government urged to be more transparent with the extractive industry

  • 03 May 2021
  • 58
government urged to be more transparent with the extractive industry
The extractive industry in The Gambia has been operating for decades, but experts and anti-corruption advocates believe it's less transparent. In 2017, the mining and quarrying sub-sector grew by 5.7% after contracting 10.3% the previous year, according to the 2018 African Economic Outlook. The ministry of finance disclosed that from January 2020 to August 2020 over D511 million royalties was collected from fuel importation license. From January to June 2020, the royalties generated from mining is about D23 million and in September 2020, government officials responsible for the extractive industry disclosed that the royalties on mining is about D30 million. In the 2019 approved budget, it's stated that the extractive industry generated over D78 million in royalties. In 2020 it is estimated that the royalties to be generated from the sector will increase by 47 million dalasi to D125 million., The government's openness in reporting on monies generated from the extractive industry was considered short by financial transparency activists after nothing was reported on the revenue gained from royalties in 2018. Detailed revenue estimate by collecting Agency in the 2020 approved budget It has been reported that the Gambia's natural resources have for decades been a source of power and wealth for the nation's ruling elites, and less often for Gambians themselves. The competition for control of revenues from extractive industries has fuelled series of corruption, con?ict within various communities and has left those communities to wallow in poverty, restricting them opportunities and social development. According to Marr Nyang, the Executive Director of 'Gambia Participates,' an anti-corruption organisation in the Gambia, "if these resources are used e?ectively, the country will harness more development and poverty will be eradicated." Mr. Nyang said the information provided from the extractive and non-extractive industries for public consumption is scanty and unorganised. He added that "there is no organised database or system that can identify where the country has extractive and non-extractive [resources]." He said this is something that is of importance and should be considered by the government. He said both the extractive and non-extractive industries provides a lot of revenue which he thinks the government is not aware of or is under-reporting. Mr. Nyang cited the recent Environmental Investigation Agency's (EIA) three-year investigation into the Senegal-Gambia-China rosewood trafficking that uncovered unprecedented evidence on a series of major forest crimes. "The EIA report indicates that an estimated 1.6 million trees have been illegally harvested in Senegal and smuggled into The Gambia between June 2012 and April 2020," he said. Nyang also said that the unaccounted export volume and potential revenue loss in the Gambian timber sector are considerable, with The Gambia reporting US$471 million less in exports than its trading partners declared as imports between 2010 and 2018. The EIA report, he said, mentioned top government officials who benefitted from this trade at the expense of the masses. He cited that there are a lot of activities ongoing on the country's natural resources but little or no determination has been made by the government as to how much is generated from this sector. In 2009, reports emerged that Gambia's extractive industry is least transparent. The Gambia Journal specifically pointed some of the expert's opinions on the industry more especially on the Carnegie Minerals. The government had suddenly announced that it was giving the mining company Carnegie Minerals Gambia Ltd a week's ultimatum to come out clean on the types of minerals it was mining and shipping out of the country. In June 2020, an investigative article published on Malagen revealed the sector was least transparent. The investigation found out that GACH Company LTD reveals that in three years of its operations. The company exported more than sixteen thousand tons of heavy mineral sand, generating a conservative revenue estimate of US$2.4 million (approx. D124.9 million). Out of that, only US$293 thousand (D15.1 million) - less than 13 percent of the revenue - has been paid to the government as royalties. Anti-corruption campaigners and other economic activists believe the transparency in the industry is far from realistic. Marr Nyang said there is no much information in the national budget on extractive and no extractive, and most of the revenue you see on the national budget is on tax and non-tax activities. The only thing I have seen so far is that of the oil royalties from the ministry of petroleum, which is about D500 million. He cited the EIA report on how the country under-reported the $471 million in the rosewood dealings. Probably the government lacks the seriousness to take care of the extractive industry because few individuals might be benefiting at the expense of the public. Government to improve accountabil