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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
ValidationoftheRepublicofCongo
Reportoninitialdatacollection
andstakeholderconsultation
EITIInternationalSecretariat 27September2017
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2ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
Abbreviations
AfDB AfricanDevelopmentBankAMD AfricaMiningDevelopmentAOGC AfricaOilandGasCorporationARAP AgencedeRégulationdel’AvalPétrolierBEAC BanquedesÉtatsd’AfriqueCentraleBO BeneficialownershipBpd BarrelsPerDayCIT CorporateIncomeTaxCNOOC ChinaNationalOffshoreOilCorporationCORAF CongolaisedeRaffinageCSOs CivilSocietyOrganisationsDGID DirectionGénéraledesImpôtsetdesDomainesDGDDI DirectionGénéraledesDouanesetdesDroitsIndirectsDGH DirectionGénéraledesHydrocarburesDGT DirectionGénéraleduTrésorDRN DirectiondesRessourcesNaturellesEITI ExtractiveIndustriesTransparencyInitiativeEU EuropeanUnionGDP GrossDomesticProductGFS GovernmentFinanceStatisticsGiZ DeutscheGesellschaftfürInternationaleZusammenarbeitIMF InternationalMonetaryFundMACC MinesAurifèresetCarrièresduCongoMDTF TheWorldBank'sMulti-DonorTrustFundMEFDD Ministèredel’EconomieForestièreetduDéveloppementDurableMFBPP MinistryofFinance,BudgetandPublicPortfolioMSG Multi-StakeholderGroupNGO Non-GovernmentalOrganisationPEP PoliticallyExposedPersonPSC Production-SharingContractPWYP PublishWhatYouPayROC RepublicofCongoSADEMI SociétéAfricainepourleDéveloppementMinierScf StandardcubicfeetSNPC SociétéNationaledesPétrolesduCongoSOCOMIP SociétécongolaisedesMinesetdesPotassesSOREMI SociétédeRecherchesetd’ExploitationMinièresSPM SociétédesPotassesetdesMinesSTPITIE SecrétariatTechniquePermanentdel’ITIETFP TechnicalandFinancialPartnersToR TermsofReferenceUNDP UnitedNationsDevelopmentProgrammeUSD UnitedStatesDollarVAT ValueAddedTax
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ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
Abbreviations.........................................................................................................................................2
ExecutiveSummary................................................................................................................................5
Introduction.........................................................................................................................................12
PartI–MSGOversight.........................................................................................................................171.OversightoftheEITIprocess.........................................................................................................17GovernmentengagementintheEITIprocess(#1.1)..........................................................................17IndustryengagementintheEITIprocess(#1.2).................................................................................20CivilsocietyengagementintheEITIprocess(#1.3)...........................................................................22MSGgovernanceandfunctioning(#1.4)...........................................................................................29Workplan(#1.5)................................................................................................................................33
PartII–EITIDisclosures........................................................................................................................382. Awardofcontractsandlicenses................................................................................................38Legalframework(#2.1).....................................................................................................................38Licenseallocations(#2.2)..................................................................................................................40Licenseregisters(#2.3).....................................................................................................................44Contractdisclosures(#2.4)................................................................................................................48Beneficialownershipdisclosure(#2.5)..............................................................................................49Stateparticipation(#2.6)..................................................................................................................513. Monitoringandproduction.......................................................................................................60Overviewoftheextractivesector,includingexplorationactivities(#3.1)..........................................60Productiondata(#3.2)......................................................................................................................61Exportdata(#3.3).............................................................................................................................624.Revenuecollection........................................................................................................................65Materiality(#4.1)..............................................................................................................................65In-kindrevenues(#4.2).....................................................................................................................70Barterandinfrastructuretransactions(#4.3)....................................................................................74Transportrevenues(#4.4).................................................................................................................76TransactionsbetweenSOEsandgovernment(#4.5)..........................................................................77Subnationaldirectpayments(#4.6)..................................................................................................79Levelofdisaggregation(#4.7)...........................................................................................................80Datatimeliness(#4.8).......................................................................................................................80Dataquality(#4.9)............................................................................................................................814. Revenuemanagementanddistribution....................................................................................94Distributionofrevenues(#5.1).........................................................................................................94Sub-nationaltransfers(#5.2)............................................................................................................96Additionalinformationonrevenuemanagementandexpenditures(#5.3).......................................985. Socialandeconomicspending.................................................................................................101Socialexpenditures(#6.1)...............................................................................................................101SOEquasifiscalexpenditures(#6.2)................................................................................................103Contributionoftheextractivesectortotheeconomy(#6.3)...........................................................105
PartIII–OutcomesandImpact..........................................................................................................1106. OutcomesandImpact.............................................................................................................110Publicdebate(#7.1)........................................................................................................................110
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4ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
DataAccessibility(#7.2)..................................................................................................................111LessonsLearnedandfollow-uponrecommendations(#7.3)...........................................................111Outcomesandimpactofimplementation(#7.4).............................................................................1137. Impactanalysis.......................................................................................................................117
Annexes.............................................................................................................................................119
Indexoffiguresandtables
Figure1–initialassessmentcard.................................................................................................................10Table1–Summaryinitialassessmenttable:MSGoversight.......................................................................36Table2-Summaryinitialassessmenttable:Awardofcontractsandlicenses.............................................57Table3-Summaryinitialassessmenttable:Monitoringandproduction....................................................64Table4-Summaryinitialassessmenttable:Revenuecollection..................................................................90Table5-Summaryinitialassessmenttable:Revenuemanagementanddistribution................................99Table6-Summaryinitialassessmenttable:Socialandeconomicspending..............................................108Table7-Summaryinitialassessmenttable:Outcomesandimpact..........................................................115
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ValidationoftheRepublicoftheCongo:ReportoninitialdatacollectionandstakeholderconsultationExecutiveSummary
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
ExecutiveSummary
ThegovernmentoftheRepublicofCongo(ROC)committedtoimplementtheEITIon9June2004inanofficialcommuniqué(RépubliqueduCongo,2004).ThegovernmentconductedbroadconsultationswithallstakeholdersinSeptember2005andissuedDecree2006-626ofOctober2006establishingtheMSG.ThefirstworkplanwasagreedbytheMSGinDecember2007andCongobecameaCandidatecountryimplementingtheEITIinFebruary2008(EITIBoard,2008).
On25October2016,theBoardagreedthattheROC’sValidationunderthe2016EITIStandardwouldcommenceon1April2017(EITIBoard,2016).ThisreportpresentsthefindingsandinitialassessmentoftheInternationalSecretariat’sdatagatheringandstakeholderconsultations.TheInternationalSecretariathasfollowedtheValidationProcedures1andappliedtheValidationGuide2inassessingtheROC’sprogresswiththeEITIStandard.WhiletheassessmenthasnotyetbeenreviewedbytheMSGorbeenqualityassured,theSecretariat’spreliminaryassessmentisthatCongohasmadesatisfactoryprogresson12EITIRequirements,and15requirementsoftheEITIStandardhavenotbeenfullyaddressedintheROC.Tenoftheseareunmetwithmeaningfulprogress,while,fourareunmetwithinadequateprogressandonerequirementisassessedasunmetwithnoprogress.Oneunmetrequirement(1.3)isalsoa“safeguardrequirement”asperEITIRequirement8.3c.Therecommendationsandsuggestedcorrectiveactionsidentifiedthroughthisprocessrelateinparticulartothecomprehensivenessofreportingbybothgovernmentandindustryaswellasstate-ownedenterprises,includingquasi-fiscalexpenditures,financialrelationswithgovernmentandlevelofstateownershipanddataqualityandassurance.
Overallconclusions
TheROCpresentsahighlyrelevantcaseforEITIimplementation.Thecountryishighlyreliantoncrudeoil,accountingforroughly70%ofgovernmentrevenues,55%ofGDPand80%ofexportsin2014.
AkeystrengthoftheROC’sEITIimplementationhasbeenitspioneeringdisclosuresrelatedtosalesofthestate’sin-kindoilrevenues.BeyondtheEITIreporting,quarterlyreconciliationsofsalesofthestate’sin-kindrevenuesbythenationaloilcompany,SNPC,andremittancestothenationalTreasurybyanindependentauditfirm,KPMG,representedimportantwork.TheMinistryofFinanceandtheEITINationalSecretariatpublishedthesereportsontheirwebsitesinaccordancewithEITIRequirementsonoilsalesbySOEs.However,asstakeholdersbegantousecargo-levelsalesdataintheirresearchandadvocacy,particularlyin2015withthepublicationofaSwissNGO’sreportonallegedirregularitiesinthemanagementofSNPC’sdomesticmarketallocationstothestate-ownedrefinery,thegovernmentappearstohavediscontinuedsomeofthesedisclosures(BerneDeclaration,2015).Allquarterlyoilsalesreport,previouslyavailablefor2012and2013,weretakendownfromtheMinistryofFinanceandEITICongo
1https://beta.eiti.org/document/validation-procedures2https://beta.eiti.org/document/validation-guide
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6ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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websites.
WhilethegovernmentlastrenewedtheMSG’slegalmandatethroughdecreein2012,theexpiryofmembers’termlimitsattheendof2015meansthattheEITI’soversightbodylackedaclearlegalmandateastheROC’sValidationcommencedon1April2017.WeakrepresentationandcoordinationlinksbetweenMSGmembersandtheirrespectiveconstituenciesmakenewnominationsforMSGmembers,throughanopenandtransparentprocesses,evermoreurgent.ArenewedmembershipoftheMSG,empoweredbyMinisterialDecree,isneededtostrengthenthebody’soversightofformulationandimplementationoftheEITIworkplan,EITIreportingandthenationalsecretariat.
TheEITIStandard’srequirementsarealmostallkeenlypertinenttotheROC’schallengesandongoingreforms.Requirementsrelatedtolicensemanagementarerelevantinlightofthecountry’shistoryofopaquelicenseallocationsandtransfers.Provisionsrelatedtoclarifyingthefinancialrelationsbetweenthegovernmentandstate-ownedenterprisesoperatingintheoilandgassector,includingquasi-fiscalexpenditures,areimportanttoaddressingpublicdemandsforinformationaboutSNPCanditssubsidiaries.Therequirementsrelatedtobarterandinfrastructureprovisionmayberelevanttooil-backedinfrastructureprojectslikethoseundertheframeworkagreementwiththePeople’sRepublicofChina.TheROCcouldalsobeusingtheEITItoclarifyregulatoryambiguities,suchasthenon-operationalsubnationaltransfersofoilandgasroyalties.
WhiletheROCisintheprocessofimplementingreformsrangingfrommodernisingitscadastralmanagementsystemtostrengtheningitsrevenuemanagementsystemandre-enforcingoversightofstate-ownedenterprisesthroughtheMinistryofFinance’srecently-establishedDepartmentofPublicPortfolio,itdoesnotappeartohaveusedtheEITItoitsfullpotential.Thecountry’sdecadeofEITIreportinghashighlightedchallengesinthemanagementoftheextractiveindustries,buthasnotactedasaneffectivediagnostictooltosupportreforms.
WhiletodatetheMSGhasundertakenneitherstrategicdiscussionslinkingtheEITItonationalprioritiesfortheextractivesectornoroverseenthetechnicaldetailofreporting,EITICongohasanopportunitytochanneloneofthekeyareasofpublicdebate,overthemanagementofoilandgasrevenues,whileensuringthereliabilityofpublicly-availabledataonitsoilandgasindustry.TheROCalsohasachancetoleadindevelopinginternationalbestpracticeinthereportingofstate-ownedoilsalesbyparticipatingintheEITI’stargetedeffortattransparencyincommoditytrading,partlymodelledontheROC’sownoilsalesreportingupto2013.
