NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
Africa loses $50 billion a year to corruption: Experts

By Moki Edwin Kindzeka on 28/05/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 882

•African auditing expert Rose Acha.
•African auditing expert Rose Acha.

Africa loses an estimated $50 billion a year to illicit financial flows, leaving governments strapped for cash and dependent on development aid.

The continent is “haemorrhaging” money because of the failure of countries to enact strong legislation to check money flows, says Rose Acha, Cameroon’s supreme state audit minister and secretary general of the African Organization of Supreme Audit Institutions.

Instead, uncontrolled transactions are common.

“Whatever the source of your money, we don't know, but we welcome those who want to deposit money,” said Faison Winifred of Investment Fund, a local financial institution in Cameroon’s capital, Yaounde. “Why … do you discourage the person by asking where is your source of income? We encourage everybody who comes to deposit money. … There is no limit. Whatever amount you want to deposit, we like it.”

Acha says smuggling and trafficking during illegal commercial activity constitute 65 percent of Africa’s financial hemorrhage, while criminal activities — which consist of using funds for illegal purposes, like financing organised crime and terrorism — come next with 30 percent. She says corruption and tax evasion account for the remaining 5 percent of the money lost.

According to the United Nations High Level Panel on Illicit Financial Flows, Africa loses a staggering $50 billion annually. The panel says that is approximately double the amount of official development assistance Africa receives.

African tax and audit experts, meeting this week in Yaounde, said the worst offender is Nigeria, with an illicit outflow of $157 billion from 2003 to 2012. South Africa ranks second with $122 billion lost during that time period, and Egypt third with $37 billion.

Magagi Tanko of the supreme state audit office of Niger says that in Central and West Africa, huge sums of money are transferred illegally and public coffers are impoverished. In addition, illegal financial flows from drug trafficking have spiraled.

Exporters use under-invoicing so they can dodge taxes and bring in less foreign exchange, leaving the rest of their earnings in offshore accounts, he says.

Lagan Wort, executive secretary of the African Tax Administration, says a regional approach is key.

“Parts of the defense mechanism that African governments must employ is to build strong tax legislation and tax policy systems, including tax agreements between countries, especially inter-African countries,” Wort said.

The experts resolved to work with the Stolen Assets Recovery Initiative — a joint effort by the World Bank and U.N. Office on Drugs and Crime — to recover funds, but said the process is long and cumbersome, since many banks remain secretive about their transactions.

They said many of the illicit financial flows also end up funneled through complex criminal rings, severely limiting the ability of law enforcement and tax authorities to trace offenders and eventually recover the money. (VOA)

Source News Express

Posted 28/05/2017 9:17:21 PM


Share on facebook Yahoo mail icon Gmail icon Share on Google+



REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...


You may also like...
Ebonyi to empower 235 spouses of security personnel...

Uduaghan lauds Delta Assembly’s sense of understanding

6 Governors, other heavyweights storm Obingwa for Ikpeazu’s...

Babatunde Fowler’s appointment as FIRS Chairman well deserved,...

Police arrest 427 ‘One Million Boys’ in Oyo...

Corrupt traditional rulers should lose titles — Buhari...

Fayose, Mimiko to be impeached before December, says...


Obiano takes over as Anambra Governor, vows to...

Support Local Content Policy to boost industrialisation, DPR...

IGP orders immediate removal of roadblocks nationwide

How the Nigerian Military manages MASSOB/IPOB protests, By...


Latest News 5,000 dump APC for PDP in Bayelsa Buhari appoints new heads of NHRC and NERC, new Directors for NDDC More foreign visitors troop into Nigeria – Data Panic as explosions, heavy gunshots shake Maiduguri •No cause for alarm, says Army as rumours of Boko Haram presence spread APC chairmanship aspirant escapes assassination in Delta Osun Guber Polls: INEC releases timetable Benue killings: You are arrogant and insensitive - Secondus blasts Buhari •Berates President for snubbing Benue for Bauchi Troops raid Benue militia camp •Nab suspected kingpin, recover arms Court orders DSS to tender weapons recovered at Dasuki's residence FAAC: FG, States, LGs share N626.8bn Angry youths burn police officer’s residence in Edo Group launches 'citizens guide to the recall process'


Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (340,252 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (335,401 views) Shameless Genevieve Nnaji exposes breasts in public (268,326 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,679 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,421 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,535 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (173,263 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,612 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,391 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,414 views) Lagos plane crash: Journalist releases victims’ names (137,200 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,852 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,079) Business Verdict (40) Columnists (840) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (486) Features (570) Global Business Monitor (267) International (1,929) Interview (149) Live Commentary (28) Love Matters (116) News (34,792) Opinion (917) Pidgin (10) Politics (4,827) Religion (725) Sports (1,490) Stock Watch (28) AMA & Al Jazeera Global Update


Firstmobile banner




Boko Haram commanders surrender


APO Group Partner




REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera