High Level Panel On Illicit Financial Flows From Africa Holds Regional Consultation In Accra

The High Level Panel on Illicit Financial Flows from Africa holds Regional Consultation for West and Central Africa from December 2-3, 2013, at La Palm Hotel, here in Accra, Ghana.

The High Level Panel on illicit financial flows in Africa, chaired by the former President of South Africa, Thabo Mbeki, with other 9 members which was established by the United Nations Economic Commission for Africa (UNECA) and the African Union (AU), was inaugurated in February 2012 to address the debilitating problem of illicit financial outflows from Africa which is estimated at US$50 billion a year.

In a press statement released in 2012 by UNECA Communications Officer Sampa Kangwa-Wilkie, she stated that illicit financial flows defined as undocumented commercial transactions and criminal activities characterized by over pricing, tax evasion money laundering, transfer pricing and corruption and false declarations facilitated by some 60 international tax havens and secrecy jurisdictions, enable the creation and operation of millions of disguised corporations, shell companies, anonymous trust accounts and fake charitable foundations.

The panel was established in response to the global problem of illicit financial flows, whose impact on the African continent is monumental, representing a significant threat to Africa's governance and economic development. The trend has been increasing over time and especially in the last decade, with an annual average illicit financial flow of US$ 50 billion between 2000 and 2008 against a yearly average of only US$ 9billion for the period 1970-1999. Current evidence shows that Africa lost over US$ 854 billion in illicit financial flows between 1970 and 2008 corresponding to a yearly average of about US$22 billion.

Despite these huge numbers, these estimates may well be short of reality as they exclude such other forms of illicit financial flows as proceeds from smuggling and mispricing of services.

It is clear that the effects of illicit financial outflows are detrimental to African countries, they drain countries of needed foreign exchange reserves; reduce tax collection, cancelling out of investment inflows - all of which have the impact of worsening the poverty of the most vulnerable citizens.

Ms Kangwa-Wilkie noted that preliminary evidence shows that taking prompt action to curtail illicit financial outflows from Africa will provide a major source of funds for development programmes in the continent in the near future. And that one of the keys to achieving success is the adoption of laws, regulations and policies that encourage transparent financial transactions.

The High Level, panel chaired by Mr. Mbeki, comprises of nine other members from Africa and outside the continent - Mr. Abdoulie Janneh, Under-Secretary General and Executive Secretary of ECA; Amb. Olusegun Apata, Coca Cola Bottling Company, Nigeria; Mr. Raymond Baker- Director, Global Financial Integrity, Washington DC; Dr. Zeinab Bashir el Bakri, former Vice President of the African Development Bank, Tunisia; Mr. Abdoulaye Bio-Tchane-former Minister of Finance and Economy of Benin; H.E. Mrs. Ingrid Fiskaa- State Secretary for Environment and International Development, Norway; Prof. El Hadi Makboul, Director, National Centre for the Study and Analysis of Population and Development (CENEAP), Algeria; Barrister Akere Muna, President, Pan-African Lawyers Union, President, ECOSOC, Member, Eminent Persons Panel of the APRM, and Vice President, Transparency International and Ms. Irene Ovonji-Odida, Human Rights lawyer and activist and elected member of the East African Regional Parliament for five years.

The Panel has a significant remit and will amongst others, 1. Undertake extensive and in-depth studies to determine the nature, pattern, scope, channels and impacts of illicit financial outflows from the continent; 2. Sensitize African governments, citizens, policy makers, political leaders and development partners to the problem; 3. Mobilize support for putting in place rules, regulations, and policies to curb illicit financial outflows; and finally 4. Influence national, regional and international policies and programmes on addressing the problem of illicit financial outflows from Africa 5. Streamline possible initiatives that African countries can take (individually or collectively), to stem the flows and repatriate the stolen funds.

Since its inception, the HLP has already held meetings in Lusaka in Tunisia region, in Kenya, Liberia and Nigeria and are now scheduled to hold a meeting in Accra.

These meetings are part of the HLP's fact finding prior to the AU meeting in March 2014 where the case studies from the continent will be shared in a published report.

This Accra meeting if it proceeds along the lines of the others, will comprise in the first instance, meetings with Their Excellency's the President and Vice President with key Ministers and Deputy Ministers of State; followed by closed door meetings of the HLP. On the 2nd of December the HLP will meet with Civil Society where it is expected that the HLP will take submissions on case studies of illicit flows. The third of December will be the main meeting with all participants including private sector, present.

Further information please contact: Adwoa Kwateng Kluvitse, Country Director, ActionAid Ghana on (233 24 431 7560 or [email protected]) and Emmanuel Budu Addo, Head of Finance ActionAid Ghana (233 20 201 2683 or [email protected])

Issued by ActionAid Ghana this Saturday, November 23, 2013