Recommendations
WhilethefollowingreportincludesrecommendationsforspecificimprovementstheMSGmaywishtoconsiderimplementing,thefollowingisalistofstrategicrecommendationsthatcouldhelptheRepublicofCongomakeevengreateruseoftheEITIasaninstrumenttosupportreforms.
• InaccordancewithRequirement1.3,theGovernmentofCongoshouldensurethatthereisanenablingenvironmentforcivilsocietyparticipation,andensurethattherightsofcivilsocietysubstantivelyengagedintheEITI,includingbutnotrestrictedtomembersofthemulti-stakeholdergroup,arerespected.
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7ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
• InaccordancewithEITIRequirement1.4,thegovernmentshouldrenewthemembershipoftheMSGinlinewithstatutorydocuments.EITICongoshouldreviewformaliseandpublishitsperdiempolicyandsetareasonableamountinlinewithnationalpractices.TheMSGshouldensureitsTORareinaccordancewithRequirement1.4,publiclyaccessible,andimplementedinpractice.
• Tostrengthenimplementation,EITICongomaywishtoensurethatthefiscalframework,therolesandresponsibilitiesofkeygovernmententitiesandcurrentorrecentreformsinthemining,oilandgassectorsareclearlydescribedinfutureEITIreporting.EITICongomaywishtoconsiderwhethertheEITICongowebsitecouldprovideaplatformforupdatedinformationonthelegalenvironmentandfiscalframework.
• InaccordancewithEITIRequirement2.2,EITICongoshouldclearlydefinethenumberofmining,oilandgaslicensesawardedandtransferredintheyear(s)underreview,describethestatutoryallocationandawardprocedures,includingspecifictechnicalandfinancialcriteria,andhighlightanynon-trivialdeviationsinpractice.Inaddition,EITICongomaywishtocommentontheefficiencyofthecurrentlicenseallocationandtransfersystemasameansofclarifyingproceduresandcurbingnon-trivialdeviations.
• EITICongoisrequiredtomaintainapubliclyavailableregisterorcadastresystem(s)withtimelyandcomprehensiveinformationinaccordancewithEITIRequirement2.3.EITICongoshouldensurethatfutureEITIReportsprovidethedatesofapplicationandexpiry,commodity(ies)coveredandcoordinatesforallmining,oilandgaslicensesheldbymaterialcompanies.
• Tofurtherstrengthenimplementationandprepareforfulldisclosureofbeneficialownershipby2020,itisrecommendedthatEITICongoconsiderspilotingbeneficialownershipreportingintheforthcomingEITIReportinordertoincreaseawarenessofbeneficialownershiptransparencyandpilotbeneficialownershipdefinitionsandthresholds.EITIReportsmustdocumentthegovernment’spolicyandmulti-stakeholdergroup’sdiscussionondisclosureofbeneficialownership.EITICongomayalsowishtoconductbroaderoutreachtothecompaniesontheobjectivesofbeneficialownershiptransparency,aswellasholdconversationswithgovernmentagenciesonhowtomakesuchdisclosuresmandatory.
• InaccordancewithEITIRequirement2.6,EITICongoshouldensurethatfutureEITIReportsclarifytherulesandpracticesgoverningfinancialrelationsbetweenextractivesSOEsandthegovernment,thelevelofandtermsassociatedwithstateequityparticipationinthesectoraswellasacomprehensiveoverviewofloansandguaranteesextendedbythestateorSOEstoextractivescompaniesintheyearunderreview.EITICongomaywishtoconsidertheextenttowhichimplementationofArticle15oftheMarch2017TransparencyLawwouldsupportprogressinmeetingaspectsofRequirement2.6.
• Tostrengthenimplementation,EITICongomaywishtoensurethatthedescriptionoftheextractiveindustriesinfutureEITIReportsincludesaclearoverviewofsignificantexplorationactivitiesintheyearunderreview.
• InaccordancewithEITIRequirement3.2,EITICongoshouldensurethatfutureEITIReportsprovideproductionvolumesandvaluesforallmineralsproducedintheROCintheyear(s)underreview.EITICongomayalsowishtoconsidertheextenttowhichsuchinformationcouldberegularlydisclosedongovernmentwebsitesasameansofcomplyingwithprovisionsrequiringpublicationofmoregranularproductiondatainArticle66oftheMarch2017TransparencyLaw.
• Tostrengthenimplementation,EITICongomaywishtoensurethatfutureEITIReportsprovideexportvolumesandvaluesforallcommoditiesexportedintheyear(s)underreview,includingartisanal-minedcommoditieslikegold.
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8ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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• Tostrengthenimplementation,EITICongomaywishtoensurethatthematerialitythresholdforselectingcompaniesinfutureEITIReportsensuresthatallpaymentsthatcouldaffectthecomprehensivenessofEITIreportingbeincludedinthescopeofreconciliation.TheMSGisinvitedtoconsiderwhethersettingaquantitativematerialitythresholdforselectingcompanieswouldensuretheseaimsaremet.
• InaccordancewithEITIRequirement4.2,EITICongoshouldensurethatfutureEITIReportspresentinformationonthesaleofthestate’sin-kindrevenuesdisaggregatedbybuyer.ThegovernmentisencouragedtoreinstatethepracticeofpublishingtheMinistryofFinance’squarterlyoilsalesreportstoensuretimeliercompliancewithArticle16oftheMarch2017TransparencyLawandwithRequirement4.2oftheEITIStandard.
• InaccordancewithEITIRequirement4.3,EITICongoshouldassesstheexistenceofanybarterarrangementsorinfrastructureprovisionsduringthescopingphaseforitsnextEITIReporttoensurethatreportingoftheimplementationofsuchagreementsprovidesalevelofdetailandtransparencycommensuratewiththedisclosureandreconciliationofotherpaymentsandrevenuesstreams.TheMSG,togetherwiththeIA,shouldgainafullunderstandingofthetermsoftherelevantagreementsandcontracts,thepartiesinvolved,theresourceswhichhavebeenpledgedbythestate,thevalueofthebalancingbenefitstream(e.g.infrastructureworks),andthematerialityoftheseagreementsrelativetoconventionalcontracts.
• Tostrengthenimplementation,EITICongomaywishtoundertakeoutreachtoSOCOTRAMwithaviewtoengagingitinEITIimplementation.GiventhesignificantpublicdebatesurroundingtheMaritimeTax,theMSGcouldconsiderincludingSOCOTRAMinthescopeofreporting,furtheraddingtotheEITI’simpactonpublicdebate.
• InaccordancewithEITIRequirement4.5,EITICongoshouldundertakeacomprehensiveassessmentoftransactionsbetweenSOEs(SNPCanditssubsidiaries)andoilandgascompanies,aswellasbetweenSNPC’ssubsidiariesandgovernmentinitsscopingoffutureEITIReports.AllSOEscollectingmaterialrevenuesormakingmaterialpaymentstogovernmentshouldbeincludedinfutureEITIreporting.
• Tofurtherstrengthenimplementation,theMSGmaywishtoconsidertheextenttowhichimplementationoftheMarch2017TransparencyLawwouldenableittomakeprogressinimplementingproject-levelEITIreportingaheadofthedeadlineforallEITIReportscoveringfiscalperiodsendingonorafter31December2018,agreedbytheEITIBoardatits36thmeetinginBogotá.
• Tostrengthenimplementation,EITICongomaywishtoconsidertheextenttowhichitcanleverageimplementationofArticle63oftheMarch2017TransparencyLawtoensuretimelierdisclosureofdatarequiredundertheEITIStandardthroughroutinegovernmentandcompanysystems.
• InaccordancewithEITIRequirement4.9,EITICongoshouldensurethatsummarydatatablesforallEITIReportsarepreparedinatimelymannerinlinewithrequirementsoftheBoard-approvedIA’sToR.TheMSGandtheIAareencouragedtoprovideamoredetailedaccountofauditandassurancepracticesofmaterialcompaniesandgovernmententities,includingSOEswithaviewtoformulatingrecommendationsthatstrengthengovernmentandcompanyauditandassurancesystems.Theymayalsowishtorevisitthequalityassurancerequestedfromgovernmententitiesincludedinthescopeofreporting.
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9ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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• InaccordancewithEITIRequirement5.1,EITICongoshouldworkwiththeIAinpreparingthenextEITIReporttoclearlytraceanymining,oilandgasrevenuesthatarenotrecordedinthenationalbudgetandprovideanexplanationofthedetailedallocationoftheseoff-budgetrevenues.
• Tostrengthenimplementation,EITICongoisencouragedtoassessthematerialityofsubnationaltransfers,providethespecificformulaforcalculatingsubnationaltransfersofextractivesrevenuestoindividuallocalgovernments,discloseanymaterialsubnationaltransfersintheyear(s)underreviewandhighlightanydiscrepanciesbetweenthetransferamountcalculatedinaccordancewiththerelevantrevenue-sharingformulaandtheactualamountthatwastransferredbetweenthecentralgovernmentandeachrelevantsubnationalentity.
• Tostrengthenimplementation,EITICongocouldconsiderincludingadditionalinformationonextractivesrevenuesearmarkedforspecificpurposesaswellasonthebudget-makingandauditingprocessforgovernmentaccountsinfutureEITIReports.
• InaccordancewithEITIRequirement6.1,EITICongoshouldsystematicallycategorisetypesofmandatorysocialexpendituresmandatedbylaworcontractandensurethatreportingofmandatorysocialexpendituresinfutureEITIReportsbedisaggregatedbetweencashandin-kindexpenditures,bytypeofpaymentandbeneficiary,clarifyingthenameandfunctionofanynon-government(third-party)beneficiariesofmandatorysocialexpenditures.TheMSGmayalsowishtoconsiderthefeasibilityofreconcilingmandatorysocialexpenditures.
• InaccordancewithEITIRequirement6.2,EITICongoshouldundertakeacomprehensivereviewofallexpendituresundertakenbyextractivesSOEs(andtheirsubsidiaries)thatcouldbeconsideredquasi-fiscal.TheMSGshoulddevelopareportingprocesswithaviewtoachievingaleveloftransparencycommensuratewithotherpaymentsandrevenuestreams,andshouldincludeSOEsubsidiariesandjointventures.
• InaccordancewithEITIRequirement6.3,EITICongoshouldensurefutureEITIReportincludeemploymentfiguresforthemining,oilandgassectors.TheMSGmayalsowishtoworkwiththeMinistryofFinance,thenationalstatisticsagency(CNSEE),customsandtheMinistryofLabourandSocialSecuritytoensurethatreportingofkeyinformationrequiredbytheEITIStandardontheextractiveindustries’shareofGDP,revenuesandexportsisembeddedinroutinegovernmentdisclosures.
• ToimproveaccessibilityofEITIdisclosure,andinaccordancewithEITIRequirement7.1,EITICongoshouldresumeitsdisseminationactivitiesofallEITIdisclosures,includingtheEITIReports,theKPMGReportsandotherusefulmaterialsthatcancontributetoapublicdebateontheEITICongowebsite.
• Tostrengthenimplementation,theMSGmaywishtoconsidercommissioninganindependentimpactevaluationstudytobetterdocumenttheextenttowhichEITICongohascontributedinchangingbehaviourandimprovingthemanagementoftheextractivesectorforthebenefitofallcitizens.
