ActionAid commends AU’s measures against illicit funds transfer

FOLLOWING African leaders adoption of the Thabo Mbeki panel on illicit funds transfer at the Africa Union (AU) Summit in Ethiopia, ActionAid has urged leaders and governments to put in place mechanisms for the implementation of such recommendations.

   It stressed that if implemented, the report would open the door for sustainable and increased funding for better education, gender-responsive public services, agriculture, healthcare and all other developmental services that enhance human rights.

   In a statement in Abuja, Country Director of ActionAid Nigeria, Dr. Hussaini Abdu, stressed the need for a quick establishment of a continent-wide common system to track, stop and repatriate illicit financial outflows from Africa.

   “Some of these priorities should include investment in training lawyers, accountants and tax experts to carry out oversight functions to prevent or punish perpetrators of illicit financial outflows,” he said.

   Others will include “creation of relevant agencies, such as revenue authorities, transfer pricing units, customs services, anti-corruption agencies and financial intelligence units, and setting up of mechanisms for viable inter-governmental agencies and information sharing on corporate (bodies), financial transactions, digital economy and funds transfer by multinational companies.”

   It applauded the adoption of the report, noting that it came at a critical time as Africa looks for sustainable ways to fund development, including the implementation of the Sustainable Development Goals to be approved by the United Nations (UN) in September.

   Also speaking on the issue, Africa Advocacy Coordinator at ActionAid, Henry Malumo, noted: “This is the culmination of public pressure and the perseverance of the Mbeki panel. African leaders are sending a clear signal that they plan to clamp down on the loss of over $50 billion per year from Africa.

   “Multinational companies are identified as the biggest culprits, largely through tax dodging. These companies are depriving Africa of vital funds needed to pay for schools and hospitals, and are undermining the continent’s ability to reduce poverty and increase growth.

   “Africa’s leaders must now ensure that the recommendations are promptly implemented to stem the flight of cash, and that the money is spent for the benefit of all its people.”

   However, he added: “This can’t be achieved by Africa alone. Rich countries, where much of the money ends up, must support through global action to end corporate tax dodging – including the establishment a UN body to lead the re-writing of the global tax rules.

   “Joint action by rich and poor countries on international tax dodging can raise the money we need to end poverty.”