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Africa Losing Up To $50 Billion In illegal Cash Transfers

Former South African president Thabo Mbeki (right) and Mt Abdalla Hamdok, the Economic Commission for Africa deputy executive secretary, at press conference in Nairobi, August 15th, 2012. Mr Mbeki called for Africa governments to comprehensively tackle the problem of illegal cash outflows from the continent.

An estimated $50 billion is illicitly moved out of Africa to developed nations each year, a panel chaired by former South African President Thabo Mbeki has said.

The UN-mandated High-Level Panel on Illicit Financial Flows from Africa meeting in Nairobi Wednesday, challenged African countries to find ways of stopping illegal transfers.

“This problem is very serious. We are engaging with governments across the continent to come up with ways to stop it,” Mr Mbeki told a press conference.

Mr Mbeki said multinational corporations were the top culprits as they had the financial muscle to take part in the prohibited business.

“Multinational corporations are the only ones that can move $15 billion, not those with $5,” he said, praising African governments for demonstrating political will to tackle the issue blamed for the region’s slower pace of development.

Money laundering and tax evasion are some of the key ways money is moved out, studies show

Mr Mbeki also blamed “corrupt practices in the public and private sectors”.

African finance ministers formed the panel and tasked Mr Mbeki with finding the sources of the money and how it was channelled to recipient countries.

The team’s next meeting will be in Tunis as it traverses the continent.

Africa review

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Posted by on August 16, 2012. Filed under AROUND AFRICA. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

6 Responses to Africa Losing Up To $50 Billion In illegal Cash Transfers

  1. tt

    August 16, 2012 at 2:37 pm

    Plenty of leaders are @ it!!!!!

  2. ABAKONZI

    August 16, 2012 at 3:14 pm

    But africans pali ubwafya,so Mbeki and his friends got allowances for being in kenya to talk about this issue.Its very easy to stop money from leaving africa(zambia) just as it is difficult to move thousands of dollars from USA to zambia without proper clearance.The problem is that the so called huge corps are assisted by that same bunch of idiots in kenya in rertun for kick backs because how else can a zambian presidentand his ministers, with their small salaries become a multi billionaire in less than 3yrs.Wake up guys

  3. kakolwe

    August 16, 2012 at 3:16 pm

    Surely, how can you catch them sending money out when you are blinded by their aid? If 1 stands in their way (Mugabe type) they are labelled and sanctioned + they fund rebels & wars then take out, not just money, but also resources & precious materials. We are doomed until we learn to stand on our own feet.

  4. Game

    August 16, 2012 at 6:14 pm

    This is why they killed Gaddafi….they never tasted oil money

  5. top kat

    August 16, 2012 at 9:58 pm

    try stopping them at your own risk.look at whats being going on in congo DR.war for the best part of the last ten years by rebels fronting and supported by western govts and all the while plundering its resources.

  6. then

    August 17, 2012 at 3:51 am

    That is what money laundering is all about. Its a serious crime mostly coomitted by BIG FISHES in society cupported mainly by politicians. Who can stop them?