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10ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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Figure1–initialassessmentcard
EITIRequirements LEVELOFPROGRESS
Noprog
ress
Ina
dequ
ate
Meaning
ful
Satisfactory
Beyon
d
Categories Requirements
MSGoversight
Governmentengagement(#1.1) Industryengagement(#1.2) Civilsocietyengagement(#1.3) MSGgovernance(#1.4) Workplan(#1.5)
Licensesandcontracts
Legalframework(#2.1) Licenseallocations(#2.2) Licenseregister(#2.3) Policyoncontractdisclosure(#2.4) Beneficialownership(#2.5) Stateparticipation(#2.6)
Monitoringproduction
Explorationdata(#3.1) Productiondata(#3.2) Exportdata(#3.3)
Revenuecollection
Comprehensiveness(#4.1) In-kindrevenues(#4.2) Barteragreements(#4.3) Transportationrevenues(#4.4) SOEtransactions(#4.5) Directsubnationalpayments(#4.6) Disaggregation(#4.7) Datatimeliness(#4.8) Dataquality(#4.9)
RevenueallocationDistributionofrevenues(#5.1) Subnationaltransfers(#5.2) Revenuemanagementandexpenditures(#5.3)
Socio-economiccontribution
Mandatorysocialexpenditures(#6.1.) SOEquasi-fiscalexpenditures(#6.2) Economiccontribution(#6.3)
Outcomesandimpact
Publicdebate(#7.1) Dataaccessibility(#7.2) Followuponrecommendations(#7.3) Outcomesandimpactofimplementation(#7.4)
Legendtotheassessmentcard
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11ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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Noprogress.Thecountryhasmadenoprogressinaddressingtherequirement.Thebroaderobjectiveoftherequirementisinnowayfulfilled.
Inadequateprogress.Thecountryhasmadeinadequateprogressinmeetingtherequirement.Significantelementsoftherequirementareoutstandingandthebroaderobjectiveoftherequirementisfarfrombeingfulfilled.
Meaningfulprogress.Thecountryhasmadeprogressinmeetingtherequirement.Significantelementsoftherequirementarebeingimplementedandthebroaderobjectiveoftherequirementisbeingfulfilled.
Satisfactoryprogress.ThecountryiscompliantwiththeEITIrequirement.
Beyond.Thecountryhasgonebeyondtherequirement.
Thisrequirementisonlyencouragedorrecommendedandshouldnotbetakenintoaccountinassessingcompliance.
TheMSGhasdemonstratedthatthisrequirementisnotapplicableinthecountry.
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ValidationoftheRepublicoftheCongo:Reportoninitialdatacollectionandstakeholderconsultation
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Introduction
Briefrecapofthesign-upphase
TheRepublicofCongo(ROC)wasanearlyadopteroftheEITI.On9June2004,theGovernmentofCongoformallyannounceditscommitmenttoEITIimplementationanofficialcommuniqué(RépubliqueduCongo,2004).AnofficialletterfromtheMinisterofEconomy,FinanceandBudgettotheManagingDirectoroftheIMFon10June2004confirmedthiscommitment.However,progresswasslowatthisearlystageofEITIimplementation(CAC75,2012),mostlyduetothedifficultrelationshipbetweenthegovernmentandcivilsocietygroups.ThegovernmentconductedbroadconsultationswithallstakeholdersinSeptember2005andissuedDecree2006-626ofOctober2006establishingtheMSG.ThefirstworkplanwasagreedbytheMSGinDecember2007andCongobecameacandidatecountryimplementingtheEITIinFebruary2008(EITIBoard,2008).
Objectivesforimplementationandoverallprogressinimplementingtheworkplan
The2017EITIworkplansincludesobjectivesinlinewithnationalprioritiesandadetailedlistofactivitiesforeachobjective.Foreachactivity,theworkplanincludesexpectedresults,indicatorsofprogress,capacityconstraints,risksandthetimeframeforimplementation.Annualprogressreportsshowthelevelofprogresswiththeimplementationofactivitiessetoutinthepreviousworkplans.Forexample,only44%oftheplannedactivitieswerecompletedontimein2015.The2017workplanincludesthefollowingobjectives:
• ConsolidatethefunctioningoftheEITIImplementingbodies(ExecutiveCommitteeandPermanentTechnicalSecretariat),includingrevisitinganddevelopingworkingdocumentsandprocedures;
• Improvestakeholders’knowledgeintheextractiveindustriesprocess,theaccountingandtaxpracticesoftheextractiveindustriesattheinternationallevel;
• Contributetothedevelopmentofabetterinstitutionalframeworkandtheestablishmentofabetterdatamanagementsystemfortheextractivesector;
• StrengthenthequalityofthedatapublishedintheEITIreportsandabetterexternalperceptionoftheimageoftheEITIprocessintheCongo;
• EncourageabroadinvolvementofthepopulationsintheimplementationoftheEITIandagoodknowledgeofitsissuesthroughcommunicationandawareness-raisingactivities;
• OrganizeadvocacyactionstomobilizefinancialresourcesforEITIimplementation.
HistoryofEITIReporting
TheROChaspublishedEITIReportscovering11fiscalperiodsfrom2004to2014.ThescopeandqualityofEITIreportinghasimprovedgraduallyovertime.Thenumberofreportingcompanieshaveincreasedfrom4to25andthelatestreportincludesunilateraldisclosurefromthegovernmententitiesonrevenuescollectedfromtheforestrysector.Ghelber&Gourdon,alawfirmbasedinParis,preparedtheROC’sfirst
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13ValidationoftheRepublicofCongo:Reportoninitialdatacollectionandstakeholderconsultation
[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
twoEITIReportscovering2004-2006and2007-2009.3MooreStephenspreparedEITIReportscovering2010and2011andFairLinksproducedthelastthreereportscovering2012to2014.InadditiontotheEITIReports,KPMGpreparesquarterlyreportsonthesaleofcrudeoilbythenationaloilcompanySNPC,aspartofanagreementwiththeIMF,since2004.ThesereportsbecamepartofEITIreportingandwerebrieflymadepublicfollowingtheadoptionthe2013EITIStandard,butarenolongeraccessibletothepublic.
Summaryofengagementbygovernment,civilsocietyandindustry
TheMSGincludesrepresentativesfromeachconstituency,buttheprocessbywhicheachconstituencynominatedtheirrepresentativesremainsunclear.TheMSGisstatutorilyledbytheMinisterofEconomy,FinanceandBudgetCalixteGanongo,withtwovicepresidentsfromindustryandcivilsociety.ThroughregularparticipationinMSGmeetings,fundingforEITIimplementationandreportingbygovernmentagencies,theGovernmentofROChasdemonstratedthatitisfully,activelyandeffectivelyengagedintheEITIprocess.Companiesaresimilarlyengagedataseniorlevel.SeniorindustryrepresentativesfromChevron,ENI,TotalandPerencotravelregularlyfromPointeNoiretoBrazzavilletoattendMSGmeetings.Despitethedifficultenvironment,civilsocietyareparticularlyengagedintheEITIprocessandplayaleadingroleintheconceptionandimplementationoftheEITIprocess.RepresentativesfromthecivilsocietyconstituencyattendMSGmeetingsregularly,conductanalysisofEITIReports,producecommunicationmaterialsandorganisepubliceventstoinformcitizensonissuesrelatedtothegovernanceoftheextractiveindustries.
Keyfeaturesoftheextractiveindustry
TheROCholdssub-SaharanAfrica’sfifth-largestprovenoilreserves,at1.6bnbarrelsofcrudeoil(BP,2016).Thecountryalsoholdsabundantreservesofbetween1.7tnand2.6tncubicmetresofnaturalgas,over2bnmetrictonsofironoreand,endowedwithforestscoveringthreefifthsofitsterritory,aforestrysectorthataccountsfor10%ofnon-oilGDPandXAF100bnayearinexports(AfricanDevelopmentBank,2016).TheROCalsoholdsdepositsofcoal,potash,uranium,magnesium,manganese,diamonds,silver,platinum,zinc,limestoneandkaolin(USGeologicalSurvey,2015).
TheROC’seconomyremainsdependentoncrudeoil,whichaccountedfor55%ofGDP,80%ofexportsand22%ofgovernmentrevenuesin2016(LazardAssetManagement,2017).Thecountryhasrankedassub-SaharanAfrica’sfourth-largestoilproducerinthepastdecade.Thecountry’soilproductiontrendedupwardsfrom247kbpdin2005to314kbpdin2010,beforedippingto277kbpdin2015beforereboundingto308kbpdin2016(BP,2016)(EIA,2017).Asaresultofdeclininginternationaloilpriceshowever,theROCwentfromrunningaconsistentfiscalsurplusaveraging14%ofGDPin2005-2015toafiscaldeficitof12.6%ofGDPin2016(Reuters,2013)(LazardAssetManagement,2017).
Thestructureoftheoilandgasindustryhasevolvedsincethefirstcommercialdevelopmentsinthe1970s.MostoftheROC’soilandgasarenowproducedfromoffshorefields,whilemostofitsnaturalgasisflaredduetolackofgasaggregatinginfrastructure(USGeologicalSurvey,2015).Thestartofproduction
3https://eiti.org/republic-of-congo#eiti-reports-and-other-key-documents
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atthedeep-waterMohoBilondooilfieldin2008markedtheshiftintheROC’soilproductionprofiletowardsthedeep-wateroffshore,generatinga24%year-on-yearriseinnationaloilproductionin2009(BanqueMondiale,2012).France’sTotalandItaly’sENIarethetwolargestinternationaloilcompaniesoperatingintheROC,accountingforthreequartersoftotaloilproduction(EIA,2017).TheROCexportscrudeoilmainlytotheUnitedStates,EuropeandChina(LazardAssetManagement,2017).WhileENIhasdevelopedtwogas-firedpowerplants,some85%oftheROC’snaturalgasproductionisre-injectedintooil-producingwells,ventedorflared(EIA,2017).
Whileoilproductionhastrendeddownwardsinceits2010peak,analystsincludingtheIMFforecastoilproductiontorisesignificantly,toabove300kbpd,withtheopeningofseveralnewprojectsfrom2017onwards.Total’sMohoNorthprojectandENI’sNeneMarine2projectstartedproducingin2016,whileENI’sLitchendjiliprojectaimstodevelopfurthernaturalgassuppliesfortheCôte-Matèvegas-firedpowerplant(LazardAssetManagement,2017)(ArgusDirect,2016).Chevron’sLianziproject,aunitisedfieldbetweenAngolaandtheROC,alsostartedproducinginlate2015(Chevron,2015).TheAfDBhasquotedestimatesthatROC’scurrentprovenoilreservesaresufficienttoensureproductionfor40yearsatcurrentlevels(AfricanDevelopmentBank,2016).
Thegovernment’sStrategicDocumentforPovertyReductionaimstodiversifytheeconomy,focusingamongstothersontheminingandforestrysectors(BanqueMondiale,2012),leveragingoilrevenuesforinvestmentinenergyandtransportinfrastructure.MajorinfrastructureplansincludeupgradestotheexistingrailandroadcorridorbetweenPointeNoireandBrazzaville,specialeconomiczonesanddomesticprocessingcentresforthecountry’snaturalresources(AfricanDevelopmentBank,2016).WhiletheROChasdrawninpartonthepastdecade’sfiscalreservestofundambitiousinfrastructureprojects,ChinahasalsoemergedastheROC’ssingle-largestexternalcreditor,accountingforUSD2.6bnoftheROC’sestimatedUSD5bninexternaldebt(LazardAssetManagement,2017)(AllAfrica,2016).YetstructuralchangeshavebeenlimitedinthepasttwodecadesaccordingtotheAfDB,whichnotesthatwhiletheoilandgassectorhasgeneratedspill-overeffectsinmetalindustries,drilling,seismicexplorationandotherservices,ithashadamorelimitedimpactonothersectorslikeagriculture(AfricanDevelopmentBank,2016).
