EITI: Extensions were given to 16 out of 17 countries
Malabo and Sao Tome in EITI cold
The Extractive Industries Transparency Initiative (EITI) board today refused Equatorial Guinea and Sao Tome & Principe's requests for an extension and voluntary suspension, respectively, to enable them to complete the EITI validation process.
The initiative sets up a worldwide standard for transparency in oil, gas and mining by pushing companies to disclose what they pay in taxes and royalties to governments, and for governments to disclose the receipt of such payments.
Validation involves external third-party assessment of country progress on opening their books.
However, 16 other nations that had asked for extra time were granted their requests and Chad has been accepted as a candidate country under the initiative.
Equatorial Guinea's request for an extension was turned down after the board determined it had not shown “exceptional and unforeseeable circumstances outside the country’s control” regarding the failure to meet the initial validation deadline.
Meanwhile, Sao Tome & Principe had asked to be voluntarily suspended from the mechanism. The board, meeting in Berlin, refused the request. Sao Tome & Principe has now been dropped from the list of implementing countries.
After EITI announced its decision, Oxfam executive Ian Gary called on the EITI board to make public its reasons for granting the 16 extensions. He added the length of time granted had not been disclosed.
In a statement, he also called on the EITI board to ensure that extensions were granted only once and were for a limited time.
He added: “During the next few months, the EITI board should carefully scrutinise the final validation reports, especially with regard to the free, independent, and active participation of citizen watchdog groups in the country-level EITI process.
"Respect for human rights, including freedom of expression and association, is fundamental to the reform agenda in resource-rich countries.”
Speaking after the board meeting, EITI executive Peter Eigen countered criticism, saying: "Validation deadlines are working. In the last nine months, 16 countries have disclosed revenues from oil, gas and mining. Of these 16, 11 made their accounts public for the first time."
