Extractive Industries Transparency Initiative (EITI) was initiated by Mr. Tony Blair in 2002 at the Summit on Sustainable Development in Johannesburg and is a global standard that promotes revenue transparency in the oil, gas and mining industries.
The official website of EITI: www.eiti.org.
Implementation of EITI in Kazakhstan
The EITI is implemented in Kazakhstan since 2005 on the initiative of the Head of State Nursultan Nazarbayev. This project has a high international status, political and anticorruption and aimed at revenue transparency of companies and government in the extractives sector, accessible to the public.
Regulatory framework is fixed at the legislative level, obliging subsurface users comply with the terms of the Memorandum of Understanding of Initiative and to report on taxes and other payments to the state budget, the audited in line with international standards.
In addition, from the state budget annually allocates funds for the production of national reports on EITI conducted by an independent audit firm, attracted on a competitive basis in accordance with the law on public procurement. Also, the financing of the EITI is actively supported by international and domestic organizations, development institutions like the World Bank, GIZ, USAID, Soros Foundation, the British Embassy and others..
National Council of Stakeholders (NCS) is acting to coordinate the implementation of the EITI in the country, which includes representatives of the Government, deputies of the Majilis of the Parliament, the oil-producing associations, mining companies and non-governmental sector. All decisions are made by consensus.
All events are conducted in accordance with the work plan, implementation of which is controlled by the EITI National Secretariat. Conferences, round tables, seminars, briefings, workshops, etc. are held. All activities are widely covered in the media, on the official websites: Geology and Subsoil Use Committee, associations, NGOs and others.
The big breakthrough is that in Kazakhstan electronic version of the EITI reports through the portal of the unified state system of subsoil use management, available on-line to all interested parties and any interested person was introduced.
In 2013 by results of Validation the EITI International Board assessed the compliance of Kazakhstan with all the requirements of the EITI and assigned the status of “EITI Follower Country” (Minutes of the 25th Meeting of the EITI International Board http://eiti.geology.gov.kz/ru/homepage/normative-base).
Since 2014 in Kazakhstan providing the reporting under EITI by the companies - subsoil users (payers of taxes) online through the USMSS portal is introduced. Data of the RK Ministry of Finance (Tax Recipient) is reconciled automatically and the final reconciliation reports, including disaggregated information on each company, are available on-line on the web-site to all interested parties and everybody http://egsu.energo.gov.kz/webapp/pages/home.jsf .
Since 2015 embedded reporting on the expenditure of companies for social development of regions online through the USMSS portal, available to everyone. Performed a reconciliation of accounts of the companies – subsoil users on the social development of the regions and of akimats, who used these funds. The final report on the reconciliation of social investment available on the National EITI website.
In 2017, completed a pilot study on the integration of EITI monitoring system of open data “Mainstreaming”, the essence of which was to eliminate the duplication of data in the EITI reports with the existing reporting companies and the Government based on existing open data.
At the present time, the next validation process for Kazakhstan is coming to an end. In February 2018, the EITI International Board is expected to receive Kazakhstan's status as a result of validation.
Priority areas for further EITI implementation in Kazakhstan: