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The African Parliamentary Index  Allocation_SpendingBudget ProcessesExampleAfricaThe African Parliamentary Index (API) measures the level of engagement of selected African parliaments with the budget process in their respective countries. The Africa Parliamentary Strengthening Program (APSP) for Budget Oversight is working with partner parliaments to strengthen their capacity to carry out their legislative, financial, oversight and representative functions in ways that engender good governance and values of accountability, transparency and participation, especially in the budget process. The self assessment tool covers 5 core areas - representation, legislation, financial, oversight,  institutional capacity and institutional integrity - related to Parliamentary budget oversight and other core functional areas that directly affect Parliaments' financial and oversight roles. The questions are both qualitative and quantitative, with the latter giving greater clarity of response. Instruments are designed to allow each area of Parliament's responsibility to be assessed separately or in turn. Questions require respondents to make judgment on a four-point scale. Assessment is done by a select group from parliament, usually members of the budget committee and chairs persons of other related committee. In all country assessment meetings, staffs from the clerk's department and the budget office play a key role in the assessments. They provide members of parliament with reference points from key documents like the standing orders of parliament and the constitution. http://www.ansa-africa.net/index.php/views/pub_view/the_african_parliamentary_index_an_update/
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Nigeria Corruption - Ngozi Book DraftResource_AvailabilityCorruptionExampleNigeriaGeneral Sani Abacha, Nigeria’s military ruler from 1993 to 1998, looted an estimated $3-5 billion of Nigeria’s public assets were looted and sent abroad, a substantial part of Nigeria’s public assets—2.6 to 4.3% of the 2006 gross domestic product, and 20.6 to 34.4% of the 2006 federal budget. At the upper end of the range, the amount stolen is larger than the 2006 education and health federal budgets combined. According to cost estimates provided by the World Bank, that amount of money could provide anti-retroviral therapy for 2-3 million people infected with HIV/AIDS over a ten-year period, or 200 million insecticide- treated bed nets.page 85
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Nigeria Contract Corruption - Ngozi Book DraftResource_AvailabilityCorruptionExampleNigeriaGeneral Sani Abacha, Nigeria’s military ruler from 1993 to 1998 siphoned public funds through contract inflation. One particularly odious case involved a Nigerian Family Support Program contract for Pasteur Mérieux vaccines—a program that was designed to benefit poor families, especially poor women and children. The $111 million contract was awarded to Morgan Procurement Ltd., a company belonging to the Abacha family. The true value of the vaccines was $22.5 million. Essentially, $88.5 million was skimmed off as profit for the family. This subversion of the country’s vaccines procurement introduced corruption into a crucial health program. It became virtually systemic and greatly undermined the country’s immunization and vaccination program, which in turn harmed Nigerian children.page 85
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Africa Education Watch – Transparency International Report, 2010ResultsImpact MonitoringExampleAfricaIllustrates the importance of T/A in education. A recommendation in the report is to empower local accountability structures. Local accountability structures (School Management Committees (SMCs) and Parent-Teacher Associations (PTAs)) are currently ill-equipped to address transparency issues and exercise their oversight roles. The respective roles of SMCs and PTAs should be clarified and action taken to raise public awareness of their responsibilities. Pro-active steps should be taken to stimulate, motivate and empower the school community to become actively engaged in school life. These may include national campaigns to raise the awareness of parents and local communities of how they can participate in the school decision-making process. Civil society organisation programmes that empower communities and promote their participation in school management and oversight should be supported and financed by international development partners, as well as allowed and encouraged by MoEs.http://image.guardian.co.uk/sys-files/Guardian/documents/2010/02/23/AfricaEducationWatch.pdf
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Freedom of Information laws and AccountabilityResultsImpact MonitoringExamplen/aThe most prominent study of compliance to FOI laws – as distinct from the impact of the laws - is a fourteen country study by the Open Society Justice Initiative (OSJI 2006). The study was based on nearly 2000 requests for information by persons of differing standing – NGOs, journalists, businesspeople, and representatives of minority groups. It found that FOI laws had increased the responsiveness of public officials, though ‘mute refusals’ remained a problem. However, the response was by no means uniform, and depended a great deal on the presence of an organised civil society and on the perceived standing of the person submitting the request. The study ‘highlights the point that FOI remains a “professionalized” environment, quite heavily reliant on expert civil society intervention and activism in order for it to be realised. http://www.transparency-initiative.org/wp-content/uploads/2011/05/synthesis_report_final1.pdf
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Public expenditure tracking of secondary education bursary scheme in Kenya Allocation_SpendingProcurementExampleKenyaThe secondary schools bursary scheme was introduced by the Government in the 1993/1994 financial year to enhance access, ensure retention and reduce disparities and inequalities in the provision of secondary school education.  In 2008, the Institute of Policy Analysis and Research conducted a pilot survey in 49 public secondary schools in Nairobi province. The results indicated that only 43% of those that applied for the bursary were able to access funding, with 84% received less than 1/3 of the maximum allocation. Just 0.4% received the maximum allocation. The data collected from schools further revealed that a significantly higher number of beneficiaries, 62% got funding from other bursary providers. Poor record keeping resulted in 7% of the money not reaching the beneficiaries. In 2009, IPAR embarked on a national survey of the remaining 202 constituencies. Findings from 184 constituencies and 189 schools reveal that the bursary is experiencing a number of challenges, notably: inadequate funds disbursed from the Ministry of Education to the constituencies with more than 61% of the demand unmet; poor use of allocation guidelines resulting in more than 83% of the beneficiaries getting the minimum allocation and inconsistent  support  to needy students which disrupts the learning programme. Further the findings indicate that there is poor keeping of records at the constituency level. The survey recommends for allocation of more funds to constituencies and financing of a few beneficiaries adequately to completion; disbursement of funds to constituencies in line with the academic curriculum; and revision of the guidelines to address the application procedures and submission of comprehensive reports, among others.  
http://www.ansa-africa.net/index.php/views/pub_view/public_expenditure_tracking_of_secondary_education_bursary_scheme_in_kenya/
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UK Tax Rule Relaxation May Cost Developing Countries £4bnResource_AvailabilityTaxExample
Developing Countries
The UK House of Commons Select Committee on International Development has called for the British government to do more to prevent international tax evasion so that developing countries can escape aid dependency. ActionAid is calling on the UK to amend a forthcoming change in tax laws so that British companies will not be able to use tax havens to minimise their tax liabilities in developing countries. According to the Daily Mail, the UK Treasury view is that the rules are there "to protect UK tax revenues and were not designed to protect those of other countries." http://www.cgdev.org/section/about/cgd_europe/europe_development_digest
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Participatory accountability vs audit accountabilityTheoryTransparency_AccountabilityExampleIndonesiaIn Indonesia, a well known study by Olken (2007) using random control methodology examined the effects of two different approaches to accountability – participatory approaches such as accountability meetings and anonymous feedback forms and, on the other hand, greater probability of governmental audits. He argues that the participatory approaches had little impact, due to free rider and elite capture problems, while the increase in government audits led to an 8% decline in missing expenditures. On the other hand, in contrast to the Olken study, a number of other less formal studies in other contexts argue for the value of citizen monitoring and advocacy on corruption issues, most notably, for instance, those arising out of the MKSS campaign and later social audit approaches in India (see Jenkins 2007), or, for instance, work by the Omar Asghar Khan Development Foundation in Pakistan to document mismanagement of earthquake construction funds. Less evidence exists on the impact of single issue, or single sector initiatives such as gender budgeting. Goetz and Jenkins (2005) note that such efforts focus largely on answerability of officials but are not often followed up or linked to demands for the enforcement side of accountability.http://www.transparency-initiative.org/wp-content/uploads/2011/05/synthesis_report_final1.pdf
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Results, Tracking still lacking in IATI Aid DataResource_AvailabilityExamplen/aHacks, hackers and development experts gathered at the Guardian offices in London this weekend to scrutinise aid data as part of a global Development Data challenge. Working with data from the International Aid Transparency Initiative (IATI), the groups found that it was impossible to trace the flow of aid money from donors to delivery, and that the published aid data lacks information about results. http://www.cgdev.org/section/about/cgd_europe/europe_development_digest
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Uganda Oil Revenue to Dwarf Development Assistance (Aid)Resource_AvailabilityNatural Resource RevenuesExampleUgandaIf effective oil production in Uganda can be sustained throughout the upcoming decade, it has the potential to mitigate large energy costs throughout the country, as well as to alleviate the country's expenditures on petroleum imports, which currently amount to $600 million annually. More importantly, Uganda's energy ministry and Tullow Oil both estimate that the current reserves alone could generate over $2 billion in annual revenue for more than 20 years. The cumulative amount earned each year from oil would exceed the funding Uganda currently receives in development assistance, which is around $1.7 billion per year. Revenues from oil can go a long way in supporting Uganda's development objectives provided that transparent, accountable and effective management systems are put in place to prevent and mitigate the most common political and socio-economic problems associated with oil extraction. http://www.revenuewatch.org/countries/africa/uganda/extractive-industries
