TRUCK DRIVER NABBED WITH DAGGA WORTH E500 000 IN SA.

MBABANE – Dagga worth over E500 000 was found hidden in sawdust in a Swazi-registered truck in South Africa.

The truck driver has since been arrested by the South African police following the incident that happened yesterday.
It could not be ascertained where the truck was destined to but it was nabbed at Jeppes Reef, South Africa, after crossing through the Matsamo border gate. A routine check by the South African Police Service (SAPS) led to the discovery of the bales of dagga hidden in the truck load of sawdust. The incident was confirmed by Mpumalanga’s Head of Corporate Communications Brigadier Leonard Hlathi, who also mentioned that the truck was indeed Swazi-registered and its driver was Swazi. The suspect is yet to appear before court on charges of being found in possession of the illegal herb.

Hlathi explained that the truck was stopped and searched after suspicions that it may be transporting certain illegal substances.
“The truck’s reason to enter South Africa was quite vague so our police did a routine check in the truck, and did so vigilantly. In the routine inspection, loads of dagga was found hidden inside the truck which was also full of sawdust.
“We were not acting on any tip-off, but the police were vigilant on their routine work,” Hlatsi commented.

The sawdust, according to sources, was meant to conceal from anyone, the dagga inside the truck.
At the time Hlathi was contacted, the amount of dagga which had been offloaded was worth more than E500 000.
“We are yet to take the truck to the nearest station and offload more bags which will probably, in total, be worth way more,” he continued.
In another dagga-related incident, a 51-year-old Swazi man was arrested for being found in possession of dagga on the N17 highway, between Bethal and Ermelo, by members of the Secunda SAPS Flying Squad during a roadblock.
Constable Sibeko from Secunda Flying Squad confirmed this, stating that the search of the car was motivated by the foreign registration plates.

“While patrolling the highway, we spotted a blue Nissan Serena with Swazi registration plates and stopped it and requested to search it. The driver of the vehicle gave us permission.
“We found eight packets of compressed dagga and arrested the suspect for the illegal possession of dagga,” he said.

ISS Today: The fight against corruption in Africa is on

The AU has declared 2018 the year for combating corruption – are governments on board? By Liesl Louw-Vaudran for ISS TODAY.

The African Union (AU) has marked 2018 as the year for ‘Winning the Fight Against Corruption: A Sustainable Path to Africa’s Transformation’. Anti-corruption activists and organisations across the continent will be happy to hear this. It comes at a time when efforts to ensure greater transparency in government are increasingly paying off, even if there has so far been little success in relation to ruling parties and sitting heads of state in Africa.

The arrest warrant for Malawi’s former president Joyce Banda, issued on 31 July, has made waves inside and outside the Southern African country. Banda, who took over after the death of the controversial Bingu wa Mutharika in 2012, was initially seen as a fighter for women’s rights, good governance and rooting out corruption.

The highlight of Banda’s short presidential term, from April 2012 to May 2014, was the uncovering of the so-called Cashgate scandal, an apparent hacking of the government payment systems to favour fraud and corruption by officials and business people. Now it is alleged that she benefitted from the same fraudulent system, or at least didn’t do enough to stop it.

Her supporters say she is being framed, following her announcement that she will participate in fresh presidential elections in 2019. Banda, meanwhile, has vowed to return to Malawi from her self-imposed exile and face the music, confident of her innocence.

For anti-corruption campaigns to be successful, they should not be seen as a political witch-hunt by the new leader in power, but rather a credible effort by independent bodies, answerable to the legislative institutions and not the executive. So while it’s not clear whether the arrest warrant against Banda is politically motivated, the ongoing probe and revelations around Cashgate do say a lot about the advantages of a change in governing party and the potential it has to bring accountability.

In Nigeria, massive corruption has been uncovered by the country’s Economic and Financial Crimes Commission following the presidential win by Muhammadu Buhari in 2015. The latest scandal involves former oil minister Diezani Alison-Madueke, who has been charged with siphoning off millions of dollars in cash from revenues that should have gone into state coffers.

A network of corruption has also been uncovered in the usually tightly controlled Ethiopian bureaucracy. So far 55 government officials, business people and middlemen have been arrested.

In the cases of Malawi and Nigeria, the fight against corruption has clearly been favoured by changes in government. Small donor-dependent countries like Malawi also experience strong pressure and threats of sanctions by international donors and the International Monetary Fund. In other cases, counter-terrorism and increasing international pressure to trace fraudulent transactions and money laundering have brought corrupt practices to light.

Whereas most African countries rank poorly on Transparency International’s corruption perception index, a few, such as Mauritius and Rwanda, don’t do too badly. An interesting feature of corruption in Africa, however, is that unlike many other developing and developed countries, the continent remains poor while its leaders put their money in overseas banks, buy luxury real estate abroad and their children live it up in the world’s capitals.

Jakkie Cilliers, head of African Futures and Innovation at the Institute for Security Studies (ISS), noted while launching his new book Fate of the Nation that although developing countries elsewhere might have experienced the same levels of corruption as in Africa, the proceeds were ploughed back into the economy rather than stashed offshore.

In South Korea, for example, the heir of Samsung has been jailed for corruption and former president Park Geun-hye has been impeached due to charges involving the same company. Despite this, the country experiences huge economic growth. In South Korea, like elsewhere, the proceeds from corruption were generally reinvested in the economy, thus still greasing growth, Cilliers said.

The list of scandals in which corrupt African leaders have stashed their gains in Europe, the United States or, increasingly, the Gulf States, is long. An ongoing investigation into the way the children of first families like the Bongos of Gabon, the Obiang Nguemas of Equatorial Guinea and the Sassou Nguessos of the Republic of Congo stashed money in property, luxury cars and yachts in Europe also shows the propensity for corrupt leaders to “invest” their proceeds elsewhere.

In a few cases, money has flowed southward to South Africa, like some of former Libyan leader Muammar Gaddafi’s wealth; and to Kenya, through Somali piracy. Most of it, however, has left the continent.

Cilliers says tracing ill-gotten gains is increasingly facilitated by globalisation, the internet and electronic communication “that leaves a trace of everything”. This will become even more so if instruments like the Financial Action Task Force, aimed at combating money laundering, become the norm, he says.

It remains to be seen what the AU plans for its discussions on corruption at the 30th heads of state summit in January 2018 in Addis Ababa. Will it focus mainly on outflows by non-African companies or the government and business networks that enable these outflows? The 2015 Thabo Mbeki report notes that up to $50-billion is lost through illicit flows out of the continent every year.

The AU, which has a responsibility for continental norm-setting, has instruments to fight corruption. So far, 37 of Africa’s 55 countries have ratified the AU’s Convention on Preventing and Combating Corruption that was adopted in Maputo in 2003 and entered into force in 2006.

It is now up to credible anti-corruption bodies, governments and law-enforcement agencies to make sure these norms are adhered to. DM

Liesl Louw-Vaudran is an ISS Consultant

Photo:  Several thousands of South African from the South African Democratic Teachers' Union (SADTU) protest outside the parliament in Cape Town, South Africa, 24 April 2013. EPA/NIC BOTHMA

“Tackling Illicit Financial Flows together - An African Approach to a Global Phenomenon”

Eli De Friend, CAPRESE

The Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH regional programme, "Good Financial Governance in Africa" ("GFG in Africa") provides technical support to four pan-African networks, AFROPAC (African Organisation of Public Accounts Committees), AFROSAI (African Organisation of Supreme Audit Institutions), ATAF (African Tax Administration Forum), CABRI (Collaborative Africa Budget Reform Initiative). Within the context of this partnership, GIZ supported the 4 GFG partner networks in their organisation of an international conference on Illicit Financial Flows (IFF) entitled “Tackling Illicit Financial Flows together - An African Approach to a Global Phenomenon” that took place on 24-26th May 2017, in Yaoundé, Cameroon.
During three days of presentations, discussions, workshops, representatives of Supreme Audit institutions , senior tax officials, parliamentarians, budget specialists from finance ministries and technical experts from international organisations, non-governmental organisations and civil society came together to come to a common understanding of the extent, complexity and negative impact of Illicit Financial Flows, debate on measures to fight the problem and to show their commitment to the ongoing effort by signing a Conference Declaration, entitled Declaration on Curbing Illicit Financial Flows Through Good Financial Governance “United Against Illicit Financial Flows”.
Given the significant support for the initiative shown by the 214 delegates from 42 countries of which 33 were African, an African Union (AU) official highlighted the potential for exploring collaboration between the AU and the four partner networks.

