Scope and type of payment transactions

Scope and type of payment transactions

This report regards the second EITI-report for the Republic of Suriname for the period January 1 – December 31, 2017.

The reconciliation of these payments does not express an opinion regarding the completeness of the flows between the reporting entities and the Government of Suriname for the fiscal year 2017. Additionally, it should be noted that for the data collection and reconciliation materiality has been determined by the MSG for reporting / disclosure of transactions. For this materiality we refer to appendix 2 of this report.

For reasons of transparency of the revenues received from the extractive industry, payments of a liability of a reporting company towards the Government can be made as:

  1. Payments in cash, or
  2. Payments in kind, or
  3. Payments by settlement of debts of the reporting company to the Government with claims on the Government.

Payments in cash ( based on traceable cash streams) are identified as:

  • Payments made by a reporting company and received by the Government and are therefore reported by the Government;
  • Payments made by a third party on behalf of the reporting company and received by the Government and are therefore reported by the Government;
  • Payments made by a reporting company to the Government but ceded by the Government to a third party are considered as settling normal payments of liabilities of the reporting company to the Government.

Payments in-kind:

  • Payments in-kind made by a reporting company towards the Government are based on mandatory agreements and/or the law and should be reported by the Government or by a company that receives these in-kinds on behalf of the Government.

In Suriname, RGM pays royalty in-kind to the SOE Grassalco, who reports this a first stream payment. Grassalco subsequently sells part of its in-kind holdings and transfers part of these proceeds to the central Government. These transfers are considered as the second stream of income to central Government to be compared with a reporting company, Grassalco, in this case. As such the in-kind payment is reconciled from the increases and decreases of the in-kind stock over time and reported accordingly.

The proceeds from the sales of the same in-kind payment, e.g. gold received as payment, are considered as an allocation or change from fixed to cash income flowing back to the state as cash income. In presenting the movement of the payment in-kind the sales of payment in-kind will be included.

Payments by settlement (are non-cash streams based on agreements between the Government and a company) are identified as:

  • A settlement of debts of the reporting company to the Government with claims on the Government within the reporting company; or
  • A settlement of debts to the Government of the reporting company with claims on the Government of a third party.
2020-02-12T00:35:55-03:00Thursday 23 January 2020|EITI Suriname Report 2017|