Post courier | 10 July 2018
Work is underway to identify beneficial owners of extractive companies operating in Papua New Guinea, says the PNGEITI multi stakeholder group (MSG).
The PNGEITI is cooperating with an international auditing firm KPMG as the implementation manager to execute a beneficial owners (BO) roadmap.
The roadmap is aimed at establishing a reporting matrix to feature beneficial owners in PNGEITI reports starting 2020- as required by the EITI International.
A beneficial owner in respect of a company means the natural person or persons who directly or indirectly owns or controls a corporate entity. A beneficial owner ultimately profits from the company’s activities, or controls the company’s activities. It is never a company, other legal entity, or a nominee or proxy, says PNGEITI.
“By 2020 companies applying for or holding a participatory interest in an exploration or production of an oil, gas or mining licence or contract in an EITI country must report the details of the beneficial owner (persons who own, control or substantially benefit from these companies and interests), as well as identifying any ‘politically exposed persons’ – these are politicians or officials or their family members or agents, with a direct engagement in regulating, setting laws, tax rates, negotiating contracts etc.”
“More than 50 EITI member countries have published their plans for how to disclose the real owners of companies in their extractive industries, which will require establishing legal and institutions arrangements for application, including establishing registers of such real owners,” said PNGEITI head of National Secretariat Mr Lucas Alkan.