Background and Context

The GFG in Africa programme is implemented by the Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development and the European Union and promotes transparency, accountability and domestic resource mobilisation in Africa.
Its objective is to foster Good Financial Governance in Africa by equipping decision-makers in African public finance with the necessary skills and competencies to improve Good Financial Governance, cooperating with pan-African networks:
 the African Organisation for Public Accounts Committees (AFROPAC), in the area of parliamentary oversight,
 the African Organisation for Supreme Audit Institutions (AFROSAI), in the area of external financial control and auditing,
 the African Tax Administration Forum (ATAF), in the area of tax policy and administration,
 the Collaborative Africa Budget Reform Initiative (CABRI), in the area of budget planning and implementation.
The programme has addressed the cross-cutting topic of Illicit Financial Flows (IFFs) since early 2016 and has launched a coordinated approach to curb IFFs with the four pan-African partner networks.
In this context, the pan-African networks organized the high level conference on IFFs in Yaoundé, Cameroon during 24-26 May 2017, of which this document is the Moderator’s report. 

Introduction and conference objectives

The objectives, as defined by the networks, of this conference were as follows:
 Attendees to develop a shared and more nuanced understanding of IFFs’ challenges including the different pillars & levels.
 Attendees to re-affirm their commitment to the Good Financial Governance Declaration (with new focus on IFFs and concrete strategy), underscoring the importance of cooperation (GFG approach), and ensuring the sustainability of the network.
 Networks present their approaches to tackle IFFs.
While co-organised by all four networks, the conference was hosted by AFROSAI and Cameroon’s Contrôle Supérieur de l’Etat. High level dignitaries, including Heads of Supreme Audit Institutions, Parliamentarians, Commissioner Generals and Ministers of Finance attended the conference.

Design

The first day was designed to focus on establishing a common understanding of Illicit Financial Flows, including an introduction about what constitutes IFFs, what forms they take, and in which ways they need to be tackled (policy, legislation, implementation and enforcement, information exchange etc). This first day was anchored around a draft Declaration On Curbing Illicit Financial Flows Through Good Financial Governance - “United Against Illicit Financial Flows” , which had been drafted collaboratively by the four networks.
Following the high level commitment day, the second day would provide an opportunity to engage on a technical level. One of the fundamental challenges when discussing IFFs remains bridging the gap between political processes and the implementation of those processes at both national and international level. Hence a logical point of departure would be to visualise both the key stakeholders involved in the ongoing activities of partner networks, as well as the merits of inter-agency cooperation.
Break-away sessions would serve not only to invigorate discussion and debate among the attendees, but they would allow for country showcases to demonstrate what happens in practice, discussions surrounding the concept of inter-agency cooperation, good practices such as models of (cooperation) agreements, model legislation, assessment tools, as well as technical assistance.
Three themes were chosen for the breakout sessions were as follows: Inter-Agency Cooperation to Fight Illicit Financial Flows stemming from
 Breakout 1: Commercial activities
 Breakout 2: Corruption
 Breakout 3: Criminal activities
Each session was open to all participants, irrespective of their institutional background and furthermore there was a hope that participants would attend individual sessions from different themes.
It was agreed that ATAF would prepare and moderate the session on commercial activities, CABRI would handle the session on corruption and AFROSAI would run the session relating to criminal activities. While the content of each theme was in the hands of the organizing network, the co-organisers developed a concept of structuring individual sessions which would each respect strict coherence in timing in order to allow participants to switch from one theme to another at the coffee and lunch breaks.

On the basis of the first two days, with the hope that some concrete measures and actions would be consolidated from the breakout sessions, day three would serve to chart the way forward. Given the importance of communicating for results, AFROPAC offered to take responsibility for a session on Communication for the third day.
In order to take the discussion of the conference beyond the four walls of the conference venue, it was decided to use the Twitter hashtag #ConferenceIFFYaounde, allowing conference delegates to share their experience with colleagues and those unable to attend the conference to contribute through this social media.

Participants

Invitations to the conference were extended to experts and professionals of the Good Governance network in Africa, notably:
 Supreme Audit Institutions (SAIs) members of AFROSAI;
 Senators, Parliamentarians and Clerks of the Budget and Finance Committees, as well as Parliamentary Account Committees in African Parliaments and other members of AFROPAC;
 Revenue Authorities, ;
 Ministries of Finance, Institutions and Agencies in African countries in charge of Budget and other members of CABRI
 Experts and officials of the African Union
 Experts from the High-Level Panel on Illicit Financial Flows from Africa;
Technical and financial partners (African Development Bank, World Bank, GIZ, European Union, OECDError! Bookmark not defined.) and Diplomatic Corps represented in Yaoundé;
 Institutions and NGOs involved in the management of Public finance (GFI,…);
 Others experts, representatives of non-governmental organisations and civil society organisations.
While more than 250 people attended the opening ceremony, including the Prime Minister and other dignitaries, as well as journalists from Cameroon, 214 participants from 42 countries remained for the full three days of the conference duration.
A list of registered participants is included in Appendix 4 – List of participants.

