The EITI Board agreed that Seychelles has made meaningful progress overall in implementing the EITI Standard.
Where: Board circular 257
- Internal: Board circular 257
- Public domain:
- Seychelles Validation 2018
- News item on the decision: Seychelles builds foundation for transparent revenue management of nascent petroleum sector
- Score card: The Seychelles' progress by requirement
Keywords: Validation; Seychelles
Following the conclusion of Seychelles’ Validation, the EITI Board decided that Seychelles has made meaningful progress overall in implementing the EITI Standard.
The Board recognised the commitment by the Government of Seychelles and the Multi-Stakeholder Group (MSG) to transparency and accountability in its nascent oil sector and congratulates the government on the progress made inimproving transparency and accountability in the extractive industries. Seychelles’ EITI implementation was also recognised as having increased collaboration among government agencies and provided useful insights about developments in the petroleum sector. The Board welcomed ongoing efforts to explore opportunities to improve government and company disclosures through systematic disclosures. The Multi-Stakeholder Group (MSG) was also encouraged to further ensure EITI implemented takes the specific circumstances of the country and emerging sector into account. This could include seeking adapted implementation to ensure that the EITI process reflects the sector’s nascent stage.
The Board has determined that Seychelles will have 18 months, i.e. until 1 April 2020, before a second Validation to carry out corrective actions regarding the requirements relating to the Multi-stakeholder Group (1.4), workplan (1.5), license allocations (2.2), register of licenses (2.3), contract disclosure (2.4), state participation (2.6), data quality (4.9) and the review of outcomes and impact of EITI implementation (7.4).Failure to achieve meaningful progress with considerable improvements across several individual requirements in the second Validation will result in suspensionin accordance with the EITI Standard. Inaccordance with the EITI Standard, Seychelles’ MSG may request an extension of this timeframe, orrequest that Validation commences earlier than scheduled.
The Board’s decision followed a Validation that commenced on 1 January 2018. In accordance with the 2016 EITI Standard, an initial assessment was undertaken by the International Secretariat. The findings were reviewed by an Independent Validator, who submitted a draft Validation report to the MSG for comment. The MSG’s comments on the report were taken into consideration by the independent Validator in finalising the Validation report and the independent Validator responded to the MSG’s comments. The final decision was taken by the EITI Board.
The EITI Board agreed the following corrective actions tobe undertaken by Seychelles. Progress in addressing these corrective actions will be assessedin a second Validation commencing on 1 April 2020:
- In accordance with Requirement 1.4. a and 1.4b.vi, the MSG should ensure that the industry constituency is adequately represented on the MSG and that there is a system in place for replacing representatives that leave their positions. In accordance with Requirement 1.4.b.vii, the MSG should also ensure that there is adequate record keeping of their discussions and decisions.
- In line with EITI Requirement 1.5, the MSG should ensure it has a current EITI work plan outlining targeted objectives in line with the national priorities for the sector, and that the work plan is made widely available to the public, for example published on the national EITI website and/or other relevant ministry and agency websites, in print media or in places that are easily accessible to the public.
- In accordance with EITI Requirement 2.2, the government should disclose a description of the process for transferring or awarding the license; the technical and financial criteria used; information about the recipient(s) of the license that has been transferred or awarded, including consortium members where applicable; any non-trivial deviations from the applicable legal and regulatory framework governing license transfers and awards. The MSG should ensure that there is clarity on the government’s plans in the year under review for the quarrying sector, and that there is a publicly available description on the allocation of mining licenses, the process for transferring licenses and the technical and financial criteria applied.
- In accordance with EITI Requirement 2.3, the government should ensure that comprehensive information on petroleum licenses and agreements is made available, including dates of application and award of licenses/agreements.
- In accordancewith Requirement 2.4, the government and the MSG should clarify and document the government’s policy on disclosure of contracts and licenses, as well as actual practice, including any reforms that are planned or underway.
- In accordance with Requirement 2.6, the Government of Seychelles should ensure that there is publicly-accessible information on the rules and practice of financial relations between SOEs and the state (including retained earnings, reinvestments and third-party funding), the level of state participation, including associated terms, and any change thereof in the year(s) under review.
- In accordance with Requirement 4.9 and the standard Terms of Reference for Independent Administrators, the Seychelles should ensure that future EITI Reports provide a clearer assessment on the reliability of the data disclosed, and that actual audit practices by government entities are described.
- In accordance with Requirement 7.4, the MSG should ensure that future annual reviews of outcomes and impacts include an assessment of progress made against each EITI Requirement. This should also include an assessment of the impact and outcomes of the work plan objectives. The MSG could also consider alternative ways to assess progress of EITI implementation that would suit the context of Seychelles in a request for adapted EITI implementation.
The government and the MSG are encouraged to consider the other recommendations in the Validator’s report and the International Secretariat’s initial assessment, and to document the MSG’s responses to these recommendations in the next annual progress report.