The Natural Wealth and Resources (Permanent Sovereignty) (Code of Conduct for Investors in Natural Wealth and Resources) Regulations, 2020
Through Government Notice No. 58 published on 31st January 2020 the Government issued new Regulations under the Natural Wealth and Resources Contracts (Permanent Sovereignty) Act, Cap 449 namely The Natural Wealth and Resources (Permanent Sovereignty) (Code of Conduct for Investors in Natural Wealth and Resources) Regulations, 2020.
The objectives of the code of conduct is to ensure that arrangements or agreements on natural wealth and resources and related or connected business or activities are conducted in a manner consistent with the highest ethical principles and within the requirements of the Constitution of the United Republic of Tanzania 1977 and all applicable National Policies and Laws.
The Regulations apply to Entities, Consultants, Suppliers, Contractors, Investors, Partners and Agents, including their employees, involved in any arrangement or agreement on natural wealth and resources.
Every Entity, Consultant, Supplier, Contractor, Investor, Partner and Agent including Employees are required to operate in good faith, transparently and in the general interest and welfare of the people of the United Republic of Tanzania, and undertake to report to Government any conduct that is likely to deny the people of the United Republic of Tanzania benefits accruing from the prospecting, exploration, or utilisation of natural wealth and resources.
Investors are prohibited from engaging in any activities amounting to corruption, bribery, trading in influence, the making of facilitation payments as well as any other form of economic and organised crimes.
An Investor is prohibited from directly or indirectly involving himself in the breach of general or fair competition laws and regulations, including illegal cooperation on pricing or illegal market sharing.
An Investor intending to enter into arrangements or agreements or otherwise work on natural wealth and resources in the United Republic of Tanzania is required to sign a prescribed declaration form and where the Investor is a legal entity, it shall display the declaration in a conspicuous place of its principal place of business.
An Investor is required to exercise care and diligence to prevent any actions, omissions or conditions that could result in a conflict of interest.
An Investor is required to respect and uphold the basic rights as set out in the Constitution of the United Republic without compromise. Where an Investor has reasonable suspicion that a Third party or Affiliate of the Investor is committing basic rights violations, the Investor is required to make efforts to promptly address the situation and report to government authorities.
Discrimination in the form of gender, age, disability, sex, tribal, religion, marital status, union membership, or political belief and affiliation during implementation of any activity is prohibited.
The Regulations also provide for worker’s rights and the employment of children under the age of 18 years is, with exceptions, strictly prohibited.
An Investor is under obligation to ensure that all activities are consistent with environmental best practice, avoid any breach of applicable Competition Laws and Regulations, put in place procedures to ensure ongoing adherence to the code of conduct, conduct periodic reviews of operations to ensure that it does not engage in activities that could jeopardize its legal status
The Government is entitled to audit, inspect and monitor any Investor bound by the code of conduct in order to verify compliance. The audit/inspection may be exercised in the form of on-site spot visits, without the need of notice.
Where an Investor commits serious or repeated violations of the code of conduct, and appropriate corrective actions have not been taken within a reasonable time frame, the Government may terminate its business relationship with the Investor without that Investor being entitled to compensation or other remedies.
An Investor is required sign an Integrity Pledge, in prescribed format, to abide with ethical business practice in order to support national campaign against corruption and where the Investor is a legal entity, it is required to display the declaration in a conspicuous place of its principal place of business.
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.