Figure 1. Mme Françoise Collet, Ambassador of the Delegation of the European Union to the Republic of Cameroon
Conference proceedings
Day 1 – Opening ceremony and Plenary Sessions
Plenary 1:- Opening ceremony
The Conference was opened under the auspices of the Prime Minister of the Republic of Cameroon, Mr Philemon YANG after keynote speeches from distinguished representatives of the various institutions. The objective of these introductory comments was to set the stage for an informed discussion on the topic, establish clear relationships between the concept of Good Financial Governance and Illicit Financial Flows, and the need to develop a general awareness on the topic and a strong political and policy response.
In her capacity as head of AFROSAI and host of the conference, Madame MBAH ACHA Rose FOMUNDAM, Minister Delegate at the Presidency of Cameroon in charge of the Supreme State Control, gave an opening speech in which she explained the importance of having a common vision of Good Financial Governance throughout the budget cycle is necessary in order to combat Illicit Financial Flows.
Her Excellency, Mme Françoise COLLET, Ambassador of the European Union Delegation to Cameroon, then spoke about the European Unions’ motivation in collaboration with Germany’s Federal Ministry for Economic Cooperation and Development (BMZ) to finance and support the Good Financial Governance in Africa programme, mentioning the negative impact of losing approximately 50 billion dollars per year. Specifically, she mentioned three critical areas to focus on:
 Reinforce national institutions
 Strengthen international cooperation
 Close legal loopholes.
In the absence of his Excellency, Dr. Hans-Dieter Stell, the Ambassador of the Federal Republic of Germany in Yaoundé, the Chargé d’Affaires, Mr Axel SAURER, spoke about Germany’s broader partnership with Cameroon in the area of democracy and human rights and how these have a direct impact on Illicit Financial Flows.
Figure 2. "Family Photo" with Cameroon Dignitaries and Distinguished Guests
10
Plenary 2: Social & Economic Impacts of Illicit Financial Flows in African Countries
The purpose of this session was to introduce the complexity of IFFs, introducing a shared definition, thereby setting the context for two days of discussions, and to underscore the repercussions of leaving this phenomenon unchecked. The panellists for this session were:
Her Excellency, Mme Françoise COLLET, Ambassador of the EU Delegation in Cameroon His Excellency, Ambassador Olusegun APATA, member of the UN High Level Panel on Illicit Financial Flows Mrs. Estherine FOTABONG, Director of Programme Implementation and Coordination at the NEPAD Planning and Coordinating Agency (NEPAD Agency) Ms. Heather LOWE, Legal Counsel and Director of Government Affairs, Global Financial Integrity (GFI) Mr. David NGUYEN-THANH, Head of Unit Public Finance, Administration, and Anti-Corruption, GIZ
Mme Collet, spoke about how Illicit Financial Flows are not just an African problem, but also touch countries within the European Union. EU countries are not just destinations or recipients of illicit funds flowing out of Africa. Multinationals also exploit inequalities in tax regimes within Europe, which facilitate base erosion and profit-shifting. Mechanisms, tools and international agreements have been established to reduce IFFs at all levels. She reiterated the EU’s commitment to fighting IFFs from Africa, of which the GFG in Africa programme is just one project. Specific recommendations included using tools developed by ATAF to close legal loopholes to mitigate tax avoidance, International Centre for Asset Recovery (ICAR) to recuperate lost revenue, as well as the OECD to improve visibility of tax reporting of multi-nationals. She also made a personal comment about her commitment regarding this subject, informing the assembly that before joining the European Union, she was a tax administrator in the French Ministry of Finance, and so understood challenges faced by conference delegates.
Mr Apata, started his intervention by explaining the difficult context in which the High Level Panel had to work and the extent and severity of the problems related to IFFs. He highlighted the findings and recommendations made by the Panel report, encouraging the assembled representatives of national governments to implement the recommendations of the report of the High Level Panel. In answer to the question what had changed since the High Level Panel published its main report in 2014, Mr Apata mentioned a case uncovered by the CBS network in which law firms accepted to indulge IFFs, the leaks of the Panama papers as well as the Nigerian renegotiation of oil production sharing contracts. All of these events were significant examples of how IFFs can be tackled, i.e. investigative journalism, whistle-blowers and political will power.
Mrs. Fotabong, echoed the words of previous speakers of the extent and severity of IFFs citing the figure of $50 billion, before introducing the work of the NEPAD Planning and Coordinating Agency and encouraging national and international institutions to develop the capacity of African law enforcement authorities and to put pressure on governments regarding IFFs. She specifically drew attention to Agenda 2063 of the African Union.
Ms Lowe, explained how she and her colleagues in GFI work with governments around the world to raise awareness and lobby for policies and legislation to combat IFFs. In particular, she mentioned she was hired to drive the effort to encourage OECD-based organisation to “own up”, making the recommendation for multi-nationals to be more transparent and publish reports regarding their operations and for governments to introduce systematic financial information exchange. She raised participants’ attention to the fact that on May 13, 2017, the G7 issued the Bari Declaration on Fighting Tax Crimes and Other Illicit Financial Flows.
Mr Nguyen-Thanh made a brief presentation summarising the policy of Germany’s BMZ and how GIZ implements this, both at global and country level, mentioning the Polifund
11
programme on IFFs and gave examples both from Africa (Kenya and Sierra Leone) and Latin America. He congratulated, in particular, the work of the GFG in Africa programme.
Figure 3. Illicit Financial Flows out of Africa and Development Aid1
Plenary 3: Presenting the GFG-IFF Draft Declaration
The third plenary session, built on the previous one, with Dr. Barbara DUTZLER, head of GIZ’s GFG in Africa programme, explaining how the programme works with regional networks, and that with regard to the subject of IFFs, it is all the more critical for these networks to collaborate. In this light, the networks had drafted the GFG IFF Declaration, building upon the networks’ GFG declaration adopted in 2012 in Arusha by Ministers of Finance and Governors at the occasion of the 47th Annual Meeting of the African Development Bank. Dr Dutzler explained that the declaration is a living document and that it would certainly benefit from the comments and suggestions of the distinguished guests in the room.
The Honourable Senator Edward DAGOSEH of the Liberian parliament, member of the Joint Public Accounts Committee and Chairman of AFROPAC presented the principles conveyed in the declaration, namely transparency, efficiency and accountability. He
1 Source: Illicit Financial Flows Report of the High Level Panel on Illicit Financial Flows from Africa, 2015, commissioned by the AU/ECA Conference of Ministers of Finance, Planning and Economic Development; African Economic Outlook, 2014
12
continued his remarks by stressing the need for international coordination to effectively curb Illicit Financial Flows. Therefore, the declaration should express the commitment of the participants to more specific actions to be taken in the fight against illicit capital movements and to win the support of all the stakeholders concerned by this issue.
Representatives of the other GFG networks were invited to add their own sentiment or comments on the declaration.
Mr. Logan WORT, Executive Secretary of ATAF touched on the need to chase down the assets leaving Africa and then asked the question “Can we get the money back?”.
Mr Neil COLE, Executive Secretary of CABRI added that other mechanisms would be needed beyond the current version of the declaration in order to tackle the inherent complexity of the IFF issue.
Representing AFROSAI in this session, M. El Haj HASSAN mentioned the leadership role that AFROSAI could offer in the fight against IFFs and the need to develop processes that would anchor the noble ideals of the declaration.
Finally, Mr Jean-Denis GABIKINI, Head of Economic Integration and Regional Affairs, African Union Commission was asked to convey the extent to which he felt that the work of the networks and the GFG in Africa programme, through their commitment to the declaration, could support the work of the African Union. Mr Gabikini prefaced his comments with an affirmation that the AU has more charters, agreements, than any other organisation in the world. He went on to reiterate how much work still remains to be done in the fight against IFFs and that the conference declaration certainly is coherent with the AU’s policy on the subject of IFFs. Amongst other points, he recommended liaising more intensely with AFRIPOL, designating a head of state as a champion of the fight against IFFs and organising an African against IFFs year.
Senator DAGOSEH then symbolically handed a paper copy of the Declaration to the Honourable James Klutse AVEDZI, Chairman, Public Accounts Committee (PAC), Parliament of Ghana.
Conference delegates were invited to submit their suggestions to strengthen the declaration by:
 leaving a written note in one of the suggestion boxes provided,
 posting it on Twitter hashtag #ConferenceIFFYaounde or
 sending an email to Ms Rosa DUBE, who could collate all the proposals in preparation for Plenary Session 7 on Day 3.
Plenary 4: Presentation of existing approaches and tools of GFG networks regarding IFF
Following directly on from Plenary Session 3, the fourth session was a platform for each partner network to present key initiatives they are currently undertaking in the fight against IFFs, including results of any country pilots and capacity development initiatives or products/services.
Representing AFROPAC in this session was the Honourable Mr. Aleke MENYANI of the Malawi parliament and Deputy Secretary General of AFROPAC. He recommended more intense collaboration between nations and a concrete action plan to cement the commitment behind the declaration. To this effect, he mentioned the example of the Lomé action plan, which requires and ensures tight collaboration between AFROPAC members when it comes to reforms of public finances of the relevant countries.
13
AFROSAI was introduced by Mrs MBAH ACHA Rose FOMUNDAM speaking about how AFROSAI is structured with specific regional organisations for the three principle language groups in Africa (English, French and Arabic). She then introduced Mr. Wynand WENTZEL of AFROSAI-E and M. Alfred ENOH of the PASIE project commissioned by CREFIAF, who gave examples of how their regional networks are working in concrete terms to fight IFFs.
Mr. Logan WORT then illustrated how ATAF is fighting Illicit Financial Flows, including the various approaches being taken to address specific types of IFFs and the tools and products ATAF has developed. He recommended that, domestically, each nation needs to define their own mechanisms to reduce the risk of Illicit Financial Flows, but at the same time multilateral instruments should be developed to tackle the issues stemming from inconsistencies across different fiscal regimes. The final slide of ATAF’s presentation showed the following list of recommendations.
 Continue partnership across the continent with other partner networks
 Provide technical data and case studies to Civil Society Organisations (CSOs) for activism
 Report to the GFG partners the ATAF success and challenges in addressing IFFs,
 Continue the ATAF Country Programmes as these improve legislation and yield revenue
 Increase measures to strengthen capacities in tax administrations and customs
 Provide training to law makers on the effects on IFFs and solutions provided
 Bring together members of the Public Finance Family together (tax, treasury, financial intelligence, customs, reserve bank).
CABRI’s presentation was given by Mr Neil Cole. He used the case of South Africa to demonstrate that transparency, which has been embraced in the country, which now places 3rd in the world in the Open Budget Index, on its own is insufficient. Transparency must go hand in hand with accountability to be effective in preventing corruption, mispricing and other Illicit Financial Flows. He recommended strengthening institutional capabilities, using the extractives sector as an example, suggesting that countries need to be able to measure:
 how much minerals they have,
 how much they can extract,
 how much can they collect.
Amongst the comments and questions from the floor, Hon. Nicholas GUMBO from Kenya and Secretary General of AFROPAC highlighted the need to work on both sides of IFF.
Plenary 5: Creating a Level Playing Field: Initiatives Aimed at fighting Illicit Financial Flows
The final session of the day was designed to look at a broader scope beyond the GFG in Africa networks and take stock of ongoing initiatives and commitments networks mainly on the receiving end of the outflows. This session aimed at highlighting the importance of enforcing the conventions already in place. The panel was chaired and moderated by Mrs Estherine Fotabong who introduced her fellow panellists:
Mrs Dorcas ODOUR, Deputy Director of Public Prosecution in Kenya, Mrs Caroline MALCOLM, Advisor in the International Cooperation and Tax Administration Division, OECD, Mr Fitzroy DRAYTON, Adviser Asset Forfeiture/AML/Proceeds of Crime, ARINSA, M Jean MBALLA MBALLA, CRADEC/TJN
The session started with a video recorded by Mr Andres KNOBEL of Tax Justice Network in which he presented the financial secrecy index.
14
Mr Jean Mballa Mballa highlighted the link between funding of terrorism or armed conflict and the funding of sustainable development, insofar as Illicit Financial Flows, even those taking advantage of tax inconsistencies in tax legislation, can be directed towards the funding of the former instead of the latter. CRADEC along with the Tax Justice Network have made the following recommendations to African nations:
 Regulate in depth economic activities to reduce the informal nature conducive to more illegality in financial matters including in mineral resource exploitation;
