Liberia Extractive Industries Transparency Initiative (LEITI), the body that accounts for revenue reporting in the country has reported a revenue decline in the sector for its 2020 to 2021 reporting period.
LEITI’s 13th EITI report shows that the government of Liberia (GOL) generated $70, 915, 618USD as total revenue from the extractive sector as compare to $79.63 million 2019/2020; a net decrease of 10.9%.
The LEITI did not however give reason for the decline in revenue generation, but stated that in compliance with the New 2019 Extractive Industries Transparency Initiative’s standard the report shows improvement in collecting Beneficial Ownership information compared to previous reports.
Furthermore, the LEITI Secretariat said it is Extractive Industries Transparency Initiative Extractive Industries Transparency Initiative Extractive Industries Transparency Initiative collaborating with the Liberia Revenue Authority (LRA), Liberia Business Registry (LBR), and other relevant stakeholders to establish a Beneficial Ownership Registry for the extractive sector.
The 13th report provides improved information on the destinations of the exportation of natural resources alongside information on production data. It further strengthen Liberia’s adherence to Requirement 3 of the EITI 2019 standard.
The report also reveals challenges in sectoral oversights, data collection, and licensing processes.
Chairman of LEITI Multi-Stakeholder Steering Group C. Mike Doryen said following the adoption of the report on Monday, July 4, 2022 at the secretariat office in Monrovia said the 13th report was compiled under the Flexible Reporting Framework adopted by the EITI board.
The Flexible reporting seeks to ensure that EITI implementation safely contributes to global and national responses to the Covid-19 pandemic while upholding commitments to transparency, accountability, and multi-stakeholder dialogue.
It allows implementing countries to retain the momentum of the EITI process while adapting to local circumstances and urgent information needs. Unlike the Conventional Reporting Framework that requires reconciliation between government receipts and companies’ payments, the Flexible Reporting Framework requires unilateral disclosure of financial data by government institutions, Mr. Doryen said.
He said LEITI MSG, at the start of June 2022, commissioned its 13th EITI Report and hired the services of SRG Consulting LLC- USA in collaboration with Baker Tilly Liberia, two reputable firms to prepare the 13th EITI Report for Liberia using the Flexible Reporting Framework.
The Extractive Industries Transparency Initiative (EITI) is the global standard to promote the open and accountable management of oil, gas and mineral resources. The initiative requires oil, gas and mining companies to voluntarily disclose their payments to government agencies. The payments are then reconciled with government receipts from the companies and the data is published in the annual EITI reports.
