LEITI Newsletter January-April 2009

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LEITILiberia Extractive

Industries

Transparency Initiative

J anuary - April 2009, Vol. 2 No. 01

LIBERIA WINS EITI IMPLEMENTINGCOUNTRY AWARD

INSIDE THIS ISSUE

LEITI Newsletter

Liberia Wins EITI Implementing Country Award

President Sirleaf Launches Liberias 1st EITI

Report

Pictorial

LEITI Holds Second Stakeholders Retreat

House of Representatives passes LEITI ACT,

includes Agriculture in the scope of LEITI

LEITI Disseminates first Reconciliation Report

Joint EITI/World Bank/African Development

Bank visits Liberia

LEITI Starts Validation

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2/82 | LIBERIA EXTRACTIVE INDUSTRIES TRANSPARENCYINITIATIVE

Liberia has become the first EITI implementing coun-try in the world to win the Extractive IndustriesTransparency Initiative (EITI) Implementing Country

Award. The Award recognizes countries that havedemonstrated the best overall performance in terms ofEITI implementation during a given year.

In presenting the Award, the Chairman of the EITIInternational Board, Peter Eigen said Liberia was theunanimous choice of the Award Committee based on thecountrys rapid progress and pace-setting achievementin EITI implementation during the relative short periodsince it became an EITI candidate country in September2007. Chairman Eigen made reference to the tremen-dous political support for EITI in Liberia and the remark-able commitment and engagement of all LEITI stake-holders, which together made possible the historic deci-sion of Liberia to be the first EITI country to includeforestry in its program.

Liberian President Ellen Johnson-Sirleaf received the

Award on behalf of the country. In her remarks, thePresident thanked the EITI Board for its recognition ofLiberia. President Sirleaf said the Award represented achallenge for Liberia to deepen its EITI implementationand make the LEITI truly beneficial for the Liberian peo-ple.

The Award was presented in Doha, Qatar, during theFourth EITI Conference which was held between Feb. 16-18, 2009. Many representatives of EITI implementingcountries agreed that the award is a deserving testa-ment to the significant progress the LEITI has made in arelatively short time since Liberia became an EITI candi-

date country in September 2007. Liberia is one of 26countries in Africa, Asia and Europe that are implement-ing the EITI.

Meanwhile, two LEITI stakeholders in persons of Mr.

LIBERIA WINS EITI IMPLEMENTING COUNTRY AWARD

Alfred L. Brownell and Counsellor T. Negbalee Warnerwho were also part of the Liberian delegation to theDoha Conference were elected to the EITI InternationalBoard as Member (representing civil society) and alter-nate member (representing implementing countries),respectively. Other members of the Liberian Delegationattending the Doha Conference included Hon. AugustineK. Ngafuan, Minister of Finance and Chairperson of theLEITI and Hon. Eugene Shannon, Minister of Lands, Mines& Energy and Co-Chairperson of the LEITI Multi-stake-holders Steering Group.

President Sirleaf making remarks after receiving Liberia EITI award, Doha, Qatar

President Sirleaf and the Head of LEITI Secretariat, T. Negbalee Warner,

after receiving the EITI award, Doha, Qatar


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PRESIDENT SIRLEAF LAUNCHES LIBERIAS 1ST EITI REPORT

The President of Liberia, H.E Ellen Johnson-Sirleafhas launched Liberias first Reconciliation Reportof payments and revenues connected with the

forestry, mining and oil sectors of Liberia. The Reportwas launched at a colorful ceremony held on 10February 2009 at the Cecil Dennis Auditorium of theMinistry of Foreign Affairs in Monrovia, Liberia.

In her launching remarks, President Sirleaf assertedthat the decision of her Government to implement theEITI and related reforms is based on a firm belief thata prudently managed and transparent extractive sectorcan and will make significant contribution to our nation-al reconstruction and development efforts to benefit all

Liberia. She added that it is for this reason that imple-mentation of the EITI has been made an integral part ofthe National Anti-Corruption Strategy and a key compo-nent of the Poverty Reduction Strategy of Liberia.

The first EITI Report of Liberia was prepared by agroup of chartered accountants named Crane, White &Associates based in Australia. The Report covers theperiod July 1, 2007 to June 30, 2008, and included pay-ment details reported by thirty (30) mining, logging andoil exploration companies, and revenues reportedreceived by four agencies of Government. The full textof the Report can be obtained at the LEITI website:www.leiti.org.lr or at the offices of the LEITI Secretariaton the 4th Floor of the Ministry of Finance Building,Broad Street, Monrovia, Liberia.

President Sirleaf said she was particularly pleased toformally launch the first EITI Report, adding This[Report] will provide a useful opportunity for allLiberians to review, question and comment on mineral

and forest revenues reported, and also generate gover-nance conversation.

The launching program was attended by LEITI stake-holders as well as other dignitaries, including U.S.Ambassador Linda Thomas-Greenfield, Francis Kaikai,Chief of UNMIL Civil Affairs, and Laurence K. Bropleh,Minister of Information, Culture & Tourism.