 Control effectively the fair use of tax incentives mechanism and the range of economic activities which can be used to generate illicit outflows in order to optimize the share of revenue accruing from mineral resource extraction by multinational companies (MNC)s;
 Implement and harmonize policies in regional economic communities with respect to the strategic action plan of the Africa Mining Vision (AMV).
 Fight against aggressive tax optimization (transfer pricing abuse, mis-invoicing, under-capitalization, etc.) by MNCs conducting to tax fraud and evasion;
 Promote transparency and accountability in the management of mineral revenue;
 Reinforce means and power to Financial Intelligence Units for effective financial investigation at up-stream and down-stream of economic activities;
 Close the gap between State Control and Audit Institutions and the judiciary system;
 Raise awareness, engage and empower the public including youth and women in the fight against Illicit Financial Flows.
Mrs Dorcas Odour spoke from her perspective as a prosecutor about the need for inter-agency and international cooperation and the need for African countries to enforce the laws and international agreements to which they are committed. She also mentioned the need for more institutional and individual capacity building and raised awareness. First and foremost, however, laws needed to be updated to be in line with international agreements and model legislations. A prosecutor could only prosecute against the legal framework of her country; what was not regulated could not be prosecuted.
Ms Caroline Malcolm briefly built on what other speakers had mentioned regarding measures that have been developed to combat IFFs in the OECD countries, recognising that some of these tools may need to be adapted to the African context. She mentioned a network of 17 African countries currently piloting measures to fight against tax fraud. She also recommended increased cooperation between partners and a more appropriate framework for capacity building and training.
Mr Fitzroy Drayton introduced participants to the work of Asset Recovery Informal Network Southern Africa (ARINSA) whose 13 members exchange information informally in order to facilitate the identification, tracing, freezing, seizure, confiscation and recovery of proceeds and instrumentalities of crime. In particular he mentioned the case of rhinoceros horns sold in Asia, where states knew how many rhino horns had been taken and they knew the retail price of the illicit material in receiving countries. They were thus able to calculate the value of this specific illicit outflow. Another example he mentioned to illustrate the necessity for international cooperation was the successful repatriation of assets by Mauritius. Even in the absence of formal cooperation mechanisms, by knowing their respective counterparts in other countries, people involved in the investigations could gather information internationally and successfully conclude the cases.
After each panellist had spoken, Mrs Fotabong invited members of the audience to submit questions to the panel.
Mrs Odour answered a question from a Ghanaian delegate regarding the protection of whistle-blowers and key witnesses, suggesting that because of insufficient funds for such protection, it would be wiser to base investigations on hard evidence rather than verbal testimony. Answering questions from delegates from Uganda and Cameroon, Mr Mballa
15
Mballa underlined the need to change attitudes and mindsets and greater sense of the common good in order to strengthen the governance structures already in place and generally be more rigorous in the application of law.
Day 2 - Breakout Sessions
Introduction
The second day of the conference was organised into three parallel breakout sessions. As previously mentioned, the breakout sessions were prepared by ATAF, CABRI and AFROSAI, respectively on the themes of
 Breakout 1: Inter-Agency Cooperation to Fight Illicit Financial Flows stemming from Commercial Activities
 Breakout 2: Inter-Agency Cooperation to Fight Illicit Financial Flows stemming from Corruption
 Breakout 3: Inter-Agency Cooperation to Fight Illicit Financial Flows stemming from Criminal Activities. Commercial Activities ATAF Corruption CABRI Criminal Activities AFROSAI IFFs in the mining sector: Case study from Zambia; Expert discussion on the role of the different institutions to tackle IFFs Expert Panel & facilitated discussion on Anti-corruption lessons & experiences Overview of Illicit Financial Flows from criminal activities Coffee Break (delegates have possibility of switching themes) Exchange of information World Café Style Corruption Case Studies Case Studies on Money Laundering, Smuggling/Financial Fraud, Cybercrime Lunch Break (delegates have possibility of switching themes) Tools for tax and customs collaboration; suggestions for a joint action plan Master-class on tackling Corruption Identification of inter-agency cooperation models in combating IFF from criminal activities & development of action plan
Figure 4. Structure of Breakout Sessions
Breakout Session Reporting Framework
During these breakout sessions, “rapporteurs” took notes as input to the presentation of results in subsequent plenary session, using the following framework
 What are the challenges on a country / regional / continental level?
 What are good practices?
 What are the gaps between good practices and what is actually happening?
 What should be done and what is the way forward?
16
Breakout 1: Commercial Activities
The aim of the breakout session on commercial activities was to identify and address the most demanding challenges with respect to IFFs, develop participants’ capacity to raise awareness of the IFF issue in their own country, thereby strengthening the ability of countries to address the issue of transfer pricing, to reduce the trade mispricing component of IFFs, and thus enhance their domestic resource mobilization. Concretely, ATAF hoped to use this opportunity to inform participants about the Agreement on Mutual Assistance on Tax Matters (AMATM)
The morning session started with a case study from the Mining Sector. Martin CHILESHE, an expert from the Zambia Revenue Authority (ZRA) presented the ZRA’s collaboration with other Zambian government agencies to counter Illicit Financial Flows (IFFs) through the under-valuation of copper and cobalt exports. This was followed by a presentation by Célestin AKAMTSENE and Daniel DUMAS on the PASIE programme, recently launched by CREFIAF. Finally, the Honourable Eric KOMBA of the Mines and Mineral Resources Committee of Sierra Leone, spoke briefly about the challenges facing authorities, when international borders are insufficiently monitored. Other crises, such as the Ebola epidemic, can be an additional obstacle to international investment. Amongst the questions and comments from the floor, Mr Fidelius NICHOLS from Botswana suggested that with regard to tax incentives, it might be more appropriate to consider tax reduction rather than tax exception.
Later in the day, the focus turned to the training of auditors with regard to the exchange of information. Joseph TANYI MBIANYOR, Head International Information Exchange Unit at the Directorate General of Taxes of Cameroon explained how the AMATAM and the OECD’s Convention on Mutual Administrative Assistance in Tax Matters offer legal platforms for countries to exchange information and execute simultaneous audits. Cameroon has recently aligned itself with OECD countries and G20 with respect to legislation and infrastructure to facilitate information exchange. As an example he mentioned a recent protocol signed between the tax and customs administrations. Participants raised questions on subjects as diverse as the repatriation of funds, which frequently requires the authorization of those responsible for the IFF in the first place and the exchange of information between tax authorities and supreme audit institutions.
This case was used by Ms. Eva KIRCH to illustrate effective interagency cooperation in the final session of the day. The last speaker of the day was Ms Caroline MALCOLM of the OECD, who presented a variety of tools to support administrations in their fight against IFFs.
In accordance with the Breakout Session Reporting Framework, participants in the breakout session on commercial activities identified the following key points.
Challenges
 Trade mispricing: undervaluation of minerals
 Identification of final customer & destination of exports
 Tax administrations rarely exchange information
 Tax administrations suffer from inconsistent data
 Insufficient capacity & specialized knowledge in government institutions, on complex mining industry
 Government agencies are working in silos
 Antiquated legislation facilitates abusive transfer pricing, and is an obstacle to double taxation agreements and exchange of information.
17
Figure 5. French-speaking table in World Café on Corruption
Good practice
 Use a model double taxation agreement
 Use ATAF’s Agreement on mutual assistance in tax matters
 Review domestic legislation, regulations and risk assessment processes
 Provide on-the-job training
 Establish advanced pricing agreements to prevent abusive transfer pricing in extractive industries
Gaps
 Lack of understanding of what constitutes IFFs
 Poor access to information
 Good legislation isn’t enforced due to weak institutions
 Insufficient transparency regarding procedures, or TP negotiations
Way forward
 Raising awareness in revenue authorities on multilateral Exchange of Information instruments, i.e. the Multilateral Agreement on Mutual Assistance in Tax Matters (AMATAM)
 Creating a nexus between tax administrations and Ministries of Finance
 Establishment of a central beneficial ownership registry
 Sharing of expertise between revenue authorities
 Establishment of independent laboratory facilities for verification of mineral qualities
 Tax and Customs authorities should collaborate in joint risk assessments, sharing of information, organization of joint expert meetings and training activities
 Auditors need to perform audits on government approach, compliance with international standards, audit administrative processes of revenue authorities and inform parliament.
Breakout 2: Corruption
The session on corruption, prepared by CABRI, was designed to illustrate the complexity of the fight against corruption. The morning started with a panel session on anti-corruption lessons and experiences. Mr Savior MWAMBWA explained how corruption is the major enabler of Illicit Financial Flows. The judicial system suffers through non-application of the law and exploitation of legal loopholes. He recommended increased inter-institutional cooperation facilitating improved monitoring. In responding to a question from the floor about what measures could be used to tackle IFFs, he recommended the separation of powers and better compensation of officials. One participant suggested anchoring a definition and illustration of “Illicit Financial Flows” in a formal text.
This was followed by a World Café-inspired interactive session, in which participants discussed 3 case studies of corruption. Sitting in groups of approximately 10 people at each table, the objective was to examine real life situations concerning corruption and determine how the problem might be addressed.
The final part of this session was the presentation of a threat and risk assessment tool tackling IFFs given by Ms Kathy NICOLAOU. Having previously worked in South Africa’s Financial Intelligence Centre (FIC) she was able to give this institutional perspective.
18
In accordance with the Breakout Session Reporting Framework, participants in the breakout session on corruption identified the following key points.
Challenges
 Corrupt practices taking advantage of systemic government weaknesses
 Vested interests undermine regulatory structures
 Government administrations understaffed, underfunded, no dialogue
 Complexity of corruption is changing
 Not just economic issue, it’s a political issue
Good practice
 Political pressure, when applied at the right place, works
 Keeping it simple: pay your tax authorities and civil servants well
Gaps
 Lack of awareness (underlines role of MPs)
 Accountability gap between government and civil society
 Inter-agency cooperation is important, but in the absence of political will it is useless
 No independent judiciary and prosecuting authorities
 Need to have the end game in mind
Way forward
 Strengthen institutional leadership to break silos
 Apply political pressure with leadership by example
 Strengthen international cooperation by developing models of cooperation and putting pressure on free-riding jurisdictions.
Breakout 3: Criminal Activities
After an introductory speech by Mme MBAH ACHA Rose FOMUNDAM, in which she explained that the breakout session on criminal activities would be anchored around three core themes, starting with presentations and then moving on to discussions and brainstorming. The three topics to be addressed were:
 Money laundering;
 Cybercrime;
 Smuggling and related offences;
Mr Fitzroy DRAYTON of ARINSA gave a talk on the trafficking of animals and animal parts. This activity is estimated at representing a billion dollars in 3 years from now. From 2010-2012, 100,000 elephants were killed for their tusks. A similar number of living animals were illegally exported. ARINSA systematically fights poaching at an international level.
Mr. Alain Symphorien NDZIE from the Cameroon General Directorate of Customs talked about the different categories of smuggling from carbonated drinks to ivory and rhinoceros horn.
The presentations were followed by discussions on case studies on the same topics, aimed at identifying the major challenges related to IFFs stemming from criminal activity.
In accordance with the Breakout Session Reporting Framework, participants in the breakout session on criminal activities identified the following key points.
Challenges
The key challenges raised were:
19
Figure 6. Dr. Barbara Dutzler of GIZ, presenting possible actions to combat IFFs stemming from cyber crime
 Identification of criminal networks
 Harmonisation and updating of legal texts and frameworks
 Repatriation of funds arising from criminal activities
 Reinvestment of the confiscated funds into infrastructure aimed at fighting IFFs
Way forward
The final activity of the day was a brainstorming on potential measures to address the various challenges.
 Need for political commitment
 Domestication of international legal
instruments
 Enforcement and improvement of laws
and regulations
 Develop the capacities of all actors
