The Nigeria’s Anti-graft Agency, the Independent Corrupt Practices and other related offences Commission ICPC has called for a global action and framework on Illicit Financial Flows IFFs similar to corruption.
The Chairman of the Commission Prof. Owasanoye made the call at a side event of the ongoing 54th Conference of the United Nations Economic Commission for Africa (UNECA) taking place in Dakar, Senegal.
Addressing the meeting virtually, the ICPC boss emphasised the need for a global framework on IFFs as part of a determined commitment to tackle the menace.
“The challenge we find ourselves in today is that the rules have always been skewed in favour of those who export capital and against those who import capital. Corruption is a global issue and we have a global framework on corruption.”
“The IFF is also a global issue but does not have a global framework. A way out of the problem is to institute a global framework on IFF which, among others, will address the huge financial losses suffered by African countries.” The ICPC Chairman stated.
Owasanoye noted that the Covid-19 pandemic and the Russia – Ukraine war have complicated the financial resources of African countries, hence the need to tackle the IFFs and stop further hemorrhage of the financial resources of African countries.
“These legal and policy measures includes, Review of agreements entered into with Multinational Corporations, Review of inimical double taxation agreements and Enactment of laws, rules or regulations on unexplained wealth order or lifestyle audit among others.”
The ICPC Chairman also advocated tougher measures against corrupt State Officials who collude with the Multinational Corporations, against their countries.
“African countries must understand that the MNCs split contracts. The juicy parts of the contracts with MNCs are domiciled in their home countries while the non-juicy parts of the contracts are domiciled in Africa.
Also, the Secretary General of the United Nations Conference on Trade and Development (UNCTAD), Rebecca Grynspan, said the global economy was under enormous stress due to Covid-19 pandemic, Russia – Ukraine war and climate change.
She said, “We are aware of the increasing rates which make it more difficult and harder for African countries to access finance. The African economies are also feeling the impact of the Russia – Ukraine war and thereby widening the financing gap.
“Africa requires US$2.45 trillion to meet its SDG financing gap. We can close half of the SDG financing gap for Africa if we are able to curb IFFs. We therefore cannot continue to allow the billions of dollars of IFFs slipping out of Africa every year.”
She emphasised the need for data and collaboration among African institutions like Customs and Central Banks as a necessary condition in tracking the IFFs.
The meeting was attended by representatives of member-countries of the Economic Community for Africa, Heads of Anti-Corruption Agencies and international bodies, and focused on regional efforts to track, recover and return stolen assets from Africa through the IFFs.
The Convention’s far-reaching approach and mandatory character of many of its provisions make it a unique tool for developing a comprehensive response to a global problem.
The vast majority of United Nations Member States are parties to the Convention.
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