Showing posts with label Extractive Industries Transparency Initiative. Show all posts
Showing posts with label Extractive Industries Transparency Initiative. Show all posts

Tuesday, March 06, 2012

Students Demand More Information on Resource Extraction

http://www.youtube.com/watch?v=_0_Bt_QxOFg

Monday, 05 March 2012
Say Mony, VOA Khmer | Phnom Penh
“They are probably reluctant to release the information to the people because they haven’t produced anything yet.”
Most Cambodian university students have heard of their country’s fledging extractive industry. But with little access to information, few are aware of how revenue from this industry is being managed. Most of this information remains unavailable, and some are now voicing their concerns about corruption and misuse of those revenues.

“The news on television tells us little about mining extractions,” student Saing Kanha told VOA Khmer. “It only tells the people that companies are coming to extract minerals in Cambodia and that this will benefit the country. But they don't say whether the revenue will go to the people, or whether the companies or the government are the ones getting it.”

Like Saing Kanha and her peers, other students at the Royal University of Phnom Penh say they are unaware of how the revenue from the oil, gas and mining industry are being managed.

“They are probably reluctant to release the information to the people because they haven’t produced anything yet,” said Long Kiri, a fourth-year chemistry student. “Maybe there isn’t that much revenue.”

Friday, September 10, 2010

Go further with disclosure and embrace EITI

Friday, 10 September 2010
Steve Finch
The Phnom Penh Post

"...it should be noted that countries with a far worse reputation on corruption than Cambodia have gone a great deal further on disclosure"
THE Ministry of Economy and Finance at the end of August again published data on extractive industry revenues – a sign the government is committed to at least a low level of transparency in this sector.

But this is just the first step. Just how far will Cambodia go in terms of full disclosure, and when?

Figures released in a national budget overview on August 23 showed the government needs to improve transparency as soon as possible, not least because oil, gas and mining revenues are increasing dramatically meaning more money is at stake.

In the first half of 2009, the Kingdom generated just 6 billion riels (US$1.45 million) in extractive industry revenues, a figure that multiplied 20 times in the same period this year to 118.49 billion riels, or $28.56 million.

We only know that because the government started to publish oil, gas and mining revenues for the first time last year.

When Finance Ministry Secretary General Hang Chuon Naron disclosed a $26 million payment by French energy company Total at a presentation in March, a snapshot of the government budget showed the same payment allocated for January.

But in the latest budget disclosure, there are no extractive industry revenue payments listed for January 2010, only a $27 million payment made in March.

Is this the same payment? Hang Chuon Naron and Finance Minister Keat Chhon were both unavailable for comment yesterday.

Although Cambodia has made an important first step towards transparency, the government should go further by embracing the industry standard – the Extractive Industries Transparency Initiative.

By only going a certain distance, although the budget is less opaque, in many ways the current level of disclosure simply raises more questions that it gives answers.

In May, Cambodia received 6.28 billion riels from the sector according to the published version of the state budget, more than was generated for the whole of the first half of 2009.

Where did this payment come from?

The first step for the government in becoming an EITI candidate country would be to disclose oil, gas and mining revenues in full and allow private companies to do the same.

The EITI itself, along with a multi-stakeholder group, would then oversee this budgeting process – the idea is that the possibility for discrepancies between the two accounts dissuades graft.

Again, Cambodia has already gone halfway towards this standard. The government has permitted civil society groups including NGO Forum to act as observers on an inter-ministerial extractive industries working group that considers revenue transparency.

Crucially, civil society groups say they have previously applied for permanent member dialogue status but were denied.

Although there is understood to be differing opinions on EITI compliance within the government, it should be noted that countries with a far worse reputation on corruption than Cambodia have gone a great deal further on disclosure.

Chad, which lies 17 places lower than the Kingdom on Transparency International’s corruption perception index, in April became an EITI candidate, meaning it will now begin “double disclosure” of all sector payments – the state and private companies will publish payments
separately.

Iraq and Afghanistan, which between them occupy two of the bottom five positions on the corruption index, committed to the same EITI process in February. Now it should be Cambodia’s turn.

Thursday, June 03, 2010

Watchdog Renews Call for Oil Transparency


Men Kimseng, VOA Khmer
Washington, D.C Wednesday, 02 June 2010

“We want to see this revenue being managed transparently and accountably so that Cambodian people and their future generations benefit equally.”
The US oil giant Chevron and the Cambodian government need to improve transparency in the management of oil revenue, a Cambodian watchdog said Monday.

