Addressing corruption risks Strengthening the EITI’s role in mitigating extractive sector corruption There is a shared view among EITI stakeholders that addressing corruption risks lies at the heart of EITI implementation and is central to multi-stakeholder groups’ efforts to promote transparency and accountability. However, the EITI’s role in tackling corruption is not always explicitly stated in EITI objectives at the national level. In 2020, the EITI Board recognised the need for the EITI to clearly articulate its role in deterring corruption and provide support to multi-stakeholder groups in implementing anti-corruption measures, building on EITI Requirements on beneficial ownership and contract transparency. To that end, the 2023 EITI Standard introduces provisions to help EITI implementing countries identify areas across the extractive sector value chain that are vulnerable to corruption. To support this shift, the EITI developed guidance in 2021 and is advising countries on how they can use the EITI to identify and address corruption risks. Some countries are already laying the groundwork in this area. The EITI in the Philippines conducted an analysis of corruption risks in the nickel value chain to guard against revenue leakages that might arise with potential windfall gains from growing nickel demand. Indonesia EITI established a focus group to analyse governance risks in the critical minerals supply chain for its battery industry, and the multi-stakeholder group is linking these efforts to the country’s national anti-corruption plan. The EITI is also strengthening its work on beneficial ownership transparency through the Opening Extractives programme. In Ghana, beneficial ownership reforms are seen as a tool to fight corrupt practices in the sector, with the EITI and Opening Extractives playing a key role in making data accessible. Furthermore, Nigeria EITI is replicating a tool that was developed by the EITI and Directorio Legislativo to identify corruption risks related to politically exposed persons in Colombia. Through the programme, the EITI and Open Ownership are catalysing efforts to combat the use of anonymous companies to conceal illicit financial flows and conflicts of interest. Malawi EITI reporting is one of the most comprehensive sources of data on Malawi’s extractive and forestry sectors. The EITI process has allowed stakeholders to shed light on issues of public interest, including allegations of potential corruption issues related to mining licenses. These issues have since been scrutinised by civil society and were reported to the Anti-Corruption Bureau, which subsequently conducted an investigation. The case has prompted Malawi EITI to develop an anti-corruption policy and strategy, including measures to identify future deviations from laws and regulations. Zambia Zambia’s 2018 EITI Report provided details on an inquiry by the auditor general, which exposed several questionable practices including the award of mining licenses to unqualified companies, illegal mineral exports, tax evasion and violations of environmental obligations. The investigation was prompted by the findings of Zambia’s 2016 Validation Report and resulted in the government cancelling nearly 900 licenses. PHOTO: SHUTTERSTOCK 46 EITI Anniversary Report