By Sun News Publishing
Tuesday, April 20, 2010
News emanating from Africa can sometimes be disconcerting. One of the latest of these is a report released by Global Financial Integrity which shows that illicit revenue outflow from the continent amounted to a scandalous $854 billion (N28.277 trillion) in the last 38 years (1971 – 2009). The report from the Washington, USA-based organisation said the amount represents a cumulative, illegal capital outflow that is more than enough to clear the continent’s total external debts and address poverty.
A breakdown of the illicit cash outflow shows that about 12 percent is as a result of bribery, theft, human trafficking, illicit drugs and tax evasion. These, the report claims, grew steadily at a disturbing average of 11.9 percent between 1970 and 2008.
Perhaps, more disturbing is the revelation that Nigeria tops the list of the continent’s illicit financial couriers, with illegal fuel exporters and oil bunkerers fleecing the country of about $10 billion (or N150 billion) annually. This is said to have outstripped the $2.5 billion reportedly lost through non-fuel primary commodity exporters. Nigeria, along with four other African countries, was credited with the highest volume of this illicit cash outflow during the period under review, with total losses hitting $89.5 billion (N13.42 trillion).
We find the report very painful but instructive. It is no surprise that the continent and Nigeria, in particular, continue to be ravaged by poverty, debt overhang and other socio-economic problems such as unemployment, lack of potable water, insecurity, infrastructure decay and political instability.
The report is even more disheartening when viewed against the background that the illicit revenue outflow from Nigeria alone within the period under reference is about seven times higher than the current Federal budget. This could be enough to transform the economy and provide social security for the people.
We find many factors responsible for this most unpatriotic act. It includes corruption in high places, hostile government, bad leadership resulting in bad governance and greed. In some instances, the docility of the civil society groups made matters worse. All of these have contributed to the under-development of Africa. Such illicit cash outflow also stymies the growth of democracy.
But, how can this be checked? Incontrovertibly, good governance is the key. This must start with good leadership that cares for transparency and Due Process. Governments in Africa must find the political will to implement best practices that will check corruption and other condemnable behaviours. The oil industry, which has become a cesspool of corruption, needs a total overhaul which should entail tying the loose ends that have made illicit revenue outflow easy.
We also urge government, the National Assembly and anti-graft agencies to pick up the gauntlet and expeditiously institute far reaching measures that will make illicit cash transfer a big risk. This is in addition to closely monitoring all internal controls, especially in money spinning agencies such as the Customs Service. This is perhaps more urgent in Nigeria where half-hearted implementation of budgets often provides a fertile ground for financial sleaze. Until Africans change their attitude to wealth, the problem of illicit cash transfers will persist. It is a serious problem that needs an urgent solution.
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