Once Guyana secures EITI membership…Companies in extractive sector must comply with rules or leave – National Coordinator

Mar 29, 2017 News

Once Guyana secures membership with the Extractive Industries Transparency Initiative (EITI), a no-nonsense approach will be taken with companies operating in the extractive sector.

National Coordinator of EITI Secretariat, Dr. Rudy Jadoopat

This is according to the National Coordinator of the Guyana Extractive Industries Transparency Initiative (G-EITI) Secretariat, Dr. Rudy Jadoopat.
EITI is an international body that was established in 2003 with the aim of making it harder for governments and companies to hide the truth about the proceeds garnered from the extractive industries.
The companies in the extractive sector report on what they are paying the government and the government reports separately on what it received from the companies in the sector.
A report is then prepared by a Multi-Stakeholder Group. The document, among other things, will highlight whether the numbers data collected from the two add up or if there is an irregularity.
Dr. Jadoopat said, “When Guyana becomes a member of EITI, one of the important things that will happen is all the companies in the extractive sector will automatically have to abide with the EITI standards and principles…Companies will have to abide by the EITI standards and have to disclose information regarding what they are paying the government.”
The official said that for the time being, companies in the extractive sector will have to follow what is stipulated in their contracts with the Government. He said that one must take into consideration, the fact that Guyana’s laws are still lacking when it comes to disclosure of information to the public by companies.
He added that there is much to be desired by Guyana’s laws when one takes into account, the disclosure measures required by EITI.
Jadoopat articulated, “Our laws are not so stringent (as those of EITI). So the companies will not only have to abide by the laws of Guyana but also with EITI which is much higher when it comes to the disclosure. Those who do not comply would be deemed non compliant. There are several measures here but it is either they decide to comply or leave.”
Furthermore, the official noted that Guyana has made significant headway in its application to become a member of EITI. In this regard, Jadoopat recalled that the Government of Guyana had announced its commitment to implement the EITI Standards since May 2010.
He noted that Guyana and EITI even signed a Memorandum of Understanding in 2012, which paved the way for Guyana to be assisted with its preparation of EITI candidacy.
He noted that the Inter-American Development Bank (IDB), the World Bank and the Carter Center provided assistance to the Government and supported its efforts towards EITI candidacy. Jadoopat said it is expected that this will continue.
Furthermore, Jadoopat said that Guyana has stepped up in achieving meaningful progress towards eligibility to apply for EITI candidacy.
He noted that the coalition government has since reaffirmed the country’s commitment to EITI and announced the establishment of the Guyana Extractive Industries Transparency Initiative.
Following this was the appointment of a National Coordinator and a Deputy Coordinator on February 1, last. A Multi-Stakeholder Group (MSG), which is one of the requirements of EITI, was officially launched on February 15, last.
Jadoopat explained that the MSG G-EITI comprises 12 members, nominated by Civil Society, the Extractive Industry and Government in the ratio 4:4:4. He said that there are also 12 alternates; one for each member from the respective sectors.
Additionally, the National Coordinator said that the MSG G-EITI has agreed to hold regular meetings, at least once a month. He noted that Sub- Groups have been formed to actively engage in finalizing Terms of Reference, a Confidentiality Agreement and a Work Plan.
Jadoopat also noted that focus will soon be shifted to the preparation of the application for EITI candidacy. He said that the MSG hopes to submit its initial candidate application by June / July, 2017.
“Barring any unforeseen obstacles, the Cooperative Republic of Guyana can become an EITI candidate before the end of 2017. Additionally, in order to set the stage to implement the EITI Standard nationally, measures will be taken to assist the MSG in making decisions on how the EITI process should work in Guyana,” Jadoopat expressed.
He said that other measures will see moves being made to embark on comprehensive data and information compilation on the governance of the extractive sectors of Guyana, preparation of regular reports and issuance of recommendations for improving sector governance.
The National Coordinator said that efforts will also be geared towards the design of a comprehensive public awareness campaign to promote and explain the work of the Guyana EITI and also inform public debate and seek recommendations.
Jadoopat also noted that the Multi-Stakeholder approach is central to the operation and philosophy of the EITI, as it reflects on how the G-EITI is governed and implemented.
He said that the G-EITI Multi-Stakeholder Group, like in other EITI countries, has been established to oversee EITI implementation.
“The MSG is the main decision-making body responsible for setting objectives for EITI implementation, producing EITI Reports and ensuring that the findings contribute to public debate.
A fully functioning MSG is essential for Guyana to be accepted as an EITI Candidate country and for the successful EITI implementation thereafter,” the National Coordinator asserted.
He continued, “The EITI Standard contains some minimum requirements related to the role, rights and responsibilities of the MSG that can help ensure efficient MSG oversight of the EITI implementation process.”
Jadoopat added that the government, as stipulated in the International EITI Standard 1.4, has committed to working with Civil Society and Companies.
The official said that the government has been instrumental in ensuring that the preconditions for EITI candidacy are satisfied.