The 6th EITI Report for Liberia, commissioned by the MSG in March 2015 and prepared by Moore Stephens (UK) in collaboration with Parker and Associates LLC, contains reconciled accounts of payments made to, and revenues received by the Government of Liberia from the oil, mining, forestry and agricultural companies during the Fiscal Year July 1, 2012 up to and including June 30, 2013.
The Report shows that the total amount received by the Government of Liberia from the extractive sectors for the reviewed period amounted to US$185, 960m, while payment data supplied by eighty (80) companies amounted to US$179,983,000.00, resulting to a net difference of US$5,361,000.00.
The 6th Report also shows that the extractive sectors contributed to 4.11% of the total employment in Liberia during the reporting period and as well recorded payment data of In-kind Contributions made by extractive companies to the local communities and public institutions and tracked revenues from earmarked payments in various concessions agreements.
Alongside the 6th LEITI Report, the LEITI also launched reports from various studies/exercises recently commissioned by the MSG, including Beneficial Ownership Disclosure Exercise, Scoping Study in the Mining Sector and the simplified version of contracts in the extractive sectors.
The Beneficial Ownership Disclosure exercise, conducted by the firm Baker Tilly Liberia in collaboration with Hart Nurse UK, is aimed at disclosing the beneficial owners of at least 5% of companies involved in the extraction and exploitation of Liberia’s oil, mining, forestry and agricultural resources. The report of the audit exercise, which involved 90 companies, details ownership rights of those companies including natural persons having shares in them, the number and values of their shares and information on Shareholders of those establishments.
The Scoping Study in the Mining Sector was conducted in considering the possibilities of including all payments and revenue from the solid mineral sector in the LEITI reporting processes. The solid mineral sector is believed to be dominated by large scale and artisanal and small-scale mining and quarry operations, but revenues from this sector have not been fully included in the LEITI annual reconciliation reports. Specifically, the study, among other things, examined the scale of operations surrounding artisanal and small scale-mining including the licensing procedures, registration and revenue payments as well as identified key players or available networks, locations of their operations and strategic opportunities available for the full inclusion of the sector in the implementation of the EITI.
The LEITI also published a matrix containing the abridged versions of 26 contracts and agreements in the extractive sectors. The effort is gears towards increasing public understanding of and access to contracts that the Government of Liberia signed with extractive companies, which, in their original versions, are voluminous and complex.
During a press conference marking the launch of the reports at the LEITI Secretariat in Monrovia, Proxy for the Chair of the LEITI Multi-stakeholders Steering Group, Hon. Stephen B. Dorbor, Deputy Minister for Planning, Research and Human Resource Development at the Ministry of Lands, Mines and Energy said, the occasion presents yet, another significant set of gains made by Liberia in implementing the EITI and promoting increased transparency and accountability in the governance of the country’s natural resource wealth.
Hon. Dorbor said the launch exercise was not the end of the campaign, disclosing that the LEITI intends to discuss findings of these reports with the citizens and solicit their views on the recommendations through a massive outreach exercise. He also noted that the MSG was committed to further reviewing the findings and recommendations of the reports with the aim of identifying areas for policy design, implementation and evaluation.
The Deputy Lands, Mines and Energy Minister also called on all stakeholders to fully commit to the process, noting that the EITI cannot fully achieve its objectives without the participation of all stakeholders. He then expressed appreciation to various LEITI partners including the USAID that USAID that funded the 6th Report and Scoping Study; the UNDP that funded the Beneficial Ownership Disclosure Exercise and the GIZ that supported the Contract Matrix Project.
For Immediate Release
MSG Approves 10th & 11th EITI Reports for Liberia
Monrovia, Liberia Tuesday, December 31, 2019: The Multi-stakeholder Steering Group (MSG) of the Liberia Extractive Industries Transparency Initiative (LEITI) on December 31, 2019, endorsed and approved the 10th & 11th EITI Reports for Liberia covering the periods 2016/17 and 2017/18.
LEITI MSG at the start of October 2019 commissioned BDO-UK in collaboration with Parker & Associates Liberia, two reputable auditing firms to prepare the 10th &11th EITI Reports for Liberia.
The reports reveal that the total revenue received by the government from the oil, mining, forestry and agriculture sectors for the period July 1, 2016 to June 30, 2017 amounted to USD53.84m, whilst the total amount received for the period July 1, 2017 to June 30, 2018 amounted to USD68.9m. This represents a 28% increase in revenues collected from the sectors covered under Liberia’s EITI scope.
The 2017/18 report shows a difference of $490,521 government receipts over what was reportedly paid by companies. LEITI will investigate further these discrepancies. The report also reveals challenges in sectorial oversights, data collection and licensing processes, among others. LEITI will begin to work with relevant government ministries and agencies to address these concerns.
With today’s approval and launch, the report is now set to be disseminated across the country to discuss the findings with the citizens and solicit feedback on how to improve governance of the extractive sector.
In addition to the 10th and 11th EITI Reports, the LEITI MSG has also approved and published the 2017 and 2018 Annual Progress Reports, and the 2019/20 fully costed Workplan in keeping with EITI Requirements.
The Chairperson thanked all stakeholders and expressed government’s commitment to transparency in the extractive sector. He assured all stakeholders that LEITI will continue to play its role in ensuring that Liberians benefit from their abundant extractive resources. Whilst the publishing of these reports is a significant step forward, the Chairperson highlighted the challenges for Liberia’s third EITI Validation which will commence shortly. He encouraged the entire MSG and other stakeholders to continue their good support towards the EITI implementation so that Liberia passes EITI Validation. LEITI has lifted in its 2019/2020 Workplan key activities including a Beneficial Ownership Registry and Mainstreaming the EITI reporting process. The Chairperson also called on the government and development partners to ensure these key initiatives are funded.
The Liberia Extractive Industries Transparency Initiative (LEITI) is a part of the global Standard-the Extractive Industries Transparency Initiative (EITI)-that promotes revenue transparency in the extractive sectors in resource rich countries. It strives to ensure transparency over payments made to and revenues received by the Government from companies in the concerned sectors.