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Togo Makes Progress on Extractive Industry Transparency

Lomé, Togo - The government of Togo has made significant strides in increasing transparency in its extractive industries, according to a recent report by the Extractive Industries Transparency Initiative (EITI).

Key Improvements

The 2017 EITI Report provides detailed information on the financial relationships between the government and state-owned enterprises (SOEs), as well as the beneficial ownership of material companies. The report also discloses dividend payments from the government’s free carry, as well as data on exploration, production, and export activities.

Beneficial Ownership

One notable improvement is the reporting of beneficial ownership, which lists physical persons as beneficial owners for five companies. However, the report does not clarify the government’s policy on beneficial ownership.

Financial Relationships with SOEs

The report also highlights the financial relationships between the government and SOEs, including the publication of audited financial statements by the SOE SNPT. The report clarifies the rules for retained earnings, reinvestment, and third-party financing for SOEs.

Data Quality

In terms of data quality, the report provides a clear statement from the Independent Administrator on the reliability of the financial data presented, as well as a summary of the work performed and limitations of the assessment provided. The report discloses revenue collection, including payments by companies and receipts by local government units. Additionally, it notes that all material revenue streams are included in the scope of the report, with a reconciliation of 97% of government revenues and company payments.

Gaps and Concerns

While there are still some gaps and concerns about data quality, the issues are addressed transparently in the report. The government’s efforts to increase transparency in its extractive industries are a step in the right direction towards promoting accountability and good governance.

Key Findings

  • The 2017 EITI Report provides detailed information on the financial relationships between the government and SOEs.
  • The report lists physical persons as beneficial owners for five companies, but does not clarify the government’s policy on beneficial ownership.
  • The report discloses dividend payments from the government’s free carry, as well as data on exploration, production, and export activities.
  • Data covering financial year 2014 was published by the end of 2016, in accordance with the EITI’s timeliness requirements.
  • The report provides a clear statement from the Independent Administrator on the reliability of the financial data presented.

Recommendations

Government

  • Clarify its policy on beneficial ownership and provide more detailed information on the ownership structure of material companies.
  • Continue to improve the quality of its reporting, including addressing gaps and inconsistencies in the data.

EITI Multi-Stakeholder Group (MSG)

  • Discuss possible mechanisms that could be put in place to establish the traceability of extractive sector revenues.