The Government has through Government Notice No. 782 published on 1st November 2019 issued The Petroleum (Corporate Integrity Pledge) Regulations, 2019. The Regulations are made under the Petroleum Act Cap 392.
The Regulations govern corporate integrity pledge programmes in the United Republic related upstream activities, midstream activities and downstream activities and is administered by both The Petroleum Upstream Regulatory Authority (PURA) and The Energy and Water Utilities Regulatory Authority (EWURA).
A corporate integrity pledge is a formal, unilateral and concrete expression of commitment by contractors, sub-contractors, licensee or any other person to uphold anti-corruption principles for corporation, abide to ethical business practices, support a national campaign on ethics and war against corruption.
The Integrity Pledge covers all owners who are natural persons (except those with an ownership interest of less than five percent (5%) and those who have acquired the ownership interest through public trading) and all officers, directors, and employees of the contractor, sub-contractor, licensee or any other person who have responsibilities relating to petroleum activities and petroleum operations.
The corporate Integrity Pledge is intended to achieve the following:
- To develop a nation of high integrity, that is resilient and embraces universal good values.
- To promote integrity, accountability and proper management of anti-corruption programmes, for adoption by the corporate community.
- To reinforce corporate governance, integrity, transparency and accountability in the daily operational processes and procedures of companies and businesses.
- To facilitate, support and provide technical assistance for companies and businesses to implement the corporate integrity system as an effective preventive measure against corrupt and unethical practices.
- To ensure proper insurance cover against losses, injuries or damage to environmental, communities, individual and properties that may be occasioned in the course of carrying petroleum operations.
- To complement the Prevention and Combating of Corruption Bureau efforts to set up the best business practice in Tanzania.
The Regulations also requires Contractors, sub-contractors, licensee or such other person who have responsibilities relating to petroleum activities and petroleum operations to develop, implement, and distribute a written Code of Conduct.
Failure to comply with the requirements of the Regulations attract hefty monetary penalties may lead to cancellation of the licence and the Government exercise of the right to takeover facilities.
Disclaimer
The information contained herein is for general information purposes only. Viewers/Readers should not rely upon the information as a basis for making any business, legal or any other decisions.