Statement on EITI National Reconciliation Report for Mining Revenues in1389



The Afghan Government is committed to full transparency in the management of the extractive industries sector and is implementing the EITI requirement for reconciliation of reports on mining-related revenues received by the Government against reports on payments made by companies. While outlining areas for further improvement, the full results were made available to the public in local languages, which has achieved unparalleled openness and a new standard of transparency between the Government and the Afghan people in relation to the mining sector.

According to the report, page 10, the total unresolved discrepancy attributable to the Ministry of Mines in 1389 was AFS 8,584,869. (US$ 164,000).  The rest of the undetermined amount is within the mandate of other Government agencies.

To address this issue, the Ministry of Mines conducted an internal investigation of its revenue streams in 1389, and especially of payments made by MCC, where the largest discrepancy was identified (EITI Report, page 19).

It was found that in 1389 MCC transferred to the Ministry of Mines AFS 8,487,500 (US $ 162,000) for compensation payments to land and house owners in the village of Wali Kalai, Logar.

The money was distributed to 101 families by a committee including the Governor of Logar, DM of Mines and other officials, and all payments were fully documented.

The MCC compensation payment of AFS 8,487,500 (US$ 162,000) was not reported by the Ministry of Mines to the reconcilers, as the money has been given to the affected families and it does not constitute government revenue. This reduces the total discrepancy attributable to the Ministry of Mines to AFS 97,369 (US$1,860).

To reduce the risk of future administrative misunderstanding, the Ministries of Mines and Finance are implementing a joint programme for improvement of revenue collection and reporting for the extractive industries sector.