Group launched for transparency in extractive sector

-hoping to join EITI at end of year

In the hope of ensuring that there is more transparency and accountability in the extractive sector, the Guyana Extractive Industries Transparency Initiative MultiStakeholder Group (G-EITI MSG) was launched yesterday.

Speaking at the Umana Yana, Minister of Natural Resources, Raphael Trotman said the G-EITI will provide consolidated information on the country’s extractive sector in accordance with international standards and will also reconcile key resource revenue flows that are paid by companies, and received by the government, while going further to assess how the revenues are expended on behalf of the citizens.

“The G-EITI Multi-Stakeholder Group is a primary body responsible for overseeing and coordinating successful and effective implementation of the global EITI standards and here in Guyana,” Trotman said, while adding that the body will provide and establish a framework that will promote collaborations and consensus building in implementing the EITI goals accordingly.

Trotman said the fact that the multistakeholder group contains representatives from the government, civil society and the industry, is a “true demonstration of transparency.”

“Here in Guyana we have made a deliberate effort to distribute these seats within the multi-stakeholder group equally among the triparty body,” he said, while stating that each group will have four representatives and the government will be represented by “high level officers” from the Ministry of Natural Resources, Office of the Prime Minister, Ministry of Finance and the Guyana Revenue Authority.

“…And the G-EITI will be chaired by the Ministry of Natural Resources. The government has approached the EITI process with a commitment to transparency and openness, as well as the recognition and acceptance to foster the truth that resources of this country belong to every Guyanese, equally,” he added.

Trotman explained that the initiative has the potential to deliver significant benefits to the country’s economy through the increasing of accountability and transparency, which broadly translates into more inform[ed] public policy debates and guidance on managing the resource endowments. Additionally, he pointed out that it also has the potential to increase the confidence in business and to enhance the country’s reputation as a sound investment destination.

He pointed out that the government has also budgeted to support the implementation of the initiative within the country and will be establishing a secretariat before the second half of the year.

Rudy Jadoopat, the head of the National Secretariat, emphasized that the implementation of the EITI and its international principles and standards for transparency in the oil, gas and mining sectors can reduce corruption. He also said that the revenue for the extractive industries can transform economies, reduce poverty and raise the living standard of entire populations in resource rich countries.

Giving a brief history of the initiative, Jadoopat explained that the EITI was launched in Johannesburg, South Africa, in 2002 at the World Summit of Sustainable Development, and was founded a year later with the International Secretariat in Norway.

He said government’s commitment to the EITI indicates that they are moving along a path to advance towards the institutionalization of transparency and accountability.

“Our joint effort shall not cease until the objective of the G-EITI is achieved. EITI provides great opportunities for the

building of trust among stakeholders and indeed the community at large,” he said.

Jadoopat pointed out that Guyana is still currently at the “signing up stage” but has already satisfied a number of requirements. “A full work plan has to be prepared and published to achieve compliance and a draft work plan has been prepared and will soon be reviewed by the multi-stakeholder group,” he added, while adding that the Government of Guyana had indicated its intention to be part of the EITI since 2010, and hopes to accomplish this objective by the end of 2017.

Prime Minister Moses Nagamootoo also made brief remarks at the launch where he lauded the initiative that is set to improve accountability and transparency while reducing corruption.