By Jeph Ajobaju, Chief Copy Editor
Africa loses over $148 billion to corruption yearly, due in part to Illicit Financial Flows (IFFs), even though Nigeria alone has in the past four years recovered more than $700 million stolen and stashed abroad by leaders.
Federal Attorney General Abubakar Malami made the disclosures at the virtual international conference on IFFs and Asset Recovery organised by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) in Abuja.
Through “proactive and collaborative efforts” with other countries, Nigeria has in the past four years recovered over $700 million from the United States, the United Kingdom, Bailiwick of Jersey, Switzerland, and Ireland, he said.
“We are still working with our international partners and other countries to ensure that all Nigeria’s assets that are identified are recovered.”
IFFs grow 20% yearly in Africa
Malami, represented by Presidential Adviser on Justice Sector Reforms, Juliet Ibekaku-Nwagwu, expressed concern that IFFs are growing at 20.2 per cent yearly in Africa because of weak capacity to stem the tide.
He lamented that the illicit movement of huge funds out of Africa has resulted in underdevelopment and insecurity across the continent.
“No doubt, the impact of such criminal flow of funds means lack of health and education services, low levels of growth, high level of poverty and lack of infrastructure in many African countries.”
ICPC Chairman Bolaji Owasanoye reiterated that the effect of IFFs on Africa is huge, saying it is paramount for the ICPC to tackle them to shore up dwindling government revenue.
Said he: “Estimates of the quantum of IFFs lost globally varies, but it is generally agreed that a significant proportion of the loss is suffered by developing countries.
“African countries are particularly affected by loss through IFFs, thus depriving the continent of much needed resources for development.”
IFFs cause of societal ills
Foreign Affairs Minister Geoffrey Onyeama, represented by his Permanent Secretary, Gabriel Aduda, disclosed that the ministry is working hard to ensure the return of stolen funds and assets to Nigeria.
Onyeama said IFFs are the cause of many of societal ills and underdevelopment Nigeria is grappling with and the government has measures to block illicit outflows of funds.
His words: “Illicit Financial Flows deny developing countries of vital resources that belong to them; resources that should have be spent on their development priorities.
“It reduces tax revenues, hinders development endeavours, undermine constituted authorities and threaten the stability and sustainable development of all affected states.
“IFFs also provide the financial network that supports terrorist activities, fuel conflict and lead to internal displacement and refugee conditions, divert money from public priorities and hamper government effort to mobilise domestic resources.
“The most effective deterrent remains ensuring that proceeds of IFFs are recovered and returned to countries of origin.
“It is for this reason that the government of Nigeria will continue to call on leaders whose countries are the main destination for IFFs to take concrete steps to prevent and stop the receipt of such funds into their countries, assist in tracing, freezing, seizing and returning illicit assets and its proceeds, already in their countries.”
Onyeama insisted that Nigeria will not succumb to stringent condition as it fights to ensure the return of funds and assets stolen from the country by corrupt people.
“Any imposition of tough conditions for returning proceeds of illicit origin, in the face of the current financial difficulties and the economic hardship and recession occasioned by rampaging impact of COVID-19 pandemic would be counter-productive.
“I, therefore, encourage representatives of countries of destination to consider waiving, or reducing to the barest minimum, the processes and costs of recovery.
“Nigeria’s delegation will continue to initiate and negotiate, on behalf of all developing countries, resolution on IFFs, with emphasis on asset recovery and return within the United Nations system.
“Our diplomats will remain bold and assertive in telling representatives of countries whose policies assist in habouring proceeds of IFFs that their actions and or inactions affect the lives of millions of people and deprive developing countries of resources required to achieve the 2030 Agenda for sustainable development.”
Finance, Budget and National Planning Minister, Zainab Ahmed, said unless tackled, IFFs would continue to hamper economic development across the continent.
Ahmed, represented by her Permanent Secretary (Special Duties), Aliyu Shinkafi, requested cooperation between Africa and countries of destination of IFFs, and stressed that leadership and political will are key in tackling illicit financial flows.
Human and Environmental Development Agency (HEDA) Chairman, Olanrewaju Suraj, said the political will of African states is important to stem the tide of IFFs, and suggested serious and aggressive combat against the menace.
He noted that some African governments have shares in big companies that engage in IFFs thereby slowing down the process of stopping it. He charged victim countries to challenge beneficiary countries as encouragers of IFFs.
Suraj suggested that law enforcement agencies and civil society organisations (CSOs) of victim states should collaborate with their counterparts in beneficiary states to achieve the right pressure.
Delay in passing Proceeds of Crime Bill
Africa Network for Environment and Economic Justice (ANEEJ) Executive Director, David Ugolor, disclosed milestones of successful collaboration between Nigeria and other jurisdictions such as Switzerland, the UK, and the US.
He listed among challenges, the delay the Proceeds of Crime Bill, misunderstanding and doubt as to whether recovered loot should be returned to its state of origin, and synergy among anti-corruption agencies.
He sought passage of the bill to provide a clear framework for dealing with returned funds and for sustained co-operation with the international community.
Melvin Ayogu, a professor and IFFS consultant based in the US, implored partner countries not to condone IFFs if they actually wish to help Africa.
He advised governments to depend less on foreign aid by looking inwards and developing especially Small and Medium Enterprises (SMEs) to help increase government’s tax buoyancy.
Ayogu pitched Private-Public Partnership to explore ICT and infrastructure to tackle IFFs with commitment and transparency.
Caribbean perspective
Manorma Soeknandan, an ambassador, shared experiences of the Caribbean community which consists of three continental member-states and 11 English speaking island member-states.
She said the Regional Security System (RSS) Asset Recovery Unit was set up in 2015 to combat serious organised crime in the Caribbean Common Law jurisdictions through partnership and robust application of proceeds of crime and money laundering legislation.
She named enablers of IFFs as mostly educated persons such as accountants, lawyers, and politicians who know the loopholes, the people and the culture/mindset of the people, and who have the budget to calculate the “corruptive practices”.
Support for CAC
Open Ownership UK Executive Director, Thom Townsend, said his organisation is working in partnership with the World Bank to support Nigeria’s Corporate Affairs Commission (CAC) to remove technical barriers to compliance and ensure availability of usable data by agencies, businesses, and CSOs.
He stressed the need to draw a growing diversity of international best practices, and integrate discussion about business owners’ disclosure into other policy areas to grow awareness and popularise disclosure of true company ownership information and use available data.