A shocking revelation has been made about the staggering amount of money Ghana loses to illicit financial flows every year.
According to Bernard Nii Addo, Executive Director of Green Tax Youth Africa, research shows that Ghana loses approximately $3 billion annually to these financial malpractices.
Between 1980 and 2018, sub-Saharan Africa received nearly $2 trillion in foreign direct investment (FDI) and official development assistance (ODA) but emitted over $1 trillion in illicit financial flows.
These flows, illicitly acquired and channeled out of the continent, continue to pose a development challenge to the region, as they upended domestic resources which could have been crucial for the continent’s economic development.
Speaking in Takoradi at a two-day training session on Illicit Financial Flows organized by the Media Foundation for West Africa for selected journalists in the Western and Western North regions, Bernard Addo emphasized the need for the media to play a crucial role in exposing and addressing these financial irregularities.
Illicit Financial Flows: A Threat to National Development
Illicit financial flows refer to the illegal movement of money or capital from one country to another, typically through corruption, tax evasion, and money laundering, according to UNECA (2015).
Bernard Nii Addo noted that such incidents have the potential to undermine national development, especially when those involved are in government.
Call to Action for Journalists
The Executive Director urged journalists to take an active role in investigating and reporting on issues related to illicit financial flows. He stressed that journalists should be interested in the development process, from the contract stage to completion, to ensure transparency and accountability.
“We need to ensure that as media and as advocacy agencies, we seal the loopholes to address those challenges, especially on how much we are losing because we need development, we need those monies to develop the country,” Addo emphasized.
Transparency and Accountability
Mr. Addo emphasized the importance of transparency and accountability in government. He noted that diverted funds often sent offshore need to be exposed, enabling other agencies to partner and tackle the issues from the source.
The training session covered topics such as Illicit Financial Flows, Foundation of Taxation, and Domestic Resource Mobilization. Addo’s lecture on Taxation and Domestic Resource Mobilization highlighted the critical role journalists play in helping to deal with illicit financial flows resulting from trade mis-invoicing, fake invoicing, and mispricing, among others.
By shedding light on these financial malpractices, the media can help ensure that revenue needed for development is not diverted, and that the government is transparent and accountable to the people.
