EITI report 2015 Togo MULTISTAKEHOLDER STEERING GROUP Extractive Industries Transparency Initiative in Togo EITI Report December 2017 This report was prepared following the request of MSG of EITI Togo. The opinions expressed herein are those of the Independent Reconciler and do not reflect in any case the official opinion of EITI Togo. This report has been prepared solely for use of EITI Togo for the purpose it is intended. This translation aims to facilitate the understanding by stakeholders, but should not be regarded as the original version. In case of discrepancy with the original version, please refer to the French version. EITI report 2015 Togo TABLE OF CONTENTS INTRODUCTION ............................................................................................................... 6 Background ........................................................................................................................................ 6 Objective ............................................................................................................................................. 6 Nature and extent of our work ............................................................................................................ 6 1. EXECUTVE SUMMARY ............................................................................................ 8 1.1. Extractive sector revenues ........................................................................................................ 8 1.2. Production and exports of the extractive sector ........................................................................ 9 1.3. Scope of report ........................................................................................................................ 12 1.4. Completeness and reliability of data ....................................................................................... 12 1.5. RECOMMENDATIONS ........................................................................................................... 17 2. APPROACH AND METHODOLOGY ...................................................................... 18 2.1 Scoping study .......................................................................................................................... 18 2.2 . Data collection ....................................................................................................................... 18 2.3 Compilation of data and differences analysis ......................................................................... 18 2.4. EITI data assurance process .................................................................................................. 19 2.5. Level of disaggregation ........................................................................................................... 19 2.6. Basis of reporting .................................................................................................................... 19 3. DETERMINATION OF THE EITI SCOPE ................................................................ 20 3.1. Approach for determining the EITI scope ............................................................................... 20 3.2. Scope of companies confirmed by the MSG ........................................................................... 20 3.3. Scope of payment flows confirmed by the MSG ..................................................................... 21 3.4. Scope of financial authorities and other Public Administration ............................................... 22 4. THE CONTEXT OF THE EXTRACTIVE SECTOR IN TOGO ................................... 23 4.1 Mining sector ........................................................................................................................... 23 4.2 Oil and Gas sector .................................................................................................................. 36 4.3 Precious Minerals trading Sector ............................................................................................ 39 4.4 Mining Transportation Sector .................................................................................................. 40 4.5 Collection and distribution of extractive sector revenues ........................................................ 42 4.6 Economic contribution of the extractive sector ....................................................................... 47 4.7 Audit Practices in Togo ........................................................................................................... 49 4.8 Barter agreements and provision of infrastructure .................................................................. 51 4.9 Loan and subsidy .................................................................................................................... 51 4.10 Beneficial ownership ............................................................................................................... 51 5. RESULTS OF RECONCILIATION WORK .............................................................. 53 5.1 Reconciliation of cash payment flows ..................................................................................... 53 5.2 Reconciliation of production data ............................................................................................... 63 5.3 Reconciliation of export data ...................................................................................................... 63 6 EITI DATA ANALYSIS ............................................................................................ 65 Moore Stephens LLP | P a g e 2 | P a g e 2 EITI report 2015 Togo 6.1 Revenue of the Government ................................................................................................... 65 6.2 Social payments ...................................................................................................................... 66 6.3 Subnational and supranational transfers ................................................................................ 67 6.4 Production et exports of extractive sector ............................................................................... 69 6.5 Production et exports of extractive sector ............................................................................... 70 7 FINDINGS AND RECOMMENDATIONS ................................................................ 72 7.1 Findings and recommendations 2015 ..................................................................................... 72 7.2 Follow-up of previous recommendations ................................................................................ 74 ANNEXES ....................................................................................................................... 80 Annex 1 : Mining companies profile, Capital structure and Beneficial Ownership ........................... 81 Annex 2 : Staff .................................................................................................................................. 84 Annex 3 : Declarations reliability ...................................................................................................... 85 Annex 4 : Social payments declaration ............................................................................................ 86 Annex 5 : Declaration forms ............................................................................................................. 88 Annex 6 : Mining Directory and list of Water companies in 2015 ................................................... 103 Annex 7 : Unilateral declarations of financial authorities for companies not retained within the scope of reconciliation ........................................................................................................... 114 Annex 8 : Subnational and supranational transfers ....................................................................... 116 Annexe 9 : Companies reconciliation sheets ................................................................................. 118 Annex 10 : Flows definitions ........................................................................................................... 140 Annex 11 : License application file ................................................................................................. 145 Annex 12 : Work team and people contacted ................................................................................ 155 Moore Stephens LLP | P a g e 3| EITI report 2015 Togo LIST OF ABBREVIATIONS ACCT Central Treasury Accountant ANGE National Agency for Management of the Environment ARSE Regulatory Authority of Electricity Sector BCEAO Central Bank of West African States BIC Industrial and Commercial Benefits BNC Non-commercial Benefits BTP Buildings and public works CAC Statutory auditor CDDI Customs department CEDEAO Economic Community of West African States CGI General code of Tax CI Tax department CM The council of Ministers CNSS National Social Security Fund CP-ITIE EITI Steering Committee of Togo DD Customs Duties DE Registration fees DGE Directorate of Major Companies DGH Directorate-General of Oil and Gas DGMG Directorate General of Mines and Geology DGSCN General Directorate of Statistics and National Accounts DGTCP Directorate General of Treasury and Public Accounting DGTLS General Directorate of Labour and Social Legislation DCIG Directorate of the Gulf Tax Centers DME Directorate of Medium Companies DOFR Directorate of Tax and Regional Operations DT Stamp duty