involved and in all areas (technical,
organisational, financial and
technological)
 Strengthening of institutional
cooperation at both national and
international levels
 Raise public and institutional
awareness on the subject of IFFs stemming from criminal activities.
Figure 7. Mr.Freddy NDJEMBA presenting the results of discussions on money laundering and other types of financial crime
Plenary 6: Presentation of Results of Break Away Sessions
In Plenary Session 6, the representatives of AFROSAI, ATAF and CABRI presented the output, results or conclusions from their respective sessions. Many of these elements were common to all three breakaway session themes.
Challenges
 Poor communication/ exchange of information between institutions and nations
 IFF is not just an economic issue, but also political
 Government agencies and other institutions are working in silos
20
 Weak institutions, systems and leadership prevent reliable law enforcement, partially because they are significant facilitators of corruption, which is itself a challenge to the reduction of IFFs stemming from commercial and criminal activities.
Good practice
 Ensure legislative texts are harmonised and up-to-date
 Reinvest confiscated funds to further strengthen the institutions fighting IFFs
 Commitment to ensure implementation of international standards
 Integrated IT systems with real time access for all government agencies involved
 Develop and deliver appropriate capacity building and training of all actors at all levels.
Gaps
 Lack of appropriate up-to-date legislation
 Insufficient domestic legislation to implement bi-/multilateral instruments facilitating Exchange of Information
 Poor access to information
 Lack of harmonised and reliable data
 Lack of sufficient capacity & specialized knowledge in government institutions
 Good legislation isn’t enforced due to weak institutions
Way forward
 Domestication of international legal instruments
 Enforcement and improvement of laws and regulations
 Strengthen institutional cooperation nationally and internationally
 Political commitment must be ensured, secured and developed
 Organise joint expert meetings to reduce silo mentality
 Organise joint training or secondments to reduce silo mentality and facilitate exchange of information, while developing capacity
The session closed with an interactive question and answer session, with questions on free trade zones and instruments at the disposal of governments. One question relating to immunity for heads of state and members of parliament was addressed by all the panellists, suggesting that the approach must depend on the specific cultural and political context of each nation.
In the evening, conference participants were invited to a Gala Dinner at the invitation of Madame Mbah Acha FOMUNDAM, Secretary General of AFROSAI.
Day 3 – Closing ceremony and Plenary Sessions
Plenary 7: Adoption of the Conference Declaration
To introduce the final day, it was announced that a significant number of suggestions to enhance the GFG IFF Declaration (see
Delegates and networks adopted the GFG IFF Declaration as the “Conference Declaration”, formally entitled Declaration on Curbing Illicit Financial Flows Through Good Financial Governance “United Against Illicit Financial Flows”. The conference declaration is based on and refers to the GFG IFF Declaration that was presented by Senator Dagoseh on the first day of the conference.
21
Dr Barbara Dutzler invited the representatives of the four partner networks to sign a book as a symbol of their adoption of the Conference Declaration.
AFROPAC: Honourable Nicolas GUMBO, Secretary General, AFROPAC
AFROSAI: Madame MBAH ACHA Rose FOMUNDAM, Secretary General, AFROSAI.
ATAF: Ms Oluanke AKANNI, Group Head, Cross Border Transfer Pricing at Federal Inland Revenue Service of Nigeria, Council Chairman of ATAF.
CABRI: Mr Samuel KIIRU, Chief Economist, National Treasury, Kenya, Management Committee of CABRI
Figure 8. Signatures of the representatives of the four partner networks in the GFG in Africa program on the first
After the signing by the four networks, the book was laid out in front of the conference delegates, who were invited to sign the document and leave a comment if they so wished.
22
Figure 9. Delegates signing the Conference Declaration
Plenary 8: If you can’t communicate it, then you can’t manage it
The final plenary theme was “Communications” and had been prepared by the AFROPAC General Secretariat. The Honourable Nicolas GUMBO talked about the importance, but also the sensitivity and complexity of effective communication, using anecdotes from his professional and private life. The other panellists were Ms Heather Lowe of GFI, Ms Kathy NICOLAU, a freelance consultant on IFFs, and Mr. Savior MWAMBWA of ActionAid.
Through an interactive session with questions from the Moderator and members of the audience, the panellists made a number of recommendations, including the following:
 It is important to communicate what the effects of IFFs are to the general population, but also to favour politicians who speak out and act against IFFs.
 It could be useful to bring some of the technical language associated with Illicit Financial Flows into the mainstream, so that call citizens come to understand the problem and why their governments are fighting it.
 The panellists agreed that the use of slogans helps to drive the message home.
 It is necessary to be aware of the politics of language, e.g. the term “tax haven” may not be as tactful as “jurisdiction offering an attractive fiscal policy”
 It is necessary to be aware of the risks of over simplifying one’s language, e.g. “transfer pricing” which refers to necessary and legitimate activities by Multi-National Entities. What we are trying to fight against is “abusive transfer pricing” or “trade mis-pricing
 At the same time, it is useful to coin phrases that convey the meaning clearly rather than sticking with the correct technical term, e.g. speak of the need to fight “shadow companies” instead of the need to get “beneficial ownership information”
 Use traditional and innovative marketing techniques
 It was suggested that rather than developing a communication and then trying to disseminate that communication, it might be more effective to find the right messenger, then a way of how to get the message across.
Closing ceremony
The formal closing of the conference was introduced by the Master of Ceremonies. He first asked Mr Segun APATA, as a representative of the High Level Panel, to say a few words on behalf of all the participants. Mr Apata applauded the diversity of the conference speakers and the quality of their presentations. In addition, he insisted that the conference was just the beginning. He then thanked the government of Cameroon, represented by Madame MBAH ACHA Rose FOMUNDAM, Minister Delegate at the Presidency of Cameroon in charge of the Supreme State Control, for the hospitality shown to all delegates and then thanked the Minister personally for her implication and involvement in the conference.
23
Eli De Friend was then invited to read the bi-lingual conference summary report (see Appendix 3 – Conference Summary Report), before formally presenting the report to the Minister.
Finally, on behalf of the Prime Minister of Cameroon, the Minister congratulated the delegates for the quality of the discussions and pertinence of the recommendations made, reiterating the need for continued and strengthened cooperation in order to combat Illicit Financial Flows effectively. She then wished everyone a safe journey home.
Observations
During three days of presentations, panel discussions and workshops, several speakers drew attention to the fact that Africa, both as a continent and as a community of individual nations, has a lot of work to do at both national and international levels to curb the problem. While there are already many tools, instruments, models, agreements and frameworks to support countries in the battle against IFFs, there are still $50 billion leaving the continent every year. In this respect, several common themes emerged.
Common Challenges and Gaps
A number of challenges came to light as a result of the deliberations throughout the conference.
 The inadequacy of national legislations to address abusive transfer pricing, to investigate corruption within public institutions at all levels, to protect whistle-blowers, to prosecute illicit activities more generally.
 The lack of political will at the highest level combined with poor compensation and capacity at the lowest levels facilitate corruption and prevent effective investigation of possible IFFs.
 Inconsistencies between different national legislations facilitate the exploitation of tax loopholes, base erosion, profit shifting and impede the effective collaboration of authorities trying to put a stop to the activities on either side of the border.
 Lack of transparency in administrative procedures allows for legal and illegal abusive practices to go unchecked.
 Officials and professionals working in the various institutions involved in public financial management, (notably the tax administrators in revenue authorities, budget planners within ministries of finance, parliamentarians and clerks from public accounts committees, auditors general in the supreme audit institutions) frequently are unaware of the problem of Illicit Financial Flows and lack the technical expertise to understand how multinationals and criminal organisations exploit weaknesses, gaps and loopholes for their illicit and/or illegal gain.
 Inconsistent or inadequate communication on the subject of Illicit Financial Flows contributes to many of the previous points.
Common Good Practice and Way Forward
To avoid or abate Illicit Financial Flows and to recover lost assets by pursuing the assets and perpetrators (“track it, stop it and get it”), several common ideas were brought forward.
 Bring domestic legislation into line with international treaties, standards, models, etc.
 Where harmonisation and standardisation of legislation, or pricing of assets, in compliance with international standards is technically or culturally unacceptable, establish bilateral agreements.
 Cooperation should be strengthened between institutions within the same country and between counterparts in different countries and jurisdictions.
24
 Use effective communication to build political will, muster the support of the general public and facilitate the cooperation between officials, administrators, experts, etc.
 Continue and strengthen awareness, capacity building and training for all those engaged in public financial management, as well as legal and judicial authorities.
 Strengthen institutional and personal leadership to serve as role models for others.
As many people commented independently, the conference was a success and to a large extent met the aspirations of various stakeholders involved in the organisation and preparation of the event.
More concretely, it seems evident from the general participant feedback and enthusiasm for signing the Conference Declaration that the three objectives set for the conference by the partner networks were at least partially achieved, namely:
 Attendees to develop a shared and more nuanced understanding of IFF’s challenges including the different pillars & levels.
 Attendees to re-affirm their commitment to the Good Financial Governance Declaration (with new focus on IFF and concrete strategy), underscoring the importance of cooperation (GFG approach), and ensuring the sustainability of the networks.
 Networks present their approaches to tackle IFFs.
An positive outcome of the conference was the interest of AU representative Mr Jean-Denis GABIKINI in the IFF Declaration. Mr. GABIKINI expressed his hope to present the work of the four partner networks to the Specialized Technical Committee Finance, monetary affairs, economic planning and integration of the African Union.
Innovations such as the use of Twitter were embraced - as can be seen from the screenshot below, the Twitter hashtag #ConferenceIFFYaounde were still being used 3 weeks after the event.
Figure 10. Twitter handle #IFFConferenceYaounde in use 3 weeks after conference
25
Conclusions
The three day conference reiterated the fact that IFFs pose a huge challenge for economic and social development as well as political security on the African continent, particularly in resource-rich countries and in fragile and conflict-affected states. The leakage of wealth from poor countries through tax evasion, money laundering, corruption and other misdeeds is becoming an ever bigger worry for Africa. The HLP estimates of IFFs in Africa amount to a staggering $50 billion outflows per annum, which has been increasing steadily. The magnitude of IFFs affecting Africa exceeds total Overseas Development Assistance to the continent.
Weak governance is regarded an enabler and a consequence of IFFs. The lack of collaborative and coherent strategies to curb IFFs further reinforces an environment which allows IFFs to continue to thrive. The break-away sessions on day two of the conference underlined that the fight against IFFs requires the development of appropriate tax, budgetary, fiscal and auditing policies that are effectively implemented, regulated, and subjected to efficient oversight. Moreover, Africa needs to develop the relevant legislative policies, procedural frameworks, technical expertise, capacity, as well as ethical conduct to curb IFFs.
Good Financial Governance remains at the heart to achieve these objectives. Effective activities aimed at curbing IFFs in Africa require a concerted multi-sectorial and cooperative governance approach. In this endeavor, everyone needs to do their part: governments, the private sector, civil society, and international institutions.
The four organizing networks (AFROSAI, ATAF, CABRI, AFROPAC) are doing their part: they promote transparency and accountability in public finance in order to ensure public revenues are effectively spent and accounted for. In doing so, decision makers in African public finance need to be supported in driving development-oriented solutions to IFF via budget processes, through political engagements and past vested-interests.
This conference was a first step in a long and difficult fight against illicit financing. But it is a step in the right direction and provided momentum for going forward. By adopting the Conference Declaration, the four networks have shown their commitment to their fight against Illicit Financial Flows and in so doing are making a significant step on the path to the UN’s Sustainable Development Goals (SDGs) of its Agenda 2030 and the AU’s Agenda 2063.

