Guardian

LAMENTATION by Nigeria’s President Goodluck Jonathan and South Africa’s former President Thabo Mvuyelwa Mbeki, on how illicit funds flow from Africa and stunt the continent’s growth, is  revealing and worrisome. According to Thabo Mbeki, head of the United Nations’ High Panel on Illicit Financial Flows from Africa, the continent currently loses at least $50 billion annually through illicit fund flows. Losing such a staggering amount to illegal acts, in a continent blighted by underdevelopment, characterised by huge infrastructural deficit, dehumanising conditions of living, rising poverty and youth unemployment, among other socio-economic malaise, is criminal.

The phenomenon does not only stifle economic growth and development, it is also a potential source of political instability and insecurity. It is against this background that the call for the need to stem the tide should be appreciated. Unless urgent steps are taken to reverse the trend, Africa may be digging itself into a development quagmire.

While such revelations as this, together with the call for remedies are useful and capable of creating public awareness about the problem, they are certainly insufficient. If African leaders are serious about tackling the problem, they must first identify the actors and sources of such illicit funds and block the flow. To be sure, the main actors are usually known to high ranking government officials and in many cases are actually their cronies. Traceable to blatant crimes, drug trafficking, piracy, oil bunkering and such other illegalities, these funds flow, unfortunately, having been aided by government officials, even as law officers  look the other way while government departments and revenue agencies have become real conduit pipes for them.

Merely lamenting the situation and calling for remedies therefore is not enough. African leaders should take decisive steps, show utmost sincerity by demonstrating strong political will to fight corruption in its entirety. Such a war against corruption, including illicit fund flows, can only be fought successfully if the leaders themselves live an exemplary lifestyle devoid of corruption. President Jonathan, for instance, cannot be credited with sufficient political will to fight corruption in Nigeria. Hence his call that “we should look within”, as well as his demands for “robust assistance from the developed world” to fight the scourge, though appealing, are not helped by his actions or inaction.

It is also important that African governments take necessary measures to consolidate ongoing banking reforms. If sustained, the banks may increasingly become an unlikely avenue of transferring such illicit funds as money launderers will have to confront many difficult questions they may not be able to circumvent. Moreover, African governments should adopt and codify all international anti-money laundering protocols and establish effective enforcement mechanisms.

These are some of the steps that must be taken towards eliminating illicit money flows from Africa.