Distribution of revenues: Chad

Chad´s 2007-2009 EITI Report identified major gaps in the monitoring of payments by oil companies to the state treasury account.

Chad agreed with its creditors for the Chad-Cameroon pipeline that all direct and indirect government revenues from oil and gas companies would transit through an account held at Citibank in London. After the international creditors were paid, the remaining revenues were moved to the government’s treasury account. The 2007-2009 EITI Report found that there has not been any record keeping systems in the country monitoring the flow of oil revenues from companies to these government accounts, and it was not possible to report on company payments made into the London transit account. This lack of oversight represented a significant risk of corruption and mismanagement as the government was not able to monitor the extent to which companies paid what they were supposed to pay in accordance with their contractual obligations.

The 2007-2009 EITI Report recommended that relevant ministries should improve the monitoring of extractive revenues, particularly from the oil sector. To follow up on this recommendation, the government has taken several actions to improve monitoring of oil payments, such as:

  • The establishment of a revenue-tracking unit at the Treasury with a robust mechanism for recording and monitoring payments from all oil and gas companies.
  • The launch of a project to computerise the record keeping system for government revenues and expenditures to ensure real-time monitoring of the budget. This has also led to improvements in the record keeping and audit system at the customs office to ensure that customs duties are correctly declared, assessed and paid in a timely fashion.