Dar es Salaam. Stakeholders in natural gas and oil want the government to either create an Act or a policy that will guide companies on how they should be contributing towards development of communities surrounding their businesses.
Concerned with the current situation whereby it is an individual company that decides how much to offer in Corporate Social Responsibility (CSR), dealers in natural gas and oil say it is high time the country came up with a law or policy on the same.
Speaking at the opening of the two-day oil and gas suppliers conference in Dar es Salaam yesterday, the dealers said that with a law or policy in place, the amount provided in CSR would surely make meaningful changes to communities surrounding major investment projects. The managing director of Proactive Solutions, Mr Nestory Phoye, told The Citizen yesterday in Dar es Salaam at a two-day Tanzania Oil and Gas Suppliers Conference, that there was a need for the government to take CSR as an important area to finance community development.
“We need to make sure these companies join in developing the communities. This should be possible through guiding the companies to do things that add value to the people,” said Mr Phoye
Mr Phoye said having the law on CSR would help the government to single out the specific projects which would have to be implemented by the companies depending on the agreement reached.
According to stakeholders the current CSR has remained a platform for some companies to paint a positive picture to the public, with no consideration whether the offer adds value or not.
On his side, Upstream Oil and Gas Limited chief executive officer, Joe Watson Gakuo called upon the government to do away with leaving the companies to decide about the CSR, instead there should be a mechanism of assuring the amount to be given or areas to channel the amount real make changes to the beneficiaries.
“I am not fan of the Corporate Social Responsibility at all. We should do away with companies painting the desks and say they have supported the community development,” said Mr Gakuo.
He instead said, the CSR should be done in a way that they will make the recipients become independent after being empowered, adding that community development should also be the real meaning of having the companies which reap huge profits from their investment.
Mr Gakuo also proposed that one way to get the community benefit is through having stake in the project through joint venture, since such initiative works more than having CSR.
Responding to the raised concerns over the CSR, the chairman of Mining Advisory Board in the Ministry of Energy and Mineral Mr Richard Kasesela said it was true that the CSR has to add value to the society, but he could not support the idea of having the Law to guide the companies in terms of what should they give back to the community.
“Once you enact an Act about CSR, the CSR becomes an obligation to the companies. The effect of it is that companies might find the way to recover the amount, which will ultimately be the burden to the community,” said Mr Kasesela.
He instead agreed that there is the need of developing the policy about the CSR so that it means beyond what it is done currently.
Mr Kasesela said one area that will work more is assuring the local people get stake in investment or companies through the joint venture which is the most way of benefiting like South Africa and Dubai.
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