leiti newsletter september 2009-march 2010

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Liberia extractive industriestransparencyinitiative

LEITI Newsletter| September 2009 - March 2010 1

September 2009 - March 2010, Vol. 3 No. 01 LEITI Newsletter

LEITILiberia Extractive

Industries

Transparency Initiative

LEITI GAINS EITI COMPLIANT STATUS

INSIDE THIS ISSUELEITI Gains EITI Compliant Status

Drivers of Progress in EITI Implementationin Liberia

LEITI Prepares for Second Report

EITI Chairman Visits Liberia

LEITI Publishes its Second EITI Report

LEITI Holds 2-Day Workshop with Civil SocietyOrganizations

GTZ Express Readiness to Support LEITI

LEITI Resolves All Unresolved DiscrepanciesContained in its 1st LEITI Report

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LEITI Publishes its Second EITI Report

SUMMARY OF LEITI SECOND REPORT1 July 2008 30 June 2009

LEITILiberia Extractive

Industries

Transparency Initiative


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Liberia is EITI Compliant. Thecountry was designated EITIcompliant on Wednesday,October 14, 2009 by the EITIBoard during the Boards 10th

Meeting in Baku, Azerbaijan.Announcing the boards decision

following a review of Liberias valida-tion report, Dr. Peter Eigen, Chair-man of the EITI Board stated: The

Board congratulates the Governmentof Liberia and all the other stake-

holders on the impressive progressmade implementing the EITI.

Chairman Eigen noted: Liberiais the rst African country to be des-ignated EITI Compliant. It is the rstcountry to have included the forestry

sector in its reporting. It has alsoundertaken extensive dissemination

work to building community engage-ment in the EITI process. The successof Liberia in reaching EITI Compli-

ance demonstrates what govern-

ments, companies and civil society

can achieve when working togetherand political will is rmly behind the

process.The Board reviewed recent de-

velopments in Azerbaijan, includingan agreement by the Government,companies and civil society organiza-tions to formalize a multi-stakeholdergroup and to agree a new work plan.

The EITI Chairman noted: Azerbai-jan was the rst country to be desig-nated EITI Compliant, and stakehold-ers are continuing to work togetherto form a robust platform that will

promote revenue transparency. Wewill continue to follow progress in Li-beria and Azerbaijan as they develop

and strengthen their EITI processesto improve the management of their

signicant natural resources.The EITI Board also reviewed

progress in other implementing

countries including Cameroon, Cte

dIvoire, Gabon, Ghana, Kazakhstanand Kyrgyzstan, Mongolia, Nigeria,Republic of the Congo and TimorLeste which have all formally initi-ated the Validation process.

Validation is EITIs quality assur-ance mechanism that evaluates EITI

implementation in consultation withstakeholders. It veries achievementswith reference to the EITI globalstandard, and identies opportuni-ties to strengthen the EITI processgoing forward.

The validation of Liberias EITIimplementation began March 2009and the nal report was submitted onJuly 23, 2009. This compliant statusmakes Liberia the rst country inAfrica and the second country in theworld to have completed validation.

Azerbaijan is the only other countryin the world to complete validation.The EITI is a coalition of gov-

ernments, companies, civil societygroups, investors and internationalorganizations that sets a globalstandard for transparency in theextractive sector. With good govern-ance, the exploitation of these re-sources can generate large revenuesto foster growth and reduce poverty.However, when governance is weak,it may result in poverty, corruption,and conict. Therefore, ExtractiveIndustries Transparency Initiative(EITI) aims to strengthen governanceby improving transparency and ac-countability in the extractive sector.

The Liberia Extractive IndustriesTransparency Initiative (LEITI) is partof this global program that promotestransparency over mineral revenuesthrough regular disclosure, verica-tion and publication of data of allpayments and revenues connectedwith the operations of logging, oiland mining companies.

LEITI GAINS EITI COMPLIANT STATUS

The rst Head of Secretariat, Cllr. T. NegbaleeWarner, resigned as Head of the LEITI Sec-retariat following over two years of serviceto the Liberia Extractive Industries Transpar-ency Initiative (LEITI). Cllr. Warner, who many

described as the driving force which propelled the LEITIto become the leading EITI implementing country in

the world and the rst EITI compliant country in Africaand second in the world, stepped back in active legalpractice on January 16, 2010.

