Independent Administrator's Workshop for Companies on Reporting Template

The workshop was held at the Ministry of Mines and Petroleum and was chaired by Deputy Minsiter of Policy; a presentation was delivered by IA’s representative on the development of the 6th Afghanistan EITI report; briefing the members and the representatives of the extractive companies, he said that the IA was in the process of collecting data, the aim of providing today’s workshop was to provide briefing on the development of the report and to enable the companies to fill-in the reporting templates. In the opening of the presentation, a general introduction of EITI was given to the participants and how the EITI worked and what information it needed for a country to comply with its requirements. This followed by the developments the IA had made with regard to producing 6th Afghanistan EITI report. A timeline was shared with the participants where the reporting template would be sent on 4th April 2019 to companies and government departments and would be collected by 17th April 2019, allowing them 10 working days to fill them and send it over to IA. According to IA’s representative, the development process consists of six phases i.e. General awareness and Planning, scoping study, capacity building, data collection, analysis and investigation of discrepancies and the last phase of completion and reporting. The report will also include information on Beneficial Ownership and Politically Exposed Persons (PEPs).

Briefing the participants on the materiality approach, he said that the MSG has agreed that companies which have total payments of 20 million AFN or above and revenue streams 100 million AFN and above will be reconciled; the MSG has also agreed to adjust the reconciliation scope by adding additional 6 companies selected randomly. Therefore based on the MSG’s decision, the IA would reconcile 14 companies for the year 1396 and 12 companies for the year 1395 which will cover approximately 90 percent of total government revenues. Talking about SoEs, Mr. Heidi said that SoEs comprised about 60 percent of total government revenues from extractive sector and the information regarding them were very important and MoMP should be very concise in providing them. It was mentioned that 25 percent of the SoEs revenue was contributed towards the operations of the SoEs while the remaining 75 percent was being transferred to the Government budget. The IA also provided estimates of the extractive sector’s contributions to the GDP, sate revenue, exports and employment, where it stood at 0.9%, 3.9%, 5.4% and 0.2% respectively.

During the demonstration on filling in of the reporting templates, Mr. Heidi said that all the areas within the template should be filled in and the template was very clear about the information required. Mr. Danishwar who was the focal point of SoEs, MoMP to IA asked what should the ministry do if some companies have paid their social expenditure to MoMP, upon which Mr. Heidi said that all the amounts should be mentioned in the reporting template.