Hammah calls for transparency in extractive sector

Mr. Mike Hammah, Minister of Lands and Natural Resources, has observed that Ghana’s Extractive Industries Transparency Initiative (EITI) compliance status sends a strong signal to international investors on the country’s seriousness with transparency in the extractive sector,

“Continuing strong EITI implementation in Ghana will complement other good governance measures to ensure that there is transparency in the management and use of the oil revenue, and that all investors must comply with our transparency laws and disclose all material payments made to government.”

Mr. Hammah made this known at a dissemination workshop organised for the members of the Parliamentary Select Committee on Mining and Energy and the Public Accounts Committee, aimed at sharing ideas on the findings and recommendations of EITI reports from 2006 to 2008.

The Ghana EITI is a member of the global initiative targetted at following due process and achieving transparency in payments by extractive industry companies to governments and government-linked entities. Ghana is among the 11 EITI-compliant countries and is the fifth in the list of countries to attain EITI compliant globally.

He mentioned the unwillingness of extractive companies and the national revenue management institutions to disclose their payments and revenue data as one of the implementation challenges facing the initiative.

Mr. Hammah said: “The issue of the Ghana EITI legislation is even more urgent now than ever before as we roll-out the EITI into the oil and gas sector.

“The EITI reports therefore strongly recommended legal backing to ensure that government and all companies disclose their payments and revenue data.”

Mr. Amponsah Tawiah, Member of the EITI National Steering Committee, urged government to use the country’s resource-wealth to increase efficiency and equity of public spending - and to enable the private sector respond to structural changes in the economy.

“EITI is a governance tool aimed at seeking accountability and transparency in utilising the revenue from the extractive sector.” He therefore urged governments of extractive companies and international capital centres needed to enforce best practices to ensure transparency, accountability and trust.

“Transparency must translate into improved livelihoods for the poor countries where these resources are extracted. More money from the extractive industry must translate into improved schools, infrastructure, healthcare, more employment, less poverty and less conflict,’’ Mr. Tawiah remarked.

The EITI was launched in 2002 at the World Summit on Sustainable Development in Johannesburg, South Africa to encourage government, extractive companies, international agencies and NGO’s to work together to develop a framework for promoting transparency of payments in the extractive industries.

It focuses on both company payments and government revenues and their disbursement, and seeks to create the missing transparency and accountability in revenue flows from the extractive industry. It is a voluntary initiative, supported by a coalition of companies, governments, investors and civil society organisations.