Ghanaian journalists have been encouraged to take a leading role in advocating and mobilizing citizens to combat Illicit Financial Flows (IFFs) and promote increased investment in the country. IFFs refer to the illegal movement of money across borders, violating national and international laws. These activities often involve corruption, illegal mining, tax evasion, trade mispricing, money laundering, and financing conflicts.
IFFs undermine Ghana’s ability to generate revenue for sustainable development, forcing reliance on loans and exacerbating inequalities. Dr. Bishop Akologo, an economist, highlighted that Ghana loses billions of dollars annually to IFFs through corruption, bribery, poor contracting practices, and investment mismanagement. This, he said, presents a significant challenge to the country’s development and financial stability.
A 2015 report by Global Financial Integrity revealed that Ghana lost over $3 billion in illicit financial flows through trade mis-invoicing alone, out of a total $9 billion in exports and imports with developed countries. Dr. Akologo noted that such losses deprive the nation of critical infrastructure like schools, hospitals, and roads, perpetuating underdevelopment and inequality.
Dr. Akologo made these remarks at a two-day workshop held in Bolgatanga for journalists in Ghana’s Upper East Region. The workshop aimed to enhance journalists’ understanding of IFFs, equipping them with the skills to report effectively on their impacts and mobilize citizens against the issue. The training, organized by the Media Foundation for West Africa (MFWA) with support from Oxfam and Denmark’s Ministry of Foreign Affairs, also focused on empowering journalists to track government policies and responses to curb IFFs.
The Global Financial Integrity report further revealed that in 2015, Ghana lost $758 million through over-invoicing of imports, $722 million through under-invoicing of imports, $117 million through over-invoicing of exports, and $1.6 billion through under-invoicing of exports. Dr. Akologo stressed that these illicit flows disproportionately benefit a few, deepening inequality in the economy.
He urged journalists to enhance their investigative capabilities and build independent analyses to expose IFFs. “This can help citizens hold leaders accountable and ensure better scrutiny of investments so that Ghana reaps maximum benefits from its resources,” he said.
Dr. Akologo, who also heads Technology Integration Point Ventures, emphasized that IFFs are particularly rampant in the natural resources sector, especially mining. He called for a review of mining contracts to ensure Ghana benefits fairly from its natural wealth.
Mr. Benaiah Nii Addo, Executive Director of Green Tax Youth Africa, identified tax evasion and unfair tax systems as key drivers of IFFs. He called for strong political will to reform Ghana’s tax system, broaden the tax net, and encourage compliance among individuals and businesses.
William Nlanjerbor Jalulah, a Program Officer at MFWA, expressed optimism that the workshop would bridge knowledge gaps on IFFs and inspire journalists to produce data-driven and impactful reports. He emphasized that independent media coverage could expose tax manipulation, tackle IFFs, and address social inequalities in Ghana.
Source: TheDotNews