identifying future steps, especially from that crucial component of the EITI approach: civil society.

Session coordinator’s name:
Francisco Paris
International Secretariat EITI

Session /Moderator
Jonas Moberg
Head of the International Secretariat, EITI

Elisabeth Ungar
Transparencia por Colombia
Topic: Challenges in getting royalties reaching communities

From an EITI implementing country: Alfredo Pires, Minister of Energy Timor Leste or Zainab Ahmed or Humphrey Asobie, former chair of Nigeria TI
EITI Timor Leste / EITI Nigeria
Topic: NEITI process as catalyst for fighting oil sector problems in Nigeria

Eduardo Bohorquez
Transparencia Mexicana
Topic: Moving towards more transparent mining and oil sector in Mexico

Dani Kaufmann
President of Revenue Watch Institute (RWI)
or Carlos Monge (Latin America RWI Coordinator )

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