5 March 2014

Tanzania: TEITI Needs Regulations for Efficacy, Says Justice Bomani

THERE is a need to establish legislations that shall enforce decisions passed by the Tanzania Extractive Industries Transparency Initiative (TEITI), it has been recommended.

Opening a regional Extractive Industries Transparency Initiative (EITI) training workshop in Dar es Salaam, TEITI chairman, Justice Mark Bomani said that the extraction industry could boost the country's economy if well exploited.

"TEITI has not been established under any legislation, but only through a Memorandum of Understanding (MoU) that lacks power to execute some of the decisions that could help the country collect due taxes from both foreign and local companies operating in the country," he said.

According to Justice Bomani, if there were some legitimized laws, TEITI's role could be much easier to implement, to make sure that mining and gas sectors become leading sources of revenue.

He said that most small-scale farmers in the country were registered, thus denying the country a lot of money. "We need to register them to enable them pay royalties and other due taxes effectively.

"The journey of transparency and accountability of mining, oil and gas sectors under EITI rules and standard began when President Jakaya Kikwete made a commitment for Tanzania to uphold EITI Standard in managing its extractive industry" said Justice Bomani.

Prior to attaining EITI compliant status, Tanzania was under EITI candidate country since February 2009, a preliminary stage of membership.

By making information on payments and revenues public, EITI improves trust among these groups, reduces conflict and promotes stability.

According to Justice Bomani, EITI requires Tanzania to inform and engage citizens on extractive payments and revenues through publication of annual reports. Tanzania has already published three reports, and the fourth one is in the offing.

By engaging citizens, civil society organizations, companies, and government on natural resources management, Tanzania effectively uses EITI as a tool for transparency, accountability, and good governance.

Speaking to journalists yesterday, EITI Deputy Head and Regional Director for Africa and Middle East Mr Eddie Rich said that important to register small-scale miners to enable them pay their dues effectively.

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