Corporate corruption killing Africa’s economy – ITUC

The International Trade Union Confederation (ITUC) has stated that
corporate corruption is slaying Africa’s economy through illicit
financial flow out of the continent.

The General Secretary of the union, Kwasi Adu-Amankwah stated this on
January 19, 2017 in Abuja during a campaign launch meeting organized
by the Nigerian Labour Congress, Solidarity Center and the ITUC with
the theme “stop the bleeding”, which is aimed at stopping illicit
financial flow from Africa.

While noting that public sector corruption gives room for corporate
corruption, he blamed downturn development of Africa’s economy on
activities of corporations operating within region.

In his words, “corruption in the private sector which is massive and
which is complemented by corruption is the public sector, which even
though on a far less scale, is bad enough, because, it is the public
sector corruption which facilitates these massive losses through
private sector corruption.”

He added that Africa’s position in the international market as
raw-materials producer has been shortchanged by developed nations of
the world as goods are taken out at a very cheap price and on some
occasions undeclared while huge profits are made out of it outside the
shores of Africa.

On her part, Imani Countess, who is the Solidarity Center Regional
Program Director for Africa, stated that not less than 60% of illicit
financial flow out of Africa is perpetuated through multinational
corporations.

“At least, 60% of illicit flow comes from corporate commercial
activities. Corporations have found every way to rob Africa of its
resources.” She lamented.

She added that these corporations commit these atrocities through
trade mispricing by underpricing commodities when it leaves Africa and
selling it at its true value in the international market.

Imani noted that companies bleed Africa through illicit financial flow
by investing the proceeds of their illegal trade in tax havens.

The Executive Secretary, Presidential Advisory Committee against
Corruption, Bolaji Owasanoye, who was also in attendance lamented the
difficulty in repatriating stolen funds out of Africa that have been
stocked in foreign lands.

He stated that governments of developed nations of the world are now
putting in place legislation to frustrate efforts of developing
countries in recovering looted funds back to their countries of origin.

Bolaji added that the government of Nigeria will continue to strive to
block loopholes through which monies and other resources are siphoned
out of the country while it will intensify efforts to recover the
country’s identified stolen funds in the coffers of foreign nations.

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