• Register
Return to: Home > News > Azerbaijan first country to be downgraded by EITI

Azerbaijan first country to be downgraded by EITI

By Loukia Gyftopoulou

Azerbaijan has become the first country to be downgraded from compliant to candidate status by the Extractive Industries Transparency Initiative (EITI) following deep concerns about the country's stance against civil society involvement.

The downgrade means that Azerbaijan is no longer an active member of the initiative, however it is still considered part of the EITI and can regain compliant status if it implements corrective actions within 12 months.

The action came after 280 groups from 35 countries alerted the EITI on an unprecedented crackdown on civil independent organisations in the country and the EITI sent a validation team to Azerbaijan to monitor the situation, as reported by The Accountant late last year.

"Validation is an external, independent evaluation mechanism, undertaken by a validator procured by the international secretariat," the EITI standard read. "It is intended to provide all stakeholders with an impartial assessment of whether EITI implementation in a country is consistent with the EITI standard."

EITI secretariat head Jonas Moberg said that after completing the validation, the board found that a number of requirements relating to reporting and the functioning of national EITI commission were not met.

Azerbaijan was found compliant in 2009 against the old EITI rules and it's the first country to be validated against the revised 2013 standards.

"The fact that the society is not able to function as it should be has contributed to this decision - I don't think the fact that the rules have changed made a significant difference," Moberg said.

EITI chair Clare Short said: "There has been some progress in addressing our concerns, but further work is needed to ensure that civil society in Azerbaijan can participate in the EITI in a meaningful way."

Azerbaijan has 12 months to implement changes or it might face suspension.

Related article:

News update: EITI reconsiders Azerbaijan's compliance to its standard

 

 

Top Content

    The importance of international audit standards

    Addressing members of the Institute of Chartered Accountants in England and Wales (ICAEW), the US Securities and Exchange Commission (SEC)’s chief accountant, Wesley Bricker, expressed his views on the importance of high-quality audit work. An edited version of his speech is given below

    read more

    IFRS: Presenting a firm foundation

    Jonathan Minter speaks to Nick Anderson, board member of the IFRS Foundation, about the body’s current objectives and initiatives, including the primary financial statements project and the handling of joint ventures

    read more

    Reporting on culture and the business of trust

    Following a number of high-profile failures, trust in business and accounting is at a low point. To discuss how the situation could be improved, the Charted Institute of Management Accountants (CIMA) hosted a conference on improving trust levels. Jonathan Minter reports

    read more

    Widening the responsibility business net

    The 17th Responsible Business Summit Europe featured a number of speakers addressing the wider implications of looking beyond just financial data. The Accountant presents selected highlights

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.