PNoy boosts transparency, accountability in mining sector

President Benigno S. Aquino III has intensified government efforts to ensure greater transparency and accountability in the country’s mining sector, signing Executive Order No. 146 that creates the Philippine Extractive Industries Transparency Initiative (PH-EITI), Executive Secretary Paquito N. Ochoa Jr. disclosed.

The institution of the PH-EITI is a requisite to complete the EITI process to make the Philippines a “compliant country” in the international undertaking to bring about transparency and accountability in the extractive industries and in government.

Established in 2003, the EITI is a global coalition of governments, companies and civil society collaborating to improve honest and responsible management of revenues from natural resources, particularly oil, gas, metals and minerals.

“Joining the EITI is among the Aquino administration’s measures to ensure greater transparency and accountability in the mining sector, including the way the government collects as well as in the way the companies pay takes from mining,” Ochoa pointed out.

“Measures and activities geared towards Philippines compliance with the requirements to join EITI should be given full support in order to improve the mining sector and spawn better governance and regulation of the industry,” he added.

Based on EO 147, the PH-EITI will be implemented and operational through a multi-stakeholder group (MSG) and decision-making body referred as PH-EITI-MSG, which will be headed by the Finance (DoF) Secretary and will have, as members, the following: five Government Representatives chosen by the Mining Industry Coordinating Council (MICC), five Business Group Representatives, and five Civil Society Organization (CSOs) Representatives. All members will serve for a term of three years.

The PH-EITI-MSG is tasked, among others, to ensure commitment of all stakeholders to the PH-EITI, set and define strategic direction and scope required to effectively implement the EITI in the Philippines, produce regular reports with contextual information about the extractive industries, and ensure that the PH-EITI is effectively integrated in the reform process outlined under EO No. 79, which provides the guidelines to warrant environmental protection and responsible mining in the country.

EO 147 also necessitates the creation of the PH-EITI Secretariat as well as directs all other government agencies and GOCCs to assist the multi-stakeholder group and decision-making body in carrying out its mandate and functions.

As for the PH-EITI-MSG’s fund requirement, the presidential issuance stated that the amount will be initially drawn against the current budget of the DoF, and shall be subsequently included in the annual budget of the finance department.

EO 147, which was signed on November 26, 2013, shall take effect immediately upon publication in a newspaper of general circulation.

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