MRDC’s revenue management to be transparent

Landowner royalties received and managed by the Mineral Resources Development Company (MRDC) will now be available for scrutiny.

This is after joining the PNG Extractive Industries Transparency Initiative (PNGEITI).

In a media statement, the PNGEITI announced that the MRDC has joined their Multi Stakeholder Group (MSG), which is the primary body responsible to oversee and coordinate the successful and effective implementation of the global EITI standards in PNG.

The body provides and establishes a framework to promote collaboration and consensus.

PNGEITI Head of Secretariat, Lucas Alkan, noted the important role MRDC played in managing revenues for landowners and provincial governments for resource projects.

He said the public should be made aware of the processes and channels that are involved in the disbursement of resource benefits.

“One way MRDC can become transparent on how much it receives and manages is through MRDC’s active participation in the EITI process as reporting agent as well as a MSG member,” Alkan said. 

“Landowner concerns over benefits from resources are sometimes topical and as a result, misunderstanding arises.  Therefore, we welcome MRDC to contribute to the EITI process for greater transparency on where and how the revenue streams end up.

“In fact, MRDC has participated in the production of our second report, which is based on the fiscal year of 2014, and it was encouraging to note improvement seen in this report relative to the 2013 report.

“We see that the MSG is becoming robust in its discussion and activities towards coming up with best options on improving the EITI reporting process and this can make way for greater transparency in the revenue management in the country,” Alkan added.

MRDC acts as a trustee shareholder for beneficiary landowners and provincial governments, as per provisions under the Oil & Gas Act and the Mining Act.

The state company joined the MSG in 2016 following recommendations in the PNG EITI Report 2013 and provided data for the PNG EITI Report 2014.

The Extractive Industries Transparency Initiative (EITI) is an international standard for openness around the management of revenues from mineral and petroleum resources.

Governments disclose how much they receive from the extractive companies in their countries and companies disclose how much they pay to government.

Author: 
Cedric Patjole