OPENNESS IN USE OF OIL REVENUE (JULY 20, 2010)

EVER since the announcement of the discovery of oil in commercial quantities in the country, many people have expressed views on how to effectively manage the resource in order for it to benefit all Ghanaians.
There have been allusions to occurrences elsewhere, particularly in some African countries where reference is usually made to the “oil curse” because the discovery of the resource has done very little or virtually nothing to alleviate poverty.
On the contrary, the environmental scourge oil companies sometimes leave behind has served to plunge many host communities into more woes and chaos.
In Ghana, the bane associated with the extractive industry has sometimes been well expressed in the mining sector and sometimes the case is made that despite the fact that the country has served as a rich source of gold for many multinational companies, mining communities have virtually nothing to show for it.
While sometimes companies in the extractive industries have been lambasted for contributing very little to alleviate poverty in their host communities, some have also argued that the blame must be laid squarely at the door of local and national government officials and authorities who have failed to manage properly the revenue from the extractive industry.
One of the instituted mechanisms to ensure transparency in the management of revenue from the extractive industry is the Extractive Industries Transparency Initiative (EITI), which is a coalition of governments, companies, civil society groups, investors and international organisations.
Countries which have signed onto this initiative are expected to meet some obligations in the declaration of revenue from the extractive industry with the view to managing those revenues better.
Under the initiative, mining companies are expected to publish what they pay to the government which, in turn, must publish what it receives from mining companies.
This is to ensure that the people are well informed about the dealings between the government and the mining companies to help enhance transparency in the utilisation of revenue from the extractive industry.
The news that the country is making steady efforts to sign onto the EITI to ensure that oil revenue is published is, therefore, heart-warming and the DAILY GRAPHIC fully supports the efforts of the government in that regard.
Ironically, many Third World oil-producing countries are steeped in poverty and squalor and it is natural to expect that revenue from resources obtained from those communities will be judiciously used to better the lot of the inhabitants of those communities.
It is our hope that the government, having demonstrated good intentions in the management of oil revenue, will not lull into a state of complacency that can significantly contribute to the reckless use of oil revenue.
So many lessons abound on the continent about how the poor management of oil revenue has sparked violent conflicts and contributed significantly to poor living conditions and the DAILY GRAPHIC believes that these lessons should inform our desire to remain truly transparent in the use of oil revenue.