Former South African president Thabo Mbeki is expected in Zambia on 17th June, 2013 to chair a two-day high level meeting on illicit financial flows.
The high level panel on illicit financial flows in Africa, 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$50 billion a year.
This is contained in a press statement released to ZANIS in Lusaka today by UNECA Communications Officer Sampa Kangwa-Wilkie.
Ms. Kangwa-Wilkie said illicit financial flows constitute among others things undocumented commercial transactions and criminal activities characterized by over pricing, tax evasion and false declarations
facilitated by some 60 international tax havens and secrecy jurisdictions that enable creating and operating millions of disguised corporations, shell companies, anonymous trust accounts and fake
charitable foundations.
Ms. Kangwa-Wilkie further said other techniques used include money laundering, transfer pricing and corruption.
“Illicit financial flows are a global problem. Their impact on the continent is monumental thereby representing a significant threat to Africa’s governance and economic development and governance. Current evidence shows that Africa lost over US$ 854 billion in illicit financial flows between 1970 and 2008 corresponding to a yearly average of about US$22 billion,” she said.
The trend has been increasing over time and especially in the last decade, with an annual average illicit financial flow of US$ 50 billion between 2000 and 2008 against a yearly average of only US$ 9
billion for the period 1970-1999.
Ms. Kangwa-Wilkie however said 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.
She added that some of the effects of illicit financial outflows are the draining of foreign exchange reserves, reduced tax collection, cancelling out of investment inflows and a worsening of poverty.
She said 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.
Ms. Kangwa-Wilkie said one of the keys to achieving success is the adoption of laws, regulations and policies that encourage transparent financial transactions.
The panel chaired by Mr. Mbeki will be composed of nine other members from Africa and outside the continent.
Over 60 delegates from East and Southern Africa are expected to attend the high level panel meeting in the Zambian capital, Lusaka as part of several regional consultations with key stakeholders on the project Africa including the executive, legislature, judiciary and key civil society and private sector representatives.
Other consultations have already taken place in North Africa and Kenya, Tunisia, Liberia and Nigeria.
Meanwhile the former Mbeki will hold private talks with President Michael Sata to enhance dialogue and policy discourse on the matter.
ZANIS
I thought there was a boycott of Zambia by regional leaders put off by PF misrule and the badmouthed encounters or gaffes from Sata?
Thabo Mbeki never get brocked by his immigration officers, he travels freely. But in Zambia, RB can’t even go to watch a football match.
That’s what ZWD tells you.Full of lies and hate,bitterness you name it.Everything they write is a lie my friend.At least LT is credible.
Mbeki is a former president.The only friend PF have made so far is Mugabe as both presidents have common attributes
Mbeki is not visiting those PF thugs. And meeting with Sata is to try to educate Sata the meaning of some terms/ words expected in that forum. Sata will not understand such anyway.
Block him please. Immigration dept, please block him from entering the country. he may interfere with RB investigations.
MBEKI WILL BE SURPRISE THAT YOU CAN NOT HAVE A DIALOGUE WITH THE COBRA. THE COBRA IS ALWAYS MOVING OUT OF PHASE WITH THE GENERAL EXPECTATIONS.
@SHUSHUSHU. Kaili the cobra is always spitting, so sometimes no direction, sometimes he spits in the eyes, then he mistakes your belly button for an eye and spits there, no direction at all. Mbeki will merely seek to break words, his efforts will will be frustrated
Sampa Kangwa-Wilkie, wonder what happened to your negative and cocky articles about Zambians you were contributing to the Post. Did someone threaten your life?
Its good that Africa is taking such steps to curtail illicit financial flows. However, care needs to be taken on who seats in these meetings.For once lets engage people who understand the subject matter so that the they contribute positively and not politians all the time.I dont think politicains are the best people to handle this.JUST MY THOUGHT.
He can travel freely because he is not a thief.LOL
If you know diplomacy, you will appreciate that this is an ideal occassion for Zambia & South Africa to repair relations. Don’t be surprised if Jacob Zuma or MCS will be visiting the other country on a state visit in the near future!
On a lighter note, remember the definition of a diplomat: a guy who will tell you to f**k off in such a way that you will be happy about the upcoming journey! Thabo Mbeki is playing diplomacy since he left office!