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Sudan/South Sudan Agreement Isn’t Transparent Enough – Global WitnessResource_AvailabilityNatural Resource RevenuesExample
Sudan/South Sudan
The new agreement reached between South Sudan and Sudan on oil does not guarantee citizens the basic information they need to hold their governments accountable for the vast amounts of money involved, Global Witness said. The two countries, last week, inked various agreements on several post-independence issues, following month of intense negotiations in the Ethiopian capital, under the facilitation of the African Union High Level Implementation Panel (AUHIP).http://www.sudantribune.com/spip.php?article44065
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Uganda Corruption in public worksResource_AvailabilityCorruptionExampleUgandaIn Uganda, there is not one single public works project that has ever been finished on time or within budget. This is because a large part of the money paying for the country's cashmere exhibitionists and hedonists is 'borrowed' from the taxpayer. Corruption around public works is a billion dollar industry. According to reviews of government business, between 500bn and 950bn shillings is lost in procurement-related malfeasance. Transparency International (an NGO that monitors and publicizes corporate and political corruption in international development) announced last month that Uganda was the most corrupt country in eastern Africa. This illegal market is one cornered by politicians and civil servants.http://www.guardian.co.uk/world/africa-blog/2012/oct/01/uganda-oil
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Niger PWYP Video – Gold MiningResource_AvailabilityNatural Resource RevenuesExampleNigerhttp://www.youtube.com/watch?v=LBqQQ3MVnBw&feature=player_embeddedhttp://publishwhatyoupay.org/resources/new-pwyp-video-campaigning-oil-and-mining-transparency-niger
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Glencore's lack of transparency means no silver lining for ZambiaResource_AvailabilityCorruptionExampleZambiaDespite operating the Mopani mine for over ten years, the operation is yet to declare a profit or pay any corporation tax in Zambia. In a country where two thirds of the population live below the poverty line and just £15 is spent on education for each child a year, the lack of tax revenues has a direct impact on lives of millions of ordinary Zambians. The evidence, which came to light last year, suggests that Mopani may have been deliberately cooking the books to reduce its tax bill. A leaked audit report commissioned by the Zambian government (which Glencore disputes) accused the company of various tax dodges, which would have enabled it to shift profits of Zambia and into the tax haven of Switzerland. Based on the figures in the report, ActionAid estimated that Zambia could be losing up to £76 million a year. That amount far exceeds the British aid budget in the country, which stands at £59 million. The minister for mining believes that his country may be owed as much as $1 billion by mining companies. He was frank in his admission that "Once [the mineral] leaves, where does it go? We don't have a clue". http://publishwhatyoupay.org/newsroom/blog/swiss-giant-glencores-lack-transparency-means-no-silver-lining-zambia
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Angola Quote- Not Transparenct EnoughTheoryTransparency_AccountabilityExampleAngolaAngolan CSOs “too opaque and obscure for Angolans to discern how money is spent and thereby hold the government accountable for its actions”http://allafrica.com/stories/201203271098.html
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Guinea Mining Contract ReviewResource_AvailabilityNatural Resource RevenuesExampleGuineaA review of Guinea’s biggest mining contracts due this month (Oct 2012) will raise new questions about the future of the US$10 billion Simandou iron-ore project. The report will also test the credibility of the mining strategy launched by President Alpha Condé’s government after it came to power in December 2010. The government has reviewed the mining code and launched a review of mining contracts awarded by successive military-led regimes. Legal and political battles now loom as some of the losers fight back.5 October 2012 • Vol 53 - N° 20 • Africa Confidential
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Tax Revenue Loss in TanzaniaResource_AvailabilityTaxExampleTanzaniaTax revenue losses mean less money available to be spent for development. In total, we estimate that Tanzania has in recent years been losing revenues ranging from $847 million - $1.29 billion. This figure is does not include tax revenue losses from other forms of unreported trade such as smuggling, for which no data are available. A loss of around $1.07 billion amounts to over one sixth of the government’s entire budget expenditure of TShs 9.5 trillion in 2009/10. If the lost tax revenues were spent on education, the education budget would double; health spending would more than double and spending on agriculture – a massively under-funded sector – would more than triple. Alternatively, Tanzania could drastically reduce its reliance on foreign aid: the amount lost from taxes is over half the amount in aid received by Tanzania in 2009/10 (TShs 3.2 trillion). Figures suggests that illicit capital flows from Tanzania range from $94 – 660 million a year and that illicit flows from trade mis-pricing alone amount to $109 – 127 million a year. These already large figures are likely to be gross under-estimates due to the lack of accurate data. One expert working on this issue in Tanzania estimates that such flows could be close to $1 billion a year, with trade mis-pricing alone responsible for around $500 million. In terms of tax revenue losses, we estimate that the illicit flows could cost the Tanzanian government up to $300 million a year, of which revenue losses from trade mis-pricing amount to up to $150 million a year.http://www.policyforum-tz.org/files/ONEBILLIONDOLLARQUESTION.pdf
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HEPS Uganda - breaking the silence about health care/corruptionResultsHealthExampleUgandaA video produced by Results for Development, an international non-profit organisation whose mission is to unlock solutions to tough development challenges, was released online recently to encourage Ugandans to break their silence and take control of their health rights. In the video, Dennis Kibira, the medicines advisor at HEPS Uganda, a health consumer organization that helps increase access to essential medicine in Uganda says, "I want to see a country where people do not have to die because they have failed to receive the care that they deserve." In 2006, three ministers lost their posts after it was reported that they were involved in embezzlement of funds from the health sector. Their cases are still pending in court.
http://globalvoicesonline.org/2012/06/27/uganda-breaking-the-silence-about-medical-services-access/
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MDRE- support of GovernanceTheoryGovernanceExamplen/aThe AU and regional organizations should continue to promote free and fair elections and broader improvements in political governance, and to maintain the zero-tolerance’ approach to unconstitutional change, and to actions putting peace and stability at risk; the wider international community should support this and tackle the international dimension of better economic governance; the G-20 process should continue to be used to promote development in Africa. (Governance) p7http://www.oecd.org/site/africapartnershipforum/50362685.pdf
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MDRE- Elections as Governance measureTheoryGovernanceExampleMiscElections continue to be the most visible and tangible expression of the African Union and its member states’ commitment to democracy and governance. Within this overall picture, elections continue to be the most visible and tangible expression of the AU and its member states’ commitment to democracy and governance, and are now a regular feature of the political landscape. Between January 2011 and end-March 2012, 29 countries held elections at presidential, parliamentary, regional and local levels.(Governance) p30http://www.oecd.org/site/africapartnershipforum/50362685.pdf
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AEO- BusanTheoryTransparency_AccountabilityExamplen/aThe Busan Partnership for Effective Development Co-operation, agreed at the Fourth High Level Forum on Aid Effectiveness in Busan (Korea) in 2011, is the most inclusive agreement on global co-operation for development to date. Donors, South-South co-operation partners, developing countries, civil society organizations, private sector representatives and many others took part in formulating the agreement – under the auspices of the OECD/DAC-hosted Working Party on Aid Effectiveness – and lent their support to the final product. The Busan Partnership goes far beyond the traditional “donor-recipient” division: major South-South partners are promoting the document as a reference for their co-operation and the private sector has recognized that it could lead to innovative financing investment tools as well as new methods for reducing risk in developing countries. (Aid)2012 Africa Economic Outlook
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AEO- Capital FlightResource_AvailabilityCorruptionExampleAfrica, Nigeria, AngolaIf flight capital was saved and invested in the domestic economy of the country of origin it would increase income per capita and help to reduce poverty. In Nigeria and Angola, for example, this would imply additional investment of USD 10.7 billion and USD 3.6 billion per year, respectively in the period 2000 to 2008. If only a quarter of the stock of flight capital from Africa was repatriated to the continent for investment, Africa’s ratio of domestic investment to GDP would increase from 19% to 35%, giving the continent one of the highest investment rates (Fofack and Ndikumana, 2010). (Domestic Revenues)2012 Africa Economic Outlook
