By 2020, all Extractive Industries Transparency Initiative (EITI) member countries, including Zambia, will be required to publish the identity of companies that bid for, operate or invest in extractive projects in their country to curb tax evasion.
According to a latest EITI newsletter for Zambia, EITI requirements have sparked reform in 20 countries now working on establishing public registers.
“Once published, law enforcers, civil society and others have a responsibility to scrutinise the information, and take action to hold to account those who misuse anonymous companies,” it says.
The report further says EITI will be publishing details on beneficial business firms as a way of revealing those stands behind the companies.
“The identity of the real owners – the beneficial owners of the companies that have obtained rights to extract oil, gas and minerals – is often unknown, hidden by a chain of unaccountable corporate entities.
“This problem also affects other sectors and often helps to feed corruption and tax evasion. People who live in resource-rich countries are at particular risk of losing out as extractive assets are too often misallocated,” the report says.