CSOs, media harp on contract transparency in extractive industry

…Task Nigerian government to publish crude-for-loan contracts

Civil Society Organisations (CSOs) and the media in the Niger Delta have asked the Federal Government to expedite action on contract transparency in the oil and gas industry. The call was made at a one-day programme in Port Harcourt, Rivers State, tagged: ‘Cost of Corruption’ organised by BudgiT a non-governmental organisation.

In his opening remarks, the Head, Natural Resources and Climate Governance, BudgiT, Enebi Opaluwa said that the workshop was organised to share experience on how the previous workshop had assisted participants to contribute and improve the work in fighting corruption.

Opaluwa explained that knowledge and experience sharing would help in reducing corruption in the contracts in the oil and gas sector, while lamenting the poor public finance management which has created poverty due to project abandonment, while lamenting that the volume of looted funds on a daily basis in Nigeria is astonishing.

He said that those looted funds transmitted to negative impact on social and economic activities such as schools, hospitals and the wellbeing of the people.

The Head, Natural Resource and Climate Governance BudgiT maintained that in the midst of corruption in the country, there is no sustainability plan as government continues to borrow to fund budget, while the workshop will find solution to have a better society where the issue of corruption is minimised.

In his presentation, Mfon Gabriel, executive director Citizen Advocacy Centre, speaking on Contract Transparency, said the media and the NGOs should raise the concern on how the Nigerian government, especially agencies regulating the oil and gas sector should ensure that owners of contracts should be publish to reduce the tendencies of corruption.

He said in 2004, Nigeria Extractive Industries Transparency Initiative (NEITI), was established to improve the standard which is transparency of contract in the oil and gas sector. “Section 2.4 of NEITI stated that public disclosure of any contract is very important,” he said.

Mfon stressed the need of benefits of contracts transparency for citizens and communities, saying that these will allow the community to know the volume of money coming in as the benefit to companies are enormous, specially building of trust and that it will also prevent conflict and call for collaboration. He lamented that the mining sector was worst where contract owners are not known.

The Executive Director, Citizens Advocacy Centre noted the gaps in the implementation of contract transparency in Nigeria and called for the amendment of Mineral Mining Act of 2007.

Also Speaking, Edidiong Dickson of Policy Alert explained the importance of Beneficial Ownership Transparency in the extractive industries, on the topic: Shining the light on Hidden Interest. How beneficial ownership Transparency can combat corruption”. He said secret ownership of oil and gas contract can lead to tax evasion, while buttressing that open contract will expose corrupt practice, promote fair competition, strengthen public trust and improve tax compliance.

Dickson said beneficial ownership transparency will expose criminal tendencies, tasking the media to tract the conflict of interest in awarding of contracts especially the current divestment and awarding of contracts in the Petroleum Industrial Acts.

Participants condemned the corruption in the Malabu oil block in OPL 245 in 1998, the Haliburton scandal, saying that the host community should be part of the divestment plan. Some of the recommendations at the workshop include that Nigeria should publish crude-for-loan contracts, the owners of the gold mining in Zamfara State should be exposed. Others are the Host Community Development Trust should publish all contract terms, NEITI should capture contracts report in the mining sector, among others.