Tighten screws on illicit financial flows, African govts urged

JOHANNESBURG-African governments have been called upon to tighten legislation towards effective enforcement of anti-corruption measures and restore legitimacy by weeding out illicit financial outflows that impede sustainable development.

About $1.4 trillion illicit financial outflows have been recorded in Africa in the last 30 years at $50 billion to 80 billion annually. According to surveys, five percent of these involve corruption by government officials with 30 percent attributed to criminal activities and 65 percent to commercial activities.

Corruption, smuggling, tax evasion and noncompliance top the major constraints affecting revenue collection by African governments at a time the continent is in dire need of funding to foster socio-economic transformation.

These are at the heart of a three-day media engagement and training workshop, which began here yesterday and is being attended by African tax administrators, business reporters and editors.

The African Tax Administration Forum (ATAF) hosts the event that is focused on shaping deliberations around the significance of taxation in sustaining nations and promoting development on the continent.

In his opening remarks, ATAF executive secretary Mr Logan Wort said effective revenue collection was the lifeblood of development in every country hence the need for authorities to work closely with citizens to ensure compliance.