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AEO-Citizens more likely to protest or otherwise hold governments to accountTheoryGovernanceExampleMiscInspired by the Arab Spring, citizens everywhere are becoming more assertive in holding their governments to account for economic and social problems. Even countries that are traditionally calmer saw public protest: Botswana- nearly 90 000 people took part in a march to demand public sector salary increases. Uganda-thousands took to the streets after President Yoweri Museveni was sworn in for a fourth term in May 2011. Guinea-Bissau- After a couple of years of relative stability, GB saw several demonstrations of more than 10 000 people to demand the dissolution of the government over July and August 2011. Swaziland-saw protests against the exuberant lifestyle of its monarch and demands for more social spending and political reform. Namibia- there were strikes at Rio Tinto’s uranium mine by workers demanding better wages and pensions. Angola-faced protests for better wealth redistribution and against corruption among the ruling elite in a tense pre-election year. Morocco- referendum for a constitution. Cape Verde- former president Pedro Pires received the 2011 Ibrahim Prize when he stood down after his second term, sticking to the country’s constitution. Ghana -the increasing political pressure of the expected future windfall revenues from oil. Ghana is also a good example of how civil society can ensure control of public wealth management through the petroleum revenue management bill. Zambia- President Michael Sata campaigned in the election for the redistribution of mining wealth in a response to strikes by workers at several Chinese owned mining companies to demand better wages and labor conditions. (Governance) 2012 Africa Economic Outlook
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WB Africa's Pulse Report October 2012 on income inequalityResource_AvailabilityDomestic ResourcesExampleAfricaAfrica: After ten years of high growth, an increasing number of countries are moving into ‘middle- income’ status, defined by the World Bank as those countries achieving more than $1,000 per capita income.Of Africa’s 48 countries, 22 states with a combined population of 400 million people have officially achieved middle-income status; while another 10 countries representing another 200 million people today would reach middle-income status by 2025 if current growth trends continue or with some modest growth and stabilization. Another seven countries which are home to 70 million people could reach this milestone if they created economic growth of seven percent growth over the coming years. For example, Sierra Leone could grow at this rate because of its recent expansion in mining. Ten African countries, which are ‘fragile’ and conflict- affected states, and with a combined population of 230 million people, have almost no chance to reach middle-income status by 2025
http://www.worldbank.org/en/news/2012/10/04/despite-global-slowdown-african-economies-growing-strongly-world-bank-urges-countries-spend-new-oil-gas-mineral-wealth-wisely
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The importance of project-level reporting in AngolaResource_AvailabilityNatural Resource RevenuesExampleAngolaUS corporate filings by a BP partner company, Cobalt International, show that BP has agreed to make multi-million-dollar payments into obscure “social projects” controlled by Sonangol, the highly opaque state oil company of Angola, as part of a deal to win oil exploration rights. BP is making these payments despite well-documented concerns of corruption in the country. In January 2011, when BP and other foreign oil companies took part in bidding for 11 deep water oil exploration blocks in Angola, Sonangol, which controls the allocation of oil and gas rights, awarded shares in four of these blocks to BP. A corporate filing by Cobalt, a small US oil firm, reveals that Cobalt, BP and China Sonangol (an obscure joint venture between Sonangol and private Hong Kong investors) agreed to pay US $550 million over four years for one of these licences, Block 20. BP is reported to have a 20% share in Block 20, implying that it would pay $110 million of the total. These payments are not tax payments to the Angolan treasury but “contributions for social projects such as the Sonangol Research and Technology Center”, according to Cobalt. The IMF found a $32 billion discrepancy in Angola’s public accounts from 2007 to 2010, apparently mainly due to Sonangol spending money without properly accounting for it. Ten other oil blocks were awarded to BP or other oil companies by Sonangol at the same time as Block 20. Without project-by-project reporting, very large opaque payments such as BP and others appear to be making on specific deals with the Angolan government will remain largely hidden from scrutiny.http://www.globalwitness.org/library/bp-makes-opaque-payments-angola-oil-block-petro-lobby-seeks-weak-transparency-rules
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The importance of project-level reporting in DRCResource_AvailabilityNatural Resource RevenuesExampleDRCIn the DRC, vastly more information on project profits should be made public in order for subnational governments and affected communities to know whether they are getting their fair share. DRC law stipulates that a share of 25% of tax revenues from a mining project should go back to the province, and 15% back to the local territory or town. However, communities are currently not in a position to claim the tax money they are entitled to, because there is no way of knowing how much the local project is generating in taxes. For instance, First Quantum Minerals claimed to have paid US $55 million to the DRC treasury in 2009. In that year it had several projects in Katanga province; subsidiaries Frontier SPRL and COMISA ran the copper mine in Sakania, and subsidiary Kinganyambo Musonoi Tailings was the joint venture running the copper and cobalt project in Kolwezi. Technically, Katanga province should have been entitled to $13.75 million in taxes from those operations, but the communities of Sakania and Kolwezi have no way of determining their entitlement if First Quantum is only made to publish country-level and not project-by-project data. World Bank data suggests that the provinces are not, in fact, getting any share of the revenues from Kinshasa and are imposing their own direct taxes on companies extra-legally to compensate. This is particularly concerning given the history of separatism and conflict in Katanga.DRC Decree N° 038/2003 of 26 March 2003 on the Mining Regulation, Article 527. http://siteresources.worldbank.org/INTOGMC/Resources/EITIWBMiningSectorWEB.pdf, p.15.
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The importance of project-level reporting in GhanaResource_AvailabilityNatural Resource RevenuesExampleGhanaThere are two, very minor, categories of direct payments from extractive industry companies to subnational government entities in Ghana: property rate tax and ground rent payments. In 2008, these payments amounted to about 1% of the total revenue generated by the mining sector. All other payments are made to the central government and include royalties and corporate tax. In 2008, these amounted to respectively 64% and 35% of Ghana’s total mining revenues. Of the royalty payments, the Internal Revenue Service transfers about 9% on to mining communities via subnational district assemblies, traditional authorities and stools. Without project-related payment data, district assemblies, traditional authorities and stools affected by each project cannot calculate the ~9% of royalties they are due or hold government bodies accountable for transferring their share of the natural resource revenue.Aguilar J., Caspary G., Seiler V., “ Implementing EITI at the Subnational Level”, Oil, Gas, and Mining Unit Working Paper, World Bank, Extractive Industries for Development Series No. 23, October 2011.
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The importance of project-level reporting in ZambiaResource_AvailabilityNatural Resource RevenuesExampleZambiaHigh-profile cases of alleged underpayment of revenues owed to the Zambian government by major multinationals, such as Glencore, have drawn attention to the gaps in Zambia’s ability to effectively oversee and monitor companies operating within its borders. While improved oversight efforts within government revenue collection agencies and reforms to the country’s mining fiscal regime could generate improvements, lack of transparency is an impediment to progress. It is currently impossible to check whether new uniform tax and royalty policies are uniformly applied across companies, and there is insufficient information in the public domain to enable independent oversight and analysis of company payments and government receipts. Reporting of company payments by lease was required of companies (including Kansanshi Mines) that contributed data (from 2008) to Zambia’s 2011 EITI report, but under EITI this reporting is not regular, comprehensive or reliable enough for investor analysis or external oversight. Once again, an EU project-by-project reporting requirement would address these concerns.www.guardian.co.uk/business/2011/may/31/eib-halts-loans-to-glencore
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Report says Nigeria lost $29 billion over 10 years because of mispricing, reveals debts and missing $183 million in signature bonusesResource_AvailabilityNatural Resource RevenuesExampleNigeriaA team headed by the former head of the anti-corruption agency Nuhu Ribadu produced the 146-page study on an oil ministry request. It covers the year 2002 to the present. The report alleges international oil traders sometimes buy crude without any formal contracts, and the state oil firm had short-changed the Nigerian treasury billions over the last 10 years by selling crude oil and gas to itself below market rates. There was no suggestion that the oil majors or traders had done anything illegal, but the report highlighted a lack of transparency in their dealings in a nation rife with graft. "The estimated cumulative of the deficit between value obtainable on the international market and what is currently being obtained from NLNG, over the 10 year period, amounts to approximately $29 billion," the report said. It also said foreign oil firms had outstanding debts. Addax, now a unit of China's state-owned Sinopec, owes Nigeria $1.5 billion in unpaid royalties, part of a $3 billion black hole of unpaid bonuses and royalties owed by oil firms. Shell owes Nigeria's government 137.57 billion naira for gas sold from its Bonga deep offshore field, the report said, while oil majors owed $58 million between them for gas flaring penalties. They were also not adhering to newer higher fines. The state oil firm gets an allocation of 445,000 bpd of crude oil to refine locally but it has been selling itself this oil at cut-down prices, a practice which cost Nigeria $5 billion in potential revenue between 2002-2011, the report said. "NNPC buys at international rates," Oil Minister Diezani Alison-Madueke retorted. The report said the NNPC made 86.6 billion naira over the 10-year period by using overly generous exchange rates in its declarations to the government. There was no sign of the money. Nigerian oil ministers between 2008-2011 handed out seven discretionary licences but there is $183 million in signature bonuses missing from the deals, the report said. Three of these oil licences were awarded since Alison-Madueke took up her position in 2010, according to the reporthttp://af.reuters.com/article/investingNews/idAFJOE89N01W20121024
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Sudan – the New Gold Rush – Africa ConfidentialResource_AvailabilityCorruptionExample
Sudan/South Sudan
