Uniting against extractive sector corruption

2024 marks a year of transitions.  Elections are reshaping leadership in countries representing nearly half the global population while shifts in global energy systems continue to unfold. Transitions create uncertainties—potentially fertile ground for corruption. As we mark International Anti-Corruption Day, the urgency to tackle corruption in the oil, gas and mining sector has never been clearer.

The EITI is at the forefront of efforts to address corruption by championing transparency in the management of natural resources. In 2020, the EITI Board reaffirmed its commitment to deterring corruption by strengthening the capacity of multi-stakeholder groups. Since then, the EITI and partners have developed tools, enhanced disclosures and facilitated dialogue to identify and mitigate risks.

As we mark International Anti-Corruption Day, the urgency to tackle corruption in the oil, gas and mining sector has never been clearer.

This year’s International Anti-Corruption Day offers an opportunity to reflect on three key lessons and the progress countries have made in addressing corruption risks. 

Understanding risks to drive action

Corruption risks vary. A shared understanding of the risk landscape enables stakeholders to prioritise action. EITI disclosures, along with tools from partners like NRGI and Transparency International, have helped countries identify vulnerabilities and develop evidence-based responses.

A shared understanding of the risk landscape enables stakeholders to prioritise action.

In the Philippines, a global leader in nickel production, the EITI investigated risks in licensing for large-scale nickel mines. The study uncovered risks of conflicts of interest and opaque consultations, and proposed reforms such as automating licensing processes, disclosing beneficial ownership and environmental impact assessment to strengthen oversight. These findings informed the Philippines’ 2023 EITI work plan to enhance transparency in the nickel sector.

In Togo, a study led by civil society identified three key corruption risks: opacity in the government’s stake in mining companies, questionable equipment rental contracts, and gaps in beneficial ownership transparency. These findings spurred commitments from authorities to verify the state’s participation in mining companies and centralise beneficial ownership data, paving the way for stronger oversight and accountability. Similar risk assessments have informed the development of Malawi’s first extractive sector anti-corruption strategy and Guinea’s first Anti-Corruption Action Plan in 2023.

Catalysing action through disclosures

Corruption can be hard to prove. Government and corporate disclosures, facilitated through the EITI, reveal anomalies and provide the data needed to tackle risks.

In Mozambique, financial reconciliations from the 2020 EITI reporting process uncovered forged payment records by company employees and tax officials, leading to the embezzlement of approximately USD 350,000. Although records indicated that the company had made the payment, the government had not received any funds. This anomaly, flagged by the Mozambique EITI to the country’s Anti-Corruption Commission, triggered an investigation. The outcome was decisive: the company repaid the missing funds, and those involved faced criminal charges. Though seemingly minor in isolation, such cases, if left unaddressed, can lead to significant revenue losses and systemic inefficiencies.

Corruption can be hard to prove. Government and corporate disclosures, facilitated through the EITI, reveal anomalies and provide the data needed to tackle risks.

Progress on contract and beneficial ownership transparency has amplified these efforts. The EITI's recent stocktakes show that at least 41 EITI implementing countries (75%) disclose extractive contracts, while 38 countries (67%) report beneficial ownership information. Triangulating production, export and revenue data alongside contract terms and ownership disclosures can continue to help stakeholders detect revenue losses, licensing anomalies, conflicts of interest, smuggling and other illicit activities.

Scaling and sustaining efforts through collective action

Corruption cases are often complex. Effective anti-corruption requires coordinated action across agencies, stakeholders and borders. Beyond disclosures, the EITI’s convening power fosters collaboration among regulatory agencies, anti-corruption commissions, law enforcement, parliamentarians, supreme audit institutions and civil society to address corruption comprehensively. In Ghana, Indonesia, Liberia and Mongolia, anti-corruption actors are engaged in the EITI process. This is yielding results.

Effective anti-corruption requires coordinated action across agencies, stakeholders and borders. 

In Armenia, the publication of beneficial ownership declarations for extractive companies in 2020 laid the groundwork for a national, economy-wide register established in 2023. Journalists have since used the data to uncover hidden interests and irregularities in contract awards, demonstrating how transparency leads to greater accountability.

Ghana EITI has also advanced beneficial ownership transparency. Since 2021, it has worked with the Office of the Registrar of Companies to improve its register and built capacity among civil society groups. One civil society organisation’s investigations uncovered that the beneficial owners of a mining company had criminal records abroad, prompting the Minerals Commission to reject the company’s license renewal.

Advancing the anti-corruption agenda

EITI multi-stakeholder groups are uniquely positioned to generate essential data to aid investigations, coordinate anti-corruption activities and dialogue across agencies and stakeholders, and advocate for reforms, policies and legislation. The EITI’s updated guidance equips these groups to adopt proactive and collaborative approaches to tackling extractive sector corruption.

In today’s turbulent times, the demand for action on corruption remains urgent.

In today’s turbulent times, the demand for action on corruption remains urgent. From South Africa’s G20 Chair to the Financing for Development Conference, stakeholders are clear: the fight against corruption is no longer an option—it is an imperative. Through data and dialogue, the EITI remains a powerful tool for advancing transparency and accountability where it matters most.