Guidance Note: Addressing corruption risks
Addressing corruption risks through EITI implementation
|This guidance note refers to the 2019 EITI Standard.|
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Corruption is a pressing challenge for many resource-rich countries. According to the OECD Foreign Bribery Report, one out of five cases of transnational corruption occur in the extractive sector. Twenty percent of the over 200 enforcement actions under the US Foreign Corruption Practices Act (FCPA) are linked to the extractive industry, the highest among all sectors.
There is a shared view among EITI stakeholders that addressing corruption risks is implicit in the multi-stakeholder group’s (MSG) efforts to promote transparency and accountability by adhering to EITI Standard. However, the EITI’s role in tackling corruption is not always explicitly stated in national objectives for EITI implementation. In 2020, the EITI Board recognised the need for the EITI to clearly articulate its role in deterring corruption and provide support to MSGs to enable them to contribute to anti-corruption measures.
EITI reporting can shine a light on some of the areas most prone to corruption risks. For example, it could help to expose practices in natural resource governance that are vulnerable to abuse, expose suspicious deals and transactions, provide valuable contextual information at a national level, support citizens’ debate, monitoring and advocacy around resource governance, advance global norms and policies related to anti-corruption, and deter corrupt behaviour through transparency.
This note aims to support MSGs by providing practical guidance and a step-by-step approach for defining the EITI’s role in mitigating corruption at the country level. The suggested steps include factors that MSGs could consider in undertaking their anti-corruption activities, as well as concrete examples of activities and considerations. Annexe A provides examples of how to apply these steps in specific areas of extractive sector management.