Thursday, 7 May 2015

Illicit financial flows affecting Malawi economy- MEJN




 The Malawi Economic Justice Network (MEJN) has disclosed that illicit financial flows are affecting they growth of the country's economy.

MEJN Executive Director Dalitso Kubalasa made the remarks in Lilongwe on Tuesday during the 2nd Meeting of the African Parliamentarian on illicit financial flows and tax (APNIFFT) which was aimed at strategizing and brainstorming and recruiting the new Members of Parliament (MPs) on the APNIFFT.


"Illicit financial flows are responsible for draining the country of resources for development and are detrimental to revenue mobilization efforts. Abusive transfer pricing and related commercial activities attributed to multinational companies operating on the continent represent a significant source of this outflow.

"The net outflows from developing countries including the proceeds of tax evasion, outweigh inflows of aid and investment," he said.

APNIFFT aims at providing a platform for African parliamentarians to undertake sustained advocacy related dialogue and debate in a simplified manner on Illicit Financial Flows, tax governance and domestic resource mobilization on the African continent, informed by research and inclusive of a wide variety of voices with links to national and regional processes.

Speaker of Malawi National Assembly Richard Msowoya said Africa and Malawi in particular can not afford to be loosing large amounts of money due to financial flows and tax in tail at a time when leaders need to put much emphasis on development.

"A lot of money that the so called foreign investors make as profits do not remain in the country. Sometimes, we are also the one authorizing tax invasion and corruption. For example, if we look at the money lost through cash gate, we could have had some remarkable developments by now.

"If we look around, where there is dust there is still dust, where there was a pot hole there is still a pot hole, where there was hunger people are still dying of hunger, where there was no water people are still thirsty and where children were dying due to lack of medication, they are still dying of the same. We as MPs really need to curd this malpractice," he said.



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