In the 2010 and 2011 EITI Reports, information on social payments, including the amount, the purpose, and beneficiary region was disclosed for the first time. The reports also revealed the need for improving the current system.
Following the recommendations, the government made amendments to Decree #71 on “Clarifications on unified budget classification of the Republic of Kazakhstan” in July 2014. The decree now includes a budget classification code and ensures that companies transfer social payments to the budget. Both local and central governments can now easily track the payments. This leaves no room for closed decision-making on social projects. The EITI reporting process has provided a framework for the calculation of the total social payments, which amounted to USD 215 million in 2014.
Now the new system ensures greater transparency of revenues and accountability of local governments on social investment payments from oil, gas and mining companies. It is fascinating to see how the EITI reporting affected change in bringing more responsible management of the extractive sector in Kazakhstan beyond mere compliance to the requirements of the Standard.
Ruslan Baimishev, National Coordinator