Transparency in the extractive sector miningg

Zimbabwe Environmental Law Association (ZELA)

Table Of Contents

ACKNOWLEDGEMENTS 2

INTRODUCTION 3

BACKGROUND AND CONTEXT 4

WORKSHOP PROCEEDINGS AND RESULTS 6

SESSION 1: CHALLENGES IN MINING SECTOR 6

PRESENTATION 1: Mining Sector Perspectives on Transparency and Accountability: 6

PRESENTATION 2: Key Legal and Administrative Issues on Access to Information 7

and Public Participation in the Mining Sector

FIRST DISCUSSION SESSION 10

PRESENTATION 3: Challenges and Building Blocks in Fighting for Transparency and

Accountability in Zimbabwe 11

PRESENTATION 4: Protecting the Environmental, Economic, Social and Cultural Rights

of Communities in Mining Areas 12

SECOND DISCUSSION SESSION 14

SESSION 2: TOOLS AND INITIATIVES TO PROMOTE TRANSPARENCY AND

ACCOUNTABILITY IN THE EXTRACTIVE SECTOR 16

PRESENTATION 5: Extractive Industries Transparency Initiative (EITI) and 17

Publish What You Pay (PWYP) Campaign 18

PRESENTATION 6: Alternative Business Sector Models to

Promote Transparency and Accountability in the Extractive Sector 19

PRESENTATION 7: Use of Modern Communication Technologies and the

Media to Promote Transparency and Accountability in the Extractive Sector 20

PLENARY DISCUSSION 23

PRESENTATION 8: Imperatives for Formation of a National Coalition

on the Extractive Industry 24

NEXT STEPS AND ADVOCACY ISSUES DRAWN FROM THE DISCUSSIONS SESSIONS 25

CONCLUSION 26

ANNEXURE 1: WORKSHOP AGENDA 27

ANNEXURE 2: LIST OF PARTICIPANTS 28

Published by: Zimbabwe Environmental Law Association (ZELA)

Sponsored by: Revenue Watch Institute (RWI)

Copyright: 2010. Zimbabwe Environmental Law Association (ZELA)

This publication may be reproduced in whole or in part and in any form for educational or non-profit uses, without special permission from the copyright holder, provided full acknowledgement of the source is made. No use of this publication may be made for resale or other commercial purposes without the prior written permission of ZELA.

Year of Publication: July 2010

Available from: Zimbabwe Environmental Law Association (ZELA), No. 6 London Derry Road, Eastlea, Harare, Zimbabwe: Tel: 253381; 252093, Email: [email protected], Website: www.zela.org

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Acknowledgements

The Zimbabwe Environmental Law Association (ZELA) published this report of proceedings of the first civil society dialogue meeting on transparency and accountability in the extractive sector as a response to the growing demand for information by different stakeholders on how government and mining companies can be called to account for their operations and actions in the generation, management and distribution of wealth from the exploitation of mineral resources in the country. This publication forms the initial and most basic first step to share and disseminate information on the different strategies that should be nurtured, customized and strengthened in Zimbabwe to promote open dialogue and debate on transparency and accountability in the extractive sector, particularly in the mining sector which has been plagued by allegations of corruption, conflict and viewed as contributed little to national economic development. Particular focus is paid to the Extractive Industries Transparency Initiative (EITI), a new concept in the Zimbabwean discourse on mining.

To a larger extent this report is a result of the sterling efforts of different individuals and organizations. In particular, ZELA would firstly like to thank all organizations that attended the first civil society dialogue meeting and contributed ideas on how civil society can move together to promote transparency and accountability in the mining sector. The dialogue meeting was held on the 10th of June 2010 in Harare. ZELA would also like to thank Rodger Mpande for ably facilitating the workshop and Prisca Mukwengi for capturing the workshop proceedings. Most importantly, ZELA is greatly indebted to the Revenue Watch Institute (RWI) for providing the financial support that enabled the organization to hold the dialogue meeting and to publish this report.

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Introduction

This publication is based on the report of the proceedings of the first Civil Society Dialogue meeting on Transparency and Accountability in the Extractive Sector that was organized by the Zimbabwe Environmental Law Association (ZELA). The dialogue meeting was held on the 10th of June 2010 at the Crowne Plaza Hotel in Harare, Zimbabwe. A total of 73 participants attended the dialogue meeting from diverse backgrounds and in particular from the following civil society sectors; human rights, anti-corruption, environment, trade and economics, mining, land and gender.

The main purpose of the dialogue meeting was to create a platform for civil society organizations to openly discuss and adopt strategies that can be used to promote and advocate for transparency and accountability in the mining sector. The mining sector in Zimbabwe, particularly diamond mining has been dogged by a myriad of allegations of corruption, mismanagement of revenue and payments and violations of human rights. Further, with the exception of a few, the mining sector has never attracted the attention of many CSOs. This dearth of collective CSO action on mining issues has created conditions for unabated corruption, conflicts and mismanagement of payments and revenue from the mining sector to persist without any alarm being raised by CSOs. In that context it was imperative that civil society organizations come together to identify areas of possible engagement, strengthen linkages and share knowledge, skills and information on how government and the mining industry can be engaged to enhance transparency and accountability in the mining sector and ensure that the country and communities in mining areas generate and derive economic benefits and wealth from mineral resources.

The dialogue meeting presented an opportunity for civil society organizations to discuss and adopt recommendations on a number of issues including; how to address the legal, institutional and administrative gaps in the mining sector and the applicability of different initiatives that can be used to promote transparency and accountability such as the Extractive Industry Transparency Initiative (EITI), the Global Reporting Initiative (GRI) and the International Financial Reporting Standards (IFRS). The meeting also sought to spur discussions on the need to establish a working group of civil society organizations to monitor and promote transparency in the extractive sector in Zimbabwe.

This report therefore summarises the presentations and discussion points and issues that were raised during the dialogue meeting. A background section has been inserted in this publication which states the problem statement that gave rise to the need to organize the dialogue meeting. In terms of the meeting proceedings, the first session of the dialogue meeting was meant to discuss the problems afflicting the mining sector around transparency and accountability while the second session was aimed at discussing the different initiatives that can be used to promote transparency and accountability in the mining sector. The third session was meant to generate targeted recommendations and next steps that should be pursued by civil society organizations to promote transparency and accountability in the mining sector. However, to give the report a theoretical and practical context some key issues and views that were raised by participants during the dialogue meeting were recast and refined to make the publication more relevant and explains the issues in a more robust way.

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Background and context

The mining sector in Zimbabwe is plagued by allegations of areas. Worse still some mining companies such as those corruption, lack of transparency and accountability and involved in diamond mining in Chiadzwa had started mismanagement. The revenues from minerals resources operations without complying with national laws such as (diamonds, gold, granite and platinum among others) in the Environmental Management Act (Chapter 20:27) which Zimbabwe have so far failed to meaningfully benefit the requires mining companies to carry out Environmental country and in many cases have not been used to Impact Assessments (EIA) before commencing operations. developed communities affected by mining operations. EIAs are a very important planning tool which reveals the However, there are a few exceptions to this as some mining potential environmental, economic, social and cultural companies have contributed to the infrastructural impacts of operations and possible mitigation measures. development of mining towns, although some of them are This indicates lack of accountability. It is also inconceivable now becoming ghost towns. how government allowed the companies to commence

operations before they had met the requirements of the Public hearing meetings held by the Parliamentary Portfolio laws of this country.Committee on Mines and Energy in February 2010 on the operations of diamond mining companies in the Chiadzwa The other problem in the mining sector is that the selection diamond mining area exposed a lot of problems related to of investors has been shrouded in secrecy as tender revenue generation and distribution in the mining sector. procedures are sometimes not followed. Mining contracts During the public hearings a lot of irregularities were and agreements between government and mining revealed which clearly show lack of transparency and investors have not been made public to ensure that the accountability in the management and exploitation of people know the revenue and expenditure streams as well minerals. The malady permeates the whole mining sector as the obligations of the parties and whether the mining and the diamond mining issues are just a fraction of a bigger concessions are in favour of the country. Further, claims of rotten apple. Broadly, most government owned and private confidentiality have also affected provision of information. mining companies have not been complying with Restrictive access to information laws and practices by applicable legislation in terms of mining, exploration, government have exacerbated the opaqueness in the marketing, selling and management of mineral resources. mining sector as access to information and public While some mining agreements provide for payment of participation is limited especially with regard to revenue natural resources depletion fees to government owned generation, payments and distribution. What has also put a companies, this fee is not paid directly to government for dark spot on the diamond mining sector in Zimbabwe is the benefit of the people of Zimbabwe. refusal by government to allow the Mines and Energy

