AZERBAIJAN RETAINS AUDITOR COMPANIES TO CHECK ACCOUNTS IN THE EITI CONTEXT

Azerbaijan invited auditor companies including the international auditor companies operating in the country to take part in verification of the investments of the extractive companies in the context of the Extractive Industry Transparency Initiative (EITI), executive director of the State Oil Fund of Azerbaijan Samir Sharifov mentioned at the 8th meeting of the Azeri-US work force for economic co-operation today. Incidentally, Mr Sharifov chairs the national EITI commission, which was established by the Cabinet of Ministers of Azerbaijan on 13 November 2003. 'We had planned to involve international finance institutions including the IMF in the verification but they declined our invitation explaining that this kind of activity would be discrepant with their mandates. We tried to accommodate the needs of the State and of the extracting companies. I think that our model may be used in other countries', Mr Sharifov told the work force members.

Azerbaijan is a pilot EITI country.

Prime Minister Tony Blair put forth the EITI in September 2002. Azerbaijan announced the acceptation of its norms and principles at the International EITI Conference on 17 June 2003. Azerbaijan announced its commitment to the EITI principles and measures at the international EITI conference on 17 June 2003.

The Cabinet of Ministers formed the national EITI commission in the charge of Mr Sharifov on 13 November. The commission is responsible for determination of the forms and the time of reporting on the returns on development of mineral resources, on the profits of state companies and organisations (overseas as well as national), and is also responsible for collection of the accounts. The commission will be taking out the consolidated reports in the mass media regularly. The reports will be co-ordinated with the overseas companies as well as the EITI co-ordination office attached to the British Foreign Office.

The work of the Azeri EITI commission involves such companies as Commonwealth Oil & Gas Company Ltd, Conoco-Phillips, LUKOIL Azerbaycan, UNOCAL, Exxon Mobil, TPAO, Itochu Oil Exploration, BP, Socar, as well as the embassies of the United Kingdom and Norway, the Open Society Institute and the Transparent Azerbaijan Organisation.