Corruption Watch (CW) is a non-profit organisation launched in January 2012. The organisation uses the reports of corruption from the public as an important source of information to fight corruption and hold leaders accountable for their actions. CW exposes corruption through communications platforms and mobilises the public to take a stand against corruption and the abuse of public funds. An important area of CW’s work is in the extractives sector with a focus on examining the history of the South African royalty system and investigating how royalties are paid and administered and managed.
CW conducted research into contractual royalty payments that were paid directly to communities before the Minerals Petroleum and Resources Development Act (MPRDA) came into effect and the subsequent industry shift towards varying mechanisms for payments with the most common of these being the “royalty for equity conversions”. The research methodology adopted identified policy and legislative gaps that exist and approaches to meaningfully address these gaps. CW undertook investigations regarding the extent of revenues paid directly into community funds or similar vehicles since 1980 in three communities involving platinum mining operations or communities along the platinum belt. CW intends to now narrow this work into a research project that interrogates the forms and types of financial agreements entered into by communities and examining the level of participation rights that exist and are exercised through such agreements.
This research will enable CW to accurately design a guidance tool focused on public participation and unpacking the layers of participation rights afforded to the most affected members of the communities within the context of royalties. The tool will provide a minimum standards framework in which community members are informed of their participation rights when engaging with aspects of community trusts and any other financial vehicle established under the auspice of community development.
Please note this research will not look into monies paid to government by operating mining companies as per the Mineral and Petroleum Resources Royalty Act 28 of 2008.
Specific Terms of Reference
The specific terms of reference of the consultancy are research, interrogate, review and analyse:
- the financial vehicles established for mine affected communities by industry and the subsequent level of financial mobility of thereof;
- the participation rights and the forms of financial vehicles, community trusts and social and labour plans established in mine affected communities for benefit and development;
- the current legal and policy framework that is utilized to inform interested groups and individuals on proposed developments and compensation structures, so as to assess the application of principles that make people aware of the financial benefit that may affect their lives directly or indirectly;
- the various forms of economic mobility within mine affected communities;
- the vulnerabilities currently associated with administration and management of community royalties;
- comparative analysis on compensation structures designed for mine-affected communities established in mineral rich jurisdiction; and
- form recommendations of policy and legal framework on application of best practice on financial transparency in this space.
Produce a comprehensive research report that will explore current level of participation rights of communities in compensation agreements of extractive projects and all issues identified; and propose policy and legal recommendations that guide good governance and management of community royalties of mine affected communities and ensure the respect of fundamental human rights and freedoms in the form of a position paper and a high level presentation to policy makers.
Availability and Timeline
The consultant will start work by the end August and will have completed the consultancy by January 2021. No travel is expected as part of this consultancy. The consultant will complete this assignment from their primary place of work.
The consultant must have:
- a graduate degree in Law, Political Science, Economics and/ or any other relevant similar disciplines;
- at least 5 years’ experience in national work in the following fields; mineral resource governance, civil society, fiscal transparency, Free Prior and Informed Consent (FPIC) principles, body of work in mine affected communities and knowledge of governance of community development trusts and any other related field.
- demonstrated desk-based research and writing skills
- familiarity with transparency, good governance, accountability in the extractives sector
- attention to detail; ability to meet deadlines
- responsiveness to inquiries and excellent communication skills
- independence from government and extractive companies
CLOSING DATE: 17 August 2020:
If you are interested in applying please send your expression of interest clearly stating your qualifications, interest in the research, methodology to be used and cost of the consultancy to: [email protected] with the subject line “Mining Royalties Consultancy”