Mininghasemergedasakeyfocusforthegovernment’seconomicdiversificationefforts.TheROCwasreinstatedtotheKimberlyProcessin2007,afterasuspensionin2004,withsignificantdiamondexportsresumingsincethen(Goldman,2014).Thegovernmentexpectstoattractinvestmenttodevelopthecountry’ssizablereservesofpotashinMengo,polymetalsinBoko-SonghoandironoreinNabeba,Zanaga,AvimaandMayoko(BanqueMondiale,2012).Twoprojectshavealreadybeenapprovedbygovernmentandratifiedbyparliament.Thefirst,anironoreproject,wasawardedtoSouthAfrica’sDMC-Exxaroandisexpectedtostartproducing7mmetrictonsayearfrom2017.ThesecondprojectwasawardedtoAustralia’sSundanceResourcesfortheNabebairon-oremineandincludedassociatedrailandportinfrastructureupgrades.However,duetolowerinternationalironorepricesandchallengesinraisingfinancing,theproject,originallyexpectedtoproduce35mmetrictonsannuallyfrom2015,hassincebeendelayed.ResponsibilityforconstructionoftherailandportinfrastructurehasbeentransferredtotheGovernmentofCameroonandtalkshaveopenedwithChinaEximBankforpossiblefunding(LazardAssetManagement,2017)(TheSydneyMorningHerald,2015).TheROCranks177of190intheWorldBank’s2016EaseofDoingBusinessIndex(WorldBank,2017).
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ExplanationoftheValidationprocess
ValidationisanessentialfeatureoftheEITIimplementationprocess.ItisintendedtoprovideallstakeholderswithanimpartialassessmentofwhetherEITIimplementationinacountryisconsistentwiththeprovisionsoftheEITIStandard.ItalsoaddressestheimpactoftheEITI,theimplementationofactivitiesencouragedbytheEITIStandard,lessonslearntinEITIimplementation,aswellasanyconcernsstakeholdershaveexpressedandrecommendationsforfutureimplementationoftheEITI.TheValidationprocessisoutlinedinchapter4oftheEITIStandard4.Ithasfourphases:
1. PreparationforValidationbythemulti-stakeholdergroup(MSG)2. InitialdatacollectionandstakeholderconsultationundertakenbytheEITIInternational
Secretariat.3. IndependentqualityassurancebyanindependentValidatorwhoreportsdirectlytheEITIBoard4. Boardreview.
TheValidationGuideprovidesdetailedguidanceonassessingEITIRequirements,andmoredetailedValidationprocedures,includingastandardisedprocedurefordatacollectionandstakeholderconsultationbytheEITIInternationalSecretariatandstandardisedtermsofreferencefortheValidator.
TheValidationGuideincludesaprovisionthat:“WheretheMSGwishesthatvalidationpaysparticularattentiontoassessingcertainobjectivesoractivitiesinaccordancewiththeMSGworkplan,theseshouldbeoutlinedupontherequestoftheMSG”.TheEITICongoMSGdidnotrequestanyissuesforparticularconsideration.
InaccordancewiththeValidationprocedures,theInternationalSecretariat’sworkontheinitialdatacollectionandstakeholderconsultationwasconductedinthreephases:
1.DeskReview
Priortovisitingthecountry,theSecretariatconductedadetaileddeskreviewoftheavailabledocumentationrelatingtothecountry’scompliancewiththeEITIStandard,includingbutnotlimitedto:
• TheEITIworkplanandotherplanningdocumentssuchasbudgetsandcommunicationplans;• Themulti-stakeholdergroup’sTermsofReference,andminutesfrommulti-stakeholdergroup
meetings;• EITIReports,andsupplementaryinformationsuchassummaryreportsandscopingstudies;• Communicationmaterials;• Annualprogressreports;and• AnyotherinformationofrelevancetoValidationavailableonlineorprovidedbytheEITICongo
Secretariat.
InaccordancewiththeValidationprocedures,theSecretariathasnottakenintoaccountactions
4Seealsohttps://eiti.org/validation.
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undertakenafterthecommencementofValidation.
2.Countryvisit
Acountryvisittookplaceon7-12May2017.AllmeetingstookplaceinBrazzavilleandPointeNoire,RepublicofCongo.Thesecretariatmetwiththemulti-stakeholdergroupanditsmembers,theIndependentAdministratorandotherkeystakeholders,includingstakeholdergroupsthatarerepresentedon,butnotdirectlyparticipatingin,themulti-stakeholdergroup.InadditiontomeetingwiththeMSGasagroup,theSecretariatmetwithitsconstituentparts(government,companiesandcivilsociety)eitherindividuallyorinconstituencygroups,withappropriateprotocolstoensurethatstakeholdersareabletofreelyexpresstheirviewsandthatrequestsforconfidentiallyarerespected.ThelistofstakeholdersconsultedinoutlinedinAnnexD.
3.Reportingonprogressagainstrequirements
ThisreportprovidestheInternationalSecretariatinitialassessmentofprogressagainstrequirementsinaccordancewiththeValidationGuide.Itdoesnotincludeanoverallassessmentofcompliance.
TheInternationalSecretariat’steamcomprised:BadyBaldé,RegionalDirectorforFrancophonecountries,SamBartlett,TechnicalDirector,AlexGordy,ValidationManager,EddieRichDeputyHeadoftheInternationalSecretariatandDyvekeRogan,PolicyDirector.BadyBaldéandAlexGordyconductedstakeholderconsultationandpreparedthedraftinitialassessment.SamBartlett,EddieRichandDyvekeRoganprovidedqualityassurance.
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PartI–MSGOversight
1.OversightoftheEITIprocess
1.1Overview
ThissectionrelatestostakeholderengagementandtheenvironmentforimplementationofEITIincountry,thegovernanceandfunctioningofthemulti-stakeholdergroup(MSG),andtheEITIworkplan.
1.2Assessment
GovernmentengagementintheEITIprocess(#1.1)
Documentationofprogress
Publicstatement:TheGovernmentoftheRepublicoftheCongo(ROC)announceditscommitmenttoadheretotheEITIPrincipleson9June2004(RépubliqueduCongo,2004).TheMinisterofEconomy,FinanceandBudgetGilbertOndongowrotealettertotheManagingDirectoroftheIMFon10June2004toconfirmthisdecision.However,duetoadifficultrelationshipbetweenthegovernmentandcivilsocietygroups,progresswasslowatthisearlystageoftheEITIprocessintheROC(CAC75,2012).ROCbecamecandidatecountryimplementingtheEITIinFebruary2008(EITIBoard,2008).MrPierreOba,MinisterofMiningandGeologywrotetotheEITIBoardinMarch2011requestingtherenewaloftheROC’scandidatestatus.TheMinisteralsodeclaredattheEITIGlobalconferenceinParison3March2011thatthepoliticalandfinancialcommitmentoftheGovernmentoftheROCtosupportandsustaintheimplementationoftheEITI“remainsunwavering”(MrPierreOba,2011).FollowingtheROC’ssuccessfulValidationundertheEITIRules,PresidentSassouN’Guessohighlightedhiscountry’scompliancewiththeEITIRulesinatelevisedspeechinAugust2013(PrésidentdelaRépublique,2013).
TheROChostedthe29thEITIBoardmeetinginBrazzaville,from13-15April2015.PresidentSassouN'GuessometwithClareShort,ChairoftheEITIBoard,on15April2015andreiteratedhisgovernment’scommitmenttoimprovingtransparencyandaccountability(TéléCongo,2015).PresidentSassouN’GuessohighlightedEITIimplementationasamajorachievementduringthepresidentialcampaignin2016.TheGovernmentofROCalsohostedaregionalmeetingofEITINationalCoordinatorsinOctober2016,whereMinisterofCommunicationandMediaThierryLézinMoungalladeliveredopeningremarksonbehalfofMinisterofFinanceCalixteNGanongo,whocouldnotattend(ITIE-Congo,2016).
Seniorlead:TheGovernmentofROCfirstissuedPresidentialDecree2006-626on11October2006,whichestablishedamulti-stakeholderExecutiveCommitteetaskedwiththemandateofimplementingtheEITI.PresidentialDecree2006-627of11October2006createdanadvisorycommitteetotheMSG.BothcommitteeswerechairedbytheMinisterofEconomy,FinanceandBudget.InadditiontotheMinisterofEconomy,FinanceandBudget,PresidentialDecreen°2007-403of30August2007appointedHydrocarbonAdvisortotheMinisterofFinanceFlorentMichelOkokoastheMSG’sExecutiveChairtomanageday-to-dayimplementationoftheEITI.Thisinstitutionalset-upwasrenewedthrough
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PresidentialDecree2012-940of20August2012,whichexpandedtheMSG’smandateandcreatedanationalsecretariat,managedbytheMSG’sExecutiveChair.AsEITINationalCoordinatorOkokorepresentedEITIimplementingcountriesinCentralAfricaontheEITIBoardfrom2007to2016.FormerDirectorofPetroleumTaxationattheGeneralDirectorateofTaxesSéraphinNdionwasappointedPermanentSecretaryoftheEITINationalSecretariatinApril2013(Notedeservice024/MEFPPPI-CABof5April2013).
Activeengagement:PresidentialDecree2007-403of30August2007andsubsequentamendmentsnominatedhigh-levelgovernmentofficialstoparticipateintheMSG.TheMSGisstatutorilyledbytheMinisterofEconomy,FinanceandBudget,withtwovicepresidentsfromindustryandcivilsociety.Inpractice,itistheadvisortotheMinister,MrMichelOkoko,whochairstheMSG.AMinisterialDecision(ArreteN°611MEFPPPI-CABof4December2012)renewedtheMSG’smembership,whichincludedsevenhigh-levelrepresentativesfromgovernmentagenciesandtworepresentativesfromthenationaloilcompany(SNPC).TheMinistryofEconomy,FinanceandBudget(MEFB),theMinistryofHydrocarbonandMinistryofMiningandGeology(MMG)areallrepresentedatahigh-levelintheMSG.AttendanceatMSGmeetingsshowsthatthegovernmentisgenerallywellrepresentedatahighlevelontheMSG,butthatparticipationinpracticeremainsrelativelyweakcomparedtootherconstituencies(seeRequirement1.4).GovernmentrepresentativesfromtheministriesoffinanceandhydrocarbonparticipatemoreregularlythanrepresentativesfromtheMinistryofMine.Forexample,theMMGrepresentativeontheMSGdidnotattendasinglemeetinginthe2013-2015period.
TheGovernmentofROCprovidedfundingforallEITIactivitiesin2014(USD1.4m)and2015(USD800000).TheprojectedcostisreportedintheworkplanandtheactualbudgetisreportedintheAnnualprogressreport(APR)everyyear.
PromptedbytheMSG,thegovernmenthasappointed“EITIfocalpoints”inkeygovernmentagenciesinmid-2015.5InJuly2015,theTreasury,TaxDepartment(DGI),Customs(DGD)andtheMEFBeachappointedtwotothreehigh-levelofficialstoserveasEITIfocalpointsintheirrespectiveagencies.Thesefocalpoints’mandatesappearlimitedtodisclosingfiguresforEITIreportingandimplementationofEITIrecommendationsintheirrespectiveagencies,ratherthanabroadercoordinationrole.
AccordingtominutesofMSGmeetingsandannualprogressreports,aparliamentarycommitteerequestedthatEITIReportsbepublishednolaterthan30Septembereachyeartoensurethatinformationongovernmentrevenuesfortheprecedingfiscalperiodwereavailableinatimelymannerasasourceofindependently-verifiedinformationtosupportparliament’sannualbudgetdeliberations.Thispracticewasfollowedin2013and2014butnotinsubsequentyears,duetodelaysinthepublicationoftheEITIReports.
FollowingtheMSG’sleadindraftingatransparencybillandlobbyingparliamentforitsadoption,PresidentSassouN’GuessosignedintolawtheTransparencyCodeon9March2017(Republique,2017).TheTransparencyCodetranslatesmanyEITIrequirementsintolawandexpandstheEITI’sreachintoothersectorsincludingforestry.KeyEITIRequirements,suchascontracttransparency,SOEreporting,
5DesignationlettersfromDGI,DGT,DGDIofJulyandAugust2015.
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beneficialownershipdisclosure,publicationofproductiondata,auditandreconciliationofgovernmentrevenues,transparencyofresourceallocationandextra-budgetaryspending,project-levelreportingandopendataareallcoveredintheTransparencyLaw,amajorachievementforEITICongo,andthelaw’simplementationwouldembedtransparencyingovernmentmanagementoftheextractiveindustries.
Stakeholderviews
GovernmentrepresentativesconfirmedthattheGovernmentoftheROCiscommittedtotheEITIataveryhigh-level,includingfromPresidentDenisSassouNguessowhomentionstheEITIregularlyinhisspeeches.StakeholdersnotedthatPresidentSassouNguessoreferredtotheEITIregularlyinpublicspeechesduringthe2016presidentialelectioncampaign.Severalministersandseniorgovernmentofficialsconsultedconfirmedthegovernment’scommitmenttoEITI,includingexpandingitsscopetotheforestrysector.Aseniorgovernmentofficialhighlightedthegovernment’sunilateraldisclosuresontheforestrysectorasanexampleofthegovernment’scommitmenttoexpandtheEITI’sscopetoareasrelevanttonationalprioritiesandhighlightedhighexpectationsfortheEITIasatooltoimprovecitizens’understandingoftheforestrysector’seconomiccontribution.SeveralseniorgovernmentofficialsexpressedhopethattheEITIwouldhelpraiseawarenessofkeygovernanceissues,particularlyintheforestrysector.AnotherseniorgovernmentofficialwhohadfollowedEITIimplementationoverthepastdecadenotedthattheROC’sEITIimplementationremainedahighpriorityforthegovernment.TheMSGChairexplainedthattheGovernmentwoulddowhateverittooktocomplywiththeEITIStandard.High-levelSOEofficialsalsonotedtheircommitmenttocomplywiththeEITIStandardandhighlightedtheirregularparticipationinMSGmeetings.SeveralgovernmentrepresentativesexplainedthatgovernmentofficialsandfocalpointswereinstructedtocomplywiththeEITIStandardthroughEITIReporting.
CivilsocietyrepresentativesconfirmedthattheGovernmentofROCiscommittedtoEITIimplementationataveryhigh-level,butactivistscautionedthatthishigh-levelpoliticalcommitmentwasnotalwaystranslatedintogovernmentpolicyaslocalgovernmentofficialsandsecurityforceswereoftenunawareofhowthisgovernmentcommitmenttranslatedintopractice.Civilsocietyrepresentativesconfirmedthattheyhadreceivedsupportfromhigh-levelgovernmentofficialstoresolvebottlenecksanddisagreementswithlocalauthoritiesduringEITIdisseminationandoutreachcampaigns.Withoutprovidingspecificdates,civilsocietyrepresentativeshighlightedseveralinstanceswheretheyreceivedsupportfromtheMEFBtoundertakedisseminationactivitiesthathadbeenpreviouslyblockedbylocalauthorities,whowereunawareofthegovernmentcommitmenttogivespaceforcivilsocietyaspartofEITIimplementation.ActivistsstatedthataslongastheyexplicitlystatedthattheiractivitiesfellwithintheEITI’sremit,theywereallowedtoundertakethoseactivitiesasaresultofthegovernment’shigh-levelcommitment.CivilsocietyMSGmembersconfirmedthatMinisterOndongochairedtwoMSGmeetingsin2013and2014andthatMinisterNganogometthemtwicesincehisappointmentinApril2016.
AllstakeholdersmetconfirmedthatEITINationalCoordinatorMichelOkokohastheauthorityandthefreedomtocoordinateEITI-relatedactivitiesbetweenvariousgovernmentagencies,companiesandcivilsociety.However,manystakeholdershighlightedOkoko’slimitedcapacitiestomobilizeresourcesforEITIimplementationandhisinabilitytodiversifythesourceoffundingfortheEITI,whichremainshighlydependentongovernmentfunding.
GovernmentofficialsalsohighlightedlettersfromtheMinisterofEconomy,FinanceandBudgettotherelevantlineministriesrequestingtheimplementationofrecommendationsfrompreviousEITIReports
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asexamplesofgovernmentcommitment.TheseletterswereissuedintheJune-August2015period.In2013,MinisterofYouthAnatoleCollinetMakossoparticipatedinapublicdebatewithstudentsontheEITIandthedatafromtheEITI2012report.
InitialassessmentTheInternationalSecretariat’sinitialassessmentisthattheROChasmadesatisfactoryprogressinmeetingthisrequirement.ThegovernmenthasreiterateditscommitmenttotheEITIonmultipleoccasionsandaseniorgovernmentofficialhasbeenappointedtoleadEITIimplementation,activelyparticipatinginEITIdeliberations.ThroughregularparticipationinMSGmeetings,fundingforEITIimplementationandreportingbygovernmentagencies,theGovernmentofROChasdemonstratedthatitisfully,activelyandeffectivelyengagedintheEITIprocess.ThereisalsoevidencethatgovernmentofficialsandtheNationalAssemblyhaveusedEITIdatatopromotepublicdebateandmonitorgovernmentrevenuesandexpendituresinthenationalbudget,butthispracticehastendedtobead-hoc,ratherthanformalisedasacleargovernmentpolicy.Thegovernmenthasalsotakenstepstoresolvebottleneckssuchasadministrativebarriersfordisseminationactivitiesatthelocallevel,butlocalauthorities’lackofawarenessoftheEITIremainsaconcern.
Tostrengthenimplementation,theGovernmentofROCisencouragedtoconductoutreacheffortstolocalauthoritiesandlineMinistries,toraiseawarenessontheEITIPrinciplesandthegovernment’sengagementinimplementation.
IndustryengagementintheEITIprocess(#1.2)
Documentationofprogress
Activeengagement:Mining,oilandgascompanies’representativesparticipateregularlyinMSGmeetingsandmostcompaniesparticipatefullyintheEITIreportingprocess.FollowingtheappointmentoftheCEOofENICongoasVice-PresidentoftheMSGbypresidentialdecree(Decreen°2012-1123of25October2012),sevenindustryrepresentativeswerealsoappointedforthree-yearterms,renewableonce,inDecember2012.Ministerialdecision611MEFPPPI-CABof4December2012appointedseniorindustryrepresentativesfromfiveoilandgascompanies6andtwominingcompanies.7AnalysisofMSGmeetingminutesshowsthatcompaniesconsistentlyattendmeetingsandappearactivelyengagedintheEITIprocess,withtheaverageparticipationratefortheeightindustryMSGmembersslightlyabove50%fortheperiod2013-2015(seeAnnexA).Theseattendanceratesshowevenmoresignificantcommitmentwhenitisconsideredthatmanyoilandgasexecutives,includingfromChevron,ENI,TotalandPerenco,arerequiredtotravelfromPointeNoiretoBrazzavilletoattendMSGmeetingsanddosoregularly.ArepresentativefromGlencoresubsidiaryMPDCongoattendsMSGmeetingsonbehalfoftheFederationofMiningCompanies,whichincludeseightminingcompaniesoperatinginthecountry.MinisterialDecision611MEFPPPI-CABalsoappointedtworepresentativesfromthestate-ownedoilcompanySNPC,whoparticipateregularlyinMSGmeetings.AlthoughtheSOE’srepresentativesconsiderthemselvespartoftheindustryconstituency,inpracticeSNPCappearsclosertoothergovernmentagenciesrepresentedintheMSGintheviewsexpressedontheMSG.Theindustryconstituencydoesnotappeartohaveagreed
6TotalCongo,Chevron,Congorep,Maurel&PromCongoandMurphyWestAfricaLtd.7CongoMiningandMPDCongo.
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acodeofconductorotherToRtostructureitsengagementinEITIimplementationandinstitutionaliseMSGmembers’responsibilitiestothebroaderconstituencyofcompanies.
ThenumberofreportingcompaniesintheROC’sEITIReportshasincreasedovertheyears,albeitsomewhatinconsistently,fromfourin2004-2006to14in2007-2009,15in2010,17in2011,21in2012,25in2013and21in2014.8Inthe2014EITIReport,eightofthe24materialoilandgascompaniesdidnotparticipateinEITIreporting,althoughthreeofthesewerenotactivein2014,alongsidefiveoftenmaterialminingcompaniesthatalsodidnotreport.
Enablingenvironment:TheredonotappeartobeanylegalorregulatoryobstaclestoEITIreportingintheROCandthegovernmenthasenactedlegalreformstofacilitateEITIimplementation.Article2oftherevisedHydrocarbonsCodeenactedin2016requiresalloilandgascompaniestocomplywiththeROC’slawsandinternationalcommitmentslinkedtoimprovingthesector’sgovernanceandtransparency(RépubliqueduCongo,2016).TheMarch2017TransparencyCodetranslateskeyEITIRequirementsintonationallegislation,includingcontracttransparency,SOEreporting,beneficialownershipdisclosure,publicationofproductiondata,auditandreconciliationofgovernmentrevenues,transparencyofresourceallocationandextra-budgetaryspending,project-levelreportingandopendata.Insomeareas,thelawgoesbeyondtheminimumEITIRequirementsbymandatingreportingofproductiondisaggregatedbyprojectandindividualoilfield.Finally,ongoingrevisionstotheMiningCodeareexpectedtorefertotransparencyandgovernanceprovisionsinasimilarwaytothe2016HydrocarbonsCode.
StakeholderviewsTherewasbroadconsensusintheMSGthatcompaniesareengagedintheEITIprocess,includinginreportingaswellasfundingawarenessraisinganddisseminationofthe2013EITIReport.However,civilsocietyrepresentativespointedoutthatcompanies’commitmenttotheEITIprocessdeclinedconsiderablyin2015.TheynotedseveralcasesofMSGmeetingsnotbeingquorateduetoinsufficientrepresentationfrommining,oilandgascompanies,albeitwithoutprovidingspecificmeetingdates.CompanyrepresentativesrecognisedthattheirparticipationintheEITIprocessin2017wassignificantlylowerthanin2013,butexplainedthisbyseveralreasons,includingcost-cuttingmeasuresduetodecliningoilprices,poorpreparationofMSGmeetingswithagendasandworkingdocumentsdisseminatedwithinsufficientadvancenotice,andtenseMSGdiscussionsbetweencivilsocietyandgovernmentrepresentativesonissuesthatwerenotseentoconcerncompanies.SeveralindustrystakeholdersnotedthattheyfoundthepreparationandchairingofMSGmeetingsinadequate.Ontheissueofcost-cutting,anindustryrepresentativenotedthattheyhadsuggestedconductingMSGmeetingsbyteleconference,butthatthishadnotyetbeentried.Civilsocietyrepresentativesalsoarguedthatcompanies’commitmentwasweakerasaresultoftheMSG’spoorinternalgovernance.AgovernmentrepresentativenotedthatcompaniesdidnotprovidefundingtoEITIimplementationbecausetheydidnotagreewiththeMSG’sopaqueperdiempolicythatwasseenasexcessivelygeneroustocivilsociety.RepresentativesfrombothindustryandcivilsocietyconstituencieshighlightedthatMSGmeetingminuteswerenotregularlykeptandcirculatedandconsideredthattheirconcernswereoftenignoredbytheMSG
8SeetheROC’sEITIsummarydatatableshere:https://drive.google.com/drive/folders/0B9Bl74fkjArzWm1pUzB1Y1J2ZjQ
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Chair(seeRequirement1.4).
InitialassessmentTheInternationalSecretariat’sinitialassessmentisthattheROChasmadesatisfactoryprogressinmeetingthisrequirement.Seniorindustryrepresentatives,particularlyinoilandgas,travelregularlyfromPointeNoiretoBrazzavilletoattendMSGmeetings,althoughtherecentweakeningofindustryengagementwithmorejuniorproxiessenttoMSGmeetingsisaconcern.CompaniesparticipatebothinEITIreportingandindisseminationandoutreachactivities.IndustryrepresentativeshaveconsideredprovidingfundingtotheEITI,althoughhavedecidedagainstduetoconcernsovertheEITI-Congo’sinternalgovernancechallenges.ThereappearstobeanenablinglegalandregulatoryenvironmentforcompanyparticipationinEITIimplementation,includingreporting,andcompaniesappearfully,activelyandeffectivelyengaged.
Tostrengthenimplementation,theMSGshouldconsiderholdingteleconferencesinadditiontoinpersonmeetingstofacilitateremoteparticipationbycompanies(andcivilsocietyrepresentatives)basedinPointeNoire.TheindustryconstituencymayalsowishtoconsideragreeingacodeofconductorotherToRtostructureitsparticipationinEITIimplementationandinstitutionaliseMSGmembers’feedbackmechanismstothebroaderconstituency.
CivilsocietyengagementintheEITIprocess(#1.3)
DocumentationofprogressTheearlyphaseofEITIimplementationintheROC(2004-2007)wascharacterisedbymultiplearrestsandintimidationofthepioneeringcivilsocietyactivistswhoadvocatedforEITIimplementation(CAC75,2012).MrMounzeoandMrBriceMakosso,bothmembersofthePWYPcoalition,werearrestedonmultipleoccasionsin2006onchargesofdefamationagainstPresidentSassouNguesso,fraudandmisappropriationoffunds,althoughallchargesweresubsequentlydroppedforlackofevidence.InternationalCivilsocietyarguedthattheirarrestwaslinkedtotheirstandagainstcorruptionintheROC’soilrevenues(Globalwitness,2006).
Acompromisewasreachedin2007andallowedforthecreationofamulti-stakeholdergroup.ThiscompromisecarvedoutacontrolledspaceforcivilsocietytoundertakeactivitiesdirectlyrelatedtoEITIimplementation.Basedonthiscompromise,theROCachievedEITICandidatestatusinFebruary20089andEITICompliancestatusundertheEITIRulesin2012.Morebroadly,evidencesuggeststhatthespaceforcivilsocietytooperateintheROCdeterioratedrapidlyintheperiodleadinguptothe2015referendumtoamendtheconstitution.TheConstitutionwasamendedin2015toremoveageandterm-limitrestrictionsonpresidentialcandidates,allowingPresidentSassouNguessotorunforathirdtermin2016.
NGOsoperatinginROCaremostlyconcentratedinBrazzavilleandPointeNoire.Amappingofnon-stateactorsbytheEuropeanUnionin2013estimatesthatabout350NGOswereactiveinhumanrightsandgovernanceissues(Gaudion,2013).ThestudyfoundthatfewNGOshadsufficientcapacitiestodevelop,
9https://eiti.org/document/4th-board-meeting
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
manageandimplementprojectsandmobilisefunding.TheeightNGOsrepresentedintheMSGareamongthefewthatarewell-organisedandhavethecapacitiestoraisefundsfortheiractivities.
Eightcivilsocietyrepresentativeswereappointedforthree-yeartermsontheMSG,renewableonce,byMinisterialDecision611MEFPPPI-CAB.ThefollowingNGOswererepresentedintheMSG:
• TheCoalitionforPeaceandHumanRights(RPDH)10,• TheJusticeandPeaceCommissionoftheCatholicChurch11;• TheNIOSIfoundation12;• SupportandCapacityBuildingPartnership(Centred'échangesdepartenariat,d'appuietde
renforcementdescapacités);• TheCoordinationCommitteeofNGOsoftheCongo(ComitédeliaisondesONGduCongo);• TheNationalmovementfortheorganizationoftransparentelections(Mouvementnationalpour
l'organisationdesélectionstransparentes);• TheFederationofyouthandindividualitiesoftheCongo(Fédérationnationaledesjeunesseset
individualitésduCongo);andTheActionforgovernanceandcommunitydevelopment(Actionpourlagouvernanceetledéveloppementcommunautaire).
Expression:The2015Constitutionguaranteesfreedomofspeechandofthepress,withArticle25stating:
“everycitizenhastherighttoexpressandtofreelydisseminatehisopinionthroughspeech,writing,theimageorbyanyothermeansofcommunication.Freedomofinformationandcommunicationisguaranteed.Itisexercisedincompliancewiththelaw.Censorshipisprohibited.Accesstosourcesofinformationisfreeandprotectedundertheconditionsdeterminedbylaw”(JournalOfficieldelaRepubliqueduCongo,2015).
Yetithasbeenwidelyreportedthatthegovernment’srespectforsuchfreedomsislimitedinpractice.Forexample,FreedomHouserankedtheROC’spressfreedomas“partiallyfree”fortheperiodunderreview2013to2016(FreedomHouse,2017).Otherindependentorganisations,suchastheMoIbrahimFoundation,andReportersWithoutBordershighlightthepracticeofcensorshipandlimitstofreedomofexpressionforcivilsocietythathavebecomecommonevenifnotcodifiedinofficialstatepolicy(ReportersWithoutBorders,2017)(MoIbrahimFoundation,2016).Forexample,internetandtextmessagingserviceswerecutincertainareasofthecountryinthedaysleadinguptotheconstitutionalreferendumin2015(BBC,2015).RadioFranceInternationale’ssignalwasalsoblockedfortwodays.Internetconnectionswerealsobrieflysuspended.Theserestrictionsappearselectiveandspecificallytargetingcertainmediaorganisationsthataredeemedtoocriticaltotheregime.
Nonetheless,thereisextensiveevidenceofcivilsocietystatementsthatarecriticalofthegovernment’smanagementoftheoilandgassector,suchasthecampaignbylocalandinternationalCSOsontherefineryCORAF’ssaleofrefinedfueltoaprivateSwisstrader(Publiceye,2015)(PWYP-Congo,2015)(PWYP-Congo,2016).Althoughthereisevidencethatthegovernmentdiscontinuedthepublicationof
10http://www.rpdh-cg.org/rpdh11https://cecongo.org/spip.php?article13312https://pcpacongo.org/fondation-niosi/
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
quarterlySNPCoilsalesreportsasaresultofthisCSOcampaign,thereisnoevidenceofdirectreprisalsagainstindividualsinconnectiontothepublicationofthe2015reportintotheCORAF.
However,therearealsoseveralexamplesofinstancesofcensorship.Self-censorshipofcivilsocietyactiviststhataresubstantiallyinvolvedinEITIimplementationcannotberuledout,either.CivilsocietyactivistssubstantiallyengagedintheEITIbutnotrepresentedintheMSGcontinuetofaceintimidationsandsometimesarrestsinretaliationtopublicationofinformationonissuesthatareconsideredoff-limitbythegovernment.On15March2017,twoItalianjournalists,LucaChiancaandPaoloPalermo,whoworkedfortheItalianTVchannelRAI3,werearrestedinPointe-Noire,andheldforthreedaysbeforebeingexpelledfromthecountry(ReportersWithoutBorders,2017).AccordingtoReporterswithoutBoarders(RST)thetwojournalistswerearrestedbythepolicewhileinvestigatingallegationsofcorruptionsinvolvingPresidentSassouNguesso’srelativesactiveintheoilsector(ReportersWithoutBorders,2017).
WhilethesegeneralconstraintsonfreedomofexpressionhaveaffectedCSOs’publicexpressionsonsensitivetopicslikecrudeoilsales,thereisevidencefromMSGmeetingminutesandpressreleasesthatCSOMSGmembershavebroughtupsensitivetopicslikeSNPC’sfinancialrelations,theCORAFcrudeallocations,theChineseoil-for-infrastructureagreementduringMSGmeetingsandoutsidethosemeetings.
Operation:Article21oftheConstitutionstipulatesthattheStaterecognizesandguarantees,underconditionslaiddownbylaw,thefreedomofmovement,association,assembly,processionanddemonstration(JournalOfficieldelaRepubliqueduCongo,2015).The1901Frenchlaw13governingtheworkofassociationsisalsoclearaboutthefactthatNGOsactivitiesaregovernedbyadeclarativeregimeandtheiractivitiesarenotsubjecttopriorauthorizationtoconducttheiractivities,includingpublicassembly.Accordingly,civilsocietyorganisationsoperatefreelyandarenotrequiredtorequestpriorpermissionfromtheauthoritiestocarryouttheiractivities.However,NGOsarerequiredtoseekauthorizationfromtheMinistryofInteriorandDecentralizationorfromappropriatelocalofficials,fortheuseofpublicspacetoholdpublicproteststhatcouldbedeniedonthegroundof“preservingpublicorder”.
Theseincidenceshappenedinthewidercontextofaconstitutionalreferendumin2015andpresidentialelectioninApril2016.Intheperiodleadinguptothereferendum,publicprotestswereroutinelybanned.Onseveraloccasionsin2014,securityforcesviolentlydispersedgatherings,particularlyamongthepoliticalopposition,forallegedfailuretoobtainpriorauthorization(FreedomHouse,2017).AccordingtoFreedomHouse2015CountryReport,NGOsgenerallyoperatewithoutinterference,buttheycannotchallengetherulingelite(FreedomHouse,2015).CivilSocietyhasnotheldpublicprotestsonEITIrelatedissues,butcivilsocietyrepresentativesintheMSGhaveissuedpubliccallsforthereleaseofcivilsocietyactiviststhatwerenotMSGmembers.ForexamplePWYP-CongocalledforthereleaseofuniversityprofessorsandaNGOleaderin2014(PWYP-Congo,2014)(PWYPCongo,2015).