Figures from the United Arab Emirates Ministry of Foreign Trade on 7 October said Sudan had exported gold worth $1.976 billion to the UAE in 2011 (around 37.3 tonnes at $1,500/oz), making it the second supplier by value after Switzerland to the region’s dominant gold hub and nearly doubling 2010’s total gold revenue of $1.03 bn. On 30 October, Central Bank Governor Mohamed Kheir el Zubeir announced that 63 tonnes of gold had been exported since January. Up to 90% of revenue previously went untraced. It is now being recovered by the promotion of institutional (foreign) investment, the enforcement of licensing rules under the Mineral Resources and Mining Development Act 2007, a newly completed refinery for the whole region and the direct purchase of artisanal production by the CBOS.3 0 N o v e m b e r 2 0 1 2 • V o l 5 3 - N ° 2 4 • Af r i c a C o n f i d e n t i a l p 6
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Angola’s Oil Revenues, State Oil Company InterviewResource_AvailabilityCorruptionExampleAngolaOil deals are shrouded by confidentiality agreements, making it almost impossible to gauge how much money goes into Sonangol, Angola's state oil company. In an exclusive interview with CNN, Sebastiao Gaspar Martins, Sonangol's executive manager, admitted that Angola is making "a huge amount" from its oil. He said Sonangol produces "1.75 million barrels a day, which of course, if we multiply at the end of the year we make billions." But advocacy group Human Rights Watch has contended that tens of billions of dollars of oil money has skipped Angola's central bank entirely and disappeared. The International Monetary Fund says Sonangol spends billions off the books. Critics have also accused Sonangol -- which is both concession-granter and regulator of the industry -- of acting as a way to funnel part of the oil revenues to the political elite. The Angolan government denies corruption in the oil sector. And recently, it announced a $5 billion sovereign wealth fund in a bid to diversify its economy, a move welcomed by lenders for its transparency. http://edition.cnn.com/2012/11/28/business/angola-oil-revenues/
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Article on World Bank Contract Transparency Allocation_SpendingProcurementExamplen/aIn some developing countries, procurement can account for up to 70% of public spending. Estimates suggest governments around the world spend $9.5tn (£5.8tn) a year contracting private companies to provide goods and services, but these deals are often shrouded in secrecy. The World Bank finances public contracts worth up to $13bn each year.http://www.guardian.co.uk/global-development/2012/oct/26/world-bank-contracts-online-transparency
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Illicit Financial Flows -Via Global Financial Integrity - Malawi and NamibiaResource_AvailabilityCorruptionExampleMalawi, NamibiaIn a study conducted between November 2010 and February 2011 on ill-gotten money and the economy, the Financial Integrity team looked at the experiences of Malawi and Namibia. We approached the project with an open mind and without any assumptions, finding that for Malawi, corruption and tax evasion as a percentage of GDP represent a significant drag on economic development. Corruption is estimated at 5% of GDP and tax evasion, at a whopping 8-12% of GDP. Meanwhile, we estimated that tax revenue actually collected by the Malawi Revenue Authority is only 22% of GDP. Thus, if the national tax authority had successfully collected all the taxes it was due, government revenue would increase by 50 percent. This is approximately about how much Malawi receives in foreign aid (11.7 percent of GDP). As one Malawi Revenue official stated when being interviewed during the study: “if we collected all the taxes, we will then not have to depend on foreign aid”.http://blogs.worldbank.org/governance/how-corruption-and-tax-evasion-distort-development
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Inequality in Oil Rich Resource CountriesResource_AvailabilityNatural Resource RevenuesExampleAngola, Nigeria, Libya, Equatorial Guinea, Gabon, and the Republic of CongoFrom 1992 to 2010, the number of poor Nigerians (based on a daily-purchasing-power-adjusted income threshold of $2 per day) increased from 80 million to 130 million, even as oil rents nearly quadrupled from $15 billion to $58 billion (in constant 2010 dollars).http://allafrica.com/stories/201211201134.html?viewall=1
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Paying for the MDGs Financing Gap, Tax as proportion of GDP, Capital Flight in BurundiResource_AvailabilityNatural Resource RevenuesExampleDRC, Burundi, Ethiopia, Guinea-BissauSome countries have no hope of raising enough tax to pay for the MDGs. In 20 low-income countries, there is an estimated financing gap of $62.1bn between what they have and what they need to meet the MDGs. These countries have the weakest tax effort – tax contributes a low proportion of their GDP. In 2009, for example, countries such as Burundi, Democratic Republic of Congo, Ethiopia and Guinea Bissau collected as little as $35 per person through tax – hardly enough to provide the services needed to improve maternal mortality or provide universal education. For countries like these, aid is crucial. But it should be complemented by urgent efforts to strengthen their ability to raise revenue and to counter illicit capital flight – which reportedly cost Burundi $2.6bn between 1970 and 2004.http://www.guardian.co.uk/global-development/poverty-matters/2012/jan/23/whos-going-to-pay-for-mdgs?CMP=twt_gu
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Economist on Limited LiabilityResource_AvailabilityCorruptionExamplen/aArticle discusses advantages and disadvantages of limited liability. Primarily that anonymous ownership allows wrongdoers to make financial decisions and disappear when they encounter obstacles, leaving a bureaucratic mess for anyone seeking redress. The World Bank, OECD, and Senator Carl Levin have campaigned for reform with little success. Though there are some legitimate reasons for such privacy, the lack of transparency is also an obstacle to democracy and freedom.http://www.economist.com/node/21543164?utm_source=hootsuite&utm_medium=twitter&utm_campaign=linktracking
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Firscal Transparency is not enough - Mexico and budget transparency, FundarAllocation_SpendingBudget ProcessesExampleMexicoThe Mexican transparency NGO Fundar developed the Subsidios al Campo website all the way back in 2008 to better inform the debate about the country’s agricultural development strategy (you can see my case study here). The website is a public-facing database of individuals who have received agricultural subsidies — subsidies that are allegedly supposed to protect small-scale farmers from the flood of industrialized agricultural imports following the NAFTA. Fundar’s research revealed that 10% of recipients receive 57% of all subsidies. In other words, the subsidies were supporting the wealthiest farmers rather than the small-scale producers who most needed the help. Twitter users searched for presidential candidates. The story began to spread on Twitter like wildfire.http://davidsasaki.name/2012/04/fiscal-transparency-is-not-enough/
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Zambia Says Tax Avoidance Led by Miners Costs $2 Billion a YearResource_AvailabilityNatural Resource RevenuesExampleZambiaZambia is losing as much as $2 billion annually to tax avoidance, and mining industry is the biggest culprit. The country is looking to enact laws that will address the fact that businesses commonly avoid paying tax through transfer pricing, which distorts inter-division transactions so that a Zambian subsidiary appears to suffer a loss or parent companies have loaned money to local units at interest rates higher than the market, creating losses. http://www.bloomberg.com/news/2012-11-25/zambia-says-tax-avoidance-led-by-miners-costs-2-billion-a-year.html
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Data for the public good: from healthcare to finance to emergency response, data holds immense potential to help citizens and governmentTheoryGovernanceExamplen/aOpen data journalism, bridging the data divide, and open data projects. http://strata.oreilly.com/2012/02/data-public-good.html
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Nigeria losses to oil thievesResource_AvailabilityCorruptionQuoteNigeriaErstwhile Vice President of the World Bank for Africa, Dr Oby Ezekwesili,Tuesday, said Nigeria has lost more than $400 billion to oil thieves since she attained independence in 1960. Ezekwesili, who further regretted that as much as 20 percent of the entire budget for capital expenditure in Nigeria ended in private pockets annually, noted that whereas oil accounts for about 90 percent of the value of Nigeria’s exports, over 80 percent of the fund ends up in the hands of one percent of the country’s population.http://www.vanguardngr.com/2012/08/nigeria-loses-400bn-to-oil-thieves-ezekwesili/
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Central Bank Governor Benno NduluResource_AvailabilityDomestic ResourcesQuoteTanzaniaIncreased revenue from commodities will help reduce Tanzania’s reliance on foreign aid. “Earnings are generated in shillings and we have to service debt in foreign currency,” “We hope that the natural resources boom will lead to a reduction of official development assistance.”http://www.bloomberg.com/news/2012-05-29/tanzania-says-commodities-boom-will-cut-need-for-aid-correct-.html
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President Ellen Johnson-Sirleaf, LiberiaResource_AvailabilityDomestic ResourcesQuoteLiberia“Someday donor aid will be withdrawn and third-country personnel will leave. What kind of systems, institutions, processes will be left behind? This will be key to our ability to maintain effective government, sustain development, bolster accountability and thereby strengthen our democracy. Every post-conflict country, every highly indebted poor country needs to be weaned off assistance and take over its own destiny.”http://www.emansion.gov.lr/doc/11FRONTIERS_IN_DEVELOPMENT.pdf
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Hillary Rodham ClintonResultsHealthQuoteSierra LeoneSierra Leone- “And I am very excited by what the minister has done to enlist 1,700-plus women as health monitors, responsible for checking up on their local clinics, reporting problems to the health ministry. That’s a wonderful way for ownership to migrate down from the national level to the local level and then come back up as a reporting mechanism.”http://www.state.gov/secretary/rm/2012/06/191633.htm
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Hillary Rodham ClintonResultsHealthQuoteBotswanaBotswana - “Or consider Botswana, where the government manages, operates, and pays for HIV treatment programs. With PEPFAR’s support, it is also working with American universities to build a national medical school that will train the nation’s next generation of healthcare workers.”http://www.state.gov/secretary/rm/2012/06/191633.htm
