TT ahead in transparency game

TRINIDAD and Tobago is ahead of the global game in ensuring that there is transparency and accountability in the expenditure of revenues from its energy sector. According to the January edition of the Extractive Industries Transparency Initiative (EITI) newsletter, TT is ahead of several of the world’s more developed, energy producing nations in implementing the provisions of the EITI. TT became a signatory nation to the EITI when it was launched by British Prime Minister Tony Blair in Johannesburg, South Africa in September 2002.

The EITI encourages governments, publicly traded, private and state-owned extractive industries, international organisations and non-governmental organisations “with an interest in the sector, to work together voluntarily to develop a framework to promote transparency of payments and revenues.” Government formally launched the EITI on January 12. At that time, Minister in the Ministry of Finance, Christine Sahadeo, said, “It is in our interest as a developing nation that we overcome the many barriers so as to ensure that we take full advantage of the opportunities that our resource wealth presents to increase our prosperity and improve our living standards.”

Energy Minister Eric Williams said the launch of the EITI in TT “is but the latest foundation stone in the overall project of laying a firm foundation on which trust in the institutions of governance can be built.” According to the EITI newsletter, TT’s launch of the EITI has put this country ahead of  “the first wave of countries working on implementing EITI.” These include Azerbaijan, Ghana, Nigeria and the Kyrgyz Republic.

While Azerbaijan’s oil and gas exploration dates back to the 19th century, that nation’s government only signed a memorandum of understanding on the EITI with other stakeholders in November 2004. Ghana, which derives a large portion of its revenue from the mining industry (gold, diamonds, bauxite and manganese), started testing the templates of the EITI last month. The governments of Nigeria (the largest oil and gas producer in Africa) and the Kyrgyz Republic (which relies heavily on the export of gold) are still working out the mechanics of launching the EITI in their respective countries.