EITI AUDITS IN GHANA

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EITI AUDITS IN GHANA
Paris Workshop 2nd-3rd February 2005
Presented By Joyce R. Aryee (Ms)
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THE GHANA CHAMBER OF MINES
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THE GHANA CHAMBER OF MINES

• VISION
• To be a respected, effective and unified voice
  for the mining industry
• MISSION
• To represent the mining industry using the
  resources and capabilities of its members to
  deliver services that address Members,
  Governments and community needs in order to
  enhance sustainable development.

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THE GHANA CHAMBER OF MINES

• CORE VALUES
• Honesty
• Transparency
• Good Governance
• Good Corporate Citizenship
• Commitment
• Unity

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THE GHANA CHAMBER OF MINES

• OBJECTIVES
• Promote and protect the Interests of the Mining
  Industry
• Promote and project the image of the mining
  industry
• Establish maintain an effective membership
  governance
• Provide leadership for the solution of national
  issues related to mining

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AUDIT AGENCIES THEIR ROLES

• Internal Revenue Service
• Mineral Royalties, Corporate Tax, Dividends,
  PAYE,
• Value Added Tax Service
• VAT
• Minerals Commission
• Mineral Revenues, Production costs
• Bank of Ghana
• Mineral Revenue Portion of Mineral Revenue
  Returned to Ghana
• External (Independent) Auditors
• Corporate Accounts

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INFORMATION INTEGRITY

• Several Agencies independently obtain the same
  information from same source.
• Helps in validation of information
• It is expected that a lot more companies would
  join AngloGold Ashanti on the Ghana Stock
  Exchange.
• The strict disclosure and reporting requirements
  of companies on the exchange would rub on the
  integrity of information released by the company.
• Integrity of External Auditors Hired by Mining
  Companies.
• External Auditing is mandatory under Companies
  Code
• Though reputation of major global auditors
  impugned by recent scandals, the fact that the
  other have remained unscathed gives some credence
  to their credibility.

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ROLE OF AGGREGATOR

• To Collect Requisite Data from Various Sources
• Internal Revenue Service, Mining Companies
  Metropolitan, Municipal, District Assemblies
  and the Administrator of Stool Lands.
• To Audit the Data so Received and Aggregate
  Audited Data to Reflect the National Position.
• Complements the Credibility of Information
  reported

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TYPES OF AGGREGATORS

• Individual
• Credibility may be questioned
• Individual may have no track record
• Would have to establish new bureaucracy
• May be quite expensive
• Company/External Audit Company
• Credibility Established
• Recognized Experience
• Leverage/Piggy-back on existing facility
• Has potential to be less expensive especially if
  service awarded under tender.

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HOW TO IMPROVE INTEGRITY OF DATA

• Get All Stakeholders, including Civil Society
  involved in appointing Aggregator
• Possibly through the EITI Working Committee
• Consider Appointing a Well Representative Board
  to Supervise the Aggregator
• Publicize Aggregated Data in A Timely Manner

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WHO ARE THE BENEFICIARIES OF THE EITI?

• The UK Government/International Organisations or
  World Bank
• Recognition for Championing a worthy Cause
• Mining Companies
• Increased awareness of the benefits of mining
  Consequent Enhancement of its Image.
• Mining Communities
• Awareness of how revenues generated from mineral
  resources in their communities are used.
• Awareness would give them a voice to ensure that
  such revenues are judiciously used.
• Government
• Underscore the Governments commitment to be
  accountable to the people of Ghana

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WHO BEARS AGGREGATOR COSTS?

• Ideally all beneficiaries should contribute.
• Realistically contributions should come from
• The UK Government
• Initial phase of 3 years
• The Government
• After 3 years

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Typical CSR Contributions Aggregated For
Producing Chamber Members 2003