“The illicit flow of dollars from Africa” – Thabo Mbeki

via “The illicit flow of dollars from Africa” – Thabo Mbeki – The Zimbabwean 3.9.2015

Mbeki is now head of the High-Level Panel on Illicit Financial Flows From Africa created by the United Nations Economic Commission for Africa and the African Union.

LUANDA, Angola, September 3, 2015/ The continent of Africa loses over 50 thousand million dollars each year as a result of the illicit flow of funds, former president of South Africa Thabo Mbeki told the meeting of the Group of African Governors affiliated with the World Bank and the International Monetary Fund, known as the African Caucus.

“Africa faces the great challenge of large volumes of capital leaving the continent illicitly – money that our continent needs to address the challenges of development. We, as Africans, have an absolute obligation to act on this to ensure that the rest of the world (the destination of these illicit movements of funds), by acting together, will help stop this drain of resources which belong to the continent that needs them so badly,” said Thabo Mbeki.

Mbeki is now head of the High-Level Panel on Illicit Financial Flows From Africa created by the United Nations Economic Commission for Africa and the African Union, which did exemplary work and analysed the magnitude of the problem on the continent, producing a report now known as the “Mbeki Report”.

The former President of South Africa maintains that it is possible to put an end to these issues with proper monitoring of the transactions of large commercial companies. Moreover, he points out that in order to combat this phenomenon interventions are needed from institutions such as tax authorities, customs, central banks, financial intelligence units for combating money laundering, audit and anti-corruption authorities and the police.

It is clear to Thabo Mbeki that there is also a need for appropriate legislation to give these institutions the mandate they need to cooperate in the fight against illicit capital outflows and so that countries can also cooperate at the regional level, given that some of these outflows move across shared borders.

“Our governments lose large amounts of revenue owed to the state due to the unlawful outflow of significant capital that we need for development,” he pointed out.

Thabo Mbeki says that it is imperative to build the global architecture required for a focussed offensive to put an end to these illicit outflows, within the framework of UN processes, in order to avoid a piecemeal approach to the problem and to enable supervision by an appropriate UN body.

 (African Press Organization)

COMMENTS

WORDPRESS: 11
  • comment-avatar
    R Judd 5 years ago

    Mbeki and his ilk are the exact reason capital leaves Africa. There is no reason why a well governed country with friendly banking laws and an honest government should not attract capital from all over the world. Mauritius is an example in Africa.

    Mbeki and his fellow corrupt and incompetent leaders should stop blaming others for problems of their own making or actions of which they, themselves, are guilty

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    grabmore 5 years ago

    Thabo Mbeki. You are a stinking useless spineless tick on a camel’s bum. You are one of the reasons Zimbabwe is still in a mess. You should be hanged for your quiet diplomacy crimes.

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    Trebor Ebagum 5 years ago

    So this useless POS is now being employed by the UN? Figures. Slimey characters like this always seem to land on their feet, don’t they?

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    Trebor Ebagum 5 years ago

    Whatever happened to Mbeki’s KneePad? Billions wasted…poured down the toilet that is Africa. Giving money to a chronic beggar achieves nothing. Too many real priorities in the rest of the world. You got a farm? I want. You wont leave? I arrest you or I kill you.

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    ameverickzw 5 years ago

    Fifty thousand million is that $50billion? Why not just say that number rather than obfuscate it! Mbeki blames corporations but what about Africa’s corrupt leaders who have progressively ruined Africa for their own selfish reasons. Mbeki well knows that the problems could well be resolved if these leaders and their friends were forced to repatriate all their money sitting in overseas bank accounts and assets. Just recently in Zimbabwe a Chinese man was in court for externalising $20m. The tip of an iceberg. Mbeki and the UN have no intention of solving the problem it is enough just to pretend! The West and private and or international charities should suspend all aid to Africa until those African leaders and colleagues repatriate all their ill gotten gains. It is time for Africans and Africa to stop blaming the West and look at themselves.

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    Amaverickzw 5 years ago

    Is that $50billion if so why not say so? Mbeki blames the corporations for externalising money from Africa, but what about African leaders and their hangers on. How many billions are sitting in overseas bank accounts or invested in properties outside of Africa or indeed Africa itself. As a layman I would think that it would be much easier, albeit fraught with danger to track down these funds and seek the repatriation of these assets and monies. Better still these funds could be invested into an independently controlled and managed fund for the development of Africa. That way Africa would no longer need to look East or West but instead could look to itself. Of course none of the leaders would trust each other so this will never happen. Mbeki and the UN need look no further than the corruption on the African continent to resolve this issue. Again this is not going to happen!
    The looting continues

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    I would guess that this money taken is pretty well always by the various branches of Government Organised Crime in these countries. In other words, the Dictators Club are the guilty ones

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    mbeki’s solutions target movement of funds out of africa by commercial organizations. that is necessary and useful.
    however he should also propose mechanisms to deal with asset stripping by countries’ political leadership, which may be of greater significance that all other outflows.
    moreover, if honest financial management occurs in state house, then it is more likely to permeate down the system to all players.
    at present there are too many mugabe’s who can be bought with money into their off-shore bank accounts.

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    jackson 5 years ago

    I hate mbeki and believe the majority of my fellow countrymen and women do as well. I hate him for his support for mugabe who has plunged the country further into turmoil since the fake quiet deplomacy he led.

    So whatever he say I dont believe him. It goes into one ear and straight out through the other.

  • comment-avatar
    jackson 5 years ago

    I hate mbeki and believe the majority of my fellow countrymen and women do as well. I hate him for his support for mugabe who has plunged the country further into turmoil since the fake quiet deplomacy he led.

    So whatever he says, I dont believe him. It goes into one ear and straight out through the other.

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    tonyme 5 years ago

    Africa has been bleeding and will bleed until the desert covers the Cape of Good Hope. From Cape to Cairo the Chinese have discovered and trained leaders who assist in bleeding Africa to death. The Chinese people also have become part and parcel like in Zimbabwe of the machinery which externalizes money to the tune of leaving Africa broke. Mbeki is well aware of what is going on but lacks the guts to confront those leaders who take Africa’s money and bank in Europe. Just the other day, I was reading about the wealthiest African leaders. My question is how did they get such wealth at the basic salaries allocated for African presidents.