Togo

Government stakeholders appear fully, actively and effectively engaged in all aspects of EITI implementation, including scoping, reporting, dissemination and outreach.

Mining and water companies are actively and effectively engaged in the EITI process as providers of information. In the absence of Chamber of Mines, the professional association of extractive industries in Togo (APIET) aims to fill this void. Despite challenges linked to land ownership, companies did not express any real barriers to operations in Togo.

Civil society seems to be able to speak freely despite rare cases of repression, not directly linked to the EITI. Although civil society is fragmented across over 5,000 associations and NGOs, the efforts of MSG members to disseminate information to civil society through the print media are acknowledged.

The Government and the MSG made significant efforts to ensure a renewal of MSG members in practice. There was a renewal of all members of the civil society and industry constituencies, and consultations show that the nomination and election processes were carried out in an open, fair, transparent and inclusive way. There have also been efforts made by the civil society and government constituencies to clarify and document nominations and renewal procedures. The official decree approving the new MSG members was published after the start of Validation. However, constituency terms of reference for the industry constituency are yet to be published.

The MSG approved an update to the triannual work plan, which includes activities geared towards the scope of EITI Reporting. The work plan is publicly available and reflects some national objectives although these are mostly geared towards EITI Reporting. There is evidence that the MSG canvassed broadly in the preparation of the work plan. Togo should ensure that national priorities are clearly identified and linked to clear objectives of EITI Implementation beyond reporting. The MSG should also ensure that ongoing activities towards reforms in key areas such as contract transparency and systematic disclosures are included in the work plan. The MSG is encouraged to include plans to address legal and regulatory obstacles to implementation, as well as capacity-building activities to ensure effective oversight of the EITI process.

The 2014 EITI Report includes a summary description of the fiscal regime, including gaps in the legislation. The report covers the level of fiscal devolution, an overview of the relevant laws and regulations, and information on the roles and responsibilities of the relevant government agencies. The report also includes information about reforms underway.

The EITI 2014 Report indicates the process for awarding or transferring the license(s), and gives information on the award of licenses. Information on transfers were included in the stakeholder consultations. There was no evidence of competitive bidding in 2014.

The 2014 EITI Report includes the names of licence holders and date of award and expiry for all the licenses. Further information on the dates of application and coordinates for all licenses is on the Ministry of Mines' website.

The MSG has documented the government’s policy on contract disclosure, which is in favour of the contract publication. Mining contracts are published on several online sites. The EITI Report lists information on contracts entered into for the year under review but does not clearly list which contracts and licenses have been published in full. The MSG is encouraged to include in its work plan detailed activities towards comprehensive contract disclosures, and assess the comprehensiveness and exhaustivity of contract disclosures

The MSG has agreed and applied its definition of BO for EITI reporting and made attempts to disclose the beneficial owners of material companies reporting in EITI Reports. The latest EITI Report lists physical persons as beneficial owners for five companies. However, the EITI Report has not clarified the government’s beneficial ownership policy. The list of legal owners is not comprehensive in the 2014 EITI Report. The MSG established a BO working group to steer preparations of Togo’s three-year roadmap by 1 January 2017.

The 2017 EITI Report provides relevant information on the prevailing rules and practices regarding the financial relationship between the government and SOEs and discloses dividend payments from the government’s 10% free carry. The report clarifies the rules for retained earnings, reinvestment and third-party financing for the SOEs in the country. The SOE SNPT also published its audited financial statements and statutes, which provide an explanation of the statutory rules and practices governing transfers of funds between the SOEs and the state.

The EITI Report gives an overview of the extractive sector, including on exploration activities.

Togo has no official comprehensive statistics on production. To address this gap, the MSG requested that participating companies and government agencies provide production data, which is reconciled in the EITI Report. While there are some gaps and concerns about data quality, the issues are addressed transparently in the report.

Togo has no official comprehensive statistics on exports. To address this gap, the MSG requested that participating companies and government agencies provide export data, which is reconciled in the EITI Report. While there are some gaps and concerns about data quality, the issues are addressed transparently in the report.

The MSG has considered and agreed an approach to materiality and ensured that all material revenue streams are included in the scope of the 2014 EITI Report. The report includes a reconciliation of 97% of government revenues and company payments. The government has also disclosed total revenues received from each company.

The EITI Report and stakeholder views have confirmed the absence of in-kind revenues as per requirement 4.2. of the EITI Standard.

The 2017 EITI Report includes a detailed description of three barter-type agreements between the government and a public works company (SNCTPC), involving the development of public infrastructure (roads) in exchange for tax rebates and quarrying rights.

The report includes a description of the transport agreements including transportation of minerals by rail. The report states that payment of transport-specific taxes amounted to zero in fiscal 2014.

The 2017 EITI Report confirms the lack of material transactions between companies and SNPT and the non-existence of ad hoc transaction between the government and SNPT.

The 2014 EITI Report discloses payments by companies and receipts by local government units. Where possible, these flows are also reconciled. This process could be better detailed in EITI Reports.

In accordance with Requirement 4.7 of the 2016 EITI Standard, the 2014 EITI Report notes that data was reported by company, by revenue streams and by reporting public entities.

Data covering financial year 2014 was published by the end of 2016, in accordance with the EITI’s timeliness requirements.

The IA and the MSG agreed ToRs to produce the EITI Report consistent with the standard ToRs and agreed upon procedures issued by the EITI Board, and applied this ToRs and procedures in practice. The report provides a clear statement from the Independent Administrator on the reliability of the (financial) data presented, including a summary of the work performed by the Independent Administrator and the limitations of the assessment provided.

The 2014 EITI Report notes that in Togo all mining taxes are collected by the financial authorities and allocated to the state budget, except for royalties, registration fees and specific fixed duties paid to the DGMG. The MGS did not discuss possible mechanisms that could be put in place to establish the traceability of extractive sector revenues.

The 2017 EITI Report discloses the revenue sharing formula, as well as the revenues transferred by the Tax Department (“Commissariat des Impôts”) to the Treasury (DGTCP). Additionally, as the “ristournes” are not extractive-specific, the IA calculated the extractive-specific share of extractive companies in the subnational transfers. Transfers from the Treasury (DGTCP) to local governments could only be partially reconciled, as only four of the 15 local governments submitted reporting templates. Reforms are currently ongoing to strengthen the organisation of the municipalities and will potentially allow for a more detailed reconciliation in the future exercise.

It is encouraging that the MSG has made some attempt to including information on the budget-making process and audit processes the EITI Report.

The 2014 EITI Report discloses the nature and value of discretionary social expenditures, including identifying the beneficiaries.

Stakeholder consultations have confirmed that quasi-fiscal expenditures do not occur in the extractive sector in Togo.

The 2014 EITI Report discloses details about the contribution of the extractive sector to the economy in terms of GDP, total government revenue, exports and producing regions. Togo has no official comprehensive statistics on employment in the sector. To address this gap, the MSG requested that participating companies and government agencies provide employment data. While there are some gaps and concerns about data quality, the issues are addressed transparently in the report.

The EITI Reports are comprehensible, actively promoted through varied channels, publicly accessible and have tangibly contributed to public debate on the extractive industries.

EITI-Togo has published data in machine-readable format and summaries of EITI Reports in accessible infographic format.

The MSG and the government have taken steps to act upon EITI recommendations which have positively impacted mining revenue governance in Togo.

The Steering Committee used annual progress reports and Validation self-assessments to document the impact of the EITI. These assessments could be done in a more systematic manner.