« Africa loses about US$88.6 billion annually due to illicit capital flight, equivalent to 3.7% of the continent’s gross domestic product. The issue was on the menu of the coordination committee of the coordinated audit on the fight against illicit financial flows on August 03, 2023, in Douala ».
Born from the desire of AFROSAI member SAIs to provide a regional response to the problem of combating this scourge that causes Africa to lose billions of US dollars each year, thus compromising its development and the well-being of its populations, the coordinated audit project on the fight against illicit financial flows (IFFs) was on the agenda of a joint meeting of the AFROSAI Technical Commissions held from 25 to 29 July 2022. last in Douala, Cameroon. Were present at this 3rd meeting of the coordination committee, Mrs. Nancy KATHUNGU, Auditor General; Ms. keneilwe senyarelo, Acting Auditor General; Justice MBAH ACHA rose FOMUNDAM, Secretary General.
After several brainstorming sessions organized thereafter, the members of the audit coordination committee namely: the Executive Directorate of AFROSAI; SAI of Gabon, Vice-President of the CRCIT and Chair of the Working Group on Emerging Issues; three (03) SAIs members of the CRCIT participating in the audit; experts from AFROSAI partner organizations in the fight against illicit financial flows (African Union, ATAF and GIZ).
« Illicit financial flows (IFFs) take a heavy toll on development for rich and poor alike, but in Africa, it is the poorest people who pay the highest price and leave vulnerable countries with inadequate infrastructure, irregular power supply and limited access to health, education and broadband internet for their citizens. among other deprivations, » one member said.
With a view to implementing this coordinated regional audit project, a Memorandum of Understanding was signed by the SAIs members of AFROSAI who have expressed their intention to take part. It provides a framework for all aspects related to the implementation of the project, including the roles and responsibilities of the various stakeholders.
chaired by the SAI of Kenya, in its capacity as Chairman of the Institutional and Technical Capacity Building Commission under the theme « Audit of Legislative, Regulatory and Institutional Frameworks for Tax Revenue Mobilization » It was the main issue for the Coordination Committee of the Coordinated Audit on Combating Illicit Financial Flows to ensure overall coordination, the monitoring and evaluation of all work and the good quality of the deliverables expected at the end of the regional audit project, namely: the review and enrichment of the deliverables; validation of outputs at all phases of the project; consolidation of the regional report; the development of the compendium of good practices; the development of other communication materials for the audit…
« African governments together with African private sector actors should take the lead in strengthening stolen asset recovery, setting new standards to prevent illicit flows, and engaging in more concerted actions to combat the negative impact of illicit financial flows on African economies, » says another member.
« This means it must be seen in the context of the millions of people who could have been lifted out of poverty, the enormous number of employment opportunities that could have been created for Africa’s growing youth population, the thousands of hospitals and schools that could have been built, and how all of this could have translated into stronger social stability and cohesion. and communities on the continent. »
This committee is tasked with examining current challenges and trends in fiscal accountability, transparency, and integrity, and making evidence-based recommendations to make systems more comprehensive, robust, effective, and universal in their approach.
It should be recalled, however, that around the world, the fight against illicit financial flows has become a priority area for achieving sustainable development and building inclusive institutions and societies. Both in the 2030 Agenda for Sustainable Development and in the Addis Ababa Action Agenda of the Third International Conference on Financing for Development, explicit targets were adopted to combat illicit financial flows. This reflects a general consensus that illicit financial flows not only drain domestic resources essential for sustainable development, but also erode trust in social contracts and governance systems and increase inequalities within and between countries.
Vanessa Kwekam
