Media Foundation for West Africa Empowers Journalists on Illicit Financial Flows

Ashanti Region: The Media Foundation for West Africa (MFWA) has conducted a two-day training session focused on Illicit Financial Flows (IFFs) and progressive taxation for approximately 20 journalists in the Ashanti Region. This initiative is financially supported by the Ministry of Foreign Affairs, Denmark, as part of a strategic partnership project for Ghana and the West Africa region.According to Ghana News Agency, the United Nations Economic Commission for Africa (UNECO) describes IFFs as the illegal transfer of money across borders, primarily through corruption, tax evasion, and money laundering. Mr. Edward Cudjoe, the Ashanti Regional Director of the Economic and Organized Crime Office (EOCO), discussed how IFFs hinder a country's socio-economic development by increasing poverty, stunting economic growth, and underfunding public services. He identified key drivers of IFFs, including public sector corruption, tax evasion, trade mispricing, environmental crimes such as illegal mining, money laundering, and the use of shell companies.Mr. Cudjoe emphasized the gaps in existing legal and institutional frameworks regulating economic and crime-related activities, suggesting the need for amendments. He also pointed out that some sectors, such as Artisanal Mining and Virtual Assets Service Providers, lack regulatory oversight, allowing individuals to exploit these areas for IFFs.Highlighting the challenges within the mining sector, Mr. Cudjoe noted that artisanal and small-scale mining remains largely unsupervised, appealing to criminal activities. This sector contributes significantly to the country's gold production and labor force. He stressed the importance of countries comprehending the complex strategies employed by those engaged in IFFs to circumvent regulatory and legal frameworks.In response to these challenges, the European Union and Germany have contributed 70 million pounds to the African Union to bolster its capacity to combat IFFs on an international scale. Mr. Cudjoe urged journalists to play a pivotal role in this fight by investigating and producing fact-checked stories that unveil the realities surrounding IFFs in Ghana and beyond.Mr. Benaiah Addo, Executive Director of Green Tax Youth Africa, Accra, emphasized the role of taxation in generating national revenue. He pointed out that weak structures and inadequate equipment for tax collection and record-keeping lead to tax evasion. Mr. Addo stressed that governments need to invest in strengthening tax processes to increase revenue and close existing gaps in the tax system for national benefit.