ActionAid hails Mbeki’s report on illicit financial flows - CNBC Africa

ActionAid hails Mbeki’s report on illicit financial flows

Special Report

by Trust Matsilele 0

ActionAid hails Thabo Mbeki's panel report on illicit financial flows from Africa. PHOTOS: ais.badische-zeitung

The international non-governmental organisation that helps in fighting poverty and injustice urged member states to take concrete actions to stop the illicit financial flows from the region.

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Henry Malumo, Africa Advocacy Coordinator, ActionAid said the African Union was sending a strong message that they were planning to clamp down on losses being incurred.

“This is the culmination of public pressure and the perseverance of the Mbeki panel. African leaders are sending a clear signal that they plan to clamp down on the loss of more than 50 billion US dollars per year from Africa," said Malumo.

“Multinational companies are identified as the biggest culprits largely through tax dodging. These companies are depriving Africa of vitally needed funds to pay for schools and hospitals, and are undermining the continent’s ability to reduce poverty and increase growth."

The organisation also said Africa’s leaders must now ensure that the recommendations are promptly implemented to stem the flight of cash and that the money is spent for the benefit of all its people.

“But this can’t be achieved by Africa alone. Rich countries, where most of the money ends up, must support through global action to end corporate tax dodging - including the establishment a UN body to lead the re-writing of the global tax rules."

(WATCH VIDEOMisappropriation of funds undermining Africa’s economic growth)

The organisation called for joint action by both rich and poor countries on international tax dodging.

“The adoption of the report on illicit financial flows comes at a critical time as Africa looks for sustainable ways to fund development including the implementation of the Sustainable Development Goals to be approved by the UN in September.”

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