The EITI Board agreed that São Tomé and Príncipe has made meaningful progress with improvements.
Where: 40th Board meeting in Berlin, Germany
- Internal: Board paper 40-6-E
- Public domain:
Keywords: Validation; São Tome and Principe
The EITI Board agreed that São Tomé and Príncipe has partly addressed the corrective actions from the country’s first Validation. Consequently, São Tomé and Príncipe has made meaningful progress overall with implementing the EITI Standard, with considerable improvements across several individual requirements.
The Board recognised São Tomé and Príncipe’s efforts to use the EITI to manage public expectations regarding the potential revenue and indirect contributions from the nascent oil and gas sector. São Tomé and Príncipe’s EITI implementation is also recognised as having increased collaboration among government agencies and improved the government’s public financial management systems. The second Validation has confirmed São Tomé and Príncipe’s efforts to use EITI reporting as a diagnostic instrument to support reforms in the licensing system, oversight of companies’ social expenditures and subnational revenue management.
The Board welcomed ongoing efforts to consider further the opportunities to improve government and company disclosures through systematic disclosures. The Multi-Stakeholder Group (MSG) should continue to ensure adherence to the EITI Principles and Requirements.
The Board has determined that São Tomé and Príncipe will have 12 months, i.e. until 29 June 2019 before a third Validation to carry out corrective actions regarding license allocations (2.2), license register (2.3) and data quality (4.9). 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, São Tomé and Príncipe’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 tobe undertaken by São Tomé and Príncipe. Progress in addressing these corrective actions will be assessed in a third Validation commencing on 29 June 2019:
- In accordance with Requirement 2.2.i and iii, São Tomé and Príncipe is required to disclose the technical and financial criteria used in awarding licenses and any non-trivial deviations from the applicable legal and regulatory framework governing license transfers and awards related to the award or transfer of licenses pertaining to the companies covered in the EITI Report during the accounting period covered by the EITI Report.
- In accordance with Requirement 2.3.b, São Tomé and Príncipe isrequired to maintain a publicly available register or cadastre system which includes the timely and comprehensive information on the date of application for each of the licenses pertaining to companies covered in the EITI Report. Any significant legal or practical barriers preventing such comprehensive disclosure should be documented and explained in the EITI Report, including an account of government plans for seeking to overcome such barriers and the anticipated timescale for achieving them.
- In accordance with Requirement 4.9.a, the EITI requires an assessment of whether the payments and revenues are subject to credible, independent audit, applying international auditing standards. The MSG should ensure that future EITI reporting includes a clear statement from the IA on the comprehensiveness and reliability of reconciled financial data.