Revenue Watch Praises Liberia for Milestone Approval on Transparency Practices

NEW YORK, — The Revenue Watch Institute congratulates the government of Liberia and national civil society and industry leaders on the country’s formal validation this month by the Extractive Industries Transparency Initiative, a global standard for disclosure and responsible management of oil and mineral wealth.

“As the first African country deemed compliant by the EITI, Liberia has proven that governments in Africa’s resource-rich nations can maintain successful partnerships with citizens and extractive companies as all three work to turn natural resources into a national benefit,” said Karin Lissakers, director of Revenue Watch.

Liberia is the second country to achieve EITI validation, after a multi-stage process of disclosures and audits. Lissakers urged local leaders to refine that process and resolve any gaps between payments reported by companies and receipts reported by the government.

“Where questions remain about discrepancies, or itemization of company payments, we’re confident that those involved will do what is necessary so that future reports reconcile the gaps and ensure a thorough and meaningful EITI process,” said Lissakers.

The Board of the EITI announced Liberia’s compliant status on October 14 in Baku, Azerbaijan. Azerbaijan was named the first validated country in February 2009. Thirty countries on four continents have declared their participation in the EITI.

Liberia demonstrated leadership on natural resource management earlier this year, when it signed the “LEITI Act,” mandating that all payments due to the government from extractive companies be disclosed, reviewed and “prudently utilized for the benefits of all Liberians.” The legislation is a welcome model for other countries and is also likely to lead to improved industry compliance with EITI requirements in Liberia.

“Revenue Watch looks forward to working with Liberia and its neighbors across Africa to promote wider EITI participation and replicable examples of resource wealth managed for the shared benefit of governments, international investors and local citizens,” said Lissakers.

The Revenue Watch Institute (www.revenuewatch.org) is a non-profit policy institute and grantmaking organization that promotes the responsible management of oil, gas and mineral resources for the public good. With effective revenue management, citizen engagement and real government accountability, natural resource wealth can drive development and national growth. RWI provides the expertise, funding and technical assistance to help countries realize these benefits. – Revenue Watch Institute