Madagascar discloses revenues from natural resources in pilot reconciliation report

Madagascar has moved ahead with the EITI process and on Tuesday 9 March published a first reconciliation report. It has done this despite the political crisis that began in January 2009. This report can be seen as  a pilot for a full EITI report to be produced next year.

Through the report, significant revenue flows are for the first time in Madagascar’s history being received by Government. The report shows that the revenue from the two biggest operations – Rio Tinto QMM and Ambatovy – amounted to US$70 million for 2007-09. 

It has been argued that natural resources lie at the heart of the present political crisis. As the report shows, significant flows revenue are, for the first time in Madagascar’s history, being received by Government.  The report shows that the revenue from the two biggest operations – Rio Tinto QMM and Ambatovy – amounted to US$70million for 2007-09. The difference between what the companies say that they pay and what the governments say that they received is $440,000 (or less than 1% of the total). The report contains some important recommendations for future reports, concerning the level of disaggregation, scope, and materiality, and also the need for further capacity-building of the EITI stakeholders in Madagascar. 

EITI Chairman Peter Eigen said: "Given Madagascar’s present political turbulence, the platform for dialogue provide by the EITI may be one of the greatest opportunities for reconciliation and accountability in the country. The fact that the country has moved ahead with a pilot report in this environment is enormously welcome."

For further information about EITI implementation in Madagascar, visit the Madagscar country page, or contact Regional Director Eddie Rich at the EITI International Secretariat.