Shell calls for regular disclosure

Richard Dion, Policy and External Relations Advisor of Shell Group, has called for regular public disclosure of payments by extractive industries to help improve governance and reduce corruption in the extractive sectors.

He said extractive industries are key drivers of economic growth in many countries and that effort must be intensified to promote validation by implementing the Extractive Industries Transparency Initiative (EITI).

The Extractive Industries Transparency Initiative (EITI) is a global multi-stakeholder initiative that brings together developing country governments, donors, companies, investors, civil society organisations and the international financial institutions to increase transparency in the extractive sector in developing countries.

The EITI offers a useful framework for encouraging best practices, and it complements the work in the areas of public sector transparency and modernisation of the state.

Mr. Dion made this disclosure to B&FT at the sidelines of an international workshop on ‘Governance of Extractive Industries’ (GEI) consultation organised by the World Bank Institute (WBI) and Africa Region of the World Bank in Accra.

“Shell supports voluntary participation in the EITI, which calls for regular public disclosure of payments by extractive industries to governments and reconciliation against recorded receipt of those funds by governments.”

He explained that the Shell Group has been the initiator of EITI in African countries and will continue to explore the situation in the African extractives sector, determine the priorities and needs of stakeholders, and identify reforms and opportunities.

The event brought together approximately 25 extractive industries experts and key stakeholders from the Africa region-including selected Extractive Industries Transparency Initiative (EITI) coordinators, local change management specialists, civil society monitors and industries operatives to develop a thorough analysis of country needs and stakeholder priorities and challenges.

It is targetted at helping clarify which actors to engage within target countries and a greater understanding of the technical and capacity building needs of stakeholders prior to the anticipated formal launch of the programme in early 2010.

Those joining the consultation will have a unique opportunity to help shape this initiative from its beginnings and build linkages to their own programme efforts.

Towards this end, WBI hopes that those participating will openly share their experience in the extractive s sector to help pinpoint the real needs.

The governance of extractive industries programme is based on the assumption that transparency and accountability will promote positive change in the extractive industries sector in Africa.

The programme objective is to connect and empower key extractive industries stakeholders, government, civil society, and private sector among others to jointly identify priorities and implement actions for the accountable and transparent use of Extractive Industries’ resources.

Issues from along the value chain will be prioritised in terms of governance vulnerabilities and potential for innovation to address identified weaknesses; be it whether and how best to develop resources, monitoring the environmental and social impact of operations, collecting taxes, or spending resources for sustainable growth and poverty reduction.

A unique aspect of the programme will be a learning process actively focused on providing operationally relevant knowledge combined with skills-building and promoting multi-stakeholder solutions. WBI emphasises a learning-by-doing approach according to each country’s circumstances.