Last week, we began a discussion of the Santiago Principles and the extent to which the recently passed Natural Resource Fund Act 2021 is in conformity with those principles. Section 4 of the Act provides for the Fund to be managed in accordance with ‘the principles of good governance including transparency and accountability, and international best practices including the Santiago Principles’. So far, we have discussed the first five of the 24 principles. In today’s article, we look at Principles 6-12.
Principle 6: There should be a sound governance framework that establishes a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF.