Public Agenda (Accra)
Viviana Mensah
30 October 2009
Liberia has made its way into the top spot of the global good governance league by becoming the second country after Azerbaijan to successfully undergo Extractive Industries Transparency Initiative (EITI) validation and to be declared as EITI compliant.
In a congratulatory message issued by the NEW YORK-based Revenue Watch Institute last week, the government and people of Liberia were exhorted for becoming the first African country to be validated by the "Extractive Industries Transparency Initiative, a global standard for disclosure and responsible management of oil and mineral wealth".
"As the first African country deemed compliant by the EITI, Liberia has proven that governments in Africa's resource-rich nations can maintain successful partnerships with citizens and extractive companies and work together to turn natural resources into a national benefit," said Karin Lissakers, director of Revenue Watch.
The Board of the EITI announced Liberia's compliant status on October 14 in Baku, Azerbaijan. Azerbaijan was named the first validated country in February 2009. Thirty countries on four continents have declared their participation in the EITI.
Liberia affirmed its commitment to transparent and accountable natural resource management earlier this year, when it signed the Liberia Extractive Industries Transparency Initiative (LEITI) Act," mandating that all payments made to the government from extractive companies be disclosed, reviewed and "prudently utilized for the benefits of all Liberians." The legislation, according to Revenue Watch Institute, is a welcome model for other countries and is also likely to lead to improved industry compliance with EITI requirements in Liberia.
"As more companies invest in Liberia's natural resources and as revenues are set to rise dramatically in the coming years, all stakeholders will need to redouble their efforts to ensure the EITI process remains robust and credible," said Radhika Sarin, Coordinator of Publish What You Pay (PWYP), in a statement issued in London last week. PWYP is an international movement campaigning for revenue transparency in the natural resource sector.
Ghana has been implementing EITI since 2003 and has produced three EITI audit reports. The country has up to March 2010 to undergo validation or face delisting. After initial disagreement with the EITI international secretariat over payment arrangements for EITI validation, Ghana seems poised to undergo validation. .
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