Angola recognizes the need to adapt extractive industry licenses to EITI standards

Angola recognizes restrictions on licenses in the country’s extractive industries in light of the International Extractive Industries Transparency Initiative (EITI) standards, as outlined in its first industry report submitted to the international body.

The EITI National Coordinating Committee (CNC) in Angola says it has information on existing licenses in the country’s extractive industries, but in its opinion, “this information contains limitations in the data required by the EITI standard.” due to the lack of a procedure for consolidating, reporting and updating these data on a periodic basis and in accordance with the requirements of the Standard,” says the report, which Lusa had access to this Monday.

Among this information, “the centralization of contracts and structured information on the tender process stand out,” the document says, highlighting that CNE ITIE-Angola is in the process of creating a working group and hiring a consultant to support and achieve this goal. trial.

The CNC, chaired by Angolan Minister of Mineral Resources, Oil and Gas Diamantino Pedro Azevedo, “should identify possible deviations from the legal framework that provides for the assignment and transfer of oil, gas and mineral licenses,” the report notes.

The so-called Independent Administrator (AI), a kind of auditor of the report, recommends that the Angola EITI CNC, through a working group, outline a strategy for consolidating the completeness of the data under the license required by the EITI standard.

The CSC should also determine a strategy for periodically publishing documents, for example, on government websites.

In addition, the EITI CNC must develop a methodology to identify deviations in the distribution of licenses relative to the legally defined procedure through significant deviation testing processes.

EITI-Angola CNC submitted its first report to the international EITI on 15 December after it was unanimously approved at the body’s meeting a few days earlier.

Angola was admitted to the organization in June 2022 and has already sent its first report with data for the 2021 financial year, which ITIE Internacional is expected to evaluate in September 2024.

According to the report, in 2021 the Angolan state collected 5.8 billion kwanzas (6.4 million euros) in oil revenues, corresponding to 40% of its total income, and collected 48.4 billion kwanzas (53 million euros) in oil revenues during the same period income. income from diamonds.

As stated in the document, the contribution of the extractive industries in 2021 amounted to about 31% of Angola’s gross domestic product (GDP) (at current prices) and about 84% of the country’s total exports.

Regarding contract disclosure, the report emphasizes that contracts and licenses, as well as related contractual terms, signed after 1 January 2021 must be publicly disclosed, “and currently in Angola, with particular reference to the oil sector, there are legal restrictions and confidentiality clauses in contracts that prevent this requirement from being met.”

AI also emphasizes the importance of starting to develop an action plan and moving forward with a defined plan to support the intended work and address proven legal restrictions.

The organization also believes that there is no legal framework defining the roles and responsibilities of those involved in the EITI process in Angola and recommends that the EITI legislative document be made public.

“This legislation will ensure that all stakeholders have a better understanding of the EITI process and ensure a successful financial disclosure and reconciliation process,” he emphasizes.

Diamantino Pedro Azevedo, in his communication on the report revision, expresses his belief that Angola’s participation in the EITI “will ensure better management of its mineral resources, reduce the risks of diversion or misappropriation of funds generated by extractive industries, and ensure more effective and efficient management of its mineral resources.” resources. improving collaboration between government, industry and civil society.”