The LEITI is a body responsible to lead and coordi-nate implementation of EITI in Liberia. The LiberiaExtractive Industries Transparency Initiative (LEITI) ispart of a global Initiative called Extractive IndustriesTransparency Initiative (EITI). The goal of the EITI initia-

tive is to promote transparency over revenues generat-ed from the mineral sector by regularly disclosing, veri-fying, and publishing all material payments made to acountrys government by extractive companies.

President Sirleaf and LEITI Steering Group at the launch of Liberias 1st EITI Report

President Sirleaf with staff of LEITI Secretariat and Christopher White and

Desmond Crane of Crane White & Associates



Liberia Extractive Industries Transp

Bassa Bong

Grand Gedeh Lofa



rency Initiative Outreach Program

Grand Cape Mount Margibi

River Gee



As part of continuing efforts to build the capacity ofLEITI stakeholders and in order to critically reviewthe findings, conclusions and recommendations of

the first LEITI Report, the LEITI held its secondStakeholders Retreat on March 20 and 21, 2009. TheRetreat was attended by over sixty LEITI Stakeholdersrepresenting logging, mining and oil companies as wellas the Government of Liberia, Civil society and LiberiaDevelopment partners.

At the end of the Retreat, the LEITI stakeholders

committed themselves to expeditiously resolving all dis-crepancies contained in the recently published first EITIReport of Liberia, and working to ensure that timber andmineral revenues of Liberia are properly accounted forand equitably used for the benefits of all Liberians.

Earlier during the Retreat, the LEITI Stakeholders dis-cussed major unresolved discrepancies of payments andrevenues data contained in the LEITI first Report. Someof the unresolved discrepancies involved the amount ofUS$160,000.00 that Amlib United Minerals (whichrecently signed a Mineral Development Agreement withthe Government) reported paid to the Ministry ofFinance, but which the Ministry of Finance said it never

received. Also discussed were several other major differ-ences in figures of payments and receipts, includingwhat ArcelorMittal reported as paid to the Governmentand what the Government reported as received fromArcelorMittal.

Given the significance of the discrepancies, and as anecessary measure to further the credibility of the LEITIprocess, the Government of Liberia along with otherLEITI stakeholders at the Retreat agreed that all discrep-ancies contained in the LEITI First Report be expedi-tiously resolved within one month as of the Retreat.

Also during the Retreat, the LEITI MSG approved a

summary of the first LEITI Report, and authorized theLEITI Secretariat to implement wide dissemination ofthe summary LEITI Report in conjunction with otherappropriate public outreach activities. The LEITI stake-

LEITI HOLDS SECOND STAKEHOLDERS RETREAT

holders said that it was important that Liberians getadequately informed of the aims and immense benefitsof the LEITI initiative.

Meanwhile, the over sixty LEITI Stakeholders attend-ing the Thinkers Village Retreat called on the LiberiaLegislature to use their good offices to pass the DraftLEITI Act before them, saying that the benefits of trans-parency and good governance offered by the LEITI arevery clear and indisputable.

The Liberia Extractive Industries Transparency

Initiative (LEITI) is part of a global Initiative calledExtractive Industries Transparency Initiative (EITI),which is implemented in 26 countries in Africa, Asia, andEurope. The objective of the EITI and the LEITI is thesame: to promote transparency over mineral revenuesby requiring the regular disclosure, verification and pub-lication of (1) all material payments made to a countrysgovernment by extractive companies; and (2) the rev-enues the Government received from the extractiveCompanies. The schedule of both payments and rev-enues data are regularly published in an EITI Report.Liberia First EITI Report was published in February thisyear, and may be found at www.leiti.org.lr or collected

from the offices of the LEITI on the 4th Floor of theMinistry of Finance.

Stakeholders at the 2nd EITI Retreat



The Honorable House of Representatives of theRepublic of Liberia has passed the Act to establishthe Liberia Extractive Industries Transparency

Initiative (LEITI), and has also included Agriculture in the

scope of LEITI.The Act was recently submitted to the HonorableHouse by President Ellen Johnson-Sirleaf under cover ofa letter dated February 14, 2009. In her letter, thePresident called on the Lawmaker to pass the LEITI Actasserting that the LEITI Act will have meaningful bene-ficial impact on the national economy and governance ofthe nation

Following its passage by the House ofRepresentatives, the LEITI Act has been sent to theHonorable Senate for its concurrence.

According to the Act, the objectives of the LEITIinclude assisting in ensuring that all benefits due the

Government and people of Liberia on account of theexploitation and/or extraction of the countrys mineralsand other resources are (1) verifiably paid or provided;(2) duly accounted for; (3) prudently utilized for the

HOUSE OF REPRESENTATIVES PASSES LEITI ACT, INCLUDES

AGRICULTURE IN THE SCOPE OF LEITI

LEITI DISSEMINATES FIRST RECONCILIATION REPORT

The LEITI is presently engaged in the process of dis-seminating its first Reconciliation Report of pay-ments made to government by forestry, mining,

and oil companies, and the corresponding revenues

received by government from the Companies. TheReconciliation Report, whichwere prepared by Crane, White &Associates, detailed, on a disag-gregated basis, payments andrevenues from the oil, mining andforestry sectors of Liberia for theperiod July 1, 2007 up to andincluding June 30, 2008.

