Time to deal with illicit financial flows
Ghana must help halt illicit financial flows into Africa by using its educational institutions, Professor Horace G. Campbell has urged.
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Prof Campbell, who is the Kwame Nkrumah Chair at the Institute of African Studies at the University of Ghana (UG), Legon, said “Ghana must be in a position where its students help to expose and deter cross border tax evasion,” he said this when he took his turn at the UG Business School seminar series in Accra on March 9, 2017.
He spoke on the theme, ‘The African Currency: a Tool for Transformation, Unification and Curbing Illicit Financial Flows out of Africa.’
Particularly, he said the UG Business School would have to change its curriculum to reflect current happenings in the global international system today.
“It will have to join the curriculum in calling for a new international economic order. We will demand a new international financial system. Students in the business school should improve transparency on transnational corporations, curtail trade misinvoicing, anti-money laundering and eliminate anonymous companies,” he said.
Gravity of illicit financial flow in Africa
In 2012, Africa lost US$69 billion from illicit financial flows.
Experts have argued that Africa’s efforts to strengthen tax and customs administration and reduce illicit financial outflows, especially via trade misinvoicing should be supported.
Other priority actions to mitigate illicit financial flows include public registries of beneficial ownership of companies.
Again, it is envisaged that a more efficient and equitable global tax system would decrease the ability of multinational companies’ to dodge their tax obligations.
Effects of illicit financial flows
He said it was unfortunate that no university in Africa had a curriculum that taught on how to halt illicit financial flows and universities in Africa were not geared towards African independence but towards teaching people about how to integrate greater into the illicit things.
“Illicit financial flows deepen inequality in Africa. It resists governments’ efforts to transform the African governments. It reinforces dependence. It reinforces external debt and instead of helping Africa to study illicit financial flows they are telling you about global governance and they are telling you about structural adjustments and about how we should have poverty alleviation,” he said.
Prof Campbell said none of the ideas were necessary to turn the corner in terms of African independence.
Tackling illicit financial flow
He said there were a number of forums to tackle illicit financial flows.
He urged African universities to become centres for teaching of pan-Africanism and ending illicit financial flows.
Prof Campbell said African universities couldnot await the next crush to engage the question of the African currency.
“African intellectuals must be involved in the African Monetary Institute and we must establish more discussions on personal preparations and reparative justice,” he said.
He said although the African Union has set a target of Agenda 2063, which calls for action by all to work together and build a prosperous and united Africa based on shared values and a common destiny., it was incumbent to go beyond these stages established by the African Monetary Institute.
“Looking at the trend of the financial war some of these stages will be thrown overboard. Africa has a choice of either becoming independent by working with the students and scholars intellectuals becoming independent and having one African government or one African currency or Africa can continue to be servants dominated by others,” he said.