“What we want to know is how this revenue from natural resources is being managed, because it is a new sector,” Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, told “Hello VOA.” “We want to see this revenue being managed transparently and accountably so that Cambodian people and their future generations benefit equally.”

Mam Sambath, who attended Chevron’s annual meeting last week in Houston, Texas, to advocate for a payment disclosure policy, said greater transparency will work in the company’s interest.

“The disclosure will instead promote a good image of Chevron in a country it operates,” he said. “And it will also attract other highly responsible companies to follow suit and invest in that particular country.”

Cambodia insists it has been transparent in managing state revenue.

“We don’t have a problem [if a company makes their payment public],” Hang Chuon Naron, secretary-general of the Ministry of Economy and Finance, told VOA Khmer. “The prime minister has authorized us to do that, and we have been doing that all along.”

However, a caller from Banteay Meanchey province expressed skepticism in the government’s transparency efforts. Villagers are seldom fully informed of gold mining operations in the province, the caller, who gave his name as Ny, said.

Transparency advocates say Cambodia would do well to become a member of the Extractive Industries Transparency Initiative, or EITI.

“On natural resources, the international community must push the government to be a member of EITI to ensure effectiveness in management of revenues and expenditure from mineral resources,” said Yim Sovann, spokesman for the opposition Sam Rainsy Party. “Sooner or later we will extract oil and gold, and revenue from this sector is gigantic. If we manage it properly we will be rich.”

Yim Sovann called for openness for input from the public, lawmakers and the international community for the drafting of a management law for natural resources currently underway.

Mam Sambath agrees.

“I strongly urge the government to consider becoming a member of EITI, so that we can better manage revenue from natural resources and help better manage our economy,” Mam Sambath said.

Saturday, May 29, 2010

Chevron Shareholders Cast Their Votes for Transparency


Friday, May 28, 2010
Staff infoZine
During his remarks, Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, said: “Secrecy encourages conflict. In Cambodia, over the past decades, there have been numerous conflicts between communities and companies, and these have led to losses for both sides. We don’t want this to happen because we want Chevron to stay, and this is your opportunity to take leadership in Cambodia and help us ensure that your operations in Cambodia will be successful and beneficial to both your company and Cambodians.”
The shareholder proposal was filed in December 2009 by Oxfam America and five institutions with Chevron holdings.

Washington, D.C. - infozine - According to preliminary results from Chevron annual meeting in Houston, shareholders representing approximately 160 million shares – worth more than $10 billion – voted in favor of a shareholder proposal calling for a transparent payment disclosure policy, said international humanitarian organization Oxfam America.

“With this level of shareholder support, Chevron can no longer ignore the call for transparency,” said Ian Gary, senior policy manager for extractive industries at Oxfam America, who attended the shareholder meeting. “We know oil revenues are too often squandered through corruption, internal conflict, and weak governance. This is an opportunity for Chevron to promote the rights of citizens by providing them with vital information about revenues coming into their countries. Transparency should not be a question for Chevron, it is central to accountable practice in the vulnerable countries where it operates.”

The shareholder proposal was filed in December 2009 by Oxfam America and five institutions with Chevron holdings. Prior to the vote yesterday, shareholders and their proxies spoke in favor of this proposal to help reduce instability and insecurity in oil-rich countries through a transparent and accountable payment disclosure policy in all countries where Chevron operates. Two other global oil companies, Statoil of Norway and Talisman Energy of Canada, already disclose this information to the public.

During his remarks, Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, said: “Secrecy encourages conflict. In Cambodia, over the past decades, there have been numerous conflicts between communities and companies, and these have led to losses for both sides. We don’t want this to happen because we want Chevron to stay, and this is your opportunity to take leadership in Cambodia and help us ensure that your operations in Cambodia will be successful and beneficial to both your company and Cambodians.”

In 2008, Chevron paid more than $40 billion in taxes to governments around the world. Managed properly, these revenues can contribute to economic prosperity and stability in countries where Chevron and other companies operate. However, history has shown that oil company payments to governments as well as government receipts are often kept secret, leading to embezzlement, corruption, and revenue misappropriation, which, in many cases, has prevented oil revenues from contributing to economic development.

