Last update: 12-Dec-2013 4:50 am
Thursday, December 12, 2013
Trinidad & Tobago Guardian Online
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T&T’s first EITI report handed to minister
Minister of Energy and Energy Affairs Kevin Ramnarine, received T&T’s first Extractive Industries Transparency Initiative (EITI) Report on Monday.
The report which is the first independent reconciliation of the country’s energy sector revenues, was prepared by an independent EITI Administrator, comprised of a local-foreign accounting firm partnership, BDO Trinity Ltd and the Hart-Nurse Group of the UK. The EITI report reconciles revenues reported to have been paid to the government by the major oil and gas companies operating in the country, with the revenue reported to have been received by the government. The reconciliation took place between March and September.
T&T’s first EITI Report, which covers Government’s fiscal year 2011—October 1 2010 to September 30, 2011—showed that the biggest contributor to revenue was petroleum profit tax ($9.1 billion) which is levied on both oil and gas production.
Supplemental petroleum tax, which is only collected against oil production, was the second highest contributor ($4.2 billion). In terms of individual tax paying companies, bpTT was the single largest contributor to Government revenue in fiscal 2011 with payments totalling more than $9.9 billion followed by the state oil company Petrotrin with contributed revenues totalling more than $3.5 billion.
Government’s reported revenue collection figure of $23.181 billion was $73 million less than the $23.254 billion reported as paid by the 17 reporting oil and gas companies. This difference represents 0.3 per cent of the companies reported payments.
In reporting this outcome of the reconciliation exercise, the independent EITI administrator advised that the differences found “…relate to (i) differences arising from the use of different exchange rates by the Government and companies in converting foreign currency payments and (ii) a timing difference on the receipting of a payment made by a company to the Government before the end of the fiscal year which was receipted by the Government after the fiscal year.
“Payments made in foreign currency were reconciled in the currency of payment”. The Administrator reported that “no unadjusted differences” were found during the reconciliation exercise.
Following the handing over of the report by Victor Hart, chairman of the Cabinet appointed T&T EITI Steering Committee, Ramnarine said: “The publication today of Trinidad and Tobago’s first EITI Report represents the first independent reconciliation of Trinidad and Tobago’s oil and gas revenues, a most significant policy and paradigm shift as it relates to transparency, accountability and good governance on the part of the state.
“Ultimately I expect EITI reporting to bring about a greater level of public engagement and discussion about the management of our country’s natural resources. And to become as much a part of the national lexicon as the Ryder-Scott report, which performs a similar assurance function with respect to our oil and gas reserves.” The EITI report can be found on the TTEITI Web site at http://www. tteiti.org.tt/category/eiti-reports.
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