Call for clarity on the TOR for the implementation of EITI in Sao Tomé and Principe
Date: 31 Jul 2007
On 12/07/07, Sao Tomean civil society welcomed the publication of news reporting that the São Tomean government was about to adhere to the Extractive Industries Transparency Initiative (EITI).
The Minister for Natural Resources and the Environment, Manuel de Deus Lima (…), stated that he had sent a letter to the Chair of the EITI (…), reiterating the ’commitment’ of the Islands’ Executive to implement the EITI “as quickly as possible”.
“We would like to count with your assistance from the inception of implementation to finance the EITI governance structures, training and outreach programmes as well as your technical assistance that will be defined in detail in the action plan”, Deus Lima stated in his letter.
In order to put the Initiative into practice, EITI Criteria require the creation of a Multi-stakeholder Committee, but the role of this structure can be included in the Fiscalization Commission which already exists, according to experts from Columbia University (USA).
The EITI establishes a series of minimum criteria which countries must meet in order to qualify for the status of either candidate or implementing country. Some countries have chosen to go further than the minimum criteria and devise, for example, new ways of implementing the EITI.
By adapting the EITI to the context of the country, the government of Sao Tomé and Principe (STP) could thus develop an enriching and innovative experience for the EITI internationally. In fact, STP already has a framework law for managing oil revenues according to specified criteria and the same law provides for certain transparency mechanisms and structures.
It is also important to note that individual initiatives adapted to the basic context of each country, as in the case of STP, which want to conduct and implement ‘their EITI’, should be approved by the Secretariat and the international Board of EITI as well as national stakeholders. Above all, it should be expected that countries meet the minimum criteria and, if possible, go beyond them .
Now that Sao Tomean civil society is aware through the press that implementation of EITI in STP will take place through the Fiscalization Commission, we have consulted the constitution, organization, competencies and powers assigned to this body. Thus, in accordance with the framework law, the Fiscalization Commission is made of 11 members, designated or elected in the following manner:
- One member nominated by the President of the Republic
- Three representatives of the National Parliament, one of whom must be nominated by the
- Opposition parties;
- One judge with a minimum of 5 years professional experience nominated by the Supreme Judicial Council;
- One representative of the autonomous region of Príncipe;
- Two representatives of local government;
- One representative of the Employers’ Federation;
- One representative of the Unions;
- One representative of Non-governmental Organizations.
(…)In addition, the decisions of the Fiscalization Commission, in order to be valid, must be approved by a minimum of 6 members .
We have also consulted the Source Book, the Principles and the Minimum Criteria of the EITI , and below we summarize some of the elements in the Fiscalization Commission of our Framework Law that might not fully meet EITI requirements. These elements are:
DIVERSITY OF STAKEHOLDERS
The strength of EITI lies in its representation of diverse stakeholders, establishing a new model of collaboration between business, government, civil society and investors. It creates a forum for public institutions, private sector, civil society and international institutions and partners to interact. The aim is to encourage more transparency in payments and receipts related to the natural resources sector.
Question 1: The importance of oil companies being included in any body in partnership with other “stakeholders” or entities implementing EITI is undeniable. As such, how is the current model proposed for implementing EITI through the existing Fiscalization Commission going to deal with the issue of lack of oil company representation?
EITI PRINCIPLES – IMPORTANCE OF CIVIL SOCIETY
Point 8 of the 12 principles of EITI states the following: We believe that government should be accountable to its citizens in principle and in practice for the management of revenue flows and for public expenditure. Likewise EITI criterion 5 states: Civil society is actively engaged as a participant in the design, monitoring and evaluation of this process, and contributes towards public debate.
Question 2: In what sense will this principle of accountability be embodied in the current arrangements proposed for EITI when the Fiscalization Commission has only limited representation of civil society?
In addition, if the decisions of the Fiscalization Commission are to be valid, they can be approved by a minimum of 6 votes, which means any decision can be made by the Commission members without the approval of civil society representatives.
Considering that effective and free participation of civil society in implementing the initiative is a key criterion of EITI, what weight would be given to the views of civil society in the Fiscalization Commission as it is currently conceived, or in any future revised Commission, in order to allow STP to meet the minimum criteria of civil society participation?
EITI Source Book
The EITI Source Book of 2005 defends the idea that there are various participating sectors in EITI, namely public institutions, private sector, civil society, who are directly responsible for its implementation, and international partners, which support it.