In his address to shareholders, Ian Gary said: “Disclosing payments would complement Chevron’s existing efforts in initiatives such as the Extractive Industries Transparency Initiative. EITI has serious limitations. It is voluntary and only works where governments have the political will be transparent…Chevron works in many countries run by governments suspected of corruption and worse. Unfair or not, undisclosed payments raise popular suspicion regarding Chevron’s role in maintaining a system of financial secrecy. Ensuring that payments are transparent puts Chevron in a leadership position and turns the spotlight back on host governments.”

With the results of yesterday’s vote, Oxfam America has the right to re-file this shareholder proposal with Chevron next year. Oxfam America will continue to call on Chevron and its shareholders to support disclosure of all payments to host governments.

Tuesday, April 06, 2010

Keeping the Kingdom honest

The AngloGold Ashanti Mine pit is shown in Ghana. Communities across the West African nation have been relocated to make room for mining projects and have endured unemployment, environmental damage and the loss of agricultural land. (PHOTO SUPPLIED)

Monday, 05 April 2010
Solinn Lim
The Phnom Penh Post


Cambodia needs transparent legal mechanisms to govern the development of its natural resources, preventing damage to society and the environment.

Over the past weeks, news on oil, gas and mineral mining rose to the attention of the media and the public with significant discoveries of silver, gold and bauxite, with Chevron also announcing oil operations to start in the Kingdom in 2012. While Cambodia has good reason to be pleased with these prospects, there are a number of important aspects that need to be considered in order to meet realistic public expectations and ensure good governance.

The task ahead of the Cambodian government is a large one. Cambodia will need transparent and accountable legal mechanisms and investment strategies in order to ensure that the valuable but finite extractive revenues will be reinvested into advancing important economic sectors, so that they provide opportunities for our country to grow. Provision of better social services such as healthcare and education will give everyone the chance to improve their standard of living, while investment in economic diversification will help ensure the competitiveness of other critical sectors such as garments, agriculture and tourism, which then can provide large and sustainable employment to Cambodia’s unskilled labour force. This is indeed a challenging task, and many civil society actors including Oxfam are prepared to support this preparation.

Recently, we’ve seen the Cambodian government establish specialised institutions to oversee oil, gas and mining development and start to take necessary steps towards responsible and accountable revenue management, including the recent disclosure of $26 million in signature bonus payments and social funds by PetroVietnam and Total. This is a good example that shows commitment to transparency.

Let me tell you about a large-scale gold mine I saw in Ghana, Africa. It was way beyond the small diggings we know from our small gem miners in Ratanikkiri and Pailin. One mining site seemed 100 times bigger than our Olympic Stadium, and all around were rumbling digging machines that had wheels the size of houses. Its depth was twice the distance from Wat Phnom to the Independence Monument. As Cambodia is preparing to reap the benefits of oil, gas and hard minerals, it has to reflect on the importance of balancing not only the potential benefits of these resources but also the social and environmental impacts.

From Oxfam’s experiences in extractive industries around the world, too often people’s livelihoods are interrupted and their communities are polluted by these projects. Operations at modern mines and oil projects can begin and end in fewer than 10 years. Communities must be prepared for sites to close. If reclamation funding or bonding for the cleanup is not properly negotiated, the community can be left with contaminated land and water, and no jobs. However, there is a way to ensure that this does not happen.

To ensure equitable benefit sharing, community participation in decision making is vital. Oxfam has developed a position paper on Free Prior and Informed Consent that gives the details on what we believe constitutes appropriate consultation. This includes adequate time for decisions to be made; disclosure of adequate and independently verified information about the potential costs and benefits of a project, and the absence of any coercion or intimidation within the decision-making processes. We know that what we are asking is realistic, as there are precedents for good consultation processes in countries around the world including Canada, Australia and the Philippines.

By having taken the first steps to meet realistic public expectations and ensure good governance, Cambodia can increase its opportunity for sustainable development as set out in the government’s rectangular strategy. There is also clear opportunity for Cambodia to stand out as a leader and influence policies regionally and beyond.
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Solinn Lim is regional coordinator for the extractive industries programme of Oxfam America’s East Asia regional office .

