Tuesday, 18 February 2014

We must ensure that our newfound natural resources remain blessings


We are on the verge of an economic renewal if we consider the recent discovery of mineral resources in several parts of the country.
There have been discoveries of titanium in Kwale, oil and water in Turkana, and coal in Kitui. Kenya has joined the league of other countries in Africa endowed with natural resources.
These discoveries should provoke us to consider some questions: How well are the resources going to be managed? What mechanisms are we putting in place to promote accountability and transparency in the exploitation of these resources? Given our track record in managing public funds, how will we assure the citizens of accountability by properly managing the natural resources?
In Africa, abundance of natural resources, particularly oil, has in many cases been considered a curse rather than a blessing. One can only hope that this is not the fate that awaits Kenya. In a way, we are lucky that there are examples of the pitfalls to avoid.
Transparency should guide basic legal instruments such as the Mining and Petroleum Acts. As a starting point, the government should consider joining the Extractive Industries Transparency Initiative (Eiti).
This is a voluntary membership of about 30 countries globally with the aim of increasing transparency and accountability in the management of revenue from natural resources.
The Eiti standard makes it obligatory for oil, gas, and mining companies to publish what they pay governments and the governments to publish what they receive from these companies. Such gestures will partly assure Kenyans that every resource extracted from the land is accounted for.
Botswana Namibia and South Africa
We must aim to emulate countries like Botswana, Namibia, and South Africa, who have demonstrated the benefits of managerial accountability in the utilisation of natural resources for the national good. Their economies are booming, their infrastructure is highly developed, service delivery in the public sector has improved, and the people have been lifted from an impoverished state.
The emergence of Brazil, Russia, India, China, and South Africa (BRICS) as strong economies could be attributed to their good management of mineral resources. Kenya should be looking for inspiration in that direction.
The ministries of Mining and Energy and Petroleum deserve praise for initiating the Mining Act 2013 and the Petroleum Act 2012 respectively.
The audit clauses in the draft Mining and Petroleum Bills must prescribe a strong accessibility right for the Auditor-General to the records and books of the entities (both public and private) that will be involved in the exploitation of the resources.

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