See full report attached

Malawi ex-president, Joyce Banda, wanted by police over $250m corruption case

A Malawian court has granted the police a warrant of arrest in respect of the country’s former president, Joyce Banda.

According to a police statement tweeted by a journalist in the country, the order is in respect of a corruption scandal that took place during her tenure as president.

“The Malawi police wishes to inform Malawians that its Fiscal and Fraud Section conducted some investigations on the suspected involvement of the Former President in ‘cashgate’ cases and unearthed credible evidence.

The evidence gathered raises reasonable suspicion that the Former President committed offences relating to abuse of office and money laundering.

“The evidence gathered raises reasonable suspicion that the Former President committed offences relating to abuse of office and money laundering,” the statement added.

The case in question, the ‘cashgate’ saga, is on record as the country’s biggest financial scandal. It is said to have involved loss of about $250 million.

Malawi police are said to have asked for INTERPOL’s assistance in arresting Mrs Banda who is currently out of the country. She has yet to comment on the arrest warrant.

The 67-year-old served as the country’s president between April 2012 to May 2014. She is founder and leader of the People’s Party which was established in 2011. She had previously served as vice-president to late president Bingu wa Mutharika.

She took over power after her boss died in office but she heavily lost 2014 elections to incumbent Peter Mutharika.

BLANTYRE, MALAWI — 

Malawi police have issued an arrest warrant for former president Joyce Banda, saying they wish to question her about her suspected involvement in the 2013 Cashgate corruption scandal.

The arrest warrant for Malawi's former president comes nearly four years after the Cashgate scandal first broke.

In 2013, a British auditing firm hired by the government discovered $32 million in government funds had been paid fraudulently to contractors, in particular private construction companies, for goods and services that were never delivered.

Ten people have been convicted of theft and money laundering, including the supposed ringleader, former ruling party official Oswald Lutepo. In all, about 70 people have been arrested.

Police say investigations have continued and they have “unearthed credible evidence” of the involvement of former president Joyce Banda and need to question her.

Malawi police spokesperson, James Kadadzera, spoke to VOA.

“The evidence gathered raised reasonable suspicion that the former president committed offenses relating to abuse of office and money laundering,” he said.

Kadadzera said Malawi police have notified all Interpol member countries of the arrest warrant.

The Cashgate scandal was a major blow to Banda’s administration. Malawi temporarily lost much of its foreign aid, and Banda lost her bid for re-election in 2014. She had ascended to the presidency just two years earlier after her predecessor, Bingu wa Mutharika, died in office. Banda was his VP.

Banda left the country to pursue personal business interests and is currently in the United States.