Parliamentary Portfolio Committee to visit the Until recently, government owned companies like the Marange/Chiadzwa diamond fields to meet communities Zimbabwe Mining Development Corporation (ZMDC) and and the mining companies operating in the area. the Minerals Marketing Corporation of Zimbabwe (MMCZ) had not been declaring dividends to government from their The government and in particular the police has been mining operations around the country. The royalties paid by stating that the area has been declared a protected area mining companies are very insignificant and have not and no outsider including members of parliament are resulted in any significant and sustainable community and allowed into the area. This situation is a clear illustration of national economic development. For example, in 2009 the the lack of transparency and accountability by government. mining sector only contributed a paltry US $4 million in If an institution like Parliament which is supposed to play an royalties to government. As a result many communities oversight role is denied entrance, one wonders how other located in mining areas are without essential social services stakeholders like civil society is treated. The country is also and people live in abject poverty with poorly equipped struggling to satisfy the Kimberly Process Certification schools, clinics, poor road networks and limited job Scheme (KPSC) requirements to ensure that the diamonds opportunities despite the fact that mining companies are mined in Chiadzwa are certified for trade. making profits from natural resources extracted in the

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Given the above situation, there is a clear need to start promoting transparency and accountability in the mining sector. There is an urgent need to promote access to information, open debate and dialogue on natural resources use to ensure that resources are used to develop the country and not just to benefit a few people. In that regard, various stakeholders (government, mining companies, civil society organizations, parliamentarians, communities and the media) should come together in good faith to discuss the best measures and initiatives that can be used to enhance transparency and accountability in the mining sector. It is imperative to build national interest amongst stakeholders to push the country to adopt new initiatives that enhance transparency. Building national interest starts with bridging the information and knowledge gaps that currently exist about measures to promote transparency and accountability in the country amongst different stakeholders. The above reasons justifies why ZELA found it worthwhile to organize a workshop for civil society organizations on the extractive sector.

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Background and context

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Workshop proceedings and results

The objectives of the dialogue meeting were stated as follows; ? To create a platform for civil society organizations to discuss the problems and opportunities in the extractive sector in

Zimbabwe, particularly in the mining sector.?Identify the legal, institutional and administrative gaps hindering access to information and public participation in the

mining sector.?To discuss how best the economic, environmental, social and cultural rights of communities in mining areas can be

protected.?To act as a foundation for building the capacity of civil society organizations(CSOs) to demand and promote

transparency and accountability by government and mining companies.?To provide a platform for CSOs to adopt strategies on engaging the government and mining companies to assess the

applicability of initiatives that can be implemented to enhance transparency and accountability in the mining sector.

Objectives of the workshop

The following initiatives were to be discussed; the Extractive Industries Transparency Initiative (EITI), the Global Reporting Initiative (GRI), International Financial Reporting Standards (IFRS), Stock Exchange Systems and other initiatives such as the International Standards Organisations systems such as ISO 14000 on environmental management.

SESSION 1: challenges in mining sector

PRESENTATION 1: MINING SECTOR PERSPECTIVES ON TRANSPARENCY AND ACCOUNTABILITY: CHALLENGES AND OPPORTUNITIES

Dr Chris Hokonya, the Chief Executive Officer of the Zimbabwe Chamber of Mines made a presentation on the perspective of the mining companies on transparency and accountability. The presentation was meant to ensure that civil society organizations are informed about the challenges and opportunities facing the mining sector in Zimbabwe. The Chamber of Mines is an umbrella body representing most of the mining companies in Zimbabwe. A number of issues were raised during the session. The presentation emphasized the importance of bringing the mining industry and government to adhere to certain principles as far as transparency, accountability, sustainable development and environmental protection is concerned. It was noted that mining activities are destructive of the environment and in that respect the mining sector has been trying to comply with the national and global standards, laws and norms on environmental conservation and protection. In addition the Chamber of Mines welcomes all the initiatives that civil society organisations are spearheading in a bid to raise awareness on the need to inculcate a culture of responsibility, transparency and accountability in the mining sector.

Dr Chris Hokonya the CEO of the Zimbabwe Chamber of Mines addressing CSOs on the perspectives of the mining sector on EITI during the workshop

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On the issue of mining payments and revenue, Dr Hokonya concerning the extractive industry and the EITI. He stated that mining companies make a number of payments to proposed that some of the mining royalties should government and incur expenditures which in most cases go contribute to the fiscus but in order to adhere to tenets of unnoticed by the public in the form of unit taxes, licensing corporate social responsibility the communities within fees, royalties, environmental taxes and social investment which these mining activities are being conducted should expenditure. He pointed out that the Chamber of Mines receive part of the royalties. Dr Hokonya stressed that would especially benefit from a culture of transparency. In resources should be made available by mining companies that regard he said that it is imperative to let members of the to ensure that at the termination of a mining ventures public know how all the payments and revenues are communities can still get benefits. He also pointed out managed and used by the government. He also underscored that it is imperative that the same royalties should the contribution the mining sector has made in Zimbabwe by contribute to mining development. stating that many towns in Zimbabwe were established with support from mining revenue by the mining companies. On environmental protection, Dr Hokonya informed Therefore, the mining industry has contributed to society participants that all mining companies should adopt through taxes, royalties and social investment characterised environmental rehabilitation programmes. He indicated by infrastructural development and contribution to that the mining sector is willing to ensure that agricultural development through support to irrigation environmental destruction caused by mines is minimal. schemes. He gave the examples of Kwekwe and Bindura More importantly, the mining dumps should be which are mining towns. rehabilitated back to a position where it does not become

a hazard to the environment by way of cleaning up of the Dr Hokonya however, lamented that there is a general lack of dumps, preventing soil erosion and deforestation and appreciation of the cost side and profitability of mining in other environmental dangers. Zimbabwe as people sometimes do not clearly understand what is involved. In that respect he said that in mining there is Dr Hokonya also made a fundamental point on the need always a hazard that what a mine injects into a mining to find ways of ensuring that the artisanal or small scale venture is not often met by expected profit margins. miners are also responsible and accountable. There are a However, he pointed out that stakeholder expectations in lot of artisanal gold and diamond miners in Zimbabwe. It this regard could be managed through transparency and was pointed out that of all mining endeavours the accountability initiatives. On the perceptions of the mining artisanal miner was the most unchecked in terms of companies about the Extractive Industries Transparency accountability and reporting even though they also cause Initiative (EITI), Dr Hokonya reiterated that even though it is great damage to the environment through soil erosion still not yet clear whether the government will support and and or deforestation. In certain instances there have been join the EITI, the mining sector is willing and desirous to reports of human rights violations within the sector. He initiate a voluntary reporting system. He pointed out that the also pointed out that the problem with artisanal miners is Chamber of Mines is therefore fully behind the idea of the that they do not contribute to the fiscus as they normally country joining the EITI. He also stated that the do not pay taxes and royalties. Dr Hokonya informed implementation of the EITI can help prevent corruption, participants that the Chamber of Mines is looking at poverty and conflicts in the extractive sector in Zimbabwe. strategies and ways of working with the small scale miners However, he pointed out that since the initiative is fairly new to ensure that they also adhere to environmental and evolving there is limited understanding of what principles and are transparent and accountable in their constitutes material payments and revenue that should be operations. Dr. Hokonya's discussion on the operations of made public by mining companies under an EITI regime. artisanal or small scale miners who are many in Zimbabwe

clearly borders on the need for defining the issue of During the presentation he also stressed the need to materiality in terms of which companies and payments or interrogate the distribution of mining royalties and also revenue under an EITI regime can be treated as material pointed out that civil society organizations should take for reporting and disclosure. special interest in this area as they agitate around the issues


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PRESENTATION 2: KEY LEGAL AND ADMINISTRATIVE ISSUES ON ACCESS TO INFORMATION AND PUBLIC PARTICIPATION IN THE MINING SECTOR

Mr. George Gapu and Mr. Josiah Chinherende who are both lawyers made a joint presentation on the key legal and administrative issues on access to information and public participation in the mining sector. The presentation revealed that access to information is a prerequisite for effective public participation and that access rights provide an opportunity for people to make informed choices.

