The Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Prof. Bolaji Owasanoye, SAN, has canvassed the payment of interests on stolen funds by benefiting foreign nations as part of measures to redress the menace of Illicit Financial Flows (IFFs).
The ICPC boss also disclosed that the Federal Government of Nigeria was currently reviewing legacy transactions in oil and gas, tax investments and the use of waivers in Nigeria in order to curb IFFs.
Prof. Owasanoye, who made this known at the International Conference on IFFs and Asset Recovery, held at the ICPC Headquarters, Abuja, said illegal movements of funds from African countries abroad has made the continent to be the biggest victim of IFFs.
He urged foreign beneficiaries of IFFs to deduct loans to African countries from the illegal funds in their possessions, and return the outstanding amount with interests to the continent.
He said, “Africa is the biggest victim of IFFs. If you evaluate what we have lost as a continent against what African counties owe, Africa should be a net creditor to the world. They can decide to deduct the loans given to African countries from all the money taken from the continent, there will still be a substantial amount to return to Africa.
“The money should also be returned with interests as they have been in use over there. The money should be placed in an Escrow account, and a regional development bank that knows how to manage money should be in charge of such funds.”
The ICPC Chairman advocated a workable framework that will reduce the timeframe for the repatriation of identified stolen funds and assets, decrying the huge loss suffered by the continent due to long and tedious processes which usually takes several years to complete.
Besides, Prof. Owasanoye said there were on-going efforts by the Federal Government to block illicit outflows of funds through the review of international transactions that enable IFFs.
His words: “We are reviewing the legacy transaction in oil and gas, tax investments and the use of waivers in Nigeria to close loopholes that facilitate IFFs. For instance, a lot of damage can be done through confidential clauses in loans, oil and gas contracts, and others. The review will prevent dodgy politicians from taking money out.”
A member of the Thabo Mbeki Panel on Illicit Financial Flows out of Africa, Ms. Souad Aden Osman, said that efforts to stop IFFs were more critical now than ever due to the huge level of poverty and underdevelopment in Africa.
In her lead presentation on the Common African Position on Asset Recovery (CAPAR), Osman urged African countries to mount a coordinated effort against IFFs by taking action and speaking with one voice to recover stolen funds.
She said, “CAPAR is the bedrock for technical instrument for negotiating for funds taken from the continent to be returned. It recommends efficient recovery and unconditional return of stolen assets with due respect to our sovereignty.”
CAPAR, she added, recommended the deployment of recovered assets for the good of the citizens and not be allowed to be re-stolen.
“The recovery and return of asset must be applied for the development of the country. We should be mindful that the identified assets are at the risk of retransfer unless frozen by destination countries,” said Osman of the Coalition for Dialogue on Africa (CoDA), a civil society organisation.
In his contribution, the Chairman African Union Advisory Board Against Corruption (AU-ABC), Hon. Luis Andriamifidy, identified some of the challenges the Board faces in repatriation of IFFs to include the matter of sovereignties of countries involved, a common legal framework to be adopted, and how to proceed with court processes especially on admissibility of evidence, among others.