Withregardtoaccesstofunding,NGOsdependsmostlyonforeignfundingtohirestaffandimplement
13Loidu1erjuillet1901relativeaucontratd'associationhttps://www.legifrance.gouv.fr/affichTexte.do?cidTexte=LEGITEXT000006069570
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
theiractivities(EU,2014).WithanestimatedEUR20mallocatedtoCSOsintheROCinthe2007-2014period,theEuropeanUnionisthelargestcontributortocivilsocietyactivitiesintheROC(EU,2014).WhilecivilsocietydidnotfacelegaloradministrativerestrictionsonaccesstofundingtoconductEITIrelatedactivities,anNGObilladoptedbyparliamentin2016,butnotsignedintolawbythePresidentwouldsignificantlyrestrictthespaceforcivilsocietyandcriminalizetheiractivitiesunderthepretencethattheyhavereceivedfundingfromabroad(RPDH,2016).
DespitethesegeneralconstraintsonCSOs’operations,thereisnoevidencethatCSOshavefacedchallengesinattendingEITIactivitiesandthereisextensiveevidenceoftheirparticipationatMSGmeetingsandleadingEITIoutreachdisseminationevents.Onthecontrary,CSOMSGmembers’abilitytoparticipateinallEITIactivitiesappearstobeguaranteedbyhigh-levelpoliticalcommitmenttotheEITIanddoesnotseemtoextendtoactivitiesoutsidethenarrowly-definedscopeofEITIimplementation,suchaspublicprotestsoveroilandgasissues.
Association:CivilsocietyrepresentativesintheMSGcangenerallyseekinputandarenotrestrictedfromengagingotherCSOsthatarenotpartoftheMSG.ThroughPWYP-Congo,civilsocietyrepresentativesintheMSGareabletocoordinatetheiractivitiesandcirculatesinformationthroughmailinglistbuttherearenoevidencesthattheyhavesoughtinputfromcivilsocietyoutsidetheMSGonMSGdeliberations.Similarly,therearenoevidenceofrestrictionofformalorinformalcommunicationchannelsbetweencivilsocietyMSGmembersandthewidercivilsocietyconstituency.CivilsocietyMSGrepresentativeshavenotconductedoutreachactivitiestobroadercivilsocietytodiscussMSGrepresentation,butthisisnotduetogovernmentrestriction.
Engagement:Despitetheconstrainedgeneralenvironment,civilsocietyappearsparticularlyengagedintheEITIprocess.RepresentativesfromthecivilsocietyconstituencyattendMSGmeetingsregularly,conductanalysisofEITIReports,producecommunicationmaterialsandorganisepubliceventstoinformcitizensonissuesrelatedtothegovernanceoftheextractiveindustries.CivilsocietyrepresentativesintheMSGregularlyexpresstheirviewsrelatedtoEITIactivitiesandhighlighttheirconcerns.InAugust2015,PWYPCongowrotealettertotheMinisterofEconomy,FinanceandBudgetandissuedapressreleaseexpressingconcernsonthe“stagnationoftheEITIprocess”andcallingonthegovernmenttoresumepublicationofEITIReports,implementpastEITIrecommendationsandexplaintherelationshipofSNPC’ssubsidiaryCORAFandPhilia(PWYPCongo,2015).TherearenumerousexamplesofcivilsocietyusingEITIdata,includingPWYPCongo’sreviewofEITIReportsandthenationalbudget,publishingareportongovernmentexpenditureonpublichealthin2015(PWYPCongo,2015).Thisreportandsubsequentfollow-upreportswerewidelydisseminatedandformedthebasisofanadvocacycampaigntoimproveallocationofoilrevenuestobenefitthepoor(PWYP,2016).PWYPCongoalsopublishedastudyin2011thatfoundthatoilrevenuesdidnothaveapositiveimpactonthepoor(PWYPCongo,2011).
Accesstopublicdecision-making:CivilsocietyrepresentativesparticipateactivelyinMSGmeetingsandtheirviewsareconsideredbygovernmententitiesandtheindustry.TheleaderofthePWYP-CongocoalitionChristianMounzeowasappointedvicePresidentoftheMSGthroughPresidentialDecree2012-1123of25October2012.MrMounzeoandMrBriceMakossoareamongtheactivistswholedthecampaignforEITIimplementationinCongosinceitsinception.Theyhavebothplayedaleadingroleinpromotingtransparencyintheoilandgassectoratthenationalandinternationallevelthroughtheir
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
participationintheMSGinCongoandintheEITIInternationalBoard.MrMounzeoalsorepresentscivilsocietyinthegovernmentledanti-corruptionagency.
WhilecivilsocietyrepresentativesintheMSGgenerallyholddisseminationcampaignstopromotepublicdebate,withoutpriorauthorisation,therewasatleastonecaseofadministrativebarrierspreventingCSOsfromholdingmeetingsrelatedtotheEITIprocess.On26March2015,theRPDHissuedapressrelease14toreport“obstructions”bylocalauthoritiesintheDepartmentofBouenza.AccordingtotheRPDHpressrelease,itsdelegationtravelledtoNkayionThursday,19March2015foranEITIdisseminationcampaignandbudgetmonitoring,targetinglocaladministrativeofficials,NGOs,mediaandreligiousgroups.ThemayorofNkayi,Mr.MANDOUNOUMAGANGA,issueda“categoricalrefusal”toholdthemeetingonthegroundsthatthecontextwassensitiveanddidnotlenditselftoholdingsuchanevent.DespiteadirectappealfromtheChairoftheMSGtothemostseniorgovernmentofficialintheregion,theactivitywassimplycancelled.AsecondincidenceconcerningpublicassemblyofanEITIrelatedeventoccurredinMay2016.TheCatholicChurch’sCommissionJusticeandPeaceissuedinvitationletterstoaninternationalconferenceontransparencyinmining,oilandgasinAfricatobeheldinPointeNoire(CommissionDiocésaineJusticeetPaixPointeNoire,2016).TheCommissionJusticeandPeacerequestedapprovalofinvitationlettersforinternationalcivilsocietycomingfromabroadforthepurposeofobtainingvisastoattendtheconference.ThisrequestwasfirstdeniedbythelocalofficeoftheDirectionofSurveillanceoftheterritory(DST)butsubsequentlyapprovedfollowingtheMSGChair’sexpressrequest(CommissionDiocésaineJusticeetPaixPointeNoire,2016).
ThereisevidencethatCSOcaninfluencedecisionssuchasthepreparationandadoptionofthenewtransparencylaw,buttheircampaigningonissuescriticaltothegovernmenthasalsohadabacklashontransparencyandcausedtheoppositeoftheintendedeffect.Forexamples,followingthepublicationofareportbytheSwissNGOBerneDeclaration(nowPublicEye)onthefinancialrelationshipbetweenthedomesticrefineryCORAFandaprivateSwiss-basedoil-tradingcompanyPhilia(Publiceye,2015),PWYPCongocalledonSNPCforclarificationandpublicationoftheCORAF-Philiacontract(PWYP-Congo,2015).TheCORAFReportusedEITIdatatoshowthatCORAFhadnotpaidfortheroughly6mbarrelsofoil(worthUSD600m)suppliedbySNPCannuallyandhadrunupasignificantdebttotheTreasury,despiteCORAF’ssaleofoilproductstoPhilia(Publiceye,2015).CivilsocietyMSGmembers,PWYP-Congoinparticular,havecalledforajudicialinquiryintorevelationsofthePanamaPapers,inapressreleaseon21April2016(PWYP-Congo,2016).ThegovernmentabruptlyremovedthequarterlySNPCcrudeoilsalesreportsfromtheEITICongoandMEFBwebsitesimmediatelyafterthepublicationoftheCORAFreportandnoEITIReportwaspublishedin2015-2016untilthe2014EITIReportwasfinallyproducedinDecember2016.Nonethelesspublicationofthereportgeneratedsignificantcoverageintheinternationalmedia,evenifitscoverageinthelocalpresswaslimited.
Stakeholderviews
Stakeholderconsultations,drivenbytheindividualsthemselves,focusedprimarilyontheissuesoffreedomsofexpressionandassembly,seenasthemostsignificantchallengesforcivilsocietyintheROC.Stakeholdersdidnothighlightsignificantconcernsregardingassociation,engagementandaccessto
14RPDHPressreleaseof26March2015,http://www.rpdh-cg.org/news/2015/03/26/atteinte-aux-libertes-dassociation-et-de-reunion-au-congo-la-rpdh-interdite-de
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
decisionmakinginthecivilsocietyprotocol.
Extensiveconsultationsyieldedwidelycontrastingviewsregardingcivilsociety’sabilitytospeakfreelyonanyEITI-relatedissue.CivilsocietyMSGrepresentativesconsideredthattheycouldspeakfreelyinpublicabouttheEITIprocess,includingatMSGmeetings(consideredpublic),throughinterviewswithnationalandinternationalmedia,duringworkshops,conferencesanddisseminationcampaignsatthelocallevel–albeitwithinlimits.InterviewsanddebatesonradioandtelevisionwereroutinelycitedasCSOMSGmembers’preferredmodeofcommunication.CivilsocietyMSGmembersnotedthattheEITIactsasa“shield”ofprotectionthatallowedthemtoexpresscriticalviewsofthegovernment,providingmultipleexamplesofinterviewsonnationaltelevisionwheretheyhadusedEITIdatatocriticisemanagementoftheoilsector.Somecivilsocietyrepresentativesconsideredthattheircolleagueshadgonetoofarincriticisingthegovernmentinrecentinterviewsandtheywererelievedtoseethattheircolleagueshadnotfacedreprisalsfortheiractionsthusfar.
CivilsocietyMSGmembersdescribedanenvironmentoffearandtopicsthatareconsideredoff-limits,explainingthattheyhadtotreadcarefullyandexercisetheirjudgementontopicsthatcouldbeconsideredoff-limitsforthegovernment.Asanexample,civilsocietyMSGmembersexplainedthattheyhadissuedcallsforfurtherinvestigationafterthepublicationoftheCORAFreportbuthadreceivedthreatsandintimidationfromsecurityforces.Theyalsoconsideredthatlocalmedia’slackofcoverageoftheCORAFreportotherthantheofficialgovernmentrebuttal,whichwentontoaccuselocalCSOsof“hightreason”for“beingcomplicitwithforeignplotstooverthrowthegovernment”.Civilsocietyrepresentativesnotedthataccusationofhightreasonswasoftenusedbysecurityforcestodemonisetheirworkandexposethemtoprosecution.Despitethesechallenges,CSOMSGmembersagreedthatcivilsocietyenjoyedauniquespace,withintheEITIframework,toexpresstheirviews.
However,civilsocietybothonandofftheMSGconsideredthatactivistsoutsidetheMSGwerenotasluckyasthoseontheMSG,eventhoughtheiradvocacyonoilandgasissuesweresubstantiallyrelatedtoEITIissues.Forexamples,theleadauthorsoftheCORAFreportexplainedthattheydidnotfeelsafetotraveltotheROCfortheirinvestigationsforfearofreprisal.OneinternationalCSOthatattendedtheEITIBoardmeetinginBrazzavilleinApril2015statedthathehadtakenspecialsecurityprecautionsforthetripgivenhispastworkonoilandgasissuesintheROC.ThearrestofItalianjournalistsinvestigatingonsimilarissuesinPointeNoireinMarch2017washighlightedbyseveralinternationalandlocalCSOsasconfirmingthosefears.Civilsocietyactorsoutsidethecountryexplainedthatitwasdifficulttogatherinformationonallegationsofcorruptionsfromcivilsocietyactivistsinsidethecountry.Someactivistsexplainedthatgiventheenvironmentoffearandpolicebrutalities,theydidnotcontactstakeholdersinsidethecountrytoavoidincriminatingthembyassociationandexposinginnocentactiviststoreprisals.