The International Advisory Group (IAG) underlined the important role that diverse civil society groups (including community organizations, national and international NGOs, media organizations, unions, academic institutions, research bodies and religious associations) along with Members of Parliament can play in the successful implementation of EITI.
Question 4: Does the Fiscalization Commission, in its current conception bears some resemblance to the best practices and advice advocated by the Source Book, the IAG report and Minimum Criteria referred above, in terms of the representation of civil society, religious associations etc.? Also, how would media representation be ensured?
IMPLEMENTATION OF EITI IN STP
The EITI criteria require civil society to be effectively and freely involved in the conception, monitoring and evaluation of the EITI process, and in any public debate about it. In order to achieve this, there has to be a strong link between EITI implementation and civil society. However, we note that it is hard to discern what civil society groups are involved in the STP EITI.
Question 5: In this respect, we would like to know which civil society groups are involved in the creation of the EITI in STP and what kind of consultation is taking place? As far as we know, not even FONG – The Sao Tome NGO Federation – nor any other CSO organization like Webeto or the Platform for Citizens’ Participation, which have followed this kind of initiative most closely, have been consulted in relation to the setting up of EITI through the Fiscalization Commision and the GRIP (Office of Public Registration and Information) – a body which is also to be set up under the oil revenue management laws.
Thus, in order for us to exercise our rights as citizens, we are keen to learn more about how the Action Plan of the government in relation to EITI will be implemented in STP, since according to the EITI criteria, this plan should be publicly available and also reflect the views of civil society.
Benefits of EITI
Question 6 : Without being really aware of the terms under which the EITI is being put into practice in STP, and without being consulted, nor properly represented within a stakeholder committee such as in envisaged under the EITI minimum criteria, how can CSOs have the same influence and play the same decisive role as companies and government?
Question 7 : How can civil society take advantage of the opportunity to construct and reinforce relationships with investors, public institutions, international organizations in order to promote better public governance and raise citizens’ awareness?
EITI Criteria
Finally, we would like to have further clarifications on the minimum criteria that a candidate country like STP must fulfill.
In a report published in October 2006 entitled Eye on EITI , international civil society organizations engaged in the EITI assessed that STP did not at the time fulfill any of the basic 4 steps needed for EITI implementation, beyond endorsing the initiative. The 4 steps taken into consideration were: 1) the Nomination of a ‘Champion’ to oversee EITI implementation; 2) the setting up of a stakeholder committee involving civil society, government and business, 3) the elaboration of an action/work plan and, and 4) the publication of a reconciliation report.
The EITI Board recently sent “pre-validation letters” indicating that EITI candidate countries had to fulfill 4 initial steps to be maintained as a member of the initiative. These are: 1) public commitment to EITI implementation, 2) statement of collaboration with civil society and the private sector, 3) appointment of a champion, and 4) publication of a workplan. Sao Tomean civil society has been fighting for the implementation of these criteria for several years.
We have subsequently become aware, although never directly through a civil society consultation process, that STP has fulfilled the first 2 criteria and is about to fulfill the remaining 2 pre-validation criteria (presumably through the news article referred to above). We are delighted to learn that in a month STP will fulfill the four criteria, for which we have been calling for in the past years.
However, on behalf of STP civil society, we remain concerned about all the questions and points raised above, and particularly that the set up of EITI in STP has not involved an effective consultation of civil society, including those organizations which have followed these initiatives most closely, like for example Webeto, a STP NGO represented in both STP and in the Diaspora, International Alert, an international NGO, which has been working in STP and which organized in 2005 a conference “Living With Oil”, along with FONG which currently represents 85 Sao Tomean CSOs.
These CSOs should be considered natural stakeholders in the conception, elaboration and implementation of EITI in the country, as well as represented in the body which is going to oversee the implementation of the EITI in STP
As regards the Oil Revenue Fiscalization Commission, in view of the minimal role accorded to organized civil society and any other organization with a social aim within this body, we do not believe that it can effectively replace the role of an EITI committee or sufficiently represent the interests of all EITI stakeholders in STP, without substantial alterations that would take into account the interests of civil society and other EITI stakeholders.
FONG – Federação das ONG’s são-tomenses
Webeto.org
Plataforma para a Participação e Cidadania
