1. ISU-ISU KRITIS KORUPSI PERTAMBANGAN
CHITRA RETNA S
DIREKTUR EKSEKUTIF ARTICLE 33 INDONESIA
2. EKSTRAKTIF: BERKAH VS ANCAMAN
Pasal 33 UUD 45: memaksimalkan pengelolaan kekayaan alam
untuk sebesar-besar kemanfaatan bagi rakyat
Decision to
extract
Contract/lice
nse
Fiscal Terms
Extraction
Comodity
selling
Revenue
Collection
Policy/Program
Revenue
Management
Perbaikan tata kelola sepanjang rantai nilai
3. Titik Kritis Sepanjang Rantai Nilai
Pertambangan
1. Masy kurang
berpartisipasi dalam
membuat keputusan
ekstraksi
2. Tumpang
tindih
perijinan
3. Korupsi
terkait
perijinan
4. Pemr daerah
tidak mendapat
bagian yang layak
Comodity
selling
Revenue
Collection
Policy/PrograRevenue
Management
Reklamasi
Paska
Tambang
Fiscal Terms
Extraction
5. Reklamasi/paska tambang tidak dilakukan
6. Possible korupsi dana jaminan reklamasi
Decision to extract
Contract
7. Underpayment
8. Korupsi penerimaan
9. Penggunaan penerimaan
tidak tepat
10. Distribusi tidak merata
5. PERIZINAN TAMBANG
5
Total mining licenses (IUP) 10.780
(1/2/2013); CLEAN AND CLEAR (C&C) IUP: 5.
503 (mineral 3.268; coal 2.235)
NON C&C IUP: 5.277 (mineral 3.639;
coal1.638)
NON C&C : illegal, overlapping licenses
Overlapping: 987 IUP
6. TITIK KRITIS PERIZINAN
• MEKANISME
– Sebelumnya izin diberikan langsung mulai diberlakukan bidding
– Penentuan wilayah tambang pemerintah pusat, mulai digugat
pemerintah daerah
– Data (peta) tidak jelas, database izin tidak sistematis rawan tumpang
tindih
• OTORITAS & SECOND LINE ENFORCEMENT
– Sejak diserahkan pada daerah, kasus tumpang tindih melonjak tinggi
rawan digunakan untuk kepentingan politik
– Second line enforcement dari pemerintah pusat sangat tidak jelas
moratorium s/d Maret 2013
• PERKEMBANGAN TERBARU
– Permen Pelelangan (& Permen Perijinan)
7. KORUPSI DI PERIZINAN
7
1. PEMBERIAN IUP DI DAERAH ( KE DEPAN;
PROSES BIDDING)
2. VERIFIKASI CNC
3. NEGOSIASI B-TO-B TUMPANG TINDIH IJIN
10. PERKIRAAN KEHILANGAN
PENERIMAAN: PSDH/DR HUTAN
H
Sumber: Hasil olahan ARTICLE 33 INDONESIA
Kayu Ilegal;
70%
Kayu Legal;
30%
Kerugian Negara
akibat Illegal
Logging (Rp 30
triliun/tahun)
PNBP yang diterima
negara dari kayu legal
(30%)PNBP dari kayu
legal yang
hilang (70%)
12. SISTEM PENGUMPULAN PNBP TAMBANG
12
Royalty
Policy
Regime
Establish
Royalty Base
Estimate
Royalty
Potential
Billing Payment NTR Payer
Reporting
NTR Payer
Data Mgmt
Controls and
Compliance
Verification and
Reconciliation
Revenue
Sharing
Determination
Audit
Coal IUPs and
PKP2Bs
Self-
assessment
Pay to
MPN or BI
Send payment
report and docs
District Mining
Dinas
Issue IUPs
license and
manage data
of licenses
issued
Reviews
IUPs
production
plans
Receives
payment
reports
Follow up on
non-
compliance
Reconciles
payment with
MoEMR
To be
determined
Provincial
Mining Dinas
Bank of
Indonesia
Treasury
acc. at BI
DG Treasury,
MoF
MPN
System
Provide
payment data
for recon
Accepts DG
Fiscal Bal.
