By Elizabeth PUNSU, Kumasi
The Economic and Organised Crime Office (EOCO) strongly urges immediate collaborative efforts among multiple stakeholders to address the increasing issue of Illicit Financial Flows (IFFs) within the nation.
"In the battle against illicit financial flows, cooperation is essential. Law enforcement agencies should collaborate closely with the media and various state organizations. No individual entity can address this issue alone—we must all join forces and work together comprehensively," stated Edward Cudjoe, the Ashanti Regional Director of EOCO.
It is estimated that Ghana loses upwards of $3 billion every year due to Illicit Financial Flows (IFFs), encompassing practices like money laundering, tax avoidance, and mispricing of transfers. This situation mirrors a larger continental problem, with African nations as a whole forfeiting over $50 billion annually because of these unlawful monetary practices.
"These are assets that could be allocated towards essential development initiatives like improving educational standards, healthcare services, and infrastructure," Mr. Cudjoe highlighted.
The previous two administrations turned to the International Monetary Fund (IMF) for financial aid when they took power, with the most recent one obtaining a $3 billion rescue package. Simultaneously, approximately the same sum is squandered each year due to illicit financial flows (IFFs).
During a two-day training workshop organized by the Media Foundation for West Africa, in collaboration with Oxfam Ghana and sponsored by the Danish International Development Agency (DANIDA), Mr. Cudjoe shared these insights.
The workshop conducted in Kumasi gathered 20 journalists to examine IFFs and understand how they affect a country’s ability to generate income.
"It is crucial to involve individuals who shape public opinion. Journalists have a critical part in increasing consciousness, guiding discussions, and uncovering the methods used for illicit financial flows from the nation. Such training assists them in grasping what IFFs entail, recognizing warning signs, and narrating these issues in a manner that enlightens and teaches the populace," stated Mr. Cudjoe.
He mentioned that even though Ghana boasts robust legislation, issues with enforcement and coordination persist as challenges.
“IFCs deprive the nation of developmental resources. If the public is better informed, we can jointly obstruct the pathways through which money is diverted from our country. This issue isn’t due to insufficient laws; rather, it stems from a range of systematic problems,” he stated.
Mr. Cudjoe also cautioned that without intervention, illicit financial flows might pose serious threats to the nation's security.
"These resources may be utilized for purchasing arms or fueling disputes. Frequently, these financial flows are concealed and cleansed via ostensibly lawful pathways like philanthropic contributions or humanitarian assistance. Such activities can present significant risks to a country’s tranquility and security," he emphasized.
Moreover, he highlighted the critical necessity of taking preemptive actions to avoid additional losses.
"We have significant concerns regarding funds exiting Ghana due to tax avoidance and money laundering directed towards secretive locations and offshore financial centers. These monies become extremely difficult to track or retrieve once they depart. This is precisely why immediate action is crucial; we need to sound the warning bells and inform the populace about recognizing and understanding the routes and indicators of illicit financial flows," Mr. Cudjoe emphasized.
Paul Gozo, who serves as the Programmes Assistant for Media and Good Governance at the Media Foundation for West Africa (MFWA), pointed out that this initiative was created to address a skills shortage within the media industry concerning the coverage of illicit financial activities and tax policies.
As part of the Strategic Partnership Initiative for Ghana and West Africa, this training program receives support from Oxfam Ghana and DANIDA.
The initiative seeks to educate 80 journalists nationwide on recognizing IFFs and comprehending the complexities of progressive taxation. This training will enable them to effectively cover these topics, raise awareness among the public, and help develop lasting resolutions.
Provided by Syndigate Media Inc. ( Syndigate.info ).
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