Tuesday, November 03, 2009

Cambodia Mulls Resource Transparency Initiative

By Im Sothearith, VOA Khmer
Original report from Washington
02 November 2009

Global Witness, which has issued two reports critical of the government that are banned in the country, is a member of the transparency initiative’s board
[Editor’s note: VOA Khmer recently spoke with specialists in the field of natural resource management in developing countries and learned that Cambodia is not alone in struggling to use natural resources to benefit its citizens. The resource curse, where natural riches fail to help the poor, is a worldwide scourge, the global experts told VOA Khmer in numerous interviews. Below is Part Nine of the original VOA Khmer weekly series, airing Sundays in Cambodia.]

Cambodia is considering application to the Extractive Industry Transparency Initiative, despite heavy criticism of its handling of natural resources so far, an official says.

Cambodian People’s Party Lawmaker Cheam Yeap said the initiative could help provide expertise in the field, “with adequate experiences in managing oil and gas.”

The Oslo-based Extractive Industry Transparency Initiative is a non-profit organization that helps country’s manage their natural resources.. In 2002, Britain’s then-premier Tony Blair announced the concept of the initiative at the World Summit for Sustainable Development in Johannesburg, South Africa.

The initiative focuses on transparency and accountability in managing oil and gas and requires companies to publish payments to host governments. So far, 30 countries, including five in Asia, have implemented the program.

“If the government officials and parliamentarians are interested in applying for EITI, we welcome that,” Sam Bartlett, Asia director for the group, told VOA Khmer. “We are ready to support those stakeholders in any way so that they can adapt the EITI to the challenges in Cambodia.”

Bartlett noted, however, that Global Witness, which has issued two reports critical of the government that are banned in the country, is a member of the transparency initiative’s board.

Cheam Yeap said, were Cambodia to decide on the initiative, it were defer decisions to the board.

“If Global Witness is still angry, or wants revenge on the Cambodian government, or Cambodia, it’s not a surprise, because we’ve had some sorts of conflict in the past,” he said. “If Global Witness is on the board and is still angry with Cambodia, let the EITI board of directors decide.”

Global Witness has been campaigning against illegal logging in Cambodia since 1995. Over the last three years, Global Witness has issued two reports, “Cambodia’s Family Trees” and “Country for Sale,” severely criticizing the government for mismanaging natural resources, claiming Cambodia’s elites are able to diversify their commercial interests to reap all forms of the country’s assets. (The government denies these reports.)

Eleanor Nichol, a Global Witness campaigner, told VOA Khmer in an interview in Washington that the group’s goal was not to publish anti-government material, but the truth inevitably affected a few officials.

“It’s not anti-government information,” Nichol said. “But what happens is, actually, that it tends to point back to members of the Cambodian government, because they tend to be using their positions of power to exploit their country’s natural resources. So, inevitably over the period of time, it has brought us into a conflictual relationship with the Cambodian government.”

Cambodia needs to consider not only EITI, but also overall governance of natural resources, she said.

“They also need to look at the way in which concessions have been allocated and who the concessions have been allocated to in order to ensure that the best deal has been obtained for Cambodia and its citizens,” she said.

Mam Sambath, chairman of the newly established Cambodians for Resource Revenue Transparency, supported transparency attempts, saying the initiative would provide information to the public, informing the decision-making process.

The transparency initiative also comes with financial support to build government and civic capacity, perform outreach work to companies, and coordinate work through different organizations and agencies, Bartlett said.

Both Indonesia and East Timor have committed to the initiative, while the Philippines and Vietnam are both considering how it could fit into their regulations.

Tuesday, October 06, 2009

Experts Discuss Extractive Industry Contracts

By Sothearith Im, VOA, Khmer
Original report from Washington
05 October 2009


More than 3 billion people live in countries rich in natural resources, but half of those remain poor, prompting a question. Why are some countries rich and others poor?

This question and others were discussed in Washington recently, at an international conference on the extractive industries, sponsored by Oxfam America, where experts from civic organizations, extractive industries, universities and others met to discuss the essence of contracts between governments and the extractive industry.

Solutions for natural resource problems include bringing more information to the public, especially in how much money a company pays the government to exploit resources, said Ian Gary, a senior policy adviser for Oxfam America.

A contract can describe the amount of money the government gets, the work plan of the company and other obligations in terms of social development. Too often, he said, the contracts are kept secret.

“The importance of this conference is that it’s the first time that the international community of practitioners, experts and civil society organizations have sat in the same room to discuss how we can bring more information to the public about contracts and how we can improve the situation on the grounds,” he said.

