NEWS
April 10, 2008

East African Legislators Adopt Recommendations for Improving Accountability and Transparency in Region’s Extractive Industries

FOR IMMEDIATE RELEASE

WASHINGTON, D.C.—To reverse the role natural resource wealth has traditionally played in fueling conflict and corruption in many African countries, a plan to foster cooperation among East African legislatures on the management and oversight of the region's oil and mineral resources has been drafted by representatives of the East African Legislative Assembly (EALA).

  Yahia Said Testifies Before Senate Foreign Relations Committee
Panelists during February's EALA workshop on transparency in the extractive industries. From left, Tanzanian minister the Honorable Dr. Diodorus Kamala, EALA Speaker the Honorable Abdirahin Haithar Abdi, Ms. Susan Page of the National Democratic Institute and Ms. Vanessa Herringshaw from Revenue Watch.

The draft resolution includes calls for the review of extractive industry laws and contracts in the region, improved transparency of contracts and the strengthening of parliamentary capacity to oversee the sector. It also calls for all members of the East African Community (EAC) to consider joining the Extractive Industries Transparency Initiative (EITI), an international standard for improving transparency and accountability of revenues from oil, gas and mining.

The action came at the conclusion of a meeting on "Promoting Transparency and Accountability of Revenue from the Extractive Industries" held in Arusha, Tanzania, in February. The two-day workshop was sponsored by the National Democratic Institute (NDI) and the Revenue Watch Institute (RWI), in partnership with the EALA and the Parliamentary Network on the World Bank (PNoWB). It brought together EALA members from Tanzania, Uganda and Kenya; members of the parliaments of those countries, South Africa and the Democratic Republic of Congo; private industry representatives; international legal experts; a representative from the EITI Secretariat; and civil society leaders.

The EALA Speaker, Honorable Abdirahin Abdi, said, "These sectors are vital to the development of each country and the region as a whole. Parliaments must have the oversight capacity to ensure that they benefit all parts of the population. EALA will play a key role in helping to identify and share best practice across the region."

Sessions were informed by the findings of NDI's report, Transparency and Accountability in Africa's Extractive Industries: The Role of the Legislature. Based on research in nine African countries, the report summarizes the challenges African legislators face in overseeing oil and mining industries, highlights best practices to overcome the "resource curse," and offers recommendations for greater engagement and coordination by legislators, civic groups and the international community in monitoring the collection and use of revenues from the extractive industries.

EALA Member Dan Ogalo encouraged meeting participants to get more involved in extractive industry issues. "There are sufficient frameworks in our legislatures to ensure effective oversight – the problem is the lack of political will to do so," he said. "We have constitutions and rules of procedure that vest us with the power and authority to carry out legislative and oversight functions. The question is how far we are ready to go."

In adopting the resolution, EALA members underscored the importance of fostering cooperation in the efficient joint management and sustainable use of natural resources by the member states of the East African Community, comprising Kenya, Tanzania, Uganda, Rwanda and Burundi.

NDI, RWI and its partners will assist the EALA in carrying out the resolution's recommendations, to include support for the creation of a regional forum of extractive industry stakeholders, training on industry engagement and oversight, and technical advice from experts and legislators from other resource-rich countries whose experiences can help shape the development of regional principles and standards for the East African region.

Download a copy of NDI's report ... (pdf, 1.5MB)

Download copies of the EALA resolution and conference agenda ... (pdf)

Learn more at www.ndi.org ...

CONTACTS:
Vanessa Herringshaw: vherringshaw@revenuewatch.org, 44 79 00 49 26 31
Kathy Gest: kgest@ndi.org, 202-728-5535

The East African Legislative Assembly (EALA) is the independent legislative arm of the East African Community. In addition to providing a democratic forum for debate, EALA also has a watchdog function. More information is available at www.eac.int/EALA.

Created in 2000, The Parliamentary Network on the World Bank (PNoWB) mobilizes parliamentarians in the fight against global poverty, promotes transparency and accountability in international development, and offers a platform for policy dialogue between the World Bank and parliamentarians. PNoWB today includes nearly 1,000 MPs, representing development activists and policy makers from 110 countries. More information is available at www.pnowb.org and http://www.worldbank.org/parliamentarians.

The Revenue Watch Institute (RWI) promotes the responsible management of oil, gas and mineral resources for the public good. With effective revenue management, increased citizen engagement and real government accountability, natural resource wealth will drive a nation's growth and development. RWI provides the expertise, funding and technical assistance to help countries realize these benefits.

NDI is a non-profit organization working to strengthen and expand democracy worldwide. NDI works with democrats in every region of the world to build political and civic organizations, safeguard elections, and promote citizen participation, openness, and accountability in government. More information is available at www.ndi.org.


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NEWS & INFORMATION ARCHIVES

2006, 2005

PUBLICATIONS

Contracts Confidential: Ending Secret Deals in the Extractive Industries
Contract transparency is sorely needed to improve the management of natural resource wealth. In a new report from RWI, authors Peter Rosenblum and Susan Maples delve into government and private sector objections to contract disclosure and make conclusions about what information may legitimately and reasonably be kept confidential, and how civil society institutions can better confront the challenge of secret deals.
Learn more about the report ...

NEW TRANSLATION: Revenue Redistribution at the Local Level
Many resource-rich countries are attempting to compensate their producing regions through shares of resource revenues to be spent at the local level. In "Extractive Industries Revenues Distribution at the Sub-National Level," development economics consultant Matteo Morgandi presents a comparative analysis of international legislation for distribution of extractive revenues from across all levels of government. Prepared at the request of the Peruvian National Congress, the report studies the legislative practices of seven resource-rich countries to identify potential and address challenges. Please note that this report is now also available in Vietnamese.
Learn more ...