MUTARE-Transparency International Zimbabwe (TIZ) says government should embrace open contracting principles to enhance transparency and accountability in natural resource management, as citizens have a right to know how government is selling their resources.
In a communique TIZ said government should follow through its commitment to join the Extractive Industry Transparency Initiative (EITI), as African governments adopt international best practices in management of natural resources.
Including recent entrants Uganda, at least 24 African countries have joined EITI which has a membership of 54 countries and TIZ says government must now follow through on its commitment and join, said TIZ.
EITI is an established global standard to promote the open and accountable management of oil, gas, and mineral resources, which requires disclosure of information in the mining value chain from extraction, to revenue flow to government, and how they benefit the citizens.
TIZ said for two years in a row, the government of Zimbabwe (GoZ) has, through the Minister of Finance and Economic Development, Professor Mthuli Ncube expressed its commitment to joining the EITI but has failed to follow through.
“In order to move along with international best practices on achieving transparency in the management of natural resources, the country is considering joining the Extractive Industries Transparency Initiative (EITI)……” said Ncube in the 2019 National Budget Statement.
TIZ said government owes it to citizens, as owners of mineral resources, to be transparent and accountable to communities for them to understand terms of the extraction of finite mineral resources.
“The lack of transparency and accountability in the mining sector has resulted in the state’s limited ability to optimize the mineral resource endowments. This has affected citizen participation in mineral resource management and explains the varying and unresolved conflicts between government, mining companies and the citizens
“Unfortunately, contract transparency in relation to the extractives remains a major drawback in Zimbabwe’s extractive industry, despite constitutional provisions pertaining to access to information, transparency, and accountability,” said TIZ.
TIZ said if government discloses contracts that it has entered into with mining companies, including information on corporate obligations, rewards and rights awarded to mining firms citizens will be empowered.
“When contracts remain secret, citizens and oversight agencies cannot properly monitor the implementation of transactions, placing the country at greater risk of corruption.
“The adoption of the Extractive Industries Transparency Initiative (EITI) would improve investor confidence in line with the Zimbabwe is open for business mantra and generate incentives for effective management of the extractives sector through increased transparency and oversight.
“(It will) Empower citizens, particularly communities in mining areas to hold the government to account over the responsible stewardship of natural resources thus reducing corruption risks in the extractive sector.
“Promote fair competition between firms and mitigate corruption risks during licensing, contract awarding, and auctions by reducing information asymmetry and by extension ensuring the credibility of government negotiations.
“Enable citizens to hold the government accountable for revenue collection (royalties, licenses, and taxes) and expenditure. Without this information it is difficult for citizens to participate in and influence the mineral regimes.
“Strengthen public and corporate governance, promote management of natural resources, and provide the basis for reforming the sector to ensure compliance with international best practices,” read part of the communique.
TIZ also urged government to formulate progressive policies that embrace transparency and accountability as the current Mines and Minerals Act does not have provisions for public disclosure of contracts.
The corruption watchdog said the mines legislation must have provisions that ‘provide for performance monitoring of mining contracts and develop frameworks for data collection and monitoring along the whole mining sector value chain.’
“Contract transparency in the extractive sector can minimize corruption risks and vulnerabilities thus complimenting local efforts aimed at improving the governance of mineral resources in Zimbabwe.
“Government must adopt provisions that provide for contract disclosure and online register of contracts in the proposed Mines and Minerals Bill (and) expedite the adoption and implementation of the mining cadastre which will help in the generation of reliable information including mining titles, beneficial ownership, and mining contract registries,” said TIZ.
“The Mines and Minerals Bill must provide for parliamentary oversight of Mining contracts in line with section 315 (2) (c) of the Constitution to ensure transparency and accountability in the negotiation of mining contracts.”
