The EITI Board agreed that Peru has made meaningful progress in implementing the EITI Standard.
Description: see below for the decision in full. PDF attached at bottom of the page.
Where: 43rd Board meeting in Paris, France
- Internal: Board paper 43-6
- Public domain:
Keywords: Validation; Peru
The EITI Board agreed that Peru has partly addressed the corrective actions from the country’s first Validation. Consequently, Peru has made meaningful progress overall with implementing the EITI Standard, with considerable improvements across several individual requirements.
The Board recognised Peru’s efforts to align its objectives for EITI implementation with national priorities for the extractive industries. Peru’s EITI implementation is also recognised for providing a constructive platform for discussion and debates about extractive sector management, involving all stakeholders. The second Validation confirmed Peru’s efforts to ensure that extractives data disclosed by companies and government entities participating in EITI reporting is subject to audit and assurance procedures in line with international standards. The Board welcomed the regular reviews of lessons learnt and recommendations from EITI implementation.
The Board welcomed ongoing efforts to consider further the opportunities to improve government and company disclosures through systematic disclosures. The Board also welcomed ongoing efforts to decentralise the EITI by implementing it at the subnational level. The five regional EITI processes in Apurimac, Arequipa, Loreto, Moquegua and Piura are a significant development in bringing transparency to resource’s management in Peru and an example of best practices to the rest of the EITI family. Peru is encouraged to continue to ensure adherence to the EITI Principles and Requirements while ensuring comprehensiveness in disclosure of revenue and payments, as well as social expenditures. The Board welcomed the emerging coverage of these social expenditures which represent a substantial part of the industry’s contribution to local development. The progress and plans in bringing more information on those contributions through DATAMART is noted and encouraging. The Board and the International Secretariat are available to support Peru on increasing transparency on this important area.
The Board has determined that Peru will have 12 months, i.e. until 17 June 2020 before a third Validation to carry out corrective actions regarding comprehensiveness (4.1) and mandatory social expenditures (6.1). Failure to achieve satisfactory progress in the third Validation will result in suspension in accordance with the EITI Standard. In accordance with the EITI Standard, Peru’s MSG may request an extension of this timeframe, or request that Validation commences earlier than scheduled.
The EITI Board agreed the following corrective actions to be undertaken by Peru. Progress in addressing these corrective actions will be assessed in a thrid Validation commencing on 17 June 2020:
- In accordance with Requirement 4.1, the multi-stakeholder group is required to agree which companies are material and therefore be included in the scope of reconciliation. The MSG is invited to consider whether setting a materiality threshold in terms of companies’ share of government revenues would ensure that all material companies were covered in the reconciliation. In light of constitutional taxpayer confidentiality provisions, the MSG is urged to ensure that it undertakes annually at least a confirmation that all material revenues and companies have been included in the reconciliation, in close collaboration with the tax authority (SUNAT).
- In accordance with Requirement 6.1, Peru is required to review the coverage of mandatory social expenditures to all stakeholders, including indigenous communities, and agree an approach to address this requirement in accordance with the EITI Standard. Once a decision is taken and documented, social payments shall be disclosed in publicly available format, and in accordance with Requirement 6.1.