PCCI urges using global transparency initiative for extractive sector

The Philippines should deepen its commitment to transparency and accountability in the extractive sector by adopting a global transparency standard, the largest business organization in the country said on Thursday. Philippine Chamber of Commerce and Industry president Miguel Varela said that the implementation of the Extractive Industries Transparency Initiative (EITI) could ensure transparent and accountable governance of the country's extractive sector, including the minerals, oil and gas industries. EITI is a voluntary initiative set by a coalition of governments, companies and international organizations that aims to improve governance in resource-rich countries by verifying company payments and government revenues from oil, gas, and mining. “EITI is a globally recognized program that involves checks and balances, especially in ensuring objectivity, transparency and accountability on the taxes and royalties generated from the extractive industries. Our participation in this program will signal our commitment to inclusive growth and responsive good governance," Varela said in a statement. PCCI also espoused the idea of looking into how the adoption of EITI can be expanded beyond the mineral sector to other industries engaged in the extraction of natural resources in the country. “This initiative is not just beneficial to the mining industry but to other industries like oil, gas and quarrying. With closer attention and scrutiny given by various groups on the activities of these sectors, it will definitely serve the overall interest of the economy to have the EITI as a standard framework to document both government and industry revenue activities," said Varela. PCCI recently held a dialogue with stakeholders of the mining industry to discuss the benefits of the EITI. Currently, 36 countries are implementing EITI, including the US, the UK, Australia and Canada. — BM, GMA News