adminresource wealth benefits the country and serves as a basis for successful economic growth and poverty reduction, anti-corruption lobbyists say.
Anti-corruption lobbyist Carlo Merla told participants at a recent launch of the “Publish What You Pay Zimbabwe Chapter” that the extraction and sale of minerals generates large sums of money but local people have little information about the terms and conditions of the deals signed between mining companies and the Government or how much money was being generated.
“What the companies pay and what the Government receives should be disclosed.
“Sometimes it’s not about corruption but there may be some discrepancies that may help companies and the Government resolve gaps and shortfalls,” he said.
In the absence of such information, Merla said, mismanagement of revenues and corruption thrives in such circumstances resulting in entrenched poverty, poor governance and economic failure.
“Being open about profits, production values, costs and sales, royalties paid to Government and deals signed between extractive companies and their governments may help push forward the agenda of transparency,” he said.
The Zimbabwe Environmental Law Association in partnership with the Publish What You Pay (PWYP) – a global network of civil society organisations – launched the Zimbabwe Chapter to undertake public campaigns and policy advocacy to promote greater transparency and accountability in the mining sector.
“Mining has been primed as one of the key sectors that can drive economic recovery.
“We have massive problems because of lack of information, accountability and transparency. Lack of transparency permeates the whole mining sector,” said Mutuso Dhliwayo, the director of Zela.
He said there was lack of transparency and accountability in the whole value chain, issuance of mining licences and contracts, payment of royalties, understating of mineral output and general information regarding contracts and shareholding as well as lack of a clear diamond mining policy.
“Mineral resources belong to the people and being open about information can help build trust and dialogue. It can help the Government to manage growth and development and contribute to the empowerment of communities and society at large,” Dhliwayo said.
“PWYP campaigns help to clear misunderstandings and suspicions. How can you have a situation where, for example, a firm gets US$1 billion but pay US$50 000 to the State? It’s unfair and unjust, we need to review and re-negotiate the contracts so that Zimbabwe gets a better deal.”
Zimbabwe is losing millions of US dollars annually in tax and royalties due to poor monitoring of the extractive sector prejudicing development of most mining communities in the country.
One key example is the granite rock extractive sector in Mutoko. Global traders are selling a slice of a square metre of black granite mineral stones from quarries across Mutoko at prices between
US$500 and US$600 while the local district council is getting a mere US$1 for a tonne of black granite.
“PWYP is not a Western ideology nor aligned to any political party but a universal idea because transparency and accountability benefit Zimbabweans at large,” Dhliwayo said.
“Where these two lack, all Zimbabweans suffer despite their political affiliation or social background. Transparency and accountability are national issues. If these are violated every citizen is affected regardless of political affiliation.”
Anti-corruption lobbyists said Africa’s resources were being heavily developed now and that it was in everyone’s interests that mining companies operate to the highest standards to ensure some of the world’s poorest benefit from the wealth that lies in the ground beneath them.
Dhliwayo hoped the launch of the local PWYP chapter would serve as a springboard to push for the amendment of the Mines and Minerals Act, the finalisation of the Diamond Revenue Bill, the crafting of the Minerals Policy, access to information, adoption of Extractive Industries Transparency Initiative (EITI) as legislation as well as the development of fair mining taxation regimes.
“The launch presents a good opportunity for us to get more strongly involved in the management of natural resources for the benefit of our people.
“We want civil society organisations and local communities to work together to hold mining companies and Government accountable in the management of the country’s natural resources,” he said.
Critics of the PWYP campaign accuse anti-corruption lobbyists for being selective. They say this approach should be mandatory for all other industrial players.
Online Reporter