Mam Sambath, executive director of Cambodians for Resource Revenue Transparency, who participated in the September conference, said his participation and that of others constituted important capacity building.

“Through this conference, experts shared their experiences in managing contracts between governments and companies in the countries they have been exploring and doing business in, in either oil, gas, or mines, either in Africa, Latin America or other countries in the world,” Mam Sambath said.

Lim Solin, East Asia program officer for Oxfam America, told VOA Khmer at the conference that the conference was a rare opportunity to bring experts together, even if they didn’t all agree.

“I’m sure you’ve heard the differences of opinion from other participants,” Lim Solin said. “For me, especially where I am coming from, Cambodia, I see that it’s a great opportunity for Oxfam America to host such a tripartite forum that brings together the public sector, private sector and civil society to come to a common place to discuss the issues, contracts and transparency. I hope that Oxfam America will be able to host this kind of international conference in Cambodia as well to ensure that this knowledge and experience can be shared with our friends and colleagues in Cambodia.”

On that day, U.S. bill, “Energy Security Through Transparency Act of 2009” was introduced to U.S. Senate and was happily welcomed by participants in the conference. The bill is expected to put more weight to the international efforts to improve the management of the natural resources in the world.

Tuesday, September 29, 2009

Natural Resources Don’t Always Spell Prosperity

By Im Sothearith, VOA Khmer
Original report from Washington
28 September 2009


[Editor’s note: VOA Khmer recently spoke with specialists in the field of natural resource management in developing countries and learned that Cambodia is not alone in struggling to use natural resources to benefit its citizens. The resource curse, where natural riches fail to help the poor, is a worldwide scourge, the global experts told VOA Khmer in numerous interviews. Below is the fourth part of a weekly series.]

Whether a country is at war or peace, natural resources can reduce economic growth, because when a lucrative resource is exploited, other means of production are forgotten, experts say. Meanwhile, without transparent management, revenues from natural resources can widen income disparities and engender corruption.

And while it’s true that natural resources can transform an economy, an adequate state apparatus is needed to implement effective and efficient management strategies, experts say.

Countries rich in resources like timber, minerals or oil, and with adequate management structures, can access the international community for assistance.

The World Bank, for example, can provide facilities for low-income countries. In 2002, the Bank helped to launch “Extractive Industries Transparency Initiative,” or EITI, to help such countries maximize development and guard against corruption.

William Ascher, a professor of government and economics at Claremont Mckenna College, in California, and author of “Why Governments Waste Natural Resources: Policy Failures in Developing Countries,” says it is imperative to ensure that private and state enterprises be required to hand over the value of the resources to the government at the very beginning of the process.

This becomes a matter of contracting, and Ascher recommended countries without the skills to undertake look to the international community for help.

“The fortunate thing for low-income countries is that both the United Nations and the World Bank, and other organizations, have good facilities to advise governments on how to write contracts with the private sector, usually international companies, in order to ensure that the contracts are fair from both sides,” Ascher said.

Paul Collier, an Oxford University economist and author of “The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It,” told VOA Khmer by phone that a group of economists have build a helpful Web site:naturalresourcecharter.org.

There, people can seek out non-partisan academic advice on key decisions in harnessing natural resources.

The Natural Resource Charter is a set of principles for governments and citizens describing how to effectively use the opportunities created by natural resources. It provides guidelines and standards to inform and improve natural resource management.

“You need to focus on the really important steps,” Collier said. “The Natural Resource Charter tries to do that. And it tries to help governments that don’t have a lot of capacity to see what is really important.”

Ascher emphasized three important steps to begin the proper management of natural resources: fiscal policy, contracts and transparency.

“The place to start is in the fiscal policy, that is the fiscal arrangement between the government and whatever state agencies are involved,” Ascher said. “The second thing to be very, very concerned about is the nature of the contract between the government and any private enterprises involved. The third would be to ensure much greater transparency both in the contracting process and in all the processes that follow.”

The mandates of government agencies must be simple and consistent, he said. Inter-ministerial task forces can be good only with proper communication and cooperation.

“Whenever you give an agency multiple tasks that conflict with one another, you put it in a very difficult situation, and any agency has to decide to what degree each one of these goals should be pursued,” Ascher said. “And the agency typically will pick whatever is in the interest of that agency, rather than to come up with the best balance on behalf of the country.”