Upon notifying the LETI of his resignation, theSteering group constituted a six-persons recruitment

committee, headed by the Co-chairperson of the LEITIMSG and Minister of lands, Mines, and Energy, Dr.Eugene H. Shannon, to coordinate and conduct the re-cruitment of a new Head of Secretariat. The committeethrough the Project Financial Management Unit pub-lished vacancy notice both locally and internationallyfor the post of Head of Secretariat. A total of eighteen

applications were received and only seven candidateswere shortlisted. The interviews were conducted onDecember 16, 2009 and the Processes leading to thenalization of employment contract to the most respon-sive candidate is ongoing.

RECRUITMENT Of NEw HEAd Of SECRETARIAT


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1Widest Scope: Liberia is therst and only country in theworld to include forestry and

agriculture in its EITI program in ad-dition to the mining and oil sectors.Although forestry and the agriculturesectors are not required by the inter-national EITI rules to be included in anational EITI program, Liberia optedfor their inclusion in order to widen/spread the transparency nest acrossthe main export earners.

2Contract Transparency:Liberia is the rst country toinclude contracts transparen-

cy in its EITI program. LEITI requires(1) the disclosure and publication ofall agreements and concessions in themining, oil, forestry and agriculturesectors, and (2) the periodic audit of

such agreements and concessionsto ensure that they are/wereawarded in keeping with applica-

ble laws. Presently, the LEITI hasbeen given copies of all conces-sions, contracts and agreementsconcerning operations in the min-ing, oil, forestry and agriculturesectors. Anyone can access theseagreements. Hence, Liberia isonce again showing leadership inrejecting the questionable argu-ment of commercial condenti-ality which some have cited asa basis not to disclose concessionagreement in the extractive sec-

tors.

3Pace-setting Progress:Liberia is the rst EITIcountry to (1) publish an

EITI Report and (2) complete EITI valida-tion within the two-year period set bythe EITI Board.

4Dedicated EITI Legislation:Liberia is the second EITIimplementing country to have

a dedicated EITI legislation. The onlyother country with EITI legislation isNigeria.

5Political will: Much of theprogress in Liberia relative toEITI implementation is due to

an abundance of political will for theEITI process and transparency in gener-

al. The EITI has therefore been speci-cally named as key components of theGovernment Poverty reduction Strategy(PRS) and the National Anti-CorruptionStrategy (NACS). The personal sup-

dRIVERS Of PROGRESS IN EITI IMPLEMENTATION IN LIBERIA

Following fourteen (14) years of civil crisis, thegovernment and people of Liberia in May 2007established the Liberia Extractive Industries Trans-parency Initiative (LEITI) as one of the key pillarsof governance/integrity to support the recon-

struction of the economy, governance and overall socialdevelopment of Liberia.

Within a relatively the short period (two-year) of its

existence, LEITI has become the leader in EITI implemen-tation worldwide. Indeed, LEITI is recognized globally for(1) its rapid implementation progress; (2) its extendedscope that include the forestry and agriculture sectors;(3) the shared commitment and engagement of all itsstakeholders; and (4) the exemplary political will thatunderpins the foregoing achievements and distinctivefeatures.

OUR MILESTONES




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port of the President is the singlemost important driver of the LEITIprogress. The Presidents ofce hasbeen opened to the LEITI, and thePresident has been actively seized ofmatters concerning LEITI. The presi-dent launched the First LEITI Report

early 2009, and also led the LEITI del-egation to the 2009 EITI internationalconference in Doha, Qatar.

6Positive Support of Other

Government ofcials: TheLEITI is also indebted to the

high support of key ministers desig-nated to lead EITI implementation.The National Legislature also de-serves recognition for its continuingsupport and the speedily passage ofthe LEITI Act.

7Mass Public Support: ManyLiberians are amazed in see-ing the LEITI Report, which

contains specic tax details that

were many years hidden from them.They are therefore very supportiveof LEITI. It was in response to therequests of some of these Liberiansthat the LEITI included the agricul-ture sector in the scope of LEITI.

8Best Implementing CountryAward: based on its rapidprogress and trend-setting

performance, Liberia won the bestEITI Implementing Country Awardpresented by the EITI Board in Doha,Qatar.