estimates
DG Budget,
MoF
Review
proposals
Lack data to
evaluate
forecasts
Future –
SIMPONI
billing
system
Lack data to provide oversight
of NTR realisation
DG Custom and
DG Tax MoF
No current
role
No current
role
No current
role
DG Mineral
and Coal,
MoEMR
Develop
proposals
Issue PKP2Bs
license and
Clean & Clear
(CNC) status
to IUPs
Review
PKP2Bs and
large IUPs
production
plans &
produce
Forecast
NTR
Set out
deemed
price
Issue
decree on
payment
process
All
reports
should go
to
MoEMR
Sub-
directorate
evaluate
returns (to
be
discussed)
Verifies and
reconciles
with SNG and
DG Treasury
payment data
Leads
revenue
sharing
estimates
Audits
sample
BPK Audits
sample
13. 13
TITIK KRITIS PROSES PENGUMPULAN PNBP
Estimating
Royalty Potential
Establishing
the Royalty Base
Legislation and Royalty
Regime
• Essential details of royalty
calculation are contained in a
hierarchy of legislation,
regulations and decrees.Key
processes
Potential
Issues
• Progress towards establishing
the full mining “population”
through MoEMR issuing “clean
and clear” status to IUPs –
currently 4,000 issued
• Sub-directorate uses list of last
year’s payers (from KPPN) as the
database of NTR payers. This is
not linked to the CnC list.
• The list of last year’s payers
does not automatically include
new coal producers and those
that did not pay (but should have
done last year)
• The absence of a centralised
registry of all mining licences
(PKP2Bs and IUPs) results in
significant gaps in the knowledge
of who should be contributing
royalty and renders the control
and compliance function difficult
• MoEMR compiles an annual forecast of
non-tax revenue from mining to DG
Budget. Forecast is based on a review of
prior realized revenue and review of
information provided by PKP2Bs and large
IUPs and provinces/districts on sales and
production estimates for the upcoming
year.
• Forecasts do not seem to use or check
against macro data e.g., the 2012 coal
production forecast is 20m tonnes less
than total coal production for 2011
• Unclear process for reviewing forecasts
during the year in response to market
conditions
• Unclear if there is a process to compare
actual/realised NTR with forecast. DG
Budget does not have data on realised
NTR by sector to compare with forecast
• Sudden death nature of
royalty calculations at various
thresholds.
• Consistency of some royalty
provisions (for example
payment frequency) between
PKP2Bs and IUPs.
• There appear to be
differences in sanctions for non-
payment or under payment
between PKP2Bs and IUPs.
14. 14
NTR Payer ReportingPaymentBilling
• Royalty obligation is determined on
a self-assessment basis.
• IUP royalties are due within a
month of sale. PKP2B royalties are
paid monthly or quarterly
depending on generation.
• SIMPONI system to be introduced
later in 2013 – SIMPONI is an NTR
billing system linked to the MPN
payment system
Key
processes
Potential
Issues
• BPK Audit findings: universal
mistakes in company calculation of
NTR obligation due to
misinterpretation of deductions
• No communication of common
royalty error calculations with
industry.
• The proposed SIMPONI system
needs to have in-built controls to
prevent errors in calculation of NTR
obligation.
• NTR payments in IDR should go
through electronic Treasury MPN
(Modul Penerimaan Negara –
State Revenue Module) system
and NTR forex payments go
through Bank of Indonesia.
• In reality, most NTR go through BI
as payers can choose (2011 IDR 80
trillion through MPN and 200
trillion through BI)
• The MPN system is currently only
limited to recording the amount of
NTR payment and not capturing
supporting information. BI
transfers capture even less
information.
• The lack of information collected
makes it difficult to reconcile later
on and also to assess realised NTR
against forecasts
• Coal producers are obliged to send hard
copies of NTR payment report (Copy of
SSBP form or Bank transfer proof; Lab
analysis & survey by 3rd party
assessment; sales report and sales
invoice) to MoEMR. IUPs should send
copies to district/provincial DINAS.
• Coal producers submit separately
production and monitoring reports to
authority issuing license (PKP2Bs to
MoEMR, IUPs to district or province)
• Without a centralised licences registry
it is difficult for MoEMR to know if all
payment reports have been received.
• MoEMR receives different sets of
supporting documentation – some not
adequate - with payment reports.
• No mechanism to ensure that all
relevant institutions receive reports
and that reports are consistent. For
example, MoEMR is reliant on local
government to compile and send
production and sales reports to them.
15. 15
Controls and
Compliance
NTR Payer Data Management
• Royalty payment data is electronically stored in
an Excel spreadsheet only by MoEMR.
• Subject to discussion with ESDM it is not known
how this data is, or can be, used effectively for
royalty administration purposes.
• There should be improvements with
implementation of the SIMPONI system.
Key
processes
Potential
Issues
• Royalty payments recorded by ESDM in an
Excel spreadsheet – not robust and subject to
human error. For example, analysis indicated
possible:
o inconsistency in paying entity names
o miscoding between the three types of mining
NTR
o entry duplications
• Current data system does not enable prompt
and meaningful NTR payment information
(royalties by province, mineral etc.) to inform
future policy making decisions.
Below information is based on initial discussions with MoEMR on the controls
and compliance functions by the NTR sub-directorate:
• NTR sub-directorate has 4 staff to evaluate PKP2Bs (2 staff) and IUP (2
staff) royalty returns/payment reports
• Evaluation of royalty returns: checks against supporting documentation,
physical audits (sample), checks against list of previous NTR payers (from
KPPN compilation). (Further determination of “evaluation” process is
required).
• District and provincial DINAs responsible for IUP compliance
• Unclear debt management procedures
• Initial discussions with MoEMR suggests that administrative controls are
inadequate – to be further analysed:
o Revenue accounted for on a cash basis only – no recognition of debtors.
o Controls impeded by the absence of a centralised licence registry that
generates an accurate list of all royalty payers.
o No systematic use made of other coal producer data to evaluate
individual NTR payments: customs, VAT, tax, production and monitoring
reports
o Unclear what controls and compliance measures adopted by district
and provincial DINAS.
o No systematic use of aggregate production and trade data to evaluate
aggregate NTR payments
o SIMPONI can provide information on non-payment and under-payment
for those who register and bill, but currently no processes to link this
information to a debt management system.
Masalah-masalah (draft, tidak untuk dikutip)
16. 16
Audit
Revenue Sharing
Determination
Verification and
Reconciliation
• NTR payment receipts sent by
companies and recorded by MoEMR
are reconciled quarterly (amount and
type of payment), manually in an
Excel file with:
1) Payment records by district and
provincial Mining Dinas
2) Payment records by DG Treasury
(from KPPN data, incl. payments
through BI) on a quarterly basis
at the central level.
• Unclear what action is taken with
unreconciled items
Key
processes
Potential
Issues
• Reconciliation does not identify
potential underpayment, non-
collection or errors in the recording
of payment data. For example, for
PKP2Bs the share of sales revenue
should be reconciled to the royalty
components for each payment – only
3 ratios are applicable for open-cut
mines.
• The reconciliation details
royalty amount by location
which enables determination of
SNG share of royalty revenue.
• DG Treasury will only
categorise payments as royalties
if MoEMR provides sufficient
payment supporting
documentation – otherwise
payments are classified as other
NTR (not part of revenue
sharing)
• Incorrect miscoding between
royalties and sales revenue can
lead to incorrect revenue
sharing.
• A range of organisations
undertake royalty audits – BPK,
BPKP.
• Both BPK and BPKP are able to
conduct company audits, as well as
an audit of MoEMR operations
• Audits of companies are
conducted on a sample basis taking
into account various considerations
of compliance.
• Companies that have been
audited need to respond to the
various findings.
• Most audits have detected errors
in NTR calculations.
• Possible confusion in industry
of which agency will audit them.
• Common errors from audits
are not communicated widely to
industry to prevent recurrence.
17. TITIK KRITIS PENERIMAAN
• PENENTUAN TAGIHAN PNBP:
– SELF ASSESSMENT PERUSAHAAN, PEMERINTAH KESULITAN DATA PEMBANDING, TIDAK
ADA INSTRUMEN PENGECEKAN
– PEMERINTAH DAERAH TIDAK PUNYA CUKUP INSENTIF MEMAKSIMALKAN PNBP, KARENA
OTORITAS LEMAH, MASUK KE PUSAT
• PEMBAYARAN:
– SISTEM PEMBAYARAN USD, RENTAN KONVERSI NILAI TUKAR
– DATA AKURAT PEMBAYAR TIDAK LENGKAP, MENYULITKAN PENGHITUNGAN PEMBAGIAN
DBH
• PELAPORAN:
– SISTEM MANUAL, DATA TIDAK TERDOKUMENTASI BAIK, BERBEDA ANTAR INSTANSI DAN
LEMAH KOORDINASI (BEA CUKAI – DISTAMBEN – ESDM – KEUANGAN)
• MONITORING & AUDIT (ENFORCEMENT)
– TIDAK CUKUP SDM UNTUK PEMANTAUAN
18. 18
1. KURANG BAYAR PNBP (& PAJAK) KARENA
PEMALSUAN DATA PRODUKSI, HARGA
REFERENSI, KANDUNGAN DLL
2. TIDAK BAYAR PNBP (& PAJAK) KARENA
PERTAMBANGAN ILEGAL ATAU EKSPORT
ILEGAR
KORUPSI DI PENDAPATAN NEGARA
20. TITIK KRITIS DANA JAMINAN REKLAMASI
• BESARAN:
– BELUM MENCAKUP JAMINAN RESIKO LINGKUNGAN/SOSIAL YANG MEMADAI