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Hillary Rodham ClintonResultsHealthQuoteIndiaIndia - “If you look at what India has achieved – and I appreciate the minister being here – six years ago, when the government launched its National AIDS Control Program, half the budget came from outside donors. Today, less than one fifth does, and the Indian Government covers the rest.”http://www.state.gov/secretary/rm/2012/06/191633.htm
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President Barack ObamaResource_AvailabilityNatural Resource RevenuesQuoteUnited States“It’s rooted in our conviction that true development involves not only delivering aid, but also promoting economic growth -- broad-based, inclusive growth that actually helps nations develop and lifts people out of poverty.  The whole purpose of development is to create the conditions where assistance is no longer needed, where people have the dignity and the pride of being self-sufficient. You see our new approach in our promotion of trade and investment, of building on the outstanding work of the African Growth and Opportunity Act.  You see it in the global partnership to promote open government, which empowers citizens and helps to fuel development, creates the framework, the foundation for economic growth. You see it in the international effort we’re leading against corruption, including greater transparency so taxpayers receive every dollar they’re due from the extraction of natural resources.  You see it in our Global Health Initiative, which instead of just delivering medicine is also helping to build a stronger health system, delivering better care and saving lives.”http://www.whitehouse.gov/the-press-office/2012/05/18/remarks-president-symposium-global-agriculture-and-food-security
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Hillary Rodham ClintonResource_AvailabilityNatural Resource RevenuesQuoteUnited States“And there’s a special opportunity here for those nations that have recently discovered new sources of wealth in oil, gas, and other extractive industries. I urge you to follow the examples of two countries that are not often mentioned together in the same sentence: Norway and Botswana. Both discovered large stores of natural resources. Both dedicated a portion of the income to health and education. And in both cases, their investments coming from their own ground, their own natural resources, are saving lives and lifting up communities. And both Norway and Botswana are very generous in being willing to offer advice and technical assistance about how to do this.”http://www.state.gov/secretary/rm/2012/06/191633.htm
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Hillary Rodham ClintonTheoryTransparency_AccountabilityQuoten/a“To us, country ownership in health is the end state where a nation’s efforts are led, implemented, and eventually paid for by its government, communities, civil society and private sector. To get there, a country’s political leaders must set priorities and develop national plans to accomplish them in concert with their citizens, which means including women as well as men in the planning process. And these plans must be effectively carried out primarily by the country’s own institutions, and then these groups must be able to hold each other accountable as the women did in front of the parliament in Sierra Leone.” “First, we do need to move from rhetoric to the reality of making it a priority to strengthen country-led health systems. That means meeting our commitments even in tough economic times. Part of this assistance should include an assessment of country systems, led by the countries themselves, with common international benchmarks so we can compare results across borders. And those are not only national borders but donor borders.” “Third, donors must embrace transparency, even when it brings bad news. For example, when Zambia uncovered corruption in its Global Fund program, some donors responded by punishing them for the corruption, rather than applauding them for uncovering it. Now, we should never turn a blind eye to corruption or throw good money after bad, but it is counterproductive to punish our partners when they root out problems like that. It sends exactly the wrong message: We want you to fight corruption, but if you find any, we might freeze your funding. Instead, we should say find the corruption so that we can help you fix the problems.” “And fourth, donors need to solve the coordination curse. Donor coordination has been a theme at health and development conferences for so long, it is a cliché. But there’s a reason it keeps coming up, and that’s because it is critically important and notoriously hard to get right.” “And it also does mean taking on corruption at every level.”http://www.state.gov/secretary/rm/2012/06/191633.htm
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President Ellen Johnson-Sirleaf, Liberia on Aid TransparencyResource_AvailabilityQuoteLiberia“Partners have invested in health, agriculture, and education. They have stood with us as we attempt to restore damaged infrastructure. We, however, want greater scrutiny on how the money is spent. We want the same fiscal discipline that is required of us, because of our post-HIPC obligations, to be administered with our partners. “http://www.emansion.gov.lr/doc/11FRONTIERS_IN_DEVELOPMENT.pdf
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Zambia calls for transparency in gemstone miningResource_AvailabilityNatural Resource RevenuesQuoteZambiaMinister of Mines, Energy and Water Development Minister Yamfwa Mukanga says there is need for small- scale miners in the gemstone sector to declare their output and tax payments to Government and its agencies to ensure transparency in the sector. He said small-scale mines should work closely with Government to promote the sector. Mr Mukanga said this in an interview in Lusaka recently. “It’s not only large-scale miners who should be compliant, but also small scale, they should declare revenues they generate to Government including what they produce. “If small-scale miners are not closely monitored by the Extractive Industry Transparency Initiative (EITI) council, then our compliance status will be in vain,” he said. The minister said once small-scale miners declare their output and taxes; Government will be able to declare what revenues have been collected from the sector. Mr Mukanga said there is also need to come up with a necessary legal framework, which will compel small-scale miners to declare their payments to government. “Gemstone miners need to come on board, there is a lot of under declaration in that sector, and that is why we need to come up with a framework which will ensure that they are monitored,” he said. He said Zambia has a lot of gemstone that will see the country generate a lot of revenue if properly managed. Mr Mukanga said Government is in the process of finding equity partners who will help develop small-scale miners in the country, adding that most of them do not have the financial capacity. “Mining is a serious business, and it requires a lot of financial injection that is why Government is trying to find partners who can help small-scale miners develop,” he said.http://www.daily-mail.co.zm/?p=15938
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Nigerian President Falsifies TI Corruption RatingResource_AvailabilityNatural Resource RevenuesQuoteNigeriaThe Transparency International has denied claim by President Goodluck Jonathan that its report placed the country as second most improved nation in the fight against corruption. Speaking in a nationwide broadcast to mark this year's independence anniversary yesterday, Jonathan said his administration made gains in the anti-graft war saying, "in its latest report Transparency International (TI) noted that Nigeria is the second most improved country in the effort to curb corruption." But the Premium Times said it contacted the TI which denied claim by Jonathan that its report placed the country as second most improved nation in the fight against corruption. It said when contacted by the Premium Times, "The group replied promptly disowning Mr. Jonathan and saying it had no such report.http://allafrica.com/stories/201210020987.html
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New legislation tracks mining’s affect on Ghanaian economy & QuoteResource_AvailabilityNatural Resource RevenuesQuoteGhanaGovernment has affirmatively responded to a recent proposal for the enactment of a law akin to the Petroleum Revenue Management Law to allow for efficient management of mining sector revenues. The proposal, which is arguably the first major mining-related issue around which the positions of civil society groups and mining companies have effortlessly converged, is premised on the belief that such a law would allow for proper tracking of mining revenue utilisation, and therefore foster evidence-based assessment of the impact of mining on Ghana's economy. "Demands for a Minerals Revenue Management Act...have come to the attention of government and receiving serious consideration," Dr Kwabena Duffuor, Minister for Finance and Economic Planning, assured participants at the first Africa regional conference on the Extractive Industries Transparency Initiative (EITI) which ended in Accra last Friday. He also revealed: "...we have made great progress towards the proper establishment of the Minerals Development Fund (MDF). A draft bill is presently being finalized for Cabinet's consideration." According to the Minister, an MDF law "will contribute to effective management of part of the revenues generated by mining sector which went back to mine fringe communities ... In addition, it would provide resources to the host communities under the Mining Community Development Scheme to help reduce the negative impacts of mining on such communities."http://allafrica.com/stories/201210020875.html
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Ghana Forestry Transparency and QuoteResource_AvailabilityNatural Resource RevenuesQuoteGhanaOn Thursday, Vice President Amissah-Arthur gave clues of government's plan to roll out the initiative in the sector, saying: "I am optimistic that when we call on the forest sector stakeholders they will accord to us the same cooperation their colleagues in the mining and oil/Gas Industry have." He praised mining and petroleum (oil and gas) sector companies for offering support to the Ghana EITI (GHEITI) programme. "I also wish to commend those mining conglomerates and international oil and gas companies who through their own volition have supported our quest for transparency and accountability in the mineral and now oil and gas sectors." The Vice President gave the commendation in an address delivered on his behalf at the first Africa regional conference on EITI which is being organised and hosted by the GHEITI Secretariat in Accra on the theme: "Natural Resource Governance; Setting Standards with EITI."http://allafrica.com/stories/201209281422.html
Nigeria’s EITI process produced unprecedented physical and financial audit of its oil and gas sectors. In its 2005 EITI report, the Nigerian government was able to identify approximately £362m of underpayments due to government error. Government officials estimated that as a result of closing loopholes that were highlighted by the EITI process, they save £650m each year.
