The 2019 National Report of the Industrial Transparency Initiative of Armenia (EITI) is now available for the general public. At the conference on July 23, 2021, the report and the electronic system of declaration of real owners were presented, which are a powerful platform in terms of transparency, accessibility and accountability.
The report was compiled by Grant Thornton Auditing Company with a combination of information received from government agencies and companies on revenue payments. The company has combined for the financial data submitted in the public reports of 9 companies for 2019 - "Zangezur Copper and Molybdenum Combine" CJSC, "GeoProMining Gold" LLC, "Chaarat Kapan" CJSC, "Agarak Copper and Molybdenum Combine" CJSC, "Teghout" CJSC, "Akhtala Mining and Processing Plant" CJSC, "Lydian Armenia" CJSC, "Meghradzor Gold" LLC and "Ler-X" LLC.
During the conference, the representatives of "Grant Thornton" auditing company referred to how many products were produced and exported in 2019, how much the revenues from the sector to the state budget were made, how those revenues were distributed, what investment the sector provided in the RA economy.
The conference provided information on the process of identifying real owners (beneficiaries) in Armenia, as well as the electronic system for declaring real owners.
During the panel discussion of the conference, Victoria Burnazyan, Vice President of EcoLur Informational NGO, Alternative Member of the Multi-Stakeholder Group (MSG), presented some of the results and proposals revealed by EcoLur Responsible within the framework of “Responsibility of Non-operating Mining Companies in EITI Process” within the frameworks of “Engaged Citizenry for Responsible Governance” program implemented by "Transparency International Anti-Corruption Center" NGO with the support of the International Development Agency.
Under her, the data made public on the EITI website contributed to identifying problems in the metal mining sector and increase business accountability to communities. About 135 materials, 20 videos and 22 reports were published within the framework of the program.
“We have used the data of the national reports published on the EITI website, the data of soil management contracts and the mentioned obligations that have already been made public. We visited 30 affected communities in Aragatsotn, Syunik, Lori, Kotayk, Vayots Dzor, and presented the data to the local self-government bodies and the population. We found out with them to what extent the environmental, social and financial obligations of the soil managers have been fulfilled.
It turned out that the majority of the communities were not aware of the socio-economic obligations of the companies, also the fact that one of soil managers had not fulfilled the socio-economic obligations by 2020. After the community enlargement, the affected settlements were deprived of the opportunity of direct dialogue with the soil manager, they are generally unaware of whether any work was done in their area with the funds provided by the soil manager or not. Another problem is that the socio-economic obligations mentioned in the agreement did not meet the needs of the communities, the communities did not participate in the process of discussing those documents," she said.
Victoria Burnazyan presented the proposals of the representatives of the local self-government bodies and the population of the affected communities:
- Involve the affected communities in concluding soil management contracts, so that the contracts include programs that help solve the real problems of the community.
- The companies should have frequent meetings with the population, presenting information about their work and activities.
- Soil managers observe environmental norms.
- Recruit the residents of the affected communities in the first place.
-People should have guarantees for their health, well-being, healthy environment. Consider mechanisms for issuing such guarantees, such as insurance, compensation, etc.
The panel discussion was also attended by Mark Burnett, Senior Advisor Asia Team, Lilia Shushanyan, RA Deputy Minister of Territorial Administration and Infrastructure, Chairman of Community Mobilization and Support Center NGO, MSG Member Oleg Dulgaryan and World Bank Mining Management Expert Narine Tadevosyan.
Oleg Dulgaryan presented the opportunities for the positive impact of the EITI process at the community level in the case of promoting local participation and developing local government capacities.
Lusine Tovmasyan, Head of the Secretariat of RA Justice Ministry, Suren Grigoryan, Deputy Justice Minister, Ani Varderesyan, Representative of State Register of Legal Entities of Justice Ministry, Representatives of EITI International Secretariat and World Bank, “Open Ownership” Organization representatives Piter Low, “Information Freedom Center” NGO President Shushan Doydoyan, “Civilnet” Journalist Mkrtich Karapetyan.
July 26, 2021 at 19:07