By Kemo Cham
A new publication by the World Bank may hold the key to many unanswered questions around the management of Sierra Leone’s mineral resources with the potential to avoiding the phenomenon known as resource curse.
The publication, titled ‘License to Drill: A manual on Integrity Due Diligence for Licensing in Extractive Sectors,’ is designed to improve on transparency in the natural resources and extractive sectors. It notably encourages countries to disclose ownership in the awards of mineral rights and to subject people seeking licenses to thorough background check.
The authors of the 140-page long document and experts in resource governance say it can serve as a guide to responsible exploration of mineral resources in countries like Sierra Leone, where decades of mining have been characterized by constant complaints of environmental destruction amidst widespread poverty in particularly mining communities.
The publication mainly focuses on strengthening integrity due diligence systems with respect to three important integrity checks: identifying beneficial owners, checking the criminal and legal background of applicants for mineral rights, and screening for conflicts of interest related to a license. Together, these constitute one of the latest additions to the global Extractive Industry Transparency Initiative (EITI) standards - Beneficial Ownership Disclosure.
It is expected that these three aspects of integrity checks will be integrated into the procedures of issuing license in the extractive sector by all countries.
The document, which was first published in July, was officially launched in Freetown on Thursday, November 22, at an event characterized by discussions around plans to support transparency in the country’s extractive sector.
Gayle Martin, World Bank Country Manager, presided over the session. She said in a statement that in the document Sierra Leone has an opportunity to demonstrate leadership in extractive governance, citing recent commitments by new President Julius Maada Bio to the country’s obligation to meeting the EITI standards.
The launch of the publication comes as the country is under review by the EITI, which is a global standard for the good governance of oil, gas and mineral resources.
Sierra Leone, endowed with diamonds, gold, and a host of other minerals, has been mining for nearly a century. Between 1991 and 2002, it went through one of the world’s most brutal civil unrests, mostly fueled by diamonds. The war claimed tens of thousands of lives and destroyed most of the country’s infrastructure.
The last decade after the end of the unrests has been dominated by the exploration of iron ore and rutile, in addition to the precious stones. There have also been prospects for petroleum explorations, according to information from geological sources.
Last month President Bio headed a government delegation to attend the EITI’s conference on Beneficial Ownership in the Senegalese capital, Dakar. He was widely quoted committing his new government to improving in the management of the country’s extractive sector to maximize the benefits to the ordinary citizen.
EITI targets 2020 as deadline for all member countries to meet its new requirement of displaying information on beneficial ownership.
This guide, said Dr Martin, offers Sierra Leone an opportunity to serve as example for the rest of the world if fully implemented.
“With the government publicly committing to comply with the EITI’s Beneficial Ownership Disclosure Requirements, Sierra Leone has a real opportunity to demonstrate bold and ethical leadership in Africa as well as globally in enhancing transparency and accountability in the extractive sector,” said Dr Martin, at the event hosted at the Radisson Blu Mammy Yoko Hotel in Freetown.
The publication of the ‘License to Drill’ is part of the World Bank’s effort in the global fight against corruption, which is also part of its efforts to ending extreme poverty by 2030.
Lead author of the report, Cari L. Votava, who is also a Senior Financial Sector Specialist, spoke about the role of transparency in maximizing the benefits from the extractive sector and the reduction of illicit financial flows.
“We hope this publication…can be a useful resource for all in this work, as improving regulatory transparency of extractives licensing is a high global development priority to improve transparency to make extractive sectors more productive and to reduce illicit financial flows,” she said in a statement.
Thursday’s panel discussion was organized with the objective that it can foster partnership among the various players in the extractive sectors, including government and its development partners, to meets its obligations.
Experts believe that financial transparency has a high potential to reducing illicit financial flows resulting from corruption.
The panelists at the Radisson Blu event were therefore drawn from government, civil society and international development partners, including the UK’s international development arm, DFID, a major funder of the publication.
Marcus Weimer, Governance Advisor and Lead Extractives Sector Engagement of DFID, said full implementation of the recommendations contained in the guide will help position Sierra Leone on path to avoiding the resource curse phenomenon.
Minister of Mines and Mineral Resources, Dr Morie Manyeh, reiterated the government’s commitment to meeting its obligations in terms of the management of the country’s natural resources.
Dr Manye, in a key note speech, said while the document doesn’t provide all the answers around the management of the extractive sectors, it serves as a good guide that can help Sierra Leone reach these answers.
The minister assured that the country was on track to meeting the EITI’s deadline of implementation of the Beneficial Owners Disclosure by 2020. He revealed the cabinet’s approval this week of three key policies related to the minerals sector: a minerals policy, artisanal mining policy, and geodata policy. All of these, noted Dr Manye, are precursors to the pending review of the 2009 Mines and Minerals Act, widely regarded as outdated.
(c) 2018 Politico Online
