Right to public

information
-The example of EITI,
-of knowing what Governments
earn from selling a
countries’ natural resources

Carter Centre, 27 February 2008

Jonas Moberg, Head of the EITI
Secretariat
1. The problem
3.5 Billion people live
in countries rich in
oil,gas & minerals...

Bad management and lack

of transparency of these
resources can lead to
poverty,
conflict and
corruption...
Financial statement
Board paper 4-2, p. 11
A Commodities Boom...

Source: The Economist July 20th 2006

= A Resource Revenue Boom.
2. Part of the solution?
How Does EITI Work?

1. Companies 2. Government
‘publish what ‘publish what
they pay’ they receive’

EITI provides
Independent
Verification &
Reconciliation

Oversight by a Multi-Stakeholder Group

 Property rights (ownership, auctioning, contracting)

Operational phase (i.e.cost/profit oil, tax calculations)

EITI Fiscal revenues collection - Disclosure

Revenue’s distribution (federal-national/sub-natl)

Final allocation of resources (quality of spending)

 Multi-stakeholder Governance
Initiative
(The curious coalition [*])
- Major international oil, gas, and mining
companies and investors in those companies
(including BP, ChevronTexaco, ExxonMobil and
Shell)

- Implementing Countries (including Ghana,

Gabon,Cameroon, Nigeria, Azerbaijan,
Kyrgyz Republic)

- Civil society groups and networks – e.g.

Publish What You Pay, Open Society /
Revenue Watch, Transparency International

- Donors: UK, Norway, France, Germany,

Netherlands, Australia
(*) ”Tackling the oil curse”, The Economist, Sep 23,2004
Global standard, locally
implemented
The EITI Board

Supporters The EITI Conference The Secretariat

National EITI
The EITI has been
politically endorsed by
many Governments and in
Global minimum standard
- local standard and process

- LIETI
- GEITI
- Azerbaijan EITI
- Norway

www.eitransparency.org
www.eitransparency.org
Extract from the Gabon 2005 EITI Report (page 36)

www.eitransparency.org
3. Does it work?
Ngozi Okonjo–Iweala
Managing Director, The World Bank

“[NEITI] has lifted Nigeria’s profile in the eyes

of investors and helped lead to significant
increases in FDI not only in the oil sector
(about US$ 6 billion a year) but also in the
other non-oil sectors US$3 billion”.
January, 2008
Umaru Musa Yar’Adua
President of Nigeria

“[NEITI] has recorded major achievements in its

four years of operations. Among other
accomplishments, it commissioned and
popularized the first comprehensive audit of the
petroleum sector for the period 1999 to 2004; it
conducted studies that swelled government’s
coffers by over $1 billion; and it catapulted our
country into a leading position among countries
implementing the EITI”.
January, 2008
Cynthia Carroll
CEO, Anglo American plc
If, for example, members of one of our host governments
pocket the revenues which we generate, rather than
spending them for the public good, it simply is not enough
for us to deny all responsibility. Whilst we may not be
technically responsible, many people will view us as
complicit if we remain silent.

[EITI] is intended to guard against embezzlement, increase

accountability and to lead to a wider debate about the use
to which these time-limited revenues are put. It is not a
silver bullet for dealing with all corruption but it is
beginning to produce some worthwhile results.
24 October 2007
Why should I join?

Implementing countries:
• Self-interest
(reduce corruption; increased
accountability; improved
investment climate)
• International recognition
• Company, investor and
international pressure
 Why should I
join?
Companies:

• Self-interest
(good with stable investment
Climate and good goverance)

• Investor pressure

• Country demand
What now?

• Implemenation
(Validation)

• Mainstreaming
(listings requirements, UN,
accounting standards

• Large emerging markets

• Coordinated support
Right to public
information
-The example of EITI,
-of knowing what Governments
earn from selling a
countries’ natural resources

Carter Centre, 27 February 2008

Jonas Moberg, Head of the EITI
Secretariat