Transparency International-Initiative Madagascar’s research reveals corruption patterns and risks in the process of awarding mining permits and licenses in Madagascar.
This research focuses predominantly on
- research permits,
- the exploitation permit,
- the small-scale mining permits and
- the exclusive perimeter reserve authorizations.
In addition to the process of granting mining permits, the Chapter also analysed other aspects of the permit management system, such as renewal, transformation and cancellation of existing permits.
This assessment was particularly relevant and timely for Madagascar as the process of granting mining licences has been officially on hold since 2011, providing incentives for mining companies to bypass official procedures and obtain licences through corrupt practices. Indeed, the granting of mining licences in Madagascar has become extremely arbitrary and discretionary as a result of this 2011 decision, allowing corrupt practices to flourish while discouraging more ethical investors.
TI-MG’s research revealed 19 vulnerabilities and 24 corruption risks in the current system of granting mining permits in Madagascar.
Approximately two-thirds (62.5%) of the corruption risks classified as “very high” are associated with practices contradicting the Mining Code and allowed by weaknesses in the mining licence system and an environment that encourages corruption.
TI-MG is working with all stakeholders from the Malagasy mining sector, both within the mining administration and the private sector, as well as with other civil society organisations and communities to implement the recommendations we identified to reduce priority risks, including through our contribution to the ongoing reform of the Mining Code.
Transparency International-Initiative Madagascar was part of the second cohort of Transparency International’s Accountable Mining programme.
This global programme led by Transparency Australia aims to enhance transparency and accountability in the extractive industries by focusing specifically on the first stage of the mining sector value chain, i.e. the mining licensing process.
The programme includes a diagnostic phase and an active advocacy phase to bring about change.