Initiative to counter graft in extractive industry

 THE national government will promote accountability in the extractive industry by using an anti-corruption initiative endorsed by cabinet this week, Treasury Minister Don Polye said.

The extractive industries transparency initiative (EITI) championed by Polye will see companies in the mineral and petroleum sectors disclose receipts when making payments to the government. Likewise the government will issue corresponding receipts to them. 

This initiative has been formulated to complement anti-corruption initiatives, complement the Sovereign Wealth Fund and used in general as a platform for continued reforms.

“The government has intended to sign up for the EITI as the O’Neill government’s on-going commitment to fight corruption,” he said. 

“Its core value is to encourage transparency of revenues generated from the extraction of natural resources in PNG, including mineral and petroleaum resources. 

“EITI places information regarding sector-specific taxes and revenues in public domain, thereby empowering stakeholders to ensure accountability in financial transaction between government and extractive industry companies.”

Polye said a multi stakeholder group would be established to administer the implementation of EITI. 

The group will comprise officials from relevant government agencies, the extractive industry companies and civil society. 

The group will be tasked to prepare a budgeted and result-based work plan for the programme.