Mining & Trade News

The Malawi Extractives Industry Transparency Initiative (MWEITI) has lamented lower compliance percentage from mining companies in submitting vital information as one of challenges impacting its mission to ensure transparency in the mining sector.

In an interview with Mining and Trade Review, MWEITI Secretariat Desk Officer Leonard Mushani proposed for enactment of a legal framework on EITI to hold companies accountable for any misconduct.

Mushani said: “There is a lower compliance percent of submitting data, templates, attending meetings and meeting various requirements by MWEITI.”

“This is so basically because there is no legal framework to support that, and the companies do not feel they are compelled to do that.”

“The answer is to have legal framework to this, which will include penalties and requirements for companies to submit data and documents directly.

” Mushani said MWEITI is considering to conduct general sensitization to ensure that the companies are fully aware and understand what EITI is all about.

The EITI Standard is a global benchmark for transparency and accountability in the oil, gas, and mining sectors. As a framework for disclosure and multi-stakeholder oversight, the EITI Standard is designed to; empower governments, industry and civil society to promote understanding of natural resource management and; strengthen public and corporate governance and accountability; and provide the data to inform policymaking and debate.

However, reacting to the development, Mining Expert and MD for Chiwandama Geo Consultants John Nkhoma advised MWEITI to scale up engagement with the companies. Nkhoma also advocated for legal framework to govern the works of MWEITI so that it becomes fully mandated.

“I think there is need to rethink MWEITI. They should not be doing things as if they have all powers. This was started by overzealous individuals and now the institution is operating as if they were fully mandated to do so,” said Nkhoma.

Concurring with Nkhoma, Coordinator for Chamber of Mines and Energy Grain Malunga said the challenge on non-compliance can only be dealt with if MWEITI becomes a legal entity. He said: “it is difficult for the Chamber to help in addressing this.  

The Chamber has only 16 companies as members while the country has over 50 explorations and mining companies.” “MWEITI is a non-legal entity and membership to the Chamber is voluntary and this poses a challenge in terms of legal compliance.”

“Formalisation of MWEITI as a legal entity and increased membership of the Chamber will help promote transparency and accountability on revenue transactions in the mining sector and make MWEITI more effective.”

Apart from non-compliance, MWEITI continue to suffer from the problem of inadequate financial resources to intensify information dissemination; enforcement of accountability requirements and; political will sustainability where they complain that politicians are fond of stopping what others started. Malawi became a member of the Extractive Industries Transparency Initiative in October 2015 and to date has managed to produce eight EITI reports.

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