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Nigeria Petroleum Legislation to increase taxesResource_AvailabilityNatural Resource RevenuesQuoteNigeriaNigeria is looking to increase the government’s take on offshore oilfield projects from 61% to 73% under draft petroleum legislation being discussed in the Abuja parliament, according to a report. The controversial proposal, outlined in a statement by Petroleum Minister Diezani Alison-Madueke, comes as a bitter pill for major oil companies such as Shell and ExxonMobil that have warned “non-competitive” tax terms on offer in the bill could make deep-water schemes unviable and may badly hit investment. “The proposed increase of government take to about 73% is not only competitive but considerate when we look at the scale of other entities around the world,” the minister contended , citing Norway, Indonesia and Angola as examples of countries with similarly high state take – the total share of oil revenues after all taxes and royalties.http://www.upstreamonline.com/live/article1266833.ece
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South Sudan Minister Says more Transparency Needed in Extractive IndustriesResource_AvailabilityNatural Resource RevenuesQuoteSouth SudanCivil society in South Sudan should be strengthened and fully supported if the country is to fully fight any form of corruption in the country’s extractive industries, Stephen Dhiew Dau, South Sudan’s minister for petroleum and mining said on Monday. The minister said citizens of South Sudan have the right to know how South Sudan’s resources are being managed and where money made from these resources were being spent. “The only way to prevent corruption in a system with such massive and rapid movement of oil and wealth is to be absolutely open in our affairs. Your role as civil society is of upmost importance in the fight against corruption in the oil and mining sector,” Dau said in his speech read by his advisor, Chuor Deng Mareng. He further pledged to enforce regulations of the Petroleum and Mining Ministry, in regard to the implementation of accountability and transparency aspects as stipulated in the draft Petroleum and Mining Act of South Sudan. “(..)…our draft Mining Bill contains provisions that support and confirm transparency of payments and revenues in accordance with the Extractive Industries Transparency Initiative,” the minister’s statement reads in part.http://www.sudantribune.com/spip.php?article43793
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Finance Minister On Diamonds in ZimbabweResource_AvailabilityNatural Resource RevenuesQuoteZimbabweFinance Minister Tendai Biti says the treasury only received $46 million from $456 million sale of Zimbabwean diamonds. The rest of the amount has been siphoned off. The leakages are expected to continue despite Zimbabwe appointing the Zimbabwe Revenue Authority (Zimra) to plug the diamond looting. According to Biti’s update, which includes Reserve Bank of Zimbabwe figures, diamond companies exported $456 million worth of product between January and August this year. The underperformance of diamond revenues forced government to revise its $4 billion budget down to $3.4 billion. http://www.zimdaily.com/zimnews/us410-million-diamond-revenue-disappears-in-zimbabwe.html
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Nigerian President Supports EITI and Audit Report ReccomendationsResource_AvailabilityNatural Resource RevenuesQuoteNigeriaGoodluck Jonathan has charged the new National Stakeholders’ Working Group (NSWG) of the Nigeria Extractive Industries Transparency Initiative (NEITI) to set the necessary machinery in motion for the implementation of remedial issues raised in its audit reports. Speaking through the Secretary to the Government of the Federation (SGF), Anyim Pius Anyim, while inaugurating the group, the President said the objective of bettering the human condition of Nigerians could not be achieved if accruable resources needed for development purpose were not realised. He said: “As you are aware, NEITI has conducted several audit reports but implementation of the findings and recommendations are yet on-going. You should endeavour, as a matter of utmost importance to ensure the conclusive implementation of all remedial issues contained in the report. There is also the tendency for some companies and other entities to attempt to frustrate the work of NEITI by refusing to comply with the process. You must identify such companies and agencies for appropriate sanctions as provided for in the law.” The President reaffirmed the country’s commitment to the full implementation of the principles of extractive industries transparency initiative in the oil, gas and mining sector.
http://www.ngrguardiannews.com/index.php?option=com_content&view=article&id=96557:presidency-wants-neiti-to-implement-audit-reports-&catid=1:national&Itemid=559
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Deouty Minister of Local Government and Housing Forrie Tembo has urged local authorities to be transparent and accountableTheoryTransparency_AccountabilityQuoteZambiaDEPUTY Minister of Local Government and Housing Forrie Tembo has urged local authorities to be transparent and accountable in the use of public funds to improve service delivery. Mr Tembo said all councils should be transparent and accountable in resource allocation, to foster meaningful economic development. He said this in Lusaka yesterday during the official opening of a training workshop for councils on the medium term expenditure framework (MTEF) and activity-based budgeting (ABB). Mr Tembo said most local authorities in Zambia are failing to deliver to the expectations of their communities because of the rampant abuse of funds meant for the implementation of development projects. He said councils should adopt MTEF and ABB to promote transparency and accountability in the use of public funds. “Once the MTEF and ABB are adopted by local authorities, accountability and transparency in the use of public funds will be enhanced and more stakeholders will be given an opportunity to participate in the planning, budgeting, implementation and monitoring of development activities at the district level. “I have no doubt that the MTEF and ABB will help councils to plan and budget more effectively and realistically to enhance accountability and transparency in their financial management,” Mr Tembo said.
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Botswana Quote Positive Natural ResourcesResource_AvailabilityNatural Resource RevenuesQuoteBotswanaCountries like Botswana have shown that strong natural resource management can lead to strong development outcomes. Diamonds have helped Botswana achieve middle-income status and according to the UNDP the country is likely to meet almost all the MDG indicators. President Festus Mogae told the Center for Global Development in 2006 that “Botswana’s economic success is in a large measure attributed to the exportation of natural resources” and repeatedly stressed the value of transparency.
Speech by President Festus Mogae on October 11th, 2006: http://www.cgdev.org/doc/events/10.11.06/PresidentMogae10.11.06.pdf
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VP of the WB for Africa Quote that $400 billion has been lost to Oil Thieves in Nigeria since 1960Resource_AvailabilityNatural Resource RevenuesQuoteNigeriaErstwhile Vice President of the World Bank for Africa, Dr Oby Ezekwesili,Tuesday, said Nigeria has lost more than $400 billion to oil thieves since she attained independence in 1960. Ezekwesili, who further regretted that as much as 20 percent of the entire budget for capital expenditure in Nigeria ended in private pockets annually, noted that whereas oil accounts for about 90 percent of the value of Nigeria’s exports, over 80 percent of the fund ends up in the hands of one percent of the country’s population.http://www.vanguardngr.com/2012/08/nigeria-loses-400bn-to-oil-thieves-ezekwesili/
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AEO on Dodd FrankResource_AvailabilityNatural Resource RevenuesQuoten/aThe passing of the Dodd-Frank financial reform bill by the US Congress in July 2010 should lead to increased transparency on the amount and use of payments made by multinationals to national governments for natural resource extraction. The law requires extractive companies listed on the Securities and Exchange Commission to report payments to national governments on a country-by-country and project-by-project basis. This should allow African citizens and civil society to hold governments more accountable for the use of natural resource rents. Following this new law, in 2011, the European Commission started to develop its own version of the law, potentially requiring the disclosure of profits made by multinationals in Africa.(Budget Transparency) 2012 Africa Economic Outlook
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The importance of project-level reporting in NigeriaResource_AvailabilityNatural Resource RevenuesQuoteNigeriaCourt documents from a March 2012 New York arbitration case reveal that Nigerian subsidiaries of Shell and ENI agreed to pay US $1.092 billion to the Nigerian government for oil block OPL 245. At the same time, precisely the same amount was agreed to be paid by the Nigerian government to Malabu Oil and Gas, a company reported as controlled by Abacha-era minister Dan Etete – who has a 2007 conviction for money-laundering in France, upheld in 2009 – to settle any existing claims surrounding ownership of the long-disputed block. The court documents also suggest that Shell’s subsidiary agreed to pay a signature bonus of approximately $208 million to the Nigerian government. The final judgement of the case states: “it does appear that the [Federal Government of Nigeria] was the proverbial ‘straw-man’ holding $1.1 billion for ultimate payment to Malabu”. Shell and ENI deny paying any money to Malabu in respect of the licence. In a country plagued by poverty and corruption, the need for citizen oversight of payments to governments for natural resources on a project-by-project basis could not be clearer. Project-level reporting could also increase safety and security for workers in Nigeria. The Petroleum and Natural Gas Senior Staff Association of Nigeria noted in a letter to the US SEC that “revenue transparency, including project-level payment disclosure, will help create incentives for investment that benefits communities, alleviating much of the violence in the volatile Niger Delta and improving the safety of our members”.http://www.globalwitness.org/library/shell%E2%80%99s-obscure-payments-kill-its-case-weak-us-and-eu-transparency-laws Petroleum and Natural Gas Senior Staff Association of Nigeria letter to the SEC, 27 June 2011, http://sec.gov/comments/s7-42-10/s74210-93.pdf
