Thursday, June 13, 2024

Zambia’s Parliamentary Committee Exposes Colossal Losses from Illicit Financial Flows

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Parliamentary Public Accounts Committee Chairperson and Ndola’s Bwana Mkubwa Member of Parliament Warren Chisha Mwambazi has said Zambia like many other African countries has been losing colossal sums of money through illicit financial flows.

Speaking during the Second Sub-Committee on Tax and Illicit Financial Flows (IFFs) of the Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration in Addis Ababa, Ethiopia, Mr. Mwambazi said Zambia was also losing money from Tax avoidance and through capital flight.

Mr. Mwambazi said the challenge of tax avoidance in many African states resulted from weak tax administration systems that needed improvement.

He said Zambia had, however, put mechanisms in place to curb the vice by enacting appropriate legislation to address the problem of illicit financial flows, tax avoidance, and capital flight.

Mr. Mwambazi said the Government had streamlined the tax system and created a stable and predictable tax environment.

He said legislation such as the Anti-Corruption Act No. 3 of 2012 and the Prohibition and Prevention of Money Laundering Act No. 14 of 2001 contributed to curbing money laundering, which is a conduit for tax evasion.

The Member of Parliament also said the establishment of the Financial Crimes Court was testimony of the commitment by the Zambian Government to curb illicit financial flows.

“As Parliament we have enacted laws which also among other pieces of legislation is the Anti Corruption Act No 3 of 2012 which provides inter alien the prevention, detection, investigation, prosecutions and punishment. Apart from that we have also come up with financial crimes court which is a fast track court to ensure that it looks at some of these financial crimes in a quickest possible time so that we do not delay the judicial process. We have also come up with prohibition and prevention of money laundering Act,” Mr. Mwambazi said.

And African Union Commissioner for Trade and Industry, Amb. Albert Muchanga said Africa loses two hundred billion dollars (US$200 billion) annually on tax incentives and nearly ninety billion dollars (US$90 billion) annually through illicit financial flows.

He, however, expressed happiness that over 3.8 billion dollars had been claimed back for twenty-seven African Union Member States.

He called on African Governments to increase transparency and accountability in tax systems and adapt their tax bases to economies where rising goods and services could be bought and consumed virtually, without companies having to be physically present in a country to be part of the local market.

According to First Secretary-Press/Tourism at the Zambian Embassy in Addis Ababa, Ethiopia, Inutu Mupango Mwanza, this meeting was held under the theme: “Tax in Africa: Contemporary Issues Affecting the Continent.”

10 COMMENTS

  1. You now have a stooge of the west leading zambia so if you think you have seen tax avoidance by the west, wait and see how much money will be lost under this crook hh

    • In the Financial Intelligence Center (Trade Based Money Laundering) report,the Global Financial Integrity estimated that $8.8 Billion left Zambia between 2001 and 2010 through Illicit Financial Flows (IFFs) largely from the extractive industry.Ka Zulu,was HH the president then? Bring out concrete evidence.It seems you enjoy eating garbage

    • Mu Zambian as expected you are again shying away from your responsibility as a ruling party. You are in power and not pf or mmd. If you can’t take responsibility then leave leadership to those that can.

  2. Mr Mwambazi failed to mention the tax holidays which his boss has given to his friends. Also the financial crime court was specifically setup to fight personal battles with PF members and that is why it has very poor conviction rates.

  3. UPND is a party of sophisticated white-collar conmen dressed in suits. The elitist party is interested in its share of the loot and is more than willing to give tax incentives to hegemonic multinationals as long as double H gets his 10% share in Mauritius, London, Dubai, Australia and New York. If Sata was cobra, double H is anakonda.

    • Please provide the proof of HH getting kickbacks from anyone. I can understand why you think that everyone thinks like you, and therefore believes that stealing is good. I assure you that stealing is not in the DNA of HH. I want to blame him for his cow-towing to the West, but then what choice does he have? The people you support found a country Mwanawassa and N’gandu Magande had cleared of debt. These PF criminals, who have stealing in their DNA, then borrowed and looted US $32 billion in a mere 10 years. HH has walked into this debt trap and must dance to the tune of the people Sata, Lungu and Kaizar Zulu got this money from are playing

  4. Ka Zulu NB .The FIC report I am quoting was for the year 2022.Try with all the mental strength that is humanily possible for you to read it together with Deja Foool.You will learn more facts

  5. Kaizer as you Hold yourself out to be an intelligent contributor can you advice the readers of your enlightening posts if avoidance of tax is illegal or is evasion of tax is illegal . With your undoubted knowledge of Zambian tax laws you be able to tell all readers if your assets exceed your taxable income then how did you acquire those assets.If you didn’t declare your additional income with your knowledge you will be able to enlighten readers as to why one hasn’t been charged with tax evasion,

  6. Pokoko, with your Knowledge that the president of Zambia is receiving 10% on mining transactions you will be able to avail the appropriate authorities of you indisputable evidence , I look forward to your follow up

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