Somit Varma, director of the oil, gas, mining and chemicals department of World Bank/IFC, told VOA Khmer at his office in Washington that natural resource management has to be structured to fairly benefit all stakeholders. A robust system has to be in place to ensure benefits during the boom and feasible investing during a bust.

“It’s community surrounding the project, it’s the government; it’s the municipality from which the resources are coming,” he said. “It’s not just a central government, it’s civil society, it’s private sector, which is involved, it’s suppliers who provide supplies to the project.”

“So, there’re numerous stakeholders in an extractive industry project. And each one needs to get a fair share of benefit.”

Genuine auctions made in a transparent manner are another good process to ensure that natural resource revenues go to the government and serve the public good, Collier said.

“With the auction, the government doesn’t really need to know a lot,” he said. “The value of the resources is revealed by the bidding process, one company bids against another.”

Meanwhile, a strong corps of knowledgeable advocates is needed to hold the government accountable.

“Ordinary citizens have the responsibility to the society that children inherit,” Collier said. “So, there’s no substitute for critical masses of many thousands of informed citizens.”

This also requires good information, through newspapers, magazines, radio programs.

“And it doesn’t require everybody in the society to be well informed,” he said. “We need of course a critical mass, which is several thousand people who really understand the issue and hold the government to account.”

Civic groups can build that critical mass and share information with others. “So if we start with a few hundred, it will quite rapidly get up to a few thousand to the hold the government responsible.”

According naturalresourcecharter.org, resource-rich countries that have successfully managed revenues include Botswana, Chile, Oman and Malaysia. The roles of governments contributed a great deal to that success.

It’s clear that natural resources represent a big opportunity for countries that have them. They can take a country from poverty to prosperity, but only if government elites are committed to building a prosperous future, not in short-term plundering that leads to a dim future where everyone’s children grow up.

Thursday, June 07, 2007

How could Cambodia join oil ethics group (EITI) when it couldn't even take Global Witness criticisms?

Jun 7, 2007
German ambassador urges Cambodia to join oil ethics group

DPA

Phnom Penh - Cambodia has been repeatedly urged to join the Extractive Industries Transparency Initiative (EITI) to help it properly manage expected lucrative oil revenues, outgoing German ambassador to Cambodia Pius Fischer said Thursday.

Speaking at a Club of Cambodian Journalists roundtable discussion attended by dozens of local reporters, the ambassador again voiced Germany's concern that the country's economic boom was not trickling down to the rural poor and said it was vital that oil revenues were used to their best advantage to help society.

The Extractive Industries Transparency Initiative (EITI), founded in 2002, supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas, and mining, according to its website.

It works to build multi-stakeholder partnerships in developing countries in order to increase the accountability of governments.

'There is definitely a need to invest in Cambodia's human capital so Cambodia has the capacity to remain competitive in the globalized world,' Fischer said.

'More attention should be given on social equities because as the disparities between the urban rich and rural poor are growing this could lead to social conflict.

'With the beginning of the exploitation of Cambodia's oil and natural gas resources expected to begin probably by 2008 or 2009, it would be important also to develop concepts of how the revenue from these natural resources would be harnessed and used for the benefit of the Cambodian population

'In this context Cambodia's development partners have repeatedly suggested that Cambodia adopt the principals of the EITI. These principals, if they were observed by Cambodia, would be very beneficial for Cambodia's economy,' he said.

On Wednesday, Prime Minister Hun Sen branded people who claimed endemic corruption could hijack potential oil revenues 'stupid' and said countries critical of how resources might be plundered would be better served making positive input and ensuring their oil companies negotiated fairly with Cambodia.

It was unclear if EITI is going to be included in the draft law on oil currently being written by the government and government sources close to the oil industry have declined to comment until the law is unveiled later this year.

Critics have voiced fears that corruption and a lack of transparency, if unchecked, could send Cambodia the way of Nigeria and fail to benefit more than an elite few, instead of making it the success story of other oil-rich nations in the region like Brunei.

EITI is a global initiative strongly supported by oil producing countries including Britain and Norway with around 20 members worldwide including Chad, Ghana, Kazakhstan, Timor Leste, Mongolia, Bolivia and Peru. Neither Nigeria nor Venezuela are members.

Fischer ends his mission in Cambodia in mid-July and will then become German ambassador to Mongolia.