By Shu’aibu Adamu
ADDIS ABABA – A Consortium of Civil Society Organisations in Africa on Thursday appealed to the AU leaders to implement recommendations of the Thabo Mbeki High Level Panel report on Illicit Financial
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Flows in Africa.
The News Agency of Nigeria (NAN) reports that the CSOs ended their meeting in Addis Ababa at the margin of the AU Summit, resolving to encourage the leaders to immediately evolve a mechanism to implement the report recommendations.
The Heads of State are expected to review the report and its recommendations on Saturday Jan. 31 in Addis Ababa at the ongoing Summit of the Union.
The consortium of CSOs urged AU Heads of States to extend the High Level Panel’s mandate and fully resource it to a Standing Committee or an AU agency that monitor the implementation of the report’s recommendations..
NAN reports that the Committee had looked at the consequences of illicit financial outflows from Africa, estimated at 50 billion dollars per year, according to Global Financial Integrity (GFI) and the African Development Bank.
Also, a new study from GFI discovered that illicit financial flows had been growing at an average rate of 9.4 per cent per year, while in sub-Saharan Africa alone, illicit financial flows amounted to 5.5 per cent of the region’s total Gross Domestic Product (GDP).
Mr Savior Mwambwa, Policy and Advocacy Manager for the Tax Justice Network Africa, had called on Afrcan leaders to devote a portion of the Summit session to illicit financial flows underlines to address the menace caused by the illicit flaws of finances.
He said the act was not only an extreme hindrance to Africa’s development, but “growing rapidly every year.“
Also speaking at the Consortium of CSOs, Tigere Chagutah of Oxfam said: “We urge AU to move quickly to adopt the recommendations contained in the report, in order to reap the benefits of new-found tax revenue that can address poverty and economic stagnation.“
Henry Malumo of Action Aid International said the AU High Level Panel report had added African regional details to the global problem of illicit financial flows with recomendation on how to fix it.
“It’s important to note that this isn’t just an African problem; much of the money that leaves Africa illicitly by way of corporate tax evasion or corruption end up in banks within Europe and the United States.
“It’s vital that global accounting and tax enforcement policies being established by the G20 and other international bodies fully encompass the needs and context of Africa,” he said
Malumo said the Mbeki report came at a time when “policy makers are meeting in New York this week to discuss the United Nations Financing for Development (FfD) agenda.
“Curbing illicit financial flows could jump start the ability of African nations to recoup tax revenue and enable governments to better fund programs of sustainable development.
“The report will be presented to African leaders on 31st January and will be publicly released at an event on 1st February in Addis Ababa,”
NAN reports that the leaders would also deliberate on the growing security threats of extremist groups, instability, and poverty, with a view to give priority to addressing the threat which according to experts is also threat to their economies. (NAN)