It was also noted that the scope of the access to information provisions in the Constitution of Zimbabwe is limited. For example, Section 20 of the Constitution of Zimbabwe envisages a willing giver and willing receiver situation in so far as provision of information is concerned whilst it does not afford an obligation on the giver to do so. There is need for advocacy on the entrenchment of the right to access information in the Constitution since there is a gap. The presentation also touched on the main legal instrument on access to information in Zimbabwe which is the Access to Information and Protection of Privacy Act (AIPPA) (Chapter 10:27).It was pointed out that there are two components to the Act as is suggested by the title. The first part is meant to enable the public to access information and the second part is meant to limit access to information. It was highlighted, in the presentation that the Act also applies to public bodies. Section 5 of the Act thereof gives; “every person the right of access to any record in the custody of or under the control of a public body subject to the exclusions in the First Schedule of the Act’

Public bodies are listed in Schedule 2 of the Act to include any government department and any statutory corporation or authority. This means that the Ministry of Mines as well as the Mining Affairs Board as public bodies are obliged to comply with the Act with regards to access to information. The provisions of the Act can be utilized to obtain information on written application on mining rights as well as royalties payable by mining companies. The Act also provides for appeal against the decision of the public body to the Administrative Court should the application not succeed at the first instance. These provisions can be used by members of the public to access information on revenue and payments made in the mining sector. However, it requires people who know the existence of such provisions to make such claims for information. In most cases public bodies will not pro-actively provide such information until someone demands access. Nevertheless, the presenters noted that the Mines and Mineral Act affords very little in terms of granting access to information. Section 138 however stipulates that: “upon receipt of an application for a mining lease the Mining Commissioner is required to publish a notice in the Gazette giving details of the application, including the particulars of the mining location to which the application relates and inviting the lodging within 30 days of objections thereto'’

In that regard, Section 143 states that the Board should keep a register of all mining leases. The presenters stated that the public can access this information by invoking provisions of the Access to Information and Protection of Privacy Act. Information relating to mining companies' environmental impacts and rehabilitation can also be obtained from the Environmental Management Agency.

The pictures shows Mr. George Gapu (left picture) and Mr. Josiah Chinherende making a presentation on the legal and administrative barriers to access to information and public participation

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PRESENTATION 2: KEY LEGAL AND ADMINISTRATIVE ISSUES ON ACCESS TO INFORMATION AND PUBLIC PARTICIPATION IN THE MINING SECTOR

The presenters also discussed the legal aspects of Environmental Impact Assessments (EIA) and its effectiveness as a tool to promote public participation and access to information on mining activities. The presenters pointed out that EIAs have a limited application on provision of information since in most cases the EIA documents submitted by mining companies do not cover information on economic aspects of mining activities. For example in most cases EIA reports do not cover information on agreements or mining contracts entered into by mining companies and government. However, EIAs are useful on public participation as legal provisions on the environmental impact assessment stipulate that local communities are entitled to be consulted as stakeholders. The consultation should be on environmental, social and economic aspects of the project but experience has indicated that focus tends to be on environmental and social impacts if the consultations are ever done. There have been questions on whether the law should further entrench rights of local communities in the environmental impact assessment process as pertaining to the economic impact of the project. There has not been proper implementation of the environmental impact assessments provisions (EIA) as developers regard them as just a formality before a licence is issued especially if the companies involved are government owned. In such instances, the law may not be adequate without the requisite political buy in.

It was also pointed out that there is no obligation on mining companies to give the public or local communities information on the economic aspects of their operations such as mining output, gross income realized or local investment as part of corporate social responsibility. This exacerbates a situation where mining companies might renege on some aspects of corporate social responsibility since their proceeds from the mining endeavours are never known by members of the community. The presenters also stated that the general lack of information also affects the mining companies in that it creates a perception by members of the public that all the mining companies always amass huge profits, yet the cost of mining in some instances often outweighs the returns on investment. There is a school of thought which says that companies should be legally obliged to provide information of an economic nature to local communities.

The presenters also pointed out that most people who request for information have to surmount the obstacle of having to pay fees which in some cases are prohibitive. They gave the example of the Environmental Management Agency which levies exorbitant charges for provision of information such as the Environmental Impact Assessment documents compiled by mining companies. This hinders access to information. In this regard, the question which always begs for an answer is whether government departments should levy a fee as an income generation venture or merely to recover costs for photocopying or costs incidental to the actual provision of such information.

Lastly, the presenters also pointed out that the judicial enforcement of the right of access to information and public participation has been frustrated by the delays in the justice system in Zimbabwe as public interest cases on environmental access rights take longer to be concluded.

In essence the presenters' discussion drew a lot of observations from the findings of an assessment on access to information that was undertaken by ZELA in 2006 – 2007 under The Access Initiative (TAI). One of the key findings was that there is a serious disjuncture between the legal provisions and what happens on the ground in terms of the implementation of those legal provisions. The research revealed that the government of Zimbabwe has made tremendous progress in terms of legislating for access rights particularly in relation to environmental access rights. The Environmental Management Act is a key piece of legislation that recognizes everyone's right to environmental information and to participate in environmental decision making. This piece of legislation was put in place as a direct response to the dictates of the 1992 earth summit and in particular the need to domesticate the provisions of the Rio Declaration on Environment and Development. In addition, the Constitution of Zimbabwe and the Access to Information and Protection of Privacy Act (AIPPA): Chapter 10:27 have general legal provisions that emphasize the right of members of the public to information. In practice however, access to information has been curtailed by the controls that are placed on the media by the AIPPA, especially if the information relates to what are regarded as sensitive state/government issues. The Act also has many claw back clauses (provisos) that make it extremely difficult to access information that is held by public bodies. Further, in practice, the capacity of both the government and members of the public to deal with access issues in the country is seriously curtailed. For the government, the major problem is lack of equipment, infrastructure, money and trained personnel to help in the delivery of access rights. Members of the public basically lack the requisite information on what they are supposed to do, where to go and the processes that they have to follow in order to access the rights.

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During the discussion session, participants posed a number of questions to Dr Hokonya. Participants wanted to know whether the Chamber of Mines encourages its members to provide information as a sign of the Chamber's willingness to embrace the EITI and to use it to start a voluntary reporting system. Participants also pointed out that some big mining companies tend to stifle provision of information by requiring employees to sign an oath of confidentiality before they start working for the mining company. In addition participants wanted to know if the Chamber has some form of charter for its members that sanction the provision of information so that at least the members can somehow use the basic tenets of transparency and accountability. In response to these questions, Dr Hokonya said that currently there is no charter on provision of information and stated that adoption of a charter could be a good measure to ensure provision of information by mining companies and compliance, although laws will be better as they will impose legal obligations. He however, also said that over the years some laws and practices that promoted access to information have been ignored and not used due to the economic and political problems obtaining in the country.

In addition participants wanted to know what impact the government's indigenization and economic empowerment drive to give indigenous Zimbabwean a 51% share in all companies has on the mining industry. The question was asked because the government has passed legislation to compel all foreign owned companies to give 51% of their shareholding to locals. Additionally, participants also wanted to know whether Chinese mining companies that are operating in the country are also members of the Chamber of Mines since they are also investors and seem not to be interested in issues of transparency and accountability. In response Dr Hokonya reiterated that the indigenization drive should be harnessed by stakeholders in the industry to include the aspect of corporate social responsibility rather than focusing on shareholding only. This means requiring mining companies to invest in local communities. In that respect, he informed participants that the Chamber of Mines has put together a proposal and tabled it before the government on indigenization vis-à-vis the mining industry and the response is yet to be known. On the issue of investors and the Chinese involvement in the mining sector Dr. Hokonya pointed out that it is absolutely dependent on the standards and requirements for investors set by the country. The form of foreign investment that we ultimately end up with is what we will have allowed through the standards and benchmarks of expectations we set as a nation.

Other participants enquired about the Chamber of Mines' plans on the existence of ghost towns which are former mining towns where mining activities have been terminated and where former employees are reeling in poverty. In that regard, participants wanted to know what measures that Chamber of Mines can take to sustain the livelihoods of mining communities beyond the mining venture. Dr Hokonya indicated that the Chamber recommends the generation and setting aside of resources during the mine's life which the community will utilize to sustain itself at the end of mining activities. However, he also stressed that every company has a policy that caters for its personnel and the community but there is need for a broader recognition of the fact of an eventuality of ending of a mine's life cycle. He advocated for the development of a national framework which mining companies can subscribe to in terms of community responsibility after the closure of the mine. Dr Hokonya also propounded that it is of fundamental importance that regard be had to environmental concerns after the mining activities have ceased which encompass the cleaning up of environment and ensuring that there are no toxic dumps left at the mining site, safeguarding against soil erosion and adoption of other environmental remedial measures.