9Demonstration of Commit-ment through Adequate

Support: Despite limitednancial resources and mountingpost-war reconstruction needs, the

Government of Liberia has providedincreasing budgetary support for LEI-TI. The GOL contributed US$50,000 toLEITI budget in 2006/2007; increasedit to US$100,000 in the 2008/2009

budget, and recently doubled it toUS$200,000.00 in the current budget.

10Effective Communica-

tions Strategy: Liberiais among few EITI coun-

tries with comprehensive strategy for

communicating the EITI. LEITI has putup billboards, visited and conductedoutreach in all fteen counties ofthe country. LEITI also engages withthe electronic and print media to airjingles and drama. LEITI quarterlynewsletters are widely read in andout of Liberia.

Moving On: In light of media re-ports about oil nds in Liberia and asthe country prepares for more miningoperations, the work of LEITI will

become critical while public supportfor the initiative will be tested. Oneof our present tasks is to prepare forthese future challenges.

representatives of the Ministry ofFinance, Ministry of Agriculture, FDA,

NOCAL, the General Auditing Com-mission, etc. Also in attendance wererepresentatives from civil society andLiberias development partners. TheWorkshop provided an interactiveforum for the reporting stakeholdersand a two-man team from the newLEITI Reconcilers (Moore Stephens) todiscuss (1) the LEITI Reporting tem-plates, (2) procedures for completingthe templates, and (3) the timetableand address for submission of thetemplates.

In preparation for the LEITI SecondReport, the LEITI Reconcilers,

Moore Stephen LLP, the UK-basedrm of Chartered Accountants or-ganized and facilitated a one-day

technical workshop for all reportingstakeholders.

The workshop was held onWednesday, October 28, 2009 at theKrystal Ocean View Hotel, MambaPoint, Monrovia, Liberia. The work-shop brought together over seventy(70) representatives of mining, oil,forestry, and agriculture compa-nies operating in Liberia as well as

At the end of the Workshop,it was agreed that all companies

and Government reports are to beaudited or attested to by externalauditors.

The LEITI Second Report coversthe period July 1, 2008 to June 30,2009 and is expected to report pay-ment data of (1) all payments madeto the government of Liberia by alloil, mining, forestry and agriculturecompanies; and (2) the revenues re-ceived by the relevant agencies andMinistries of Government from theabove-mentioned companies.

LEITI PREPARES fOR SECONd REPORT

The Chairman of EITI Inter-national, Dr. Peter Eigenalong with Mr. Eddie Rich,Deputy Head of the EITISecretariat, paid a three-

day visit to Liberia from October 4-7,2009. While in the country, the EITIChairman met and held discussionwith president H. E. Madam EllenJohnson Sirleaf, ofcials of Govern-ment, the LEITI MSG, the donor com-munity, the Private sector and theCivil Society. Dr. Eigen and Mr. Richalso found time to attend an LEITI

awareness and community outreachmeeting in Bong Mines.

The awareness and communityoutreach meeting, which was incontinuation of the LEITI communica-tions and outreach program was heldwith citizens and residents of FuamahDistrict in Bong Mines, Bong County.The meeting brought together over500 participants including the Nation-al Traditional Council of Liberia, theSuperintendent and Ofcials of BongCounty and members of the BongLegislative Caucus. At the meeting,

EITI CHAIRMAN VISITS LIBERIA


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The Liberia Extractive Indus-tries Transparency Initia-tive (LEITI) has completedand published its 2nd EITIReport covering the period

July 1, 2009 - June 30, 2009 involv-

ing seventy-one (71) companies andve (5) agencies of Government. TheReport was launched on Thursday,February 18, 2010 by the Minister ofFinance and Chairman of the Multi-stakeholders Steering Group (MSG)of the LEITI, Hon. Augustine KpeheNgafuan.

The launching program was heldat the Ofces of LEITI, and attendedby members of the Multi-stakeholdersSteering Group (MSG), includingrepresentatives of the US Embassy,

the British Embassy, UNDP, the UnitedNations Missions in Liberia (UNMIL)and civil society.

Launching the report, Hon.Ngafuan praised all LEITI stakehold-ers for their dedicated services thatdid not only lead to the successfulcompletion of the LEITI 2nd reportbut also made Liberia to become theonly EITI Compliant Country in Africaand the second in the World, addingthat the Government of Liberia ismuch indebted to the stakeholders

for their work.According to Hon. Ngafuan, the

2nd LEITI Report represents a signi-cant milestone in the implementa-tion of EITI in Liberia and the worldat large because it is the rst EITIReport to include the disclosure ofpayments by agriculture concession-aires.

The 2nd LEITI Report is both anafrmation and a testament to thecommitment expressed by the Presi-dent. It does not only build on the 1st

LEITI Report, it also en-hances the reliability ofthe data and expandsthe sectors covered,The LEITI Chairpersonsaid.

Hon. Ngafuan dis-closed that beginningFebruary 18, 2010, theReport will be availableon the LEITI websiteand hard copies will bedistributed to membersof the internationalcommunity, the pressand relevant agen-cies of Governmentand that in the com-ing weeks the LEITI

will begin a massivedissemination exercise of the Reportboth locally and internationally.

Hon. Ngafuan said that the sup-port of everyone was critical to thesuccess of the LEITI and called onevery Liberian to read the Report anduse its content to contribute to ourshared quest for accountability anddemocratic governance.

According to the IndependentReconcilers at the end of the recon-ciliation, the remaining net differ-

ences amounted to US$144,995.00or 0.4% of the total amount declaredby the Government agencies. TheLEITI Report showed total pay-ments of US$35,280,234.00 made bythe extractive companies matchedagainst a total of US$35,425,230.00conrmed as received by the Govern-ment of Liberia. The report coveredcompanies operating in the followingfour sectors: (1) mining; (2) Oil; (3)Forestry; and (4) Agriculture. Of thefour sectors covered by the LEITI,

the agriculture sector made thehighest payment to the Governmentof US$18.3 Million which represents51.69% of total revenue received ,followed by the Mining Sector witha total payment of US$10.75 Milliondollars or 30.50%.

The LEITI is part of a global ini-tiative called the EITI which seeks topromote transparency over mineralrevenues with the hope that theincreased transparency will contrib-ute to proper utilization of these

revenues.Meanwhile, a total of six (6)

companies operating in the Miningand agriculture sectors were nedUS$1,000.00 each for failing to sub-mit payment data to the IndependentReconcilers during the reconciliationprocess.

A copy of the LEITI Report can bedownloaded from the LEITI websitewww.leiti.org.lr or a copy can beobtained at the LEITI Secretariat, 4thoor, Ministry of Finance Building.

LEITI PUBLISHES ITS SECONd EITI REPORT

the National Traditional Council ofLiberia gowned the EITI Chairman andthe EITI Deputy Head of Secretariat,and gave each of them a traditionalLiberia name.

The visit of Chairman Eigen toLiberia was his rst to the Mano RiverRegion in furtherance of the mount-ing recognitions Liberia continue toreceive for its ambitious, expansiveand pace-setting national EITI pro-

gram.Chairman Eigen has been consist-

ently appreciative and supportiveof Liberias progress to improve itsresource governance through im-plementation of the EITI process.

He was a principal supporter of theaward presented to Liberia in Doha,Qatar as the best EITI implementingcountry. Recently, Dr. Eigen spokeof the passage of the Act creatingthe LEITI as a further signal of thecommitment of the Government ofLiberia to improve the managementof their abundant natural resources.He further expressed admiration forhow Liberia has taken the initiative,

adapted and extended it to addressthe key issues in the country, andpraised the LEITI as an excellentprecedent for other implementingcountries in the region.




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LEITI outreach & Dissemination Awarness Banner

Head of the Validation Team, Dr. Macfarlanat a meeting with Civil Society

The superintendent of Bong County, Mr. Rennie Jackson mak-ing remarks at one of LEITI outreach meetings in Bong Mines

LEITI Outreach and Dissemination in Kakata, Margibi County

LEITI extends Outreach and Dissemination activitiesto the Students of the United Methodist University

EITI Chairman holds meeting with the MSG


8 LEITI N l tt | S t b 2009 M h 2010

LEITI Newsletter

Published by the LEITI Secretariat

4th FloorMinistry of Finance Building

Email: [email protected]

Website: www.leiti.org.lr

Telephone: +231 6 434 547

The LEITI Secretariat Staff

Edward R. A. Smith

Acting Head of Secretariat

[email protected]

Hnede L. Berrian

Administrative Manager

hlb i @l iti l

Kona D. Karmo

Project Accountant

[email protected]

leiti newsletter september 2009-march 2010

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