Banda's spokesperson Andekuche Chanthunya told VOA Banda is yet to be served with a warrant.

“When we see the warrant and when we get that confirmation, she will make herself available to the police,” said Chanthunya.

The timing of the arrest warrant has left some Malawians, like this business owner, asking – why now?

“Issues to do with Joyce Banda being connected to the Cashgate have been there since she went out power. If the government is committed to arrest her, there were so much talks, evidence given in court during that time. It is much more political than the fight against corruption,” said Lizinet Bandawe, a business owner in Blantyre.

In the wake of the Cashgate scandal, the current government pledged to crack down on corruption to reassure foreign donors.

In mid-July, police arrested former agriculture minister George Chaponda and two other individuals in connection to another scandal, known as Maizegate. They are accused of illegally procuring 100,000 tons of maize from neighbouring Zambia.

Zambia losing $3bn annually through illicit flows

KABANDA CHULU, Johannesburg
ZAMBIA could have avoided negotiating for an International Monetary Fund (IMF) bailout if adequate measures to stop illicit financial flows had been implemented, the Center for Trade Policy and Development executive director Isaac Mwaipopo has said.

Mr Mwaipopo has since challenged security wings and other public institutions to urgently act on findings of the Financial Intelligence Centre report, which revealed how multinational mining companies are robbing Zambia of billions of Kwacha through illicit financial flows.
The latest Financial Intelligence Centre suspicious transaction report indicates that Zambia loses about US$3 billion annually through illicit financial flows (IFF) and is mainly perpetrated in the minerals sub sector.
The mines are alleged to be involved in transfer pricing, thin capitalisation, mis-invoicing and over-invoicing, and utilising loopholes in double taxation treaties, among other things.
Mr Mwaipopo said the resources that Zambia keeps losing outstrip the financial aid of US$1.6 billion it is seeking from the IMF and other international finance institutions.
“Zambia is currently negotiating a bailout package from the IMF to help address the current economic challenges.
“But these are development paths the nation would have avoided if adequate measures had been taken to curb illicit financial flows,” Mr Mwaipopo said.
He said continued leakage of resources through IFF and money laundering is robbing Zambia of the resources for financing the country’s development agenda.
“We will be shocked as an institution if the findings from the FIC report are treated as a mere academic exercise like has been the case with the Auditor General’s report, where misappropriation of public funds are reported, but no meaningful action is taken,” he said.
Mr Mwaipopo said some of the findings that may need immediate follow-ups include the observed increase in the repatriation of funds to and from off-shore centres.
He said another malpractice activity that should be stopped is the externalisation of corporate funds through over-invoicing of goods and services provided by foreign suppliers, who are given preference over local suppliers.
“This needs to be addressed as it takes away the opportunity for local suppliers to benefit from the extractive sector. There are also cases of purchase of copper ore from small scale miners on the Copperbelt that is being exported to tax havens,” Mr Mwaipopo said.

Heroin-smuggling plot 'foiled by sharp-eyed workers on Cape wine farm'

23 June 2017 - 15:09 By Aron Hyman

An audacious plot to smuggle heroin worth R290-million from South Africa to Europe was foiled by Western Cape farmworkers.

The foreman at Witklip‚ near Villiersdorp — scene of the massive drug bust on Wednesday — said workers raised the alarm when a pallet of wine destined for export to the Netherlands leaned precariously to one side.

“We unpacked the boxes. The first two layers were wine but at the third layer the boxes were much lighter‚” Godfrey Potberg told TimesLIVE on Friday.

“We cut it open and saw the powder‚ then we called the police.”

The powder‚ in 253 boxes‚ was originally reported to be cocaine worth up to R500-million. But at Friday’s court appearance of a 23-year-old Dutch man police said it turned out to be heroin worth around R290-million.

Mark Rodrigues’ case in Caledon Magistrate’s Court was postponed until Wednesday to give the state and the defence time to prepare for a formal bail hearing. Rodrigues’s attorney‚ William Fullard‚ said the man’s family had a South African address.

Potberg said the pallets arrived at the farm in a van from Strand‚ and were due to be loaded into a container. Rodrigues had left the farm when the workers raised the alarm‚ he said‚ but he was called back by police.

“He was very nervous‚ he was smoking a lot of cigarettes. He wanted to make a phone call but the police took his phone away‚" he said.

Potberg said it was the first time workers at Witklip‚ which produces Eerste Hoop wines‚ had packed a consignment for someone else and it was the first time he had met Rodrigues or seen him on the farm.

Rodrigues was arrested with the driver of the transport van and another passenger. The other two were subsequently released.

Middelburg situated on popular drug route

With the ‘southern route’ becoming increasingly more popular, police have managed to make several large drug busts in Mpumalanga, as heroin streams into the province through Zimbabwe, Swaziland and Mozambique.

Heroin worth R34 million was seized at the Middelburg Toll Plaza on the N4, after police acted on information about a suspicious cargo truck from Tanzania. Last year, almost 300 kg of the drug were seized at South African borders to Zimbabwe, Swaziland and Mozambique as well as along the route to Gauteng in only three months.

The United Nations’ Office on Drugs and Crime has released two reports in 2015 and 2016 where new drug routes, from heroin producing countries like Afghanistan through East African countries like Tanzania to distribution points like South Africa, are mentioned.

The drug routes often have a devastating effect on areas along the route as some of the drugs are siphoned off for local use. Middelburg itself has seen an increase in especially heroin and Nyaope addiction in recent years.

Porous borders and an outnumbered police force serve as attractions for smugglers when looking for a drug route. It is estimated that a staggering 22 tons of heroin travelled to East Africa to places like South Africa where a good infrastructure, financial services and global economic connections assist in distributing drugs to markets in Europe and Asia.

In 2016 several heroin busts in Mpumalanga served as an indication of the increasing quantities being smuggled past our front door. Along the way, drugs are sold off for local use, or finds its way back from Gauteng.

• In March 2016, 50 kg heroin worth R50 million were found during a bust at the Nkomasi border post.

• In April of the same year, another 58 kg were seized at the Lebombo border post.

• The following month, in May, three more busts, one at Chrissiesmeer, one at Alzu Petroport on the N4 and a third at the Groblersburg border post, resulted in 90 kg heroin being seized.

• During the most recent bust, police discovered 34 kg heroin, hidden in a built-in compartment on the back of a truck after it was pulled over at the Middelburg Toll Gate. Two men were arrested and has since appeared in the Middelburg Magistrate’s Court.

Four Lloyds Bank workers and three 'bespoke money launderers' who raided £750,000 from the accounts of rich clients and lavished it on luxury lifestyles are jailed for 38 years

• Four former Lloyds employees were among seven people jailed for 38 years  
• Courtney Ayinbode, Tajinder Galsinh, Benjamin Omoregie and Molly Jones plundered wealthy clients' accounts to fund their luxury lifestyles 
• The four insiders scoured the computer system for rarely-accessed accounts holding large sums of money before passing the details to the criminal gang
• They would then swiftly transfer the money through a number of bogus businesses before eventually the money would disappear offshore

By Thomas Burrows for MailOnline

Published: 17:09 BST, 24 July 2017 | Updated: 22:05

Four former Lloyds employees were among seven people jailed for 38 years for raiding bank accounts of wealthy clients to fund their luxury lifestyles.

Bank workers Courtney Ayinbode, 29, Tajinder Galsinh, 35, Molly Jones, 24, and Benjamin Omoregie, 26, were all involved in the 'high-level and sophisticated' scam that took place between 2012 and 2013. 

The four insiders scoured the computer system for rarely-accessed accounts holding large sums of money before passing the details to the criminal gang.

They also ordered new bank cards so impostors could pose as the customers and set up transfers of hundreds of thousands of pounds at a time. 

The money was then laundered through a series of bogus companies before being moved offshore to prevent it being recovered.

One victim lost more than £750,000 after a unknown man used a fake driving licence in his name to set up two transfers over three days.

Another customer with £3 million in the bank only avoided becoming a victim when another member of staff became suspicious and rang him up to check.  

The money was handled by 'bespoke money launderer' Eddie Lakes, 41, and his henchman Kushveer Raulia, 25, through a complicated network of fake companies and accounts with the help of Parvez Hussain, 50.

Prosecutor Paul Cavin said 'a lot of expensive designer clothing and shoes' were found in Omoregie's car boot, including a Vivienne Westwood shirt worth £230.

Omoregie had previously refused to tell police where his car, holding the stash of designer goods, was located.

Mr Cavin said the gang 'were all involved in an agreement to defraud Lloyds TSB of millions of pounds'.

He continued: 'Accounts belonging to people with large balances - in some cases several millions of pounds - were targeted.

'To identify those rich accounts, an insider, an employee of the bank was recruited to help the gang.

