Transcript Slide 1

The role of Civil Society in the EITI process,
Challenges and benefit
CSO & EITI Process in Timor Leste
MERICIO AKARA
CSO Representative at the TL-MSG
Manila, 19 January 2013
Location of Timor Leste:
Southeastern Asia,
northwest of Australia in the
Lesser Sunda Islands at the
eastern end of the
Indonesian archipelago
(NTT). Note: Timor Leste
includes the eastern half of
the island of Timor, the
Oecusse (Ambeno) district
on the northwest portion of
the island of Timor, and the
islands of Atauro and Jaco.
Area of 15,007 km2.
Population are 1.066,582 people (census 2010).
Timor Leste has 13 districts, 65 sub-districts and 442 villages.
Climate: tropical; hot, humid; distinct rainy and dry seasons.
Natural resources: gold, petroleum, natural gas, manganese and marble.
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“…EITI is a global standard that can be use for
improved transparency & accountability for the
huge revenue generated by oil , gas and mineral
industry to avoiding “resource curse” and
improving their use in reducing poverty and
generating economic growth…”.
“…is a ‘world first’ in which Government, CSO
& Companies are all directly involved in the
development & governance of the initiative…”
Why EITI: The Paradox of Plenty
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Developing countries rejoice when they strike oil
and gas…
But the potential for good is often not realized
Mineral revenues may be used for development …
but in some countries there is:
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Low per capita growth
Increased corruption
Slow progress on human development
Social and political instability and violence
So most people don’t benefit
Poverty remains – The “paradox of plenty”
EITI was created to tackle the paradox. It is …
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a global standard for improving transparency
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a partnership of governments, donors, companies,
CSOs, investors, and international organizations
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about improving accountability of governments and
companies – and for how oil gas revenues are used
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about reducing corruption and potential conflict by
providing clear information on payments and
revenues, and by involving civil society.
Why is EITI important for governance and
development?
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EITI calls for revenue transparency – a fundamental
building block of good governance
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Transparency:
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Increases accountability; reduces risk of corruption
Fosters democratic debate
Improves macroeconomic management
Enhances access to finance
To be fully effective it must be imbedded in a
wider good governance process
What kinds of results are we starting to see?
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About 13 countries produce reports with info on
company payments and government revenues
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Some are fiscal only, others show where there are
weaknesses in the revenue collection system
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In some cases EITI scrutiny has encouraged payments
from companies which before paid little or no tax.
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It can also urge governments to strengthen regulatory
functions – reducing the tendency to blame companies
for everything.
www.eitransparency.org
Results cont’
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EITI in Nigeria estimates it has saved $1bn for the
country, 2004-5, by blocking loopholes & leakages
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It creates a “safe” space for CSO dialogue with
governments & companies; less dangerous than
previously polarized positions.
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CSOs form coalitions to build capacity and enhance
understanding of oil, gas & mining companies.
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Encourages governments to debate with public on the
appropriate use or spending of revenues.
www.eitransparency.org
Benefits for civil society of EITI
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Better information on what companies are paying and
governments receiving – absence of information often
leads to civil society groups assuming the worst.
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Managing expectations – oil doesn’t mean instant
wealth for all. Good info on revenues ensures people
understand what is, and is not, going to be received.
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This helps people to become involved in realistic
debate on how the money should be spent.
Civil society engagement in EITI
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CSO often form EITI Coalitions.
These increase their negotiating power with
government and companies.
CSO are involved in designing and steering the
EITI process in all countries.
CSO are usually involved in selecting an audit
company to reconcile payments and revenue
data.
CSO are vital in explaining to ordinary people
why oil and Gas revenues are important and
how they should be managed.
CSO & EITI Process Timor
Leste
History
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Civil society groups formed a Core Group for
Transparency in 2005 (8 organizations ). At the
same time, such Transparency Based Groups
involved TL-NGO Forum in EITI process.
Negotiated with government and companies
2005-2006 on the form EITI would take. MoU
was signed by all groups, end of 2007
Coalition members sit on steering group that
oversees EITI in Timor Leste since 2007 to date
CSO involved in selecting the audit company
which reconciles payments and revenue data.
History – cont’
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Coalition gets funds from supporters and donors
based on it annual work plan.
Its staff and members carry out EITI activities:
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NGO Forum organize an election assembly to select
SCO Representative at TL-EITI Multi Stake Holders
Public awareness and media campaigns, conference
etc to promote EITI and to lobby for more
information and transparency.
Capacity building training for NGOs, Parliament
Members and media on the oil sector and the
importance of transparency.
Analyzing EITI reports and VALIDATION PROCESS?
When TL Become Compliant Country?
Objective of Validation:
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For candidate countries; validation process is to
check about how the EITI process being done?
For Compliant countries; validation process is to
check weather its country implemented and full
filled all of the EITI criteria (to check the
status).
Validation Process?
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Timor Leste was conducted its validation
process at the end of 2009.
Timor Leste’s validation report was sanded to
EITI Board in April 2010, and it was decided
that TL became a compliant Country since then
Timor Leste has produced 4 reports for 20082011.
On December 2012, TL-MSG has launched
EITI Report for 2010-2011.
OBRIGADO & Visit Timor Leste!