Mbeki's trillion-rand trail

22 May 2015 - 02:08 By Penwell Dlamini

Former president Thabo Mbeki has called on African leaders to stem the illicit financial outflows that have robbed the continent of billions of dollars. Mbeki made the call to the Pan African parliament in Midrand, as he presented a report on illicit financial outflows from the continent.The former president chairs the African Union High Level Panel on Illicit Financial Flows from Africa, established by African ministers of finance and the UN Economic Commission for Africa.Mbeki said that over the past 50 years Africa had lost in excess of $1-trillion in illicit financial outflows.Currently African countries are losing $50-billion a year through these outflows, according to the International Monetary Fund.But this was an understatement of the problem, Mbeki said."The figure excluded such elements as trade in services and intangibles, and the proceeds of bribery and trafficking in drugs, people and firearms," he said.He highlighted that most African countries had failed to meet their Millennium Development Goals, adopted in 2000, because of insufficient capital to finance the actions required.The UN has estimated that the number of Africans living on less than $1.25 a day increased from 290million in 1990 to 414million in 2010. Per capita domestic product in Africa is reckoned to be one-fifth of the global average."These statistics make the unequivocal statement that Africa needs large volumes of capital effectively to address the challenge of eradication of poverty and underdevelopment."It is precisely in this context that the imperative stands out that everything should be done to stop the illicit financial outflows, which contribute so much to depleting the capital our continent so urgently needs," Mbeki said.The report showed that 60% of the illicit financial flows is from the activities of big companies.Drug trafficking accounted for 30% of illicit financial outflows, followed by corruption...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.