'The insider would then assist in breaching the security protocols in order to steal the money.

'The money would be transferred to accomplices who would swiftly transfer the money through a number of bogus businesses before eventually the money would disappear offshore.

'Once it is offshore it can come back onshore and nobody can trace it.'

The first victim lost £750,975 in the space of three days after his account was accessed by both Ayinbode and Omoregie at the Balham and Streatham branches of Lloyds TSB in July 2013.

A few days later the customer's address was changed and a new card was issued to the new address.

Then on August 5, a man claiming to be the customer went into the King's Cross branch to ask to set up a transfer. 

Staff accepted the imposter's bogus driving licence as genuine and authorised the transfer, even though the customer's local branch was in Clapham, south London.

The money was laundered through a bogus company operated by Raulia.

The network of fraudulent businesses had been set up by Lakes, who has previous convictions for providing a 'bespoke money laundering service' to criminals. He recruited Raulia as his front man.

Mr Cavin said: 'Raulia provided a ready made money laundering structure, limited companies with bank accounts both here and overseas.

'What these accounts allow you to do is to transfer money to a number of other accounts that equally do not seem to have any legitimate purpose.'

Raulia then withdrew 'significant quantities of cash' and used £860 of it to pay off his credit card.

Following his arrest he claimed the money going in and out of his businesses was related to legitimate trading.

Galsinh and Jones were involved in the attempted fraud on the account of Thomas Murphy at time when it had a £3 million balance.

Jones set up a CHAPS payment of £486,000 - supposedly for a house purchase - after an impostor came into her branch of Lloyds TSB.

Investigation of her mobile phone revealed messages relating to the Murphy account and a description of the man impersonating the customer.

Galsinh was involved in opening more than half of all the suspicious bank accounts which were set up at the Feltham branch. 

Jailing Ayinbode, Jones, Omoreji and Galsinh for a total of 20 years, Judge Anuja Dhir QC said: 'You had accessed to valuable, sophisticated client information, you abused the trust your employers placed in you - you passed on that information and compromised bank accounts.

'You all knew that money would be dishonestly transferred from client accounts as a result of your actions.

'Such was the sophistication of this fraud that the money was money was dissipated and spent in a professional and organised manner.

'You were friends acting together and with others to steal as much money as you could. You were motivated by financial gain.'

Jailing Lakes, Hussain and Raulia for a total of 18 years, she said: 'All of your accounts were fraudulent and conducted no legitimate trade - these accounts were an integral part of the laundering process.

'Hundreds of thousands of pounds were laundered through them - often from other accounts connected with Mr Lakes.

'Large quantities of cash were withdrawn from them by Mr Raulia designed to mask the criminal activity and and frustrate the efforts of law enforcement in tracing the funds.' 

Raulia, from Hayes, west London, was convicted of two counts of conspiracy to defraud and one count of converting criminal property and was jailed for seven years.

Lakes, from Brentford, was jailed for a total of five years.

He was jailed for three years for converting criminal property for the Lloyds Bank fraud, with two years consecutive for conspiracy to defraud and money laundering for a separate, unrelated fraud.

Ayinbode, from South Norwood, southeast London, was convicted of conspiracy to defraud between 9 November 2012 and 8 August 2013 and was sentenced to five years imprisonment.

Galsinh, of Hayes, was convicted of one count of conspiracy to defraud and was jailed for six years.

Hussain, of Romford, east London, was convicted of converting criminal property and was jailed for six years.

Jones, of Leigh-on-Sea, in Essex, admitted conspiracy to defraud ahead of trial and was jailed for five years.

Omoregie, of no fixed address, admitted the same charge and was sentenced to four years imprisonment. 

Read more: http://www.dailymail.co.uk/news/article-4725608/Four-Lloyds-workers-three-money-launderers-jailed.html#ixzz4npr2kBuY
Follow us: @MailOnline on Twitter | DailyMail on Facebook

CTF150 CONDUCTS KEY LEADERSHIP ENGAGEMENT IN SOUTH AFRICA AND MADAGASCAR

Between 10-14 July 17, the Commander of CTF 150, Rear Admiral Olivier Lebas travelled to Pretoria and Antananarivo to engage with representatives of the South African and Malagasy Defence Forces, regional maritime security agencies and political bodies.

Key Leadership Engagement (KLE) is an important component of CTF 150’s mission. The engagement facilitates and promotes cooperation with Combined Maritime Forces’ regional partners, which include nations around our Area of Operations that participate in combating terrorist activity and illicit trafficking.

Closer cooperation can include information sharing, capacity building and training exercises between CTF 150 warships and local maritime security forces during port visits.

In Pretoria, Admiral Lebas met with representatives from the regional office of the United Nations Office for Drugs and Crime (UNODC), an organisation with whom CMF maintains a close relationship. Smuggling patterns and observations in the southern area of the Indian Ocean over the last six months were discussed, and Admiral Lebas updated the office on CTF 150’s recent seizures and successes.

This was followed by a visit to the Joint Operations Headquarters of the South Africa National Defence Forces at Valhalla. The working visit served to increase the understanding and awareness of both parties’ interests and intents over the coming months.

From South Africa, the Commander CTF 150 travelled to the Madagascan capital Antananarivo to engage with the Regional Maritime Information Fusion Centre, a relatively new agency created to collect and analyse maritime traffic information to create a recognised maritime picture for the region. The visit established a vital line of communication between two organisations with overlapping objectives that can mutually support each other.

The final stop was a meeting with representatives of the Malagasy National Defence Forces, including the Chief of General Staff, Major General Razafindrakota and Commander of Naval Forces Vice Admiral Ranaivoseheno. Both visits served to improve the Malagasy awareness of CTF 150 operations, and to discuss the current narcotics situation in and around the island of Madagascar.

Malawi: Chaponda Booed 'Wakuba' At ACB - Arrested Malawi Ex-Agriculture Minister Hides Face in Shame

By Green Muheya

A crowd hurled insults at embattled former Minister of Agriculture, Irrigation and Water Development George Chaponda on Wednesday evening following his arrest earlier in the day by the Anti-Corruption Bureau (ACB) and two others linked to a corruption scandal involving maize imports from Zambia.

Large crowds were on guard in the commercial city of Blantyre as Chaponda and Rashid Tayub the head of Transglobe based in Blantyre appeared before the graft-busting body for questioning.

Nyasa Times reported last Friday that Chaponda's arrest was imminent after learning that an arrest warrant was obtained from the court.

On Wednesday morning at 8.20am, Chaponda handed himself at ACB arriving on a red Range Rover registration MJ 7541 in company of a personal handler.

Money laundering legal expert Alfred Jairos Banda and another lawyer Frank Mbeta later joined Chaponda.

Tayub also handed himself to ACB before midday after learning there was a warrant of arrest.

Another suspect businesswoman Grace Mijiga Mhango of a locally registered Grain Traders and Processors Association of Malawi (GTPA) was arrested in the capital Lilongwe.

Chaponda, who is Mulanje South West Member of Parliament and vice-president (South) for the ruling Democratic Progressive Party (DPP) attracted attention from the public in Blantyre as news of his arrest tricked in after a breaking news on Nyasa Times and messages going viral on social media.

Hundreds of residents of Blantyre camped at ACB offices and chanted "Chaponda wakuba (Chaponda is thieving politician).”

They demanded authorities to let Chaponda face the tax-payers.

"Wakuba, wakuba mtulutseni timuone," chanted the crowds as they mobbed his vehicle.

Meanwhile, Chaponda was captured on camera hiding his face in the vehicle, apparently in shame.

The crowds were not intimidated by the presence of notorious DPP Cadets who came at the bureau with party regional governor for south Charles Mchacha and his treasure Ngozi Harawa around.

The people even followed the ACB vehicle carrying Chaponda registration MG 738 AC still chanting insulting songs.

Social and political commentator Mankhumbo Munthali told Nyasa Times that the booing and humiliation [with the exception of few cases of some stoning] that Chaponda experienced at the hands of hundreds of Blantyre residents should partly send a clear message to those in authority that "Malawians in their perceived docility are bitter with the way those in authority are managing public affairs particularly by worshipping the culture of impunity at the expense of public interest."

Said Munthali: "What we saw in Blantyre is a clear testimony that Malawians are now tired and angry with the impunity that had characterised high profile corruption related cases, and were only waiting for an opportune time to express such discontent.

"Instead of pretending that things are okay, those in authority should swallow their pride, repent of their sins and stop taking Malawians for granted. The fact that this public anger occurred in their so-called political stronghold should make them wake up from their slumber and begin to walk their talk.

"Otherwise, merely dismissing the events as the work of the opposition is recipe for disaster."

Read More: http://allafrica.com/stories/201707200624.html