Transparency Initiative (EITI)

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9.3.2 PUBLIC DEBATE
9.3.3 ANTI-CORRUPTION
Advocacy of civil society: Initially, the M-EITI process was
primarily led by the GoM representation at the MSG, with
civil society playing only a minor role. To increase their influence,
the three CSOs represented in the MSG – the Institute
of Economic and Social Studies (IESS), CIP, and Youth
KUVUKA-JDA – supported the creation of an extractive industries
CSO platform, which now comprises 40 organizations.
The platform has been vocal in pushing for enhanced
impacts of M-EITI in society by ensuring that transparency
in extractive industries goes beyond the revenue numbers
to focus on promoting efficient management of resources
and enhancing public dialogue around the extractive industries.
Improved dialogue around extractive sector issues: The
M-EITI has become a platform for all three MSG member
groups to discuss issues that go beyond just the revenue
numbers, e.g., the MSG meetings have fruitfully covered
topics related to revenue sharing formulas with local
communities, resettlement issues, and contract transparency
that have fed into higher level policy discussions in the
country.
No evidence has been detected by this study on the level of
corruption in the extractive sectors as a result of EITI implementation
in Mozambique. However, some positive impact
on public financial management is noticeable.
Improved data collection and recording: The production of
six EITI reports since 2011 has implicitly strengthened government
systems over time. Production of the reports have
led to better data systems as the reports have pointed to inconsistencies
in data collected from the mining cadaster
and the General Taxation Directorate (DGI) as well as to incomplete
information, which initially prevented adequate
reconciliation of revenues. During the early years, there
were significant problems with companies not reporting
under their individual Tax Identification Numbers (NUIT),
but rather entering the MIREME’s NUIT on their reporting
templates, making reconciliation of company payments
and government receipts practically impossible, as companies
could not be distinguished from each other. As this
problem has been resolved over time, the GoM is now able
to track extractive revenue by individual company.
Additionally, several recommendations from the EITI Reports
are being implemented to (i) improve the effectiveness
and completeness of data recording between the mining
cadaster and the Tax Authority; (ii) implement accurate
recordings of payments by companies at the Tax Authorities
in the provinces and the Tax Authority at the central
level, so that cross checking of information is automatic;
and (iii) to improve oversight by MIREME of concession
transfers and the proper documentation of such transactions,
which would allow collection taxes applicable to such
transfers.
Distribution of extractive sector revenues: CSO representatives
on the MSG have advocated for the distribution of extractive
sector revenues in favor of the communities in the
areas impacted by the industries. As a result, the government
issued Circular No. 1/MPD-MF 2013 in compliance
with Laws No. 11/2007 and 12/2007, which establish that
a certain percentage of revenues generated by the extractive
industries activities be assigned for the development of
communities in areas of influence of these projects. Issues
around the efficient management of revenues, including
the creation of a sovereign wealth fund for future generations,
have also been discussed by the think tank Agenda
2015, and a study on the creation of community-based
structures to handle development funds was conducted by
an NGO in Nampula.