717. As far as Tanzania’s implementation of and compliance with the Extractive Industries Transparency Initiative (EITI) is concerned, the CRM found that following a validation report of May 2011, the EITI Board declared in August 2011 that Tanzania had made “meaningful progress” in the direction of EITI implementation. It set out corrective actions for the country to achieve full compliance. These efforts are being spearheaded by the Tanzania EITI multi-stakeholder group that was launched in February 2011. Tanzania’s candidacy to EITI will be reviewed on the 15th February 2013 at which time full compliance is expected. Summary of the Expected Corrective Actions for Tanzania towards EITI compliance: • Tanzania should agree on a clear definition of “material payments and revenues” and incorporate this definition into the reporting templates and reconciliation process for the second EITI report. This should specifically address the question of the participation of small companies and payments by companies to local government. • The second report should clearly demonstrate that entities that make or receive material payments are participating in the reporting process. • Tanzania should take steps to ensure that Government disclosures to the reconciler are based on audited accounts to international standards and agree a strategy for addressing these issues in accordance with specified requirements. • In accordance with the agreed definition of “materiality” Tanzania should ensure that all material oil, gas and mining payments by companies to Government are disclosed to the reconciler and incorporated in the second EITI report. Box 5. 1 : What is Extractive Industries Transparency Initiative (EITI) The Extractive Industries Transparency Initiative is a multi-stakeholder initiative comprised of governments, companies, civil society groups, investors and international organizations. The purpose of EITI is to strengthen governance by improving transparency and accountability in the extractives sector. This is achieved by governments publishing what they receive from extractive companies and the latter publishing what they pay to governments. It is a voluntary initiative that is implemented by countries whose governments sign-up to do so. The government must meet five sign-up criteria before a country is accepted as an EITI ‘candidate country’. These are: 1) the government is required to issue an unequivocal public statement of its intention to implement the EITI; 2) the government is required to commit to work with civil society and companies on the implementation of the EITI; 3) the government is required to appoint a senior individual to lead on the implementation of the EITI; 4) the government is required to establish a multi-stakeholder group to oversee the implementation of the EITI; and 5) the multi-stakeholder group, in consultation with key EITI stakeholders, should agree and publish a fully costed work plan, containing measurable targets, and a timetable for implementation and incorporating an assessment of capacity constraints. Source: eiti.org lll. Recommendations 718. The APR Panel recommends that the United Republic of Tanzania: • Review its mining policies and further amend its mining laws to ensure that the national economy and Tanzanians benefits much more from the extractive industry; (Government, Parliament) • Publish existing mining contracts and subject them to parliamentary scrutiny; [Ministry of Mines, Parliament] • Implement the newly passed provisions on public-private sector partnership (PPP) by creating a task force composed of members from the Chamber of Commerce, Industry and Agriculture, high level government officials, and the private sector at large. 148