– TERLALU KECIL MEMBERI INSENTIF UNTUK TIDAK DILAKUKAN REKLAMASI
– TIDAK DIATUR DENGAN RINCI, OTORITAS MENENTUKAN TERGANTUNG ASSESSMENT
PERUSAHAAN, PEMDA SULIT MEMONITOR
• KELAYAKAN:
– IZIN BANYAK DIKELUARKAN TANPA MENELAAH KELAYAKAN RENCANA REKLAMASI DAN PASKA
TAMBANG PERUSAHAAN
– AMDAL & DOKUMEN LAIN HANYA PERSYARATAN PROSEDURAL
• PENGGUNAAN
– SEJUMLAH DANA REKLAMASI DIBAYARKAN KEPADA PEMDA SEBELUM KEGIATAN PENAMBANGAN
DILAKUKAN
– TRANSPARANSI DANA JAMINAN MINIM, BANYAK DALAM REKENING ATAS NAMA BUPATI
– PENCAIRAN DANA MINIM PENGAWASAN, MENYALAHI ATURAN
– LEBIH BANYAK KASUS PERUSAHAAN MEMILIH TIDAK MEREKLAMASI DAN MENGABAIKAN DANA
JAMINAN
21. 21
1. PENGGUNAAN DANA REKLAMASI UNTUK
HAL-HAL LAIN SELAIN REKLAMASI
2. TIDAK OPTIMAL/TIDAK DILAKUKAN
REKLAMASI KARENA DANA JAMINAN
KURANG MEMADAI
KORUPSI DI DANA REKLAMASI
22. REKOMENDASI
1. PENINDAKAN PENTING, TETAPI PERBAIKAN SISTEM
LEBIH PENTING
• SISTEM LICENSING, BESARAN ROYALTI, KOLEKSI PENDAPATAN
2. DESENTRALISASI KEWENANGAN KE DAERAH
MENJADI SUMBER MASALAH SEKALIGUS POTENSI
SOLUSI
• NO RESENTRALISASI, OTORITAS DAERAH TAPI DENGAN SECOND LINE
ENFORCEMENT
• AKUNTABILITAS LOKAL
3. TRANSPARANSI UNTUK AKUNTABILITAS
• SEBAGAI SOLUSI TAHAP PERTAMA, TAPI AKUNTABILITAS DAN PEMERINTAH RESPONSIF
MEMBUTUHKAN PERBAIKAN SISTEM INSENTIF, TERMASUK INSENTIF SISTEM POLITIK
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
Missing regulations in a number of key areas:
Sanctions for non-lodgment or underpaid IUP royalties.
Procedures for IUP payer reporting
Royalty is distributed:
GoI – 20%
provincial govt. – 16%
district govt. – 32%
other districts – 32%
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?
In trying to work towards the Good Governance agenda Revenue Watch Institute uses the “EI Value Chain” model. This Value Chain model is derived from proposals by Oxford economist and RWI advisory board member Professor Paul Collier. The Value Chain is a living concept that has been adapted to reflect RWI’s experience working with various issues in the field – the Value Chain helps us to scrutinize the various critical steps where public officials conduct performances and allocate oil, gas, mineral and metal resources, regulate the extraction processes, collect revenues, and allocate revenues for various purposes.
Idealy there needs to be civil society oversight throughout the phases of the entire value chain.
Explain all the links briefly:
Decision to extract or not to extract: Here it is important that local communities (in many cases Indinegous People) are also included in the decision making process and are facilitated to be able to make prior informed decisions, be their consent of rejection of a project. In this decision making process the government and the companies involved need to be transparent about the environmental and social costs sch a project will entail.
Awarding contracts/liscenses = is this process trasparent, are the responsible government officials ensuring the government and the public are getting the best deal, or is the handing out of contracts shrouded by opacity?
Fiscal terms – does the government have the ability to negotiate the best fiscal terms for the country?
Extraction process – are environmental and social costs being externalized onto the local communities and environment?
Trading of commodities = is the government agency responsible for the trading of government shares of commodities doing it in a transparent and accountable way?
Tax and revenue collection = are taxes and reveues collected by the government being accounted for in a trasparent manner?
Revenue management and allocation = how is the government managing it’s revenues to address the various challenges related to EI revenues? Is it aboe to save prodently in times of great windfall? Does it go on a spending spree on projects that do not contribute to sustainable development?
Development projects/policies= is the government carying out development in consideration of the fact that EI resources are finite/ Is it strengthening other sectors of its economy? How is spending on health, infrastructure and education?