FIRST DISCUSSION SESSION

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PRESENTATION 3: CHALLENGES AND BUILDING BLOCKS IN FIGHTING FOR TRANSPARENCY AND ACCOUNTABILITY IN ZIMBABWE

Mr. John Maketo from Transparency International He also pointed out that the country requires a calibre of Zimbabwe (TIZ), an organization that advocates for the people with resilience, strength and determination who are promotion of transparency and accountability, presented a willing and valiant enough to fight corruption. Civil society paper on the challenges faced by civil society organizations organizations and people fighting the anti corruption and in fighting for transparency and accountability in Zimbabwe. transparency battle should have the boldness to continue Mr. Maketo defined the conceptual background and with the campaign despite setbacks and infliction of pain rationale for promoting transparency and accountability. He and misery from offenders.stated that accountability is a concept in ethics and governance with many facets. It is often used synonymously In addition, he stated that in order to enforce anti with such concepts as answerability and responsibility. corruption laws, there is need for an independent, skilled,

effective and corruption free judiciary. It is imperative that Mr. Maketo indicated that there is a culture of secrecy in the the members of the judiciary be able to grant judgments issuing of natural resources exploitation contracts and without fear or duress from any quarter of the society.claims and selection of investors by government in Zimbabwe. The mining concessions and contracts that are He also encouraged civil society organizations to embark on signed by government are not made public. This sheds public education campaigns to conscientise the public on darkness on the revenue generated and the use of revenue the right of access to information in the extractive and thereof. Some contracts signed by government with foreign natural resources sector since this is where there is a lot of companies benefit the foreign investors more than they corruption. Another requirement for fighting corruption contribute to the fiscus in terms of profits and revenue and promoting transparency and accountability is a fearless distribution. Mr. Maketo stated that the Extractive and independent media with investigative skills. The media Industries Transparency Initiative (EITI) and the Publish should also be objective in its search and publication of What you Pay campaign will go a long way in terms of findings.providing vital information especially on the economic aspects of mining activities in Zimbabwe and these are Mr. Maketo also said that legislation that buttress the non- initiatives that Transparency International is engaged in at provision of information such as sections of the Access to the global level. Information and Protection of Privacy Act and the Official

Secrets Act should be repealed whilst promoting Mr. Maketo pointed out that one of the building blocks for regulations and laws that will ensure recognition of the right all anti corruption initiatives is political will which envisages of access to information. Further, Mr. Maketo lamented that a situation where there is actual endorsement and the mindset and or beliefs that corruption is inevitable implementation of policy positions. He opined that should be dealt with in the extractive industry as well as the Zimbabwe has acceded to many international and regional citizenry. If civil society forms a critical mass and lobby for conventions and protocols that seek to enhance transparency and accountability, issues of reprisals in anti-accountability and good governance. However, these have corruption campaigns will be minimized. He further said not been incorporated or domesticated into national law. that the anti- corruption drive should not be selectively He also stated that in Zimbabwe without the harnessing of applied but should be standardized with the same laws adequate law enforcement tools, transparency and applied to everyone without fear or favour. He pointed out accountability will be difficult to enforce in different sectors that corruption should be tackled from the political of the economy. In that respect there is need for financial leadership first in as much as it applies to mining companies. and physical resources to buttress the initiative. Lastly, he stated that the absence of whistle blowers for fear

of reprisals and whistle blower legislation is crippling all In his presentation, he stated that there should be human efforts to promote transparency and accountability in the resources skilled in investigations, prosecutions, natural resources sector. accountancy, public education and corruption prevention.

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PRESENTATION 4: PROTECTING THE ENVIRONMENTAL, ECONOMIC, SOCIAL AND CULTURAL RIGHTS OF COMMUNITIES IN MINING AREAS

Mutuso Dhliwayo, the Director of the Zimbabwe Zimbabweans, although these have not yet been Environmental Law Association made a presentation on the operationalised as they have stirred controversy. Mining environmental, economic, social and cultural rights of communities who are directly affected by mining communities living adjacent to mining areas. His activities should also be considered in the economic presentation was meant to highlight the moral and legal empowerment and indigenisation drive instead of justifications for community benefits and to expose the benefiting elites only. Further, the Environmental challenges and problems encountered in promoting and Management Act (Chapter 20:27) in section 4 states that it protecting these rights and the recommendations thereof. is the right of everyone to participate in justifiable The presentation was also meant to illustrate that economic development and this provision also includes transparency and accountability in the extractive sector the mining sector. The Environmental Management Act should be promoted so that the communities affected by also includes communities among the beneficiaries of mining operations and the nation as a whole benefit from economic development. He also pointed out that there the revenue and payments generated in the sector. are proposed amendments to the Mines and Minerals Act which cater for the indigenisation and economic Moral Justification for Expectation of Benefits empowerment of indigenous Zimbabweans in the mining Mutuso Dhliwayo defended the moral justification of sector and this should include communities. The National communities to derive benefits from mining activities by Environmental Policy and Strategies 2009 also stating that mining activities invariably have a profound contemplate the need for communities to benefit from effect on people's lives and therefore should also contribute mining activities in terms of Guiding Principle 31 on to poverty alleviation. The impact of mining activities on Mining.people can be positive or negative. Mining causes environmental damage in the form of siltation of rivers, Dhliwayo also stated that mining companies are required deforestation, disturbance of ecosystems, degradation of by the law to pay a royalty on all minerals extracted in the quality of the land and depletion of valuable agricultural Zimbabwe and Section 245 of the Mines and Minerals Act land. In some cases mining activities cause water and air provides a mechanism of calculating the royalty. However, pollution. He gave the example of diamond mining activities the revenue received by the government as royalties goes in Chiadzwa where pollution of Odzi River has been reported to central government and forms part of the Consolidated to have affected people's access to clean water. In cases Revenue Fund. This entails that the funds are used in where mineral deposits are discovered poor communities accordance with the National Budget that is developed by may be evicted and relocated and this upsets the the Ministry of Finance and no percentage of these communities' natural source of wealth and power. Mining royalties are channelled back to the community in the area also affects communities' culture and dignity. Dhliwayo where the mineral would have been extracted. In the indicated that these effects on people's lives justifies why same breadth the Minster of Finance is under no communities should derive some economic, environmental, obligation to give consideration to the origins of the social and cultural benefits from mining activities. money. Hence the community miss out on benefiting from

the proceeds of minerals revenue that are mined within Legal Justification for Expectation of Benefit their area. In situations where mining companies are Mutuso Dhliwayo also discussed the legal framework that paying some taxes to local authorities or local can be used to promote community benefits from mining. government, the money is not often used for community He stated that the Indigenisation and Economic projects but to meet the operational costs of the local Empowerment Act stipulates that 51% of the majority of government.business concern in Zimbabwe should be owned by

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PRESENTATION 4: PROTECTING THE ENVIRONMENTAL, ECONOMIC, SOCIAL AND CULTURAL RIGHTS OF COMMUNITIES IN MINING AREAS

Mutuso Dhliwayo the Director of ZELA made a presentation on how community rights can be protected.

Dhliwayo also talked about the weaknesses of the current Constitution of Zimbabwe in terms of protecting and promoting community rights. He said that the constitution does not explicitly guarantee environmental, economic, social and cultural rights and this affects the realization of the rights of mining communities.

In practice, mining activities have only benefited a few people and community members who are luck to be employed by the mining companies. There is no real commitment to the tenets of corporate social responsibility within the mining sector. Whilst some companies have endeavoured to recognize the need to plough back in to the community, they have only gone in so far as giving out pittances such as food handouts and other less valuable gifts like donating fuel. He also noted that there are mining companies that have taken up corporate social responsibility activities and ploughed back to communities. He gave the example of Rio Tinto in Zimbabwe which managed to compensate communities who were affected by its diamond mining activities in Murowa Diamond Mine. It should hereunder be noted that the discussion on corporate social responsibility as raised by Dhliwayo also underpins ongoing discussions within the ambit of the Extractive Industries Transparency Initiative (EITI) on material payments. The question is whether these social gifts can also not be treated as payments that should be disclosed for example in an EITI Report.

In conclusion, Dhliwayo made a number of recommendations. He firstly recommended that in order to ensure that communities benefit from natural resources such as minerals the constitution of Zimbabwe should guarantee environmental, economic, social and cultural rights and this should be coupled by the adoption of measures to implement these rights by the government. He also recommended that there is need for Zimbabwe to use the Community Management Programme for Indigenous Resources (CAMPFIRE) model in the mining sector.

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The CAMPFIRE model advocates for community participation in the management of wildlife resources and ensure that communities living in areas with wildlife manage wildlife and derive economic benefits. Dhliwayo also pointed out that the Mines and Mineral Act should be amended to ensure that a certain percentage of mining royalties is paid directly to the affected communities for the upliftment of their lives. He further stated that indigenisation and economic empowerment in the mining sector should include local communities and not restricted to the elite only. In that regard he gave the example of the Royal Bafokeng community in Rustenburg in South Africa where compulsory beneficial and meaningful social obligation in communities by mining companies resulted in the development of the community. In this model corporate social responsibility was made a strict legal requirement. He also recommended that Corporate Social Responsibility (CRS) should be made a strict legal requirement to ensure that all mining companies plough back to communities.

In conclusion he stated that there should be an establishment of environmental rehabilitation funds and a comprehensive rehabilitation programme by mining companies as well as fair and equitable compensation for communities affected by mining activities.

SECOND DISCUSSION SESSION

During the second discussion session a number of continue calling for transparency and accountability in the questions and comments were made by participants. Some sector. participants also submitted written submissions and comments. For example in one written submission it was During the discussion session other participants voiced noted that the environment in Zimbabwe is difficult for civil concerns over the proposed displacement of communities society organizations to lobby for transparency and like those in Chiadzwa who will be relocated to make way accountability without being perceived as opposed to for diamond mining activities. Participants wanted to government activities by politicians who are benefiting know what mechanisms should be put in place to protect from the exploitation of natural resources. In addition, the rights of such communities. In response Mr. Shamiso participants also felt that despite the challenges pointed Mtisi of Zimbabwe Environment Law Association reiterated out by Mr. John Maketo from Transparency International that in many cases relocation of communities takes place Zimbabwe, civil society organizations should actually even if the communities do not want to be relocated. In continue and persevere to promote and advocate for that case he informed participants that what is important is transparency and accountability in the natural resources to ensure that the government and mining companies sector despite the threats from government and some follow acceptable practices and standards such as provision politicians. In that regard, it should be pointed out that of adequate and prompt compensation, giving adequate already civil society organizations seeking to promote the notice and provision of adequate facilities such as shelter respect of human rights in the mining sector, particularly and other social services to the affected people. He also diamond mining is under threat as the Director of the noted the importance of consultation and provision of Centre for Research and Development (CRD) which has information to the affected people by the government and been profiling human rights abuses in the Chiadzwa mining companies. diamond mining area was arrested and charged with communicating false information that is prejudicial to the economic interests of the state. Such actions by the state threaten the operations of civil society organizations, although there is a resolve within civil society circles to

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SECOND DISCUSSION SESSION

He stated that the major problem that always hinders provision of adequate compensation to rural communities is that the land does not belong to them, but to government. In terms of strategies, he indicated that to protect the rights of communities various measures can be adopted by CSOs including public interest litigation, lobbying decision makers such as parliamentarians and the responsible government department. He also indicated that there is need for the community to be educated on their rights so that they can demand and claim them.

In the same vein, Mutuso Dhliwayo opined that in situations where local communities are relocated, they should not be left in a worse off position. Many participants agreed that communities relocated due to mining operations suffer loss of social income, cultural amenities and agricultural land among other livelihood aspects and that compensation should be calculated to redress what one has lost. It was also pointed out during the discussion session that mining companies should carry out comprehensive environmental impact assessments as these can indicate to the company how it should respond to issues of relocation. The EIA is a tool that can be used to eliminate some of the problems being faced in the mining sector.

Participants also recognized that sometimes government lack the technical capacity to monitor and police the activities of big mining companies' activities and trace economic and financial aspects. It was suggested that there is need to come up with a new system to ensure that government capacity is enhanced in that regard.

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tools and initiatives to promote transparency and accountability in the extractive sector

PRESENTATION 5: EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (EITI) AND PUBLISH WHAT YOU PAY (PWYP) CAMPAIGN

SESSION 2:

Shamiso Mtisi an Environmental Lawyer at ZELA made a presentation that was aimed at introducing the Extractive Industries Transparency Initiative (EITI) and the Publish What You Pay (PWYP) campaign to civil society organizations in Zimbabwe. The presentation was meant to act as a way of generating interest amongst CSOs about the EITI as well as the Publish What You Pay campaign by pointing out its principles, criteria and its benefits. Mtisi outlined the problems affecting the mining sector in Zimbabwe that justify why the country should join the EITI and why civil society should join the Publish What You Pay campaign.

The presentation exposed some of the problems dogging the mining industry such as limited transparency and accountability in the mining sector in that royalties, taxes, contracts and other payments, revenue and expenditure are not made public. He also stated that in some cases government owned companies have not been paying dividends to government and there is a lot of secrecy in the way they operate. There is very limited stakeholder engagement in the mining sector as civil society organizations, government, companies, business associations, communities have not been involved in any meaningful discussions on the need to promote transparency and accountability in the sector. For example the government does not allow CSOs and legislators to visit the diamond mining area in Chiadzwa and this paints a dark picture on what is happening in the area. Mtisi stated that the country has not been deriving enough benefits and income from the more than 40 minerals mined in Zimbabwe such as platinum, diamonds, black granite, gold, coal, tin and copper among others.

Shamiso Mtisi of ZELA making a presentation on EITI and the PWYP

Talking about the Extractive Industries Transparency Initiative (EITI), Mtisi indicated that the EITI started as a campaign by civil society organizations for publication of payments made to government by companies. This was meant to eliminate corruption, conflicts and poverty otherwise termed 'resource curse' by increasing revenue and payments from mining, oil and gas resources. He informed participants that the EITI was launched in 2002 and is a voluntary standard that can be joined by governments and mining, gas and oil companies.

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He stated the EITI Principles espouse the following; prudent use of wealth from resources for economic growth and poverty reduction, recognition of the sovereign duty of governments to use wealth for benefit of citizens and national development and the need for public understanding of government revenue and expenditure, public financial accountability and management by government and mining companies, respect of contracts and laws and the fact that financial transparency attracts domestic and foreign direct investment. Further, he also pointed out that the EITI recognizes the accountability of government to all citizens for the stewardship of revenue streams and public expenditure and consistent disclosure of payments and revenues by government and gas, oil and mining companies. In order to promote transparency there should be participation of stakeholders who are the government, mining companies, multilateral organizations, financial organizations, investors and non-governmental organizations.

by secrecy and conflicts. It can ensure that resource revenue is used for economic benefit and poverty reduction and can promote access to information and public participation in the extractive sector. Given the current problems faced due to lack of commitment to corporate social responsibility EITI will be a welcome tool for the promotion of corporate social responsibility. He also stated that the EITI upholds the concept of sovereignty over resources and their use for economic development which has been at the top agenda of the government over the past years.

Mtisi also informed participants that although the EITI is an important tool to promote transparency and accountability in Zimbabwe there are a number of challenges that should be overcome. Firstly, he stated that there is potential resistance by government especially instigated by people in power who also control the local mines as they will view it as a threat to their wealth and status and political survival. However, he recommended that there is need to ensure consistent

He also pointed out the criteria for all countries that wish to lobbying and identify champions in government to work implement EITI. Countries should commit themselves to with. He also indicated that the other weakness is that the implement the following requirements; regular publication current economic situation may make it difficult for the of all material mining payments made by companies to government to commit resources to fund the government and all revenue received by government from implementation since there are limited financial resources companies to a wide audience in a publicly accessible and unless if financial institutions provide resources. Mtisi comprehensive manner, subject such payments and further informed participants that at the moment there is revenues to a credible and independent audit, subject limited capacity in Zimbabwe amongst CSOs, government payments to reconciliation by an independent administrator and industry to work on EITI as it is a new concept to many and publication of administrator's opinion, subject all people. Therefore, there is need to carry out further research companies including state-owned to the same approach, civil and embark on exchange visits with other countries that are society participation in design, monitoring, evaluation and already implementing the initiative and see how it is being debate and development of a workplan that is financially implemented. sustainable.

Mtisi concluded his presentation on EITI by posing the He pointed out that once a country has decided to join the question whether the EITI should be adopted for EITI it will be subjected to a validation to assess if it complies implementation in Zimbabwe and how best it should be with the requirement or criteria. He pointed out that many introduced. He also indicated that the Zimbabwe countries in Africa are joining EITI. Environmental Law Association is not prescribing its

adoption but raising awareness on the existence of the Mtisi also pointed out the potential benefits of EITI to initiative as a potential tool to promote transparency and Zimbabwe. He stated that it can help the country to attract accountability and eliminate corruption, secrecy and foreign direct investment, promote transparency and poverty. accountability in the mining sector which has been plagued

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Publish What You Pay Campaign (PWYP)Mtisi also talked about the Publish What You Pay campaign which is a global coalition of civil society organizations that seek to hold resource rich governments accountable for the management of revenues from oil, gas and mining industries. The PWYP campaign was launched in 2002 and works with civil society organizations in 70 countries. It advocates and campaigns for mandatory disclosure of company payments and government revenues and also calls for disclosure of licensing arrangements and contracts. The coalition stresses that companies should publish what they pay and governments should “publish what they earn”. Mtisi indicated that it is vital for civil society organizations to join the Publish What You Pay campaign and promote transparency and accountability in the mining sector in Zimbabwe. The advantage is that CSOs will be able to share information and exchange skills with other likeminded organizations around the world on how to bring government to account.

