EITI report shows differences in payments and receipts in extractive industry in Mozambique

2 March 2020

The differences found between payments by companies operating in the extractive industry in Mozambique and State receipts represent 1.2% and 1.04% of the amounts confirmed by the State, in 2017 and 2018, respectively, according to a report published on Friday.

The overall difference for 2017 was 476.94 million meticais, or just over US$7.32 million, which is around 1.22% of the amounts confirmed by the State. The difference by sector totalled 476.23 million meticais for the mining sub-sector and 714.5 meticais for the oil and gas sub-sector.

In 2018 the overall difference was 190.78 million meticais, accounting for around 1.04% of the amounts confirmed by the State.

The figures are included in a report produced and published by the Extractive Industries Transparency Initiative (EITI), at the request of the Ministry of Mining Resources and Energy, in compliance with the contract signed by both institutions, according to the AIM news agency.

The EITI document does not give a reason for the discrepancies, which the institution itself recognises may yet be clarified, although neither the companies involved, nor the Tax Authority sent clarifications ahead of the report’s publication.

The report, covering 2017 and 2018, is the eighth reconciliation report on payments made by companies operating in the extractive industry and the receipts of the State.

The EITI, of which Mozambique is a member, requires that the countries that apply the initiative must provide a comprehensive reconciliation of government revenues and payments made by companies, including payments to and from state-owned companies, according to the agreed definition on taxes and revenues to be considered.

The same report shows that the extractive industry’s contribution to the Gross Domestic Product of Mozambique was 6.86% and 7.35%, for 2017 and 2018, showing an increase in the contribution of this sector in those years. (macauhub)