CivilsocietyMSGmembersconfirmedthepracticeofself-censorship,whichproveddifficulttodocumentinpractice.MSGmembersagreedthatthereweretopicsonthemanagementoftheoilsectorthatwereconsideredoff-limits.Severalcivilsocietyrepresentativesnotedthattheycouldcriticisethegovernmentattheirownriskandperil.Despitetheclimateoffear,severalCSOMSGmembersconsideredthattheyroutinelytestedthelimitsofgovernmentcensorshipbyopenlycallingforinvestigationofallegationsofcorruptionsattheCORAFrefinery,widelyconsideredasensitiveissue.Industryrepresentativesnotedthattheywouldrefrainfromcriticizingthegovernmentorgivingtheimpressionofpointingfingers,butconsideredcivilsocietytobeoutspokenonEITI-relatedissues.Thelackofaformalgovernmentpolicy
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
definingalistof“sensitiveissues”wasseenbyseveralcivilsocietyrepresentativesascreatingfertilegroundforself-censorship.CivilsocietyMSGmembersconfirmedthattheiranalysesofEITIReportsweregenerallynotmadepublic.Forexample,civilsocietyMSGmembershadpreparedananalysisofthe2014EITIReportfollowingitspublication,highlightingsomeweaknesses,butthisanalysiswasnotpubliclyaccessibleanditscirculationwaslimitedtoMSGmembersandsecretariatstaff.SeveralCSOMSGmembersstatedthatgovernmentMSGmembersroutinelyblockedpublicationofdocumentssuchascivilsociety’sanalysisofEITIReportsthattheyconsideredtobeinternaldocuments.However,MSGmembersinsistedthatcivilsocietyhadtheabilitytodisseminatethemainfindingofthe2014EITIReportthroughinterviewswithlocalandinternationalprintandbroadcastmedia.
CivilsocietyactivistsoutsidetheMSG,butsubstantiallyengagedinEITInotedthattheyfacedstrictrestrictionsoncertainissues,giventhatanydirectcriticismofthePresidentorhisfamilywasimmediatelyassimilatedwithsubversiveactivities,withunpredictablereprisals.ManycivilsocietystakeholdersexpressedsignificantconcernsaboutnewNGOlegislationadoptedintheNationalAssemblyin2016,thatwouldcriminalisesomecivilsocietyactivitiesandimposerestrictiononaccesstoforeignfunding.ThePWYPCongocoalitionissuedadetailedanalysisofthebill,butitwasunclearwhethertheirconcernshadbeenaddressedasthefinalbill,adoptedinparliamentbutnotyetpublicgiventhatitwasstillawaitingthePresident’ssignature(PWYP-Congo,2016).Thebill’sstatusremainsuncleardespiteextensivestakeholderconsultations.SomecivilsocietystakeholdersexpressedthefearthatthebillcouldbesignedintolawbythePresidentatanymomentandthatthegovernmentcouldbewaitingfortheoutcomesofEITIValidationbeforeenactinganysuchlegislation.OthersgovernmentandcivilsocietystakeholdersconsideredthatthebillhadbeensubstantiallyamendedpriortoitsadoptionbytheNationalAssembly.ItwasnotpossiblefortheInternationalSecretariattoverifytheseclaimsaboutthestatusofthedraftlawonNGOsdespiteextensiveconsultations.SeveralCSOsdidnothaveconfidenceinthejudicialsystemandconsideredthattheycouldnotchallengetheNGOlawincourtevenifitdemonstrablyviolatedtheirconstitutionalrights.CivilsocietyoutsidetheMSGalsoexplainedthatthecompromiseestablishedasafebutlimitedspaceinwhichcivilsocietycouldoperate.IndependentNGOsareunderpressurefromthegovernmenttotoetheofficiallineorremainwithintheboundariesallowedfortheEITI.ManyinternationalstakeholdersoutsidethecountryarguedthatcivilsocietyactivistsinROCroutinelypracticeself-censorshiptoavoidreprisalsfromthegovernment.TheyarguedthattopicscoveredbycivilsocietyactivitieswithintheframeworkoftheEITI,arelimitedtoadvocacycampaignsformoretransparencyanddisseminationcampaignsofEITIreportstolocalcommunitiestoavoidmoresensitivetopicsatthecentrallevel.Accordingtothisview,civilsocietyactivistsobserveunwrittenbutstrictlyenforcedrulesbythedomesticsecurityservice,theDirectionGénéraledelaSurveillanceduTerritoire(DGST),toremainwithintheboundariesoftheEITI.ManystakeholdersoutsidetheMSGalsovoicedconcernsthatthispracticecontinuedaftertheadoptionofthenewEITIStandardin2013,includingtheCivilSocietyProtocolthatcallsfortheprotectionofthefundamentalrightsofcivilsocietyrepresentativeswhoaresubstantivelyinvolvedintheEITIprocess,includingbutnotlimitedtoMSGmembers.
InitialassessmentTheInternationalSecretariat’sinitialassessmentisthattheROChasmademeaningfulprogressinmeetingthisrequirement.ThegovernmenthasestablishedasafespaceinwhichcivilsocietyMSGrepresentativescanoperate,expressthemselvesfreelyandcontributetopublicdebate.However,thiscontrolledspaceforcivilsocietyisnarrowlydefinedtoMSGmembersandexcludesimportantactorssubstantiallyengagedintheEITIprocesswhoareroutinelyexposedtointimidation,reprisalandcensorship.Inaccordancewiththeassessmentframeworkoutlinedinthecivilsocietyprotocol,
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
provisionsrelatedtocivilsocietyparticipationareassessedeachinturn.
Expression:WhilecivilsocietyrepresentativesontheMSGcanexpressthemselvesfreelyontopicsdeemed“linked”totheEITI,activistsoutsidetheMSGwhopromotetransparencyandaccountabilityareroutinelyexposedtoreprisals.Therearealsocredibleallegationsofintimidationandreprisalsforcivilsocietyactorsandself-censorshipisaconcern.TheInternationalSecretariatconcludesthatcivilsocietyorganisationscannotfreelyexpresstheirviewsrelatedtonaturalresourcegovernanceandthepracticeofcensorshipandself-censorshipisinviolationofthecivilsocietyprotocol2.1,andrequirements1.3(d),1.3(e)(i),1.3(e)(iv).
Operation:TheInternationalSecretariatconcludesthatcivilsocietycanoperateeffectivelyinthecontextoftheEITI.
Association:TheInternationalSecretariatdidnotfindanyviolationsofthecivilsocietyprotocolwithregardtofreedomofassociation.
Engagement:TheInternationalSecretariatconcludesthatcivilsocietyactorsareadequatelyengagedintheEITIprocessandcanpromotepublicdebatewithintheboundariesallowedbytheGovernment.
Accesstopublicdecision-making:Therewerereportsofcurbsonfreedomofassemblyinrelationtopublicdebatethatwereovercomethroughinterventionfromseniorgovernmentofficials.SeveralCSOMSGmembersreportedtwoEITI-relatedeventsorganisedbycivilsocietythatwerefirsttemporarilybarredbythesecurityforcesandlocalgovernmentofficials,butsubsequentlyauthorisedbythegovernmentaftertheinterventionofhigh-levelgovernmentofficialsincludingtheMSGChair.TheInternationalSecretariatconcludesthatcivilsocietyrepresentativeshaveaccesstopublicdecision-makingandtheirviewsareconsideredbydecisionmakersandtheindustry.
InaccordancewithRequirement1.3,theGovernmentofCongoshouldensurethatthereisanenablingenvironmentforcivilsocietyparticipation,andensurethattherightsofcivilsocietysubstantivelyengagedintheEITI,includingbutnotrestrictedtomembersofthemulti-stakeholdergroup,arerespected.
MSGgovernanceandfunctioning(#1.4)
DocumentationofprogressMSGcompositionandmembership:PresidentialDecreeno.2012-940of20August2012establishedtheinstitutionalframeworkforEITIimplementationintheROC,withamulti-stakeholderExecutiveCommitteeandatechnicalpermanentsecretariat.Priortothis,EITIimplementationwasoverseenbyaconsultativecommitteecreatedinSeptember2007.TheExecutiveCommitteeisledbytwochairsfromthegovernmentandtwovicechairsrepresentingcivilsocietyandcompaniesrespectively.Inadditiontoitsfour-personleadershipbureau,theEITIExecutiveCommitteeiscomposedof21membersevenlydividedbetweenthethreeconstituencies(CongoActuel,2017).Tworepresentativesofthestate-ownedSNPC,whichispartofboththegovernmentandindustryconstituencies,bringingthetotalnumberofMSGmembersto27.MSGmembersareappointedforathree-yearmandaterenewableonce,inlinewithMinisterialDecree611MEFPPPI-CABof4December2012.ThemostrecentMinisterialDecision
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[email protected]+4722200800Fax+4722830802 AddressEITIInternationalSecretariat,Ruseløkkveien26,0251Oslo,Norway
designatingMSGmemberswasissuedinDecember2012andtheMSGhasnotbeenrenewedsince.DespitetheexpirationoftheirmandateinDecember2015,thesameMSGmemberscontinuetotakepartintheMSGinpractice.
Civilsocietyrepresentation:TheprocessforappointingandrenewingcivilsocietyrepresentativesisnotcodifiedanywhereotherthanthePresidentialDecreeandMinisterialDecisionappointingthem.CivilsocietyrepresentativescomefromspecialisedNGOsandcoalitionsrepresentingmultipleNGOssuchasPWYP,CommissionJusticeandPeacefromtheCatholicChurch,FoundationNIOSI,theNationalFederationofYouthandtheNationalMovementforTransparentElections.ChristianMounzeofromPWYPisavice-ChairoftheMSG(seeRequirement1.3).
Industryrepresentation:Similartothecivilsocietyconstituency,theprocessforappointingandrenewingcompanies’representativesisnotcodifiedanywhereotherthanthePresidentialDecreeandMinisterialDecisionappointingthem.MSGmembersrepresentingtheindustryincludeonerepresentativeeachfromChevronOverseasLtd,Congorep,CongoMining,Glencore,Maurel&PromCongo,MurphyWesAfricaLtd.InpracticeapresentativefromENICongoandTotaltaketurnastheviceChairoftheMSG.
Governmentrepresentation:PresidentialDecree2012-1123of25October2012reappointedtheMinisterofEconomy,Finance,Planning,StateInvestmentsandIntegrationGilbertOndongoastheMSGChairandFlorentMichelOkokoastheMSG’sExecutiveChair.MinisterofEconomy,FinanceandBudgetCalixteGanongotookoverasChairoftheMSGfollowinghisappointmenton30April2016.Inpractice,MSGmeetingsarechairedbyExecutiveChairOkoko,whoalsomanagestheNationalSecretariatandoverseesday-to-dayimplementation.EITIimplementationintheCongohasbeenentirelyfundedbythegovernment.TheMinisterofFinanceGilbertOndongoconfirmedthenominationofsevenrepresentativesfromthegovernment,includingtwogovernmentofficialsfromtheMinistryofFinance,twofromtheMinistryofHydrocarbon,twofromtheMinistryofMinesandGeologyandonerepresentativeoftheministryforindustrialdevelopmentandpromotionoftheprivatesector,throughMinisterialCircular611MEFPPPI-CABof4December2012.
Termsofreference:PresidentialDecree2012-940of20August2012thatestablishedtheExecutiveCommitteealsoactsasitsToR.TheExecutiveCommitteehasthemand