More accountability in the extractive industries

The Central Park hosted the international conference "The problem of resource extraction in countries rich in natural resources." The event is realized within the project "Increasing transparency in the extractive industries."

According to the head of the Committee to Protect the Rights of Petroleum Workers, Mirvari Gahramanli, legislation of Azerbaijan announces affiliation of subsurface to the people, which means that government has accountability to the public. However, this requirement is not met due to the fact that all natural resources are implemented after extraction by private companies registered in offshore zones. "Azerbaijan since 2003 has been a member of the International Initiatives to improve transparency in the extractive industries (EITI). In 2011 came into force new global standards of transparency, but the country's parliament introduced a legal restriction on obtaining information about the shareholders and beneficiaries of companies. The government does not report to the public, and in response to requests sends overall figures.

The conference suggested that the Parliament adopts a law "On the Transparency Initiative," which would include the responsibility of producing and trading structures not only for violations of financial discipline, but also the refusal to provide information to the public. According to participants, the Memorandum between the members of the National Initiative to improve transparency in the extractive industries should clearly define the status of non-governmental organizations represented in it.

In addition, there are several points that also disturb:

- Reports of private companies involved in the development of natural resources are not audited in full. The Coalition EITI requires companies that provide reports of their compliance with the new international standards.

- Reporting of public institutions is carried out without audit, although this also requires new rules.

- Mining companies are not considered in environmental standards and requirements of corporate social responsibility.

The Coalition hopes that the companies in Azerbaijan will soon finish the debate on the transition to individual decision-making responsibility for disclosure of their individual reports, as well as in other countries - participants of EITI. In preparing recommendations the positive world experience is considered. -17D-