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Bono on Technology, Transparency and CorruptionTheoryTransparency_AccountabilityQuoten/aBono has also had realizations about how useful the Internet can be for transparency. “The strongest and loudest voice with moral punch on the continent at the moment is a nerd,” Bono said, pointing to the tech company founders in the audience, many of whom were programmers. “He’s a tech innovator.” Websites like ipaidabribe.com, a site founded in India where citizens can report incidents of bribery and corruption, and another African site in which school kids can report if their teacher hasn’t shown up to class, were fighting the “biggest killer disease of them all: corruption,” said Bono. “It kills more kids than AIDs, TB and malaria. Right now in Africa we spend time with groups in civil society, with groups who are using technology to inform themselves better on what governments are doing and holding them to account.”http://www.forbes.com/sites/parmyolson/2012/10/22/bonos-humbling-realizations-about-aid-capitalism-and-nerds/
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Joyce Banda on transparency in extractives, speculation about oil in MalawiResource_AvailabilityNatural Resource RevenuesQuoteMalawiThe prospect of oil under Lake Nyasa (known as Lake Malawi in Malawi) holds great promise for one of the poorest countries in the world. The mechanisms by which such enrichment should, indeed must, take place are well known: transparency around the allocation of licenses and revenues; the establishment of an oil revenue management fund; and ongoing investment in other productive areas of the economy. Such measures would provide citizens with the means to hold their governments to account over oil governance, and an assurance of continued stability when wells run dry. President Joyce Banda showed a deft hand and lack of patience regarding rumours of corruption around the allocation of an exploration license. Launching probe in August this year, she told the press, "We have heard that there were underhand dealings in this contract so we would like to find out the truth". But aside from launching the probe, Banda has given little signal of how oil will be managed. The lack of discussion around how revenues will be distributed to ordinary Malawians is unnerving, as is the silence on how she intends to safeguard fishing communities dependent on the lake from the inevitable impacts of large-scale oil exploration. Banda will need to show a firm hand here too if the murky waters surrounding contract allocation are anything to go by.http://www.guardian.co.uk/world/2012/oct/22/malawi-oil-africa-economy
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Mo Ibrahim on Corporate Success, Governance and the importance of transaprencyResource_AvailabilityCorruptionQuoten/a"Businesses should stand up and speak for transparency, for policies like regional integration, educational reforms, and for human rights and equitable development. There is a complete absence of business in these agendas. Business is a great force of change, has a lot of power, but they are not using it because they are afraid of hurting the tender feelings of government," Ibrahim says. "It's in our interest to have stable and prosperous societies as an operational environment," he argues. "I wouldn't like to be in the shoes now of the shareholders or the board of these mining companies in South Africa, because your business is going to the dogs now. You have striking miners, you have violence, you have people dead. Is that good for business? Of course it's not."http://allafrica.com/stories/201212190763.html
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Bono w MIT, on Transparency, power of Technology, asking for the world we want.Resource_AvailabilityQuoten/aCorruption is deadly, but there’s a vaccine for that too—it’s called transparency. Daylight. It’s much harder to rip people off when they know what’s going on. We can gather and disseminate data in all sorts of ways, giving a whole new meaning to the word “accountability.” - The president has also championed transparency in the oil, gas, and mineral extraction sector, shedding much-needed light on some of the murkier dealings that go on. Where there is great wealth under the ground in some of the poorest countries, the benefits belong in the hands of all those who live there. - Collecting more data and more open data so we can drill down further on knowing what to do. Continued technological innovations, no question, on more and more fronts. The connectivity of social media, harnessed for action, not apathy. Hundreds of thousands marched in the “Drop the Debt” campaign, and now an extra 51 million kids in Africa are going to school because of monies freed up by debt cancellation—it’s a staggering number. That wouldn’t have happened without people across the globe demanding it. The tools that technology provides mean we know more and we understand more about previously-thought-unsolvable problems. With this data informing our course we can describe the kind of world we want to live in and then without airy-fairyness or wishful thinking go after it. It’s the greatest opportunity that has ever been offered any generation. http://www.technologyreview.com/qa/508771/bono-sings-the-praises-of-technology/
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Pope Francis spotlights social teaching with blunt calls for ethical economyTheoryTransparency_AccountabilityQuoteVatican CityThe worldwide financial and economic crisis seems to highlight their distortions and above all the gravely deficient human perspective, which reduces man to one of his needs alone, namely, consumption. .... Added to this, as if it were needed, is widespread corruption and selfish fiscal evasion which have taken on worldwide dimensions. The will to power and of possession has become limitless.
http://ncronline.org/news/vatican/pope-francis-spotlights-social-teaching-blunt-calls-ethical-economy http://www.vatican.va/holy_father/francesco/speeches/2013/may/documents/papa-francesco_20130516_nuovi-ambasciatori_en.html
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Availability of Budget info, BP Open Budget Survey 2012Allocation_SpendingBudget ProcessesStatisticn/a23 of 100 countries provide enough information for citizens to analyze and understand the budget.http://internationalbudget.org/what-we-do/open-budget-survey/
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IBP Open Budget Survey 2012Allocation_SpendingBudget ProcessesStatisticFrancophone Africa also stands out for its recent progress. The average OBI score for the countries in Francophone Africa that were included in both the 2010 and 2012 Survey has doubled (from 8 to 16 points). A number of factors have contributed to these improvements. In 2009 the West African Economic and Monetary Union (WAEMU), which includes most Francophone West African countries, issued a directive on fiscal transparency aimed at improving the quality and dissemination of fiscal information in the region. Since then, countries in the region have been implementing measures to comply with this directive.http://internationalbudget.org/what-we-do/open-budget-survey/
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IBP Open Budget Survey 2012Allocation_SpendingBudget ProcessesStatisticAfghanistan, Burkina Faso, the Dominican Republic, Honduras, Mozambique, Pakistan, and São Tomé e Príncipe.Seven countries, from various parts of the world, improved their budget transparency dramatically between 2010 and 2012, with their OBI scores each increasing by more than 15 points. These countries are Afghanistan, Burkina Faso, the Dominican Republic, Honduras, Mozambique, Pakistan, and São Tomé e Príncipe.http://internationalbudget.org/what-we-do/open-budget-survey/
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MakeBudgetsPublic.orgAllocation_SpendingBudget ProcessesStatisticn/aNearly 100 organizations from 56 countries have joined a Global Movement for Budget Transparency, Participation and Accountabilityhttp://www.makebudgetspublic.org/
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Budget Transparency via Open Budget Survey 2012Allocation_SpendingBudget ProcessesStatisticSSA11 of 26 countries that provide little to no budget information are located in sub-Saharan Africa.http://internationalbudget.org/what-we-do/open-budget-survey/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticMexico, RussiaTwo countries (Mexico and Russia, the 9th and 2nd largest oil exporters, respectively), together lost over $1 billion between 2000-2009 to illicit financial flows.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticSaudi ArabiaSaudi Arabia, the developing world's largest oil exporter, lost US$380 billion to illicit financial flows from 2000-2009. Illicit Financial Flows doubled from US$41 billion in 2008 to US$82 billion in 2009, despite the global financial crisis and slowdown in international trade.http://iffdec2011.gfintegrity.org/
78
Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticRussiaRussia, the developing world's 2nd largest oil exporter, lost $501 billion to illicit financial flows from 2000-2009. Russia ranks third in worldwide illicit outflows over that period.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticIranIran, the developing world's 3rd largest oil exporter, lost $75 billion to illicit financial flows from 2000-2009.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatistic
United Arab Emirates
The United Arab Emirates, the developing world's 4th largest oil exporter, lost $296 billion to illicit financial flows from 2000-2009.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticVenezuelaVenezuela, the 5th largest oil exporter in the developing world, lost US$178 billion to illicit financial flows from 2000-2009. Its outflows ranked #1 in all of South America.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticKuwaitKuwait, the developing world's 6th largest oil exporter, lost US$270 billion in illicit financial flows from 2000-2009.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticNigeriaNigeria, the developing world's 7th largest oil exporter, lost US$181 billion in illicit financial flows from 2000-2009. It had the largest illicit outflows in Africa.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticAlgeriaAlgeria, the 8th largest oil exporter in the developing world, lost US$23 billion to illicit financial flows between 2000-2009.http://iffdec2011.gfintegrity.org/
