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Politics News

LEITI Reports Increase in Revenue Generation

The Liberia Extractive Industry Transparency Initiatives or LEITI has disclosed that the direct government revenue intake from the extractive sector has increased from US$ 110.14m for 2011/2012 to US$ 18.96m for 2012/2013.

According to the LEITI, this increase amounts to US$75.82m in Liberia.According to the 6th annual report released recently in Monrovia, the  report showed that 80 out of 58 extractive companies within the materiality threshold submitted data to the reporting process, representing a 94.11% submission rate, while the reconciliation of payments showed that the total amount received by nine agencies of the Government of Liberia from eighty companies in four covered sectors for the reporting period amounted to US$185,962,444 and payment data supplied by these companies amounted
to US$179,983,795.00, resulting to a net difference of US$ 5,361,233.00. The report further indicated that social payments unilaterally reported by some extractive companies amounted to US$ 14,950 – a sum of US$ 3,383,465 cash payments and US$ 11,566,964 value in kind contribution.

The report indicated that Firestone Liberia Incorporated alone reported US$ 7,541,381, representing 50.44% of the total amount of social payments. According to the LEITI Report, the analysis of government revenue by sector contribution indicates that the oil and gas sector contributed more than 44% to the total government revenues during the fiscal year of 2012/2013, and that ExxonMobil Exploration and Production Liberia Ltd. accounts for 27% of the country extractive revenues for the period, representing the highest contribution from a single company.

The report further explained that Liberia was admitted as an EITI candidate country in 2009, and the first African country to become EITI compliant in 2009, through Legislative enactment. The Liberian Government established the Liberia Extractive Transparency Initiative or LEITI in July 2009 as a platform to bring together the government, as well as civil society and the private sector to promote
transparency over the management of revenues from‘s extractive sector.

The EITI process in Liberia covers four sectors, including Mining, oil, forestry, and agriculture. According to the LEITI, the purpose of the report is to reconcile the data provided by companies in the extractive sector, with the overall objectives of the reconciliation exercise being to assist the Government of Liberia in identifying the positive contributions mineral resources make to the economic and social development of the country, as well as to realize their potentials through improved resources governance that encompasses and fully implements and criteria of the LEITI.

The LEITI indicated that although Liberia remains largely unexplored,it has been shown that the country possesses a wide variety of minerals, pointing out that the country main mineral products are iron ore, gold and diamond.

It added that since the end of the country’s 14 years of civil war (1989-2003), Liberia has succeeded in attracting massive foreign direct investments, particularly in the iron ore sector, in the tune of US$7.6 billion.

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By Lewis S. Teh

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