Publisher: 
EITI
Published Date: 
February, 2019

The EITI Board agreed that Ghana has made meaningful progress in implementing the EITI Standard, with considerable improvements.

Date: 27.2.2018

Reference: 2019-16/BM-42

Description: see below for the decision in full. PDF attached at bottom of the page.

Where: 42nd Board meeting in Kyiv, Ukraine

Based onRequirement 8.3 EITI Validation deadlines and consequences

Reference documents

Keywords: Validation; Ghana

Go to Board decisions overview

Decision in full

The EITI Board agreed that Ghana has partly addressed the corrective actions from the country’s first Validation. Consequently, Ghana has made meaningful progress overall with implementing the EITI Standard, with considerable improvements across several individual requirements.

The Board recognised Ghana’s efforts to use the EITI to improve transparency in the management of its oil and gas state-owned enterprises, including their trading of the state’s in-kind revenues. Ghana’s EITI implementation was also recognised as having increased collaboration among government agencies and improved the government’s public financial management systems. The second Validation confirmed Ghana’s efforts to use EITI reporting as a diagnostic instrument to support reforms in the management of extractives licenses, accounting of off-budget revenues and subnational revenue management.

The Board welcomed ongoing efforts to consider further the opportunities to improve government and company disclosures through systematic disclosures. Ghana was encouraged to continue to ensure adherence to the EITI Principles and Requirements while strengthening transparency in the operations of its state-owned enterprises.

The Board determined that Ghana will have 12 months, i.e. until 27 February 2020 before a third Validation to carry out corrective actions regarding comprehensiveness of disclosures (4.1), transactions related to state-owned enterprises (4.5) and quasi-fiscal expenditures (6.2). Failure to achieve meaningful progress with considerable improvements across several individual requirements in the third Validation will result in suspension in accordance with the EITI Standard. In accordance with the EITI Standard, Ghana’s MSG may request an extension of this timeframe, or request that Validation commences earlier than scheduled.

Corrective actions

The EITI Board agreed the following corrective actions to be undertaken by Ghana. Progress in addressing these corrective actions will be assessed in a third Validation commencing on 27 February 2020:

  1. In accordance with Requirement 4.1.c, Ghana should ensure that all companies making material payments to the government comprehensively disclose these payments in accordance with the agreed scope of EITI reporting. Ghana should clearly demonstrate that the selection of revenue streams for reconciliation ensures that all payments and revenues whose omission or misstatement could significantly affect the comprehensiveness of EITI reporting were included in the scope of reconciliation. Ghana should also ensure that reconciled financial data is consistently disaggregated by revenue stream, in accordance with Requirement 4.7. To strengthen implementation, Ghana is encouraged to consider the extent to which a clear quantitative materiality threshold for the selection of revenue streams for reconciliation would demonstrably ensure the comprehensiveness of reconciliation.
  2. In accordance with Requirement 4.5, Ghana should undertake a comprehensive assessment of transactions between extractives SOEs and government entities to ensure that the reporting process comprehensively addresses the role of SOEs, including reconciling material company payments to SOEs and material transfers between SOEs and other government agencies.
  3. In accordance with Requirement 6.2, Ghana should undertake a comprehensive review of all expenditures undertaken by extractives SOEs that could be considered quasi-fiscal. Ghana should develop a reporting process for quasi-fiscal expenditures with a view to achieving a level of transparency commensurate with other payments and revenue streams.
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