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PRESENTATION 6: ALTERNATIVE BUSINESS SECTOR MODELS TO PROMOTE TRANSPARENCY AND ACCOUNTABILITY IN THE EXTRACTIVE SECTOR

SESSION 2:

Mr. Rodney Ndamba a Chartered Accountant and environmentalist from the Centre for Environmental Accountability (CENAC) made a presentation on the alternative business sector models that can be used to promote transparency and accountability in the mining industry. His presentation was mainly aimed at discussing the merits and elements of initiatives such as the Global Reporting Initiative (GRI), Stock Exchange Systems, International Financial Reporting Standards (IFRS) and the International Standards Organisation (ISO) systems such as ISO 1400 certification system in promoting transparency and accountability.

Mr Ndamba pointed out that the world over mining industries and governments have to implement transparency and accountability measures for purposes of sustainable development. The developing world however has lagged behind in terms of recognition and implementation of the reporting regulations and standards. He identified four stages in environmental accounting which are; the accounting stage based on accounting standards, reporting stage which involves sustainability reporting frameworks, auditing stage which relates to auditing standards and the regulatory stage which relates to sector and financial markets requirements.

On the accounting stage which includes International Financial Reporting Standards (IFRS), Mr Ndamba pointed out that there are various instruments available as guidelines for financial reporting such as the IFRS6 which provides for the exploration for and evaluation of mineral resources. There is also the International Auditing Standards 37 (IAS), the provisions of which are on Contingent liabilities and Assets and the IAS 8 on Accounting policies, changes in accounting estimates and errors. IAS 16 is on Property, plant and equipment, Capitalization of dismantling and environmental restoration costs in assets. IAS 18 regulates on revenue, sales of waste material in disposal processes. IAS 36 is on the impairment of assets and new technology that reduces environmental damage. IFRIC 1 is on changes in existing decommissioning, restoration and similar liabilities and highlights changes in measurement or estimates of existing costs. IFRIC 5, stresses on the rights to interest arising from decommission, restoration and environmental rehabilitation funds; where rehabilitation funds is set for contribution. This could be based on industrial sector.

On the reporting stage and sustainability reporting frameworks, Mr Rodger Ndamba propounded that the regulation for reporting is the Global Reporting Initiative (GRI)'s 3G which stresses on economic, environmental, social, labour practice, human rights, society and product responsibility. The IFAC Sustainability Framework zeroes in on the economic viability, social responsibility and environmental responsibility of companies. There is also the Integrated or Connected Reporting System (Prince Charles Project) which focuses mainly on business strategy and sustainability, Key Performance Indicators (KPI) and action taken and overally the Connected Performance report. There are also the AA1000 Accountability Principles which hinge on inclusivity, materiality and responsiveness – towards an organization's performance.

At the auditing Stage, Mr Ndamba talked about the International Standards of Auditing (ISA). He said that on the auditing stage there is ISA 1010 which caters for the consideration of environmental matters in the audit of financial statements. Further, there is ISA 620 which stresses the use of the work of an auditor's expert. ISA 250 is on the consideration of laws and regulations in the audit of financial statements and ISA 540 which focuses on the auditing accounting estimates.

As far as the regulatory stage is concerned, Mr. Ndamba informed participants that there are mining industry regulations and requirements. For example ISO14001 Certification are important while statutory provisions in the Environmental Management Act are also important for mining companies to comply with in their environmental management programmes.

On financial markets requirements as a way of promoting transparency and accountability, Ndamba stated that the Zimbabwe Stock Exchange (ZSE) does not stipulate strong obligations on companies on reporting or corporate social responsibility. However, in the South African jurisdiction, the Johannesburg Stock Exchange (JSE) stresses on mining companies fulfilling expected corporate social responsibility expectations. The King George 111 Code of Corporate Governance makes reference to Global Reporting Initiative (GRI) -3G Compliance.

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PRESENTATION 7: USE OF MODERN COMMUNICATION TECHNOLOGIES AND THE MEDIA TO PROMOTE TRANSPARENCY AND ACCOUNTABILITY IN THE EXTRACTIVE SECTOR

SESSION 2:

Ms. Zvikomborero Zimunya from the National Association of Non-Governmental Organisations (NANGO) made a presentation on the use of modern communication technologies and the media to promote transparency and accountability in the extractive sector. The presentation sought to highlight the importance of media and communication tools for accountability and transparency.

She defined accountability as the processes through which an organization makes a commitment to respond to and balance the needs of stakeholders in its decision-making processes and activities, and delivers against this commitment. She also stated that accountability is about holding people to account for their impact on the lives of other people and the planet. Those impacted on have the right to be heard and to have their views taken into account whilst those with power have the obligation to listen and respond. She pointed out that transparency also relates to the provision of accessible and timely information to stakeholders to ensure that people make informed decisions. It is the opening up of organizational procedures, structures and processes to their assessment. Without access to public information and transparent practices from the private and public sectors, civil society lacks objective input to monitor aspects such as effectiveness, spending, and public procurement. Access to information is particularly relevant as it discourages the flourishing of corruption.

Zvikomborero noted that transparency and accountability hinges on access to and dissemination of information, and there are some issues to consider such as who the players involved are i.e. stakeholders, who is the target group, the kind of message which one intends to disseminate and the sort of action one is intending to trigger from the messages.

Zvikomborero set the current scenario on the use of information and communications technologies (ICTs). She indicated that ICTs including the internet are generating changes in markets and economies in the more and less developed world. She stated that the ICT revolution is rolling out much faster in developed countries. However the majority of people in the world are not yet included in the Information Economy. The power of ICT is yet to diffuse in its fullness to the rest of the world, particularly Africa.

She pointed out that in terms of internet users' demographics, Zimbabwe has only 1.7% of all internet users in Africa. With regards to utilizing ICT for accountability and transparency, Zimbabwe is challenged to be as innovative and as creative as possible in the quest for target group-friendly technology. Whatever advocacy and communication tools to be used by CSOs to spread the message on transparency and accountability it has to take into account the high technological barriers in Zimbabwe. She also talked about the importance of traditional media such as television, radio, newspapers, billboards etc whilst modern tools are the internet and websites.

Zvikomborero Zimunya from NANGO made a presentation on the use of ICTs to promote transparency and accountability.

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These media are used to network with other organizations for example joint project with other civil society organizations to monitor and track media reporting, conflict flashes, legislative changes, budgetary allocations on mining issues. She talked about the Free and Open Source Software (FOSS) available online to support information dissemination, electronic newsletters and mailing lists such as one of the African Democracy and the Googlegroups mailing list which can be used as discussion forums. Further, for purposes of aiding transparency and accountability the Facebook groups can be used and gave the example of GreenPeace. These platforms are highly effective in rallying citizens around a cause or campaign. Online sites can be used to publish studies and reports while other sites such as YouTube can be used to load video clips that can be used to direct attention of people on issues of transparency and accountability. Zvikomborero also informed participants about the QuestionBox which is a mobile phone-based tool developed with support from the Grameen Foundation that allows Ugandans to call or message operators who have access to a database full of information on health, agriculture and education. Zvikomborero further informed participants about other tools being used in other countries to promote transparency and accountability and called them “other tools with a twist''. These included the Ushahidi (Testimony) an online campaign developed by Kenyans to draw local and global attention to the escalating post election violence. Ushahidi had documented in detail hundreds of incidents of violence that would have otherwise gone unreported. The innovation has now become a platform that allows Kenyans to report any event or incident (not just a crisis) via the Internet, mobile phone or Twitter. The event is then plotted on a map, allowing users to identify the exact location of the event or incident. Besides Ushahidi, Zvikomborero also talked about the SMS Hub which allows a person to send and receive large numbers of text messages via the mobile phone network, without needing to be connected to the internet or to any other computer network. One needs a laptop or desktop computer with a number of mobile phones or GSM modems attached. It works like a mobile phone, but is controlled through the computer. Because SMS hubs do not need to be connected to the internet, they are very useful for non-governmental organisations working in areas where access to the internet is not possible or is unreliable.

One innovative internet site in Zimbabwe that is using technologies for promoting transparency and accountability is Kubatana. In Zimbabwe Kubatana uses the Internet, email, SMS, blogs to disseminate information to the general public. T he website has an online library of reports together with a directory listing over 240 non- governmental organisations making Kubatana a valuable resource for information on Zimbabwe. Kubatana has developed Freedom Fone where individuals can contribute questions, content and feedback by leaving voice messages via the IVR interface. Freedom Fone can be operated as a collective, with different groups managing different channels (IVR menu options) of information from the same installation. Freedom Fone can work easily and happily with mobiles and landlines. Freedom Fone can be used as an information dissemination tool for the extractive sector. She also informed participants that FOSS is also available online. Examples of websites include: www.tacticaltech.org, www.mobile.tacticaltech.org, www.ushahidi.com, www.sahana.com, www.freedomfone.org and www.transparency.globalvoicesonline.org

In conclusion, Zvikomborero Zimunya pointed out that the media has to be friendly to the target group in order to be effective. There is a technology deficit in Zimbabwe and this should be remembered in our strategic planning sessions. Technology does not need to be complicated or expensive. Technology is available online, and quite often its free and should be used by CSOs to promote transparency and accountability in the extractive sector, especially mining.

