CIB Mining Company

Constructive Engagement for Integrity:
Enhancing Social License to Operate of Mining Companies through Impactful Socio-economic Programmes

Challenges

• Many development programmes routinely lose up to 25% of the project value to fraud, corruption and mismanagement
• Integrity shortcomings reduce the effectiveness of investment, and in socio-economic works such shortcomings may even induce social tensions.
• Classical approaches on programme accountability, including measures like Local Funds Agents and Audits, remains useful but they have shown their limit to reduce the leakage rate and the associated risks.

Proposed response

• Multifaceted approach of integrity building that combines constructive engagement with ICT tools.
• Community integrity builders leveraging key stakeholders in a collaborative problem-solving approach of the governance of public infrastructure and service delivery, through:

1. Innovative performance measure, the Fix-Rate
2. A methodology for social engagement called Community Integrity Building
3. A smartphone app called DevelopmentCheck that makes real-time, transparent reporting of results on the ground possible.

Objectives

For mining companies:

• Address the implementation challenge of the natural resource revenue transparency agenda: that public revenues from mining deliver development       outcomes that improve the livelihoods of communities where mines are located.
• Reduce operational risks and assures compliance with the best principles of responsible mining.
• Make a signal contribution to the company’s social license to operate.

For local communities:

• Ensure they get the projects that were committed and budgeted to them by the government and investors.

Results and Value for Money

• With an investment of 1% for integrity, IVORARY I4D and its partners commit to reduce the fraud, corruption and mismanagement and to find local “fixes”   for these problems.
• A reduction of these losses by 2% will already represent a 100% return on investment. A target of 2-20% is entirely realistic dependent on the context, but      the 1% investment ratio would remain the same.
• Engaged key stakeholders through problem-solving approach tend to remain empowered and able to smartly react to community development issues.