Introduction

1 We examined the first report of the EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE in Mozambique, from pages 1 to 42, in reference to the period ranging from the 01st January, 2008, to the 31st December 2008, and the corresponding annexes.

Responsibilities

2. It is the responsibility of the Initiative’s Coordination Committee to develop data collection templates and to ensure that these accurately and appropriately present the financial position on the tax payments and receipts, as well as the adoption of uniform and adequate policies and accounting criteria, and the maintenance of a suitable internal control system.

3 The auditor’s responsibility consists in reconciling and expressing a professional and independent opinion, based on our examination of such data collection templates.

Scope

4. Our review was conducted according to the generally accepted auditing rules. These rules require that we plan and execute the reviews in order to get a reasonable certainty that the auditing report from Boas & Associates does not contain significant distortions. A review included, on a test basis, the verification of the evidences supporting the figures and information included in the data collection templates. In addition, a review includes the appraisal of the accounting principles adopted and the assessment of the significant estimates made by the entities (Companies and Government) as well as the way the data collection templates are presented.

5. We understand that this review provides an acceptable basis to express our opinion on the first report of the Extractive Industry Transparency Initiative in Mozambique.

Reserve

6. From the analysis of the report, on the heading 6.1.2 – Discrepancies, we found that 111 675 556 Meticais, of difference between company payments and government receipts, were recorded, which was promptly explained after the submission of the draft report by Boas & Associates, having then reduced to 4 544 778 Meticais, amount corresponding to around 3% of the overall payments by companies.

Opinion

7. In our opinion, except with regard to the effects of the situation described in paragraph 6, the Boas & Associates auditing report hereto annexed accurately and appropriately presents, in all materially relevant aspects, the financial position regarding the tax payments and receipts on the 31st December, 2008, in accordance with the internationally accepted accounting principles.

Emphasis

8 Without affecting the opinion expressed in the previous paragraph, we call attention to the fact that the report shows weaknesses that require improvement in order to ensure, among other aspects, that:

• (i) The tax payments declared by the companies, which have not been subject to reconciliation, are presented in the same report by nature and by company, i.e., for merely informative purposes, as well as other contributions made by the companies in the extractive sector.


• (ii) The Chairman of the Coordination Committee

First Report of the Mozambique EITI

In February 2011, the Independent Auditors Hired (Boas & Associates) submitted the first report of the Mozambique EITI, showing the following results:

• a) Statement of Company payments to the Government