Mining & Trade News

The Malawi Extractives Industry Transparency Initiative (MWEITI) says it is important for the Mines and Minerals Regulatory Authority (MMRA) to include it in the development of the Authority’s audit charter.

MMRA is developing an Audit Charter aimed at strengthening transparency, accountability and good governance in Malawi’s mining sector. The initiative which is receiving technical support from the Department of Internal Audit and Department of Mining, forms part of wider reforms intended to improve oversight  and ensure that the country’s mineral resources generate maximum national benefits.

Desk Officer at MWEITI Secretariat Leonard Mushani explains in an interview that it is necessary for the MMRA to include MWEITI in the Charter’s development process since it possesses technical expertise that can contribute significantly to the initiative due to its role in promoting transparency and managing reporting systems within the extractive sector.

“MWEITI and EITI have working relationships with supreme Audit Institutions and have conducted various trainings in the past,”Mushani says.

Mushani notes that the annual EITI process itself involves reconciliation of mining revenues and audit related work involving institutions such as MMRA itself, Malawi Revenue Authority (MRA), Department of Forestry, Technical Entrepreneurial and Vocational Education and Training Authority and Export Development Fund.

“National Audit Office is a key player in the EITI process and MWEITI provides support for auditors to review templates from institutions involved in mining revenue reporting,” Mushani says.

Mushani argues that excluding MWEITI from the process risks overlooking valuable expertise and may affect the effectiveness of the final product.

“These are common mistakes when developing programmes because institutions with relevant technical knowledge may not be involved from the beginning,” Mushani says.

The Audit Charter will, among other things; establish the mandate and independence of the internal audit unit of the Authority; define the audit scope, covering financial, operational and compliance reviews; strengthen risk management and internal controls and promote ethical standards and accountability across the mining sector. The Charter is expected to be finalized by June this year  and will serve as a guiding document for internal audit activities within MMRA.

Natural Resources Justice Network (NRJN) programs coordinator Joy Chabwera describes the development of the Audit Charter as an important step that aligns with principles of transparency and accountability.

Chabwera says a strong audit system can improve confidence in the mining sector by ensuring that revenues, contracts and compliance systems are managed openly.

“By clearly spelling out roles, independence and scope of internal audit functions, the Charter strengthens oversight of mining revenues, contracts and compliance. This directly supports the objectives of EITI because EITI depends on reliable data and transparent systems,” says Chabwera.

Drawing lessons from other countries, Chabwera points to Zambia and Ghana, where stronger audit systems support transparency initiatives in the extractives sector. In Zambia, independent audit frameworks under the Extractives Industries Transparency Initiative improve contract disclosure and reduce discrepancies in royalty payments. In Ghana, audit findings are integrated into reconciliation reports, helping increase public trust and accountability.

Chabwera also recommends that the Charter should guarantee independence of auditors, widen the audit scope to include financial and environmental issues, and link findings directly to EITI reporting systems.

As Malawi seeks to strengthen governance in the mining sector, stakeholders now look closely at whether the development of the Audit Charter includes all critical actors needed to ensure transparency and accountability.

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