EITA Council to lessen corruption, tax avoidance

By Carmencita A. Carillo

Tuesday 20th of November 2012

TAGUM CITY Nov. 20 (PIA)-The establishment of the Extractive Industry Transparency and Accountability (EITA) in Compostela Valley, which was an offshoot of the global Extractive Industry Transparency Initiative (EITI), is seen as a deterrent to corruption and tax avoidance.

“The EITI (and in effect the EITA) can help minimize the leakages in government which include corruption and tax avoidance,” EITI member and National Coordinator of Bantay Kita Assistant Secretary Cielo Magno said during the launch of the EITA in Tagum City Monday.

Magno said many mining companies claim that they have paid their taxes to the government but say “binulsa ng gobyerno” (pocketed by government)” when confronted about these payments. She, however, cited as a case of corruption in Africa prompting the creation of EITI. She said that through the EITA, the tax payments of extractive companies like mining companies are monitored as well as the corresponding payment with the Bureau of Internal Revenue (BIR).

Executive Order 0040-2012 by ComVal Governor Arturo Uy which provided for the creation of the Provincial Multi-Stakeholder for EITA was aimed at ensuring “access and appropriate disclosure of relevant information related to the development of the mining industry, both large and small scale mining projects.”

Magno said EITI, which is a global initiative that seeks to increase the transparency of payments made by companies involved in extractive industries like mining and oil, started during the administration of President Benigno Simeon Aquino specifically upon the issuance of Executive Order 79, the Implementing Rules and Regulations of which provide the formation of a multisectoral forum six months after its effectivity.

“We are ready with our candidacy but still waiting for the draft of the terms of reference, scope of work and workplan,” she said.

The target is to submit all requirements by January 11 next year, she said, in time for the EITI Board meeting in February which will then decide if the Philippines meets all the requirements.(RGA/LAC/FMGM PIA XI)