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PRESENTATION 8: IMPERATIVES FOR FORMATION OF A NATIONAL COALITION ON THE EXTRACTIVE INDUSTRY

SESSION 2:

Mr. Gilbert Makore the Projects Coordinator at the Zimbabwe Environmental Law Association made a presentation on the need for civil society organizations to work together as a coalition to promote transparency and accountability in the country. He pointed out that a coalition of CSOs can help to leverage the work being done by different organizations and therefore it is vital to work as a collective entity. He pointed out that the critical mass deflects criticism and accusations of personal and organisational agenda. A coalition can also ensure that harnessing and pooling together of skills and expertise. He emphasised the need for CSOs from different sectors such as human rights, environment, mining, poverty reduction and anti corruption to work together. Further, besides the national coalition there is need for CSOs in Zimbabwe to establish links with northern NGOs and international or regional networks such as the Publish What You Pay campaign, the International Alliance on Natural Resources in Africa (IANRA) and the African Initiative on Mining, Environment and Society (AIMES). Makore also stated that generating interest around the EITI requires civil society organisations to work together. There is need for CSOs to move beyond ad hoc mobilisations and towards the bridging of narrow interests and forwarding of broader goals.

PLENARY DISCUSSION

One of the key questions during the plenary was on why the Responsibility is developing a formula aimed at incentivizing Extractive Industries Transparency Initiative (EITI) has only the mining companies to report on their environmental been joined by developing countries and no developed accounts. In the same vein, Shamiso Mtisi indicated that the country. This question was based on the list which was fact that a company and government actively provides circulated during a presentation by Shamiso Mtisi which information and disclose information can trigger more showed EITI compliant countries and EITI Candidate investment in the country and can also enhance the chances countries, most of which are developing countries. Mr. Mtisi of the companies attracting more customers. However, in this responded by saying that it is a fact that most of the countries respect one critical issue that should be considered by that have so far signed up and have started to implement EITI advocates for EITI is the need to create comprehensive and principles are developing countries. However, he pointed out tangible financial or market incentives that can attract the that there are campaigns by CSOs to ensure that developed attention of governments to join the EITI. countries do not only support EITI financially or technically, but also join the EITI. He pointed out that western During the plenary session other participants wanted to know governments such as Germany, Canada and Norway have what mechanisms can be adopted to ensure that information already signed up to the EITI and they are supporting the that is shared on the internet and through the various modern initiative financially. Big corporations such as BP, Exxon and information technologies about transparency and many others have joined the EITI. The initiative received the accountability is correct and credible. To this question, support of the G8 at the Gleneagles summit. The World Bank Zvikomborero said that it is important for CSOs to verify and IMF have also endorsed the EITI. In Africa, the African information with the sources before disseminating or Development Bank (AfDB) has also endorsed it. To a larger publishing. She also stated that in some cases it is important to extent this issue should be of concern to all advocates for EITI visit the area or people who are the sources of such as some government, such as the Zimbabwean government information if it is practical. Other participants also wanted to may not be interested in joining an initiative that they may know what strategies are being used by the National perceive as tailor-made for developing countries only. Association of Non-Governmental Organisations (NANGO) to

build the capacity of its member organizations to use the Another question that was raised during the plenary was on different information communication tools identified in the what incentives are in place to entice mining companies to presentation. In response, Zvikomborero informed voluntarily report on economic benefits, payments, revenue participants that NANGO is working on firstly improving itself and profits or environmental issues. Rodney Ndamba in terms of information and communications technology responded to the question and stated that the organization he before they can improve the rest of civil society. is working for called the Centre for Environmental

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PLENARY DISCUSSION

Participants also encouraged NANGO to ensure that it proactively disseminates all information it has on use of communication technologies to member organizations.

Other participants wanted to know whether the alternative business models emphasize the issue of sustainable development and how present and future generations will benefit from such measures. Rodney Ndamba of the Centre for Environmental Accountability responded and stated that most of the initiatives in their import are aimed at promoting sustainable development. He stated that the mindset of business operators is based on the misnomer that we live forever. He highlighted that reporting and transparency and accountability mechanisms should be implemented to run parallel to the company reporting structures and pointed out that there are no such mechanisms in Zimbabwe. He also stressed that there is need for stakeholder participation in investment issues since investor contribution in mining issues is of utmost importance. On issues of accountability, he reiterated that there are United Nations Guidelines which if adhered to will ensure sustainability. However, there is no guarantee of implementation of laws or resolutions by the government and the mining companies. He also pointed out that the business sector in Zimbabwe is trying to come with a National Code of Corporate Governance which may ensure sustainable reporting by companies on environmental issues.

Participants also raised concern and fears that most auditing firms collude and produce glossy reports covering irregularities such as corruption in the business sector and whether environmental auditing will not be affected. Participants wanted to know if there are mechanisms to uncover these anomalies. Rodney Ndamba responded and stated that industry is working on coming up with a National Code of Corporate Governance and once this is adopted it can be invoked in trying to uncover the said irregularities. Also the Ecosecurities Index is a tool to track down companies that are environmentally responsible.

Participants also wanted to know what measures can be put in place to ensure that environmental laws are enforced and implemented and to ensure that mining companies comply with environmental standards. Shamiso Mtisi responded to this question by pointing out that there are different legal and administrative mechanisms that are in place to ensure compliance with environmental laws and mining legislation. He indicated that criminal procedures can be used to sanction companies that commit environmental crimes, while administrative measures to ensure compliance with environmental laws such as permits and licences can also be used. He further stated that the civil law proceedings in the courts can also be used by citizens to hold companies accountable by claiming for damages and compensation in a situation where their rights are violated.

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next steps and advocacy issues drawn from the discussions sessions

During the discussion sessions participants raised a number of advocacy issues and next steps that CSOs will work on. The key next steps and advocacy issues identified for further action are summarized below;

It was agreed that dialogue on transparency and accountability in the extractive sector need to continue among civil society organizations to build their capacity on the Extractive Industries Transparency Initiative (EIT) and other initiatives that enhance transparency and accountability. This is because there is currently limited capacity and knowledge on how the EITI operates and can be customized in Zimbabwe. There is need for raising awareness on transparency and accountability and initiatives such as EITI among key stakeholders such as legislators, government and communities. To this end ZELA made a commitment to organize a series of workshops for a multi-stakeholder group to ensure that stakeholders are aware of the elements of EITI. ZELA promised that it will seek technical and financial support from various partners to embark on this project. It was also agreed that ZELA should work with international and regional organizations and bring experts to talk about transparency and accountability issues e.g. the EITI. ZELA in collaboration with regional partners such as the Southern Africa Resource Watch will commission a research and assessment survey of stakeholder perspectives on EITI in Zimbabwe. The assessment is expected to shape the nature of interventions that will be adopted to introduce the issues of transparency and accountability in Zimbabwe especially the EITI.ZELA will organize a National Conference on EITI in partnership with the Southern Africa Resource Watch (SARW) for all stakeholders. The conference will be attended by all stakeholders such as government, mining companies, civil society, legislators and community representatives.It was also agreed that a circular should be circulated amongst CSOs requesting for expression of interest from CSOs to join a national coalition of CSOs on the extractive and natural resources sector.It was also recommended that CSOs in Zimbabwe should join the Publish What You Pay (PWYP) Campaign to ensure that they network with other organizations with experience in the implementation of EITI and other initiatives that promote transparency and accountability in the extractive sector. It was also recommended that there is need to make an effort to include socially inclusive processes such as gender budgeting tools in the extractive industry and environmental issues and consider adoption of the social accountability model, which emphasize on making the views and voices of marginalized groups such as the youth, children women and disabled people heard.It was also agreed that despite the persecution that civil society leaders may face from politicians and government in trying to promote transparency and accountability in the extractive sector especially diamond mining, there is need to continue and be valiant in the face of adversity.

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next steps and advocacy issues drawn from the discussions sessions

Other measures that were emphasized to promote transparency and accountability in the extractive sector included improved research, advocacy, monitoring of government and private sector operations, community legal education and public interest litigation. In particular, some participants also emphasized the need to build the capacity of government on contract negotiation, marketing issues and more importantly reforming the mining information disclosure laws and policies. The target of civil society organizations in that regard should be to ensure that they contribute ideas to the ongoing process to reform the Mines and Minerals Act and the ongoing Constitutional reforms in the country. These two legislative processes should be influenced to ensure that they capture issues of transparency and accountability. In that regard, ZELA has made a commitment to work closely with other civil society organizations to ensure that principles of transparency and accountability in natural resources management are made part of the founding principles of the Constitution of Zimbabwe.

CONCLUSION

From the presentations and discussions contained in this report, it is evident that CSOs in Zimbabwe are ready to play a role in promoting transparency and accountability in the extractive sector. In particular, although there is still limited information on how the EITI works many people thought it is a good initiative that can be used to eliminate the corruption and mismanagement of revenue and payments in the extractive sector. It is also heartening to note that the mining sector through the Chamber of Mines has already expressed an interest in the Extractive Industries Transparency Initiative. The remaining challenge is to interest government to join the EITI. Before this is done there is an urgent need to source the necessary technical, financial resources to embark on a series of dialogue meetings for all stakeholders to inform them about how the EITI operates.

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Time

Topic

Facilitator: Rodger

Mpande

8:45-9:00

Registration and Introductions

Facilitator

9:00 – 9:05 Welcome Remarks Mutuso Dhliwayo

9:05 – 9:10 Objectives of the Workshop Shamiso Mtisi

SESSION 1: CHALLENGES IN MINING SECTOR

9:10 – 9:25 Mining Sector Perspectives on Transparency

and Accountability: Challenges and

Opportunities

Dr. Hokonya (Zimbabwe

Chamber of Mines)

9:25 – 9:40

Key Legal and Administrative Issues on

Access to Information and Public Participation

in the Mining Sector

George Gapu & Josiah

Chinherende

9:40 – 9:50 Discussions

9:50– 10:00 Challenges in Fighting for Transparency and

Accountability in Zimbabwe

Transparency International

Zimbabwe (TIZ)

10:00 10:10

Challenges of Protecting the Environmental,

Economic, Social and Cultural Rights of

Communities in Mining Areas

Mutuso Dhliwayo

10:10 10:25

Discussions

10:25 10:45

TEA BREAK

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SESSION 2: TOOLS AND INITIATIVES TO PROMOTE TRANSPARENCY AND

ACCOUNTABILITY IN THE EXTRACTIVE SECTOR

10:45 – 11:00

Introduction to the Extractive Indu stry Transparency Initiative (EITI) and Publish

What You Pay (PWYP) Campaign

Shamiso Mtisi

11:00 – 11:20

Alternative Business Sector Models to

Promote Transparency and Accountability in

the Extractive Sector: GRI, Stock Exchange

Systems and International Financial Reporting

Standards, ISO Systems etc

Rodney Ndamba – Centre

for environmental

Accountability (CENAC)

11:20 – 11:40

Use of modern technologies (ICTs) and the

Media to promote transparency and

accountability in the Extractive Sector

Zvikomborero Zimunya -NANGO

11:40 – 12:20

Discussions

PLEANRY DISCUSSIONS AND WAY

FORWARD

12:20 – 12:50

Advocacy Issues Drawn from Discussions and

Imperatives for formation of a national

coalition on the extractive sector

Gilbert Makore

12:50 – 13:25

Next Steps

All

13:25 – 13:30

CLOSING REMARKS Mutuso Dhliwayo

13:30 LUNCH

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Name of Participants Organisation Address

F. Sadomba Centre for Peace Initiatives in

Africa

5 Corren Close Bluffhill

Donsa Nkomo Faculty of Law -University of

Zimbabwe

P.O Box A1036 Avondale

Harare

Zvikomborero Zimunya NANGO 5 Meredith Drive

Nyamurungira Zimbabwe Lawyers for Human

Rights

J. Chiminya Zimbabwe Economic Society 6th

Floor Adven Hse

Dr Machena CAMPFIRE Association P.O Box 661 Hre

Rodney Ndamba Centre for Environmental

Accountability (CENAC)

52 North Hampton Eastlea

Dr. Dzingirai CASS TRUST CASS UZ

Douglas Gumbo Practical Action 4 Ludlow Rd Newlands Hre

Gladman Chibhememe Chibhememe Earth Healing

Association (CHIEHA)

GEFSGP/CHIEHA

Jenette Manjengwa CASS Trust Box 130 Mazowe

Tendai Mabikacheche Deloite 1 Kenilworth Road Newlands

Rodger Mpande Consultant 6 Lanark Road Belgravia

Olivia Gumbo ZIMRIGHTS 90 Alveston Court 4th Baines

Ave

Dr Hokonya Chamber of Mines 4 Central Avenue Harare

Tendayi Bobo ZELA 6 London Derry Rd Eastlea Hre

Farayi Mujeni ZELA 6 London Derry Rd Eastlea Hre

S. Nyamanhindi Law Society of Zimbabwe 46 Kwame Nkurumah Harare

N. Makoho Action Aid International -

Zimbabwe

16 York Ave

Gilbert Makore ZELA 6 London Derry Rd Eastlea Hre

Cephas Bungu Justice for Children Trust 145 Robert Mugabe Rd Harare

Plaxedes John ZELA 6 London Derry Rd Eastlea Hre

Mutuso Dhliwayo ZELA 6 London Derry Rd Eastlea Hre

George Gapu Scanlen and Holderness Legal

Practioners

CABS Centre Harare

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Shamiso Mtisi ZELA 6 London Derry Rd Eastlea Hre

D. Tavengwa Epworth Local Board 2400 Chinamano

Regis Mafuratidze C om m unity T ec hnolog y

Development Trust

Hon. S huah Mudiwa C hiadz w a C om m unity

Development Trust

Nyamudeza K. Women and Land in Southern

Africa

Mufema Institute of Development

Studies -UZ

Shepherd Zvigadza ZERO Regional Environmental

Organisation

Wabata Munodawafa Zimbabwe Liberators Platform 83 Central Avenue

Walter Chambati African Institute for Agrarian

Studies

19 Bodle Ave Eastlea

Stancilous Takawira European Union (EU)

Carl Anderson USAID USAID Belgravia

J. Muchando ZIMASCO 6th Floor Pegasus Hse Samora

Catherine Makoni CAFOD 29 -31 Selous Ave Hre

M. Kanotunga ZWUEMT 35 Anlaby House Harare

Mgugu -Mhene A WLWRSA 4th

Flr FLT Hre

Memory Marechera WLWRSA 4th

Flr FLT Hre

T. Makanza Mwonzora and Associates Legal

Practitioners

B. Chidove Zimplats

K. Bare The Financial Gazette Kopje Fingaz Hse

E. Jemwa Z im babw e B roadcasting

Corporation (ZBC)

HG 444 Highlands Hre

Showers Mawowa Crisis Coalition Zimbabwe 18 Phillips Belgravia

Nevson Mpofu SADC Southern Times 1098 Snake Park

Josiah Dimbo Weekly Gazette 1 Union Ave

P. Mukono University of Zimbabwe -Faculty

of Law

3871 W/ Park D Hre

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A. T Mutasa ZIMNET 18 Mitchel Rd

Otto Billy Two by Two EP 180 Epworth

Mugweni Africa 2000 Network

Jeanette Manjengwa UZ Box 130 Maozwe

M. Motsi LLB -UZ 7258 Budiriro 4 Hre

N . Mararike Black Crystal Consultancy 1 Fairbaln Drive Mt Pleasant

Harare

J. Chinherende ZELA 6 London Derry Rd Eastlea Hre

Bertha Shoko The Standard 1 Union Avenue

N Mpofu Southern Times

W. Masvingise The Financial Gazette Kopje Hse Hre St Hre

U. Makoni - Muchemwa Kubatana.net 1St Flr Mon Repos Bl6 Newlands

Mike Rice E. Africa 76 Queen Elizabeth Greendale

Harare

Kanengoni T Steetwise Abantu 4 Weale Rd Milton Park Harare

Mubambi A PELUM Zimbabwe 6 Lanark Road

Hopewell Chitima UZ Law Student 54 Mazvimatupa Zengeza

Sifelani Tsiko Journalist 286 Northway Road Waterfalls

Zwizwai B. Institute of Development

Studies -University of Zimbabwe

Box MP 167 Mt Pleasant

Marshal Chitanga UZ Law Student 7758 Mhiripiri Close Budiriro

Roselin Action Aid 16 York Avenue

G. Maneta CRF 109 Hre Drive Marlbrough

J. Chiminya ZES 6th

Flr Adven Hse

John Maketo TIZ 96 Central Ave Harare

Sim Dube SOAZ Box 1835 Main Street Byo

Samusodza M.H Environment Africa 76 Queen Elizabeth Greendale

Harare

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Zimbabwe Environmental Law Association (ZELA)

Date post:	09-May-2015
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