85
Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticMexicoMexico, the developing world's 9th largest oil exporter, lost US$504 billion from 2000-2009. Unlike most oil exporting countries, Mexico's illicit financial outflows were primarily due to trade mispricing and tax evasion, instead of corruption, kickbacks, and criminal activity.http://iffdec2011.gfintegrity.org/
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatisticLibyaLibya, the 10th biggest exporter of oil in the developing world, lost US$43.32 billion in illicit financial outflows from 2000-2009.http://iffdec2011.gfintegrity.org/
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Corruption in ExtractivesResource_AvailabilityCorruptionStatisticEquatorial Guinea, Cameroon, AngolaBetween 2007 and 2010, $32bn of revenues in Angola has gone missing – equivalent to ¼ of Angola’s GDP and more than the 10 times the total ODA for the past decade. Of the estimated $300bn in oil revenues in Nigeria between 1970 and 2000, at least $100bn has been looted or stolen. In 2006 Equatorial Guinea had a GDP per capita of $15,000, similar to Portugal, while 76% of the population where living below the national poverty line; the highest proportion recorded that year in the World Bank database. Despite an estimated cumulative oil rent of $27 billion over the period from 1977 to 2007, Cameroon entered a deep 7 year recession starting in 1987, with various development indicators dropping significantly between 1991 and 2004. Suneeta from Resource Watch Institute
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Global Financial Integrity, Illicit Financial Flows from Developing Countries: 2002-2006Resource_AvailabilityCorruptionStatistic
Developing Countries
An estimated $1 trillion every year is lost in illicit financial outflows from developing countries http://www.gfintegrity.org/content/view/149/70/
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Illicit Financial Flows from Africa: Scale and Developmental Challenges - UNECAResource_AvailabilityCorruptionStatisticAfricaThe report on Illicit Financial Flows from Africa: Scale and Developmental Challenges has chastised multinational corporations for the illicit transfer of most of the $ 1.5 trillion they make in Africa each year back to the developed countries, draining hard currency reserves from the continent, stimulating inflation, reducing tax collection and deepening income gaps. The report says that since the early 1960s when multinationals entered Africa, “foreign direct investment by the multinationals could have been as high as US$ 1.5 trillion a year, although most is directed towards the developed world.” “Indeed, it is equivalent to nearly all the ODA received by Africa during that timeframe - a record level of US$ 46 billion in 2010. Just one-third of the loss associated with illicit financial flows would have been enough to fully cover the continent’s external debt that reached US$ 279 billion in 2008”, the report adds. It notes that the trend has been increasing over time and especially in the last decade, with an annual average illicit financial flow of US$ 50 billion between 2000 and 2008 against a yearly average of only US$ 9 billion for the period 1970-1999. “Two-third of the outflows was attributed to only two regions, namely West Africa and North Africa, with 38% and 28%, respectively. Each of the other three regions (Southern, Eastern and Central Africa) registered about 10% of total Africa’s illicit financial flows” perhaps because of lack of data and due to the poor quality of available data. “Ultimately, Illicit financial flows worsens the socio-economic fabric of poor communities and leads to shorter life expectancy due to limited spending in providing social services such as health care, the loss of US$ 10 for every US$ 1 received in aid is both economically and financially detrimental to the continent”, it says.http://new.uneca.org/ArticleDetail/tabid/3018/ArticleId/1671/Default.aspx
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Illicit Financial Flows 2000-2009 via Global Financial IntegrityResource_AvailabilityCorruptionStatistic
Developing Countries
An estimated $1 trillion every year is lost in illicit financial outflows from developing countrieshttp://www.gfintegrity.org/content/view/149/70/
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Value of Exports in AfricaResource_AvailabilityNatural Resource RevenuesStatisticAfrica“In 2011 exports of oil, gas and minerals from Africa were worth $382 billion[1], almost seven times the $48 billion value of aid to Africa
http://www.wto.org/english/res_e/statis_e/world_region_export_11_e.pdf [2] OECD, 2011 http://www.oecd.org/dac/stats/Africa%20-%20Development%20Aid%20at%20a%20Glance%202013.pdf
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Extractive Revenues in 20 African CountriesResource_AvailabilityNatural Resource RevenuesStatistic
Africa (Resource-rich)
Based on IMF data, extractive revenues totaled $78.2 billion for the 20 resource-intensive African countries in 2010.  This is roughly five times more than they received in aid flows according to the OECD DAC ($15.9 billion).See Excel Document “Natural Resource Revenues - Select African Countries (2010)”
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Rep. of Congo 2011 Report to EITI Resource_AvailabilityNatural Resource RevenuesStatistic
Republic of Congo
The Republic of Congo published 2011 payments for natural resources. According to the EITI report, Congo earned $6 Billion in total from selling oil and mining products. This represents 42% of the country's GDP.http://eiti.org/news-events/congo-publishes-2011-payments-earlier-most
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High GDP, low level of developmentResource_AvailabilityNatural Resource RevenuesStatistic
Equatorial Guinea
$20,000 GDP per capita in oil-rich Equatorial Guinea, though most of the population still lives on less than $1 a day due to gross inequalityhttp://data.worldbank.org/indicator/NY.GDP.PCAP.CD
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Untied vs Tied AidAllocation_SpendingStatisticn/aUntied aid is 30% more effective: Tied aid requires aid to be spent in the country where the aid comes from.
Cartrinus J. Jepma, 1991, The Tying of Aid, Organization for Economic Co-operation and Development, Paris, February 8, 2012. http://www.oecd.org/dataoecd/16/56/29412505.pdf
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Aid QualityResultsStatisticn/a150 countries signed on to the Paris Declaration, a set of principles to ensure development assistance achieves its maximum impact.
OECD DAC, Countries, Territories and Organizations Adhering to the Paris Declaration and AAA. http://www.oecd.org/document/22/0,3746,en_2649_3236398_36074966_1_1_1_1,00.html
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Aid TransparencyResultsStatisticGlobal75% of global aid flows are now subject to IATI’s standard for publishing spending information.
International Aid Transparency Initiative, United States Joins IATI. http://www.aidtransparency.net/news/united-states-signs-iati
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Nigeria second EITI ReportResource_AvailabilityNatural Resource RevenuesStatisticNigeriaNEITI’s second report identified unprecedented financial discrepancies, mispaid taxes, and system inefficiencies. It identified over US$800m of unresolved differences between what companies said that they paid in taxes, royalties and signature bonuses against what the government said it received. That sum exceeded the 2009 individual budgets for the Ministries of Education, Health and Power. Of the $800 million, US$560m was shortfalls in taxes and royalties owed to the government and around US$300m in payment discrepancies relating to signature bonuses, payments of dividends, interest and loan repayments. The largest amount owed to the government in the report was an estimated US$4.7bn by the state-owned Nigerian National Petroleum Corporation (NNPC), for payments of domestic crude. The NNPC disputes that figure, claiming that the subsidies are explicitly authorised by the Government and that NNPC is owed US$1.7bn in subsidies from the government. A detailed forensic audit by KPMG in 2010 evaluated “major irregularities” at NNPC and found discrepancies totalling hundreds of millions of dollars. NEITI has reconciled most of the discrepancies in payments and is leading the Ministerial-level effort to remedy the identified lapses.http://eiti.org/files/Case%20Study%20-%20EITI%20in%20Nigeria.pdf
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Nigeria Third EITI ReportResource_AvailabilityNatural Resource RevenuesStatisticNigeriaNEITI has published the 2006-2008 EITI Reconciliation Report on 1 February. This is the third NEITI Report following the 1999-2004 and 2005 EITI Reports. This report shows that Nigeria received $59billion in 2008, $43billion in 2007 and $45billion in 2006. On average two-thirds of the revenue was from the proceeds of sale of crude oil and gas, whilst the remaining third came mainly from the petroleum profit tax, royalties, signature bonuses, and the education tax. For more information check NEITI website.http://eiti.org/news-events/nigeria-publishes-2006-2008-eiti-reconciliation-report
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DRC EITI finds discrepanciesResource_AvailabilityNatural Resource RevenuesStatisticDRCThe Democratic Republic of the Congo (DRC) has disclosed this month what the government has received from oil and mining companies operating in the country during 2008 and 2009. The government received a total of US$ 771 million from their oil and mining industries, but significant and unexplained discrepancies were found between reported figures from the companies and the government - both in the industrial and artisanal mining sectors. The DRC 2008-2009 EITI Report reveals significant and unexplained discrepancies between company and government disclosures both in the industrial and artisanal mining sector. According to the report, the oil sector contributed over US$ 550 million to the State Budget in 2008-2009, whereas the mining sector conributed less than US$ 200 million. The report does not contain a company-by-company breakdown of what the oil and mining companies have paid to the government.http://eiti.org/news-events/dr-congo-unveils-mining-and-oil-revenue-2008-and-2009
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