Following the launch of the66-page Report, a concise sum-mary of its contents (especiallythe payments and revenues fig-

ures) was prepared. The on-goingdissemination campaign thereforecovers both the full text of theReport and the Summary of theReport.

Thus far, the LEITI Report hasbeen distributed to all agencies ofGovernment, the general AuditingCommission, the Liberia Anti-Corruption Commission; theLiberia Legislature; all collegesand universities, diplomatic mis-

sions, as well as, of course, all mining, oil and forestrycompanies. Also, the Report is being distributed all overthe country to every county, district and major town aswell as the schools and churches within them.

The Dissemination campaign entails distributingcopies of the Report, and sitting in town hall meetings toexplain and discuss the full content of the Report. Thedissemination of the Report also emphasizes how the

Report should be used as a handy governance instru-ment.To date, the LEITI has visited

Ten (10) of the fifteen (15) coun-ties of Liberia. The LEITI has metand held meeting with at leastthree hundred (300) persons ineach of the counties. These 300persons represent county offi-cials, District Commissioners andother officials of districts, chiefs,traditional leaders, communityleaders, Civil Society

Organizations, Women Groups,Youth Groups, and Leaders ofStudent Council Government ofvarious high schools and othercommunity residents of the coun-ties.

The LEITI Communications andOutreach activities are mandatedby the LEITI MSSG to comply withthe EITI requirement relating tocomprehensive and comprehensi-ble dissemination of a national

EITI report. The dissemination/outreach exercise is alsobeing used as one means of making the objectives, activ-ities and benefits of the LEITI widely known and to fos-ter public support for the initiative.

The House of Legislature

benefits of all Liberians and on the basis of equity andsustainability. The full text of the Act can be found atwww.leiti.org.lr .


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In furtherance of its rapid progress in EITI implemen-tation, Liberia has emerged as the second EITI coun-try to begin validation. The first EITI country to have

undertaken validation is Azerbaijan.Liberias validation process started on March 23,

2009. The validation is being carried out by a UK-based

firm, Oxford Policy Management Group. The validationteam led by Dr. Magnus Macfarlane and including DavidAbjola Wilf Herderson and Dr. Wallor Topor was in coun-try for about two weeks during late March and earlyApril.

The team met with the LEITI Chairperson and the Co-Chairperson as well as many other LEITI Stakeholders.The team also attended the 23rd meeting of the MSG(along with the joint EITI/World bank and AFDB Mission)held on April 23, 2009 at which time they briefed theLEITI Multi-stakeholders Steering Group on the valida-tion process.

The validation process is a quality assurance mecha-nism that the EITI Board uses to determine a countrys

Ajoint mission from the EITI internationalSecretariat in Oslo, Norway and the Head Officesof the World Bank and the African Development

Bank recently visited with the LEITI at which time the

met and held meetings with LEITI stakeholders and sen-ior officials of the Liberian Government on how to deep-en and sustain the work of the LEITI.

Members of the visiting EITI/World bank/AfricanDevelopment Bank Mission included Eddie Rich, DeputySecretary of the EITI International Secretariat, Mr.Dorain Vasse, of the Oil, gas, and Mining Policy and

JOINT EITI/WORLD BANK/AFRICAN DEVELOPMENT

BANK VISITS LIBERIA

Operations Unit of the World Bank; Mr. Andre Ufer alsoof the World Bank, and Tove Strauss who is the PrincipalFinancial Governance Expert, OSGE Department, AfricanDevelopment Bank.

During the Missions visit, they held separate meet-ings with the Vice President of Liberia, Dr. JosephBoakai; the leadership of the Liberian Senate; and otherGovernment officials as well as representatives ofCompanies and civil society. The Mission also attendedthe 23rd meeting of the LEITI Steering Group held onThursday, April 23, 2009.

compliant status. Presently, there are 26 countriesincluding Liberia that are implementing EITI and areconsidered EITI candidate Country. An EITI candidatecountry will become EITI Complaint country if (1) itundertakes validation; and (2) the validation processestablishes that the country is indeed implementing EITI

in accordance with the agreed international criteria.More development on the LEITI Validation process in ournext issue.

LEITI STARTS VALIDATION

Joint EITI mission and LEITI validators with the leadership of the Liberian Senate (left) and the Vice President of Liberia, Dr. Joseph Boakai (right)

Dr. Macfarlane, Head of the Validation Team making remarks

LEITI Newsletter

Published by the LEITI Secretariat4th Floor, Ministry of Finance BuildingEmail: [email protected]: www.leiti.org.lr

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LEITI Newsletter January-April 2009

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