English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Trade fraud costs Africa US$60 billion

WASHINGTON, DC: A report by advocacy organization Global Financial Integrity (GFI) says five African countries have lost at least US$60.8 billion in tax revenue from fraudulent trade invoicing.

The news coincides with a claim by campaigner Global Witness that after oil majors Shell and Eni paid US$1.1 billion in 2011 to the Nigerian government for one of West Africa's biggest offshore oil blocks, the money was diverted to Malabu Oil & Gas, a company controlled by the former Nigerian oil minister Dan Etete (below) while he was still in office.

Shell EniGlobal Witness says it wants oil executives to reveal what they know about Etete's ownership of Malabu and to stop lobbying to weaken laws in the US and EU that require these sorts of payments to be made public.

Meanwhile the GFI study - funded by the Danish ministry of Foreign Affairs – has revealed that between 2002 and 2011, tax loss from mis-stated trade invoices equalled 12.7 percent of Uganda's total government revenue, 11.0 percent for Ghana, 10.4 percent for Mozambique, 8.3 percent for Kenya and 7.4 percent for Tanzania.

Mogens Jensen, Danish minister for Trade and Development Cooperation, said his country's support for the five African states was "clearly at risk of being undermined by fraudulent trade transactions that rob the people of these countries of funds that could otherwise have been used for investments in infrastructure, schools, hospitals, and other much needed public services."

GFI president Raymond Baker added: "The consequences are simply devastating. The capital drained from trade mis-invoicing means that local businesses in Uganda and Tanzania have less money to grow their companies and hire more workers. The potential revenue loss from trade mis-invoicing means that Ghana has less money to spend on healthcare, Kenya has less money to devote to education, and Mozambique has less money to invest in infrastructure. Trade mis-invoicing is perhaps the most serious economic issue plaguing these countries."

The GFI report recommends the governments of the five countries boost Customs enforcement; treat trade involving tax havens with the "highest level of scrutiny"; combat the use of shell companies; identify the true owner of any bank account; and join the Extractives Industry Transparency Initiative.

Global Witness notes that every year oil, gas and mining companies make payments to governments worth hundreds of billions of dollars for access to the world's natural resources. It says these payments will be Africa's largest inflow of wealth for the foreseeable future. In 2010, the value of exports of oil and minerals from the continent was worth US$333 billion, about six times the value of exported agricultural products (US$55 billion) and nearly seven times the value of international aid (US$48 billion).

"It is our view that this is just the beginning of the conversation surrounding trade mis-invoicing and illicit flows in these [five] countries," said Baker. "The estimates provided by our methodology are likely to be extremely conservative as they do not include trade mis-invoicing in services or intangibles, same-invoice trade mis-invoicing, hawala transactions, and dealings conducted in bulk cash," he added.

News

Written on 22/02/2018, 19:42
infrastructure-improvements-not-rocket-science-says-iataNEW YORK, NY: February 22, 2018. IATA director general and CEO Alexandre de Juniac says the U.S. government should get out of the business of running...
Written on 22/02/2018, 17:40
top-employer-dhl-opens-new-brussels-hubBRUSSELS: February 22, 2018. DHL Express has a new €140 million, 36,500 sq.mt. regional hub at Brussels Airport that can handle 42,000 shipments an...
Written on 22/02/2018, 16:10
record-year-for-rockfordROCKFORD, IL. February 21, 2018. The Chicago Rockford International Airport (RFD) has reported a 50 percent increase in landed cargo in 2017 to reach a...
Written on 22/02/2018, 15:44
brussels-levies-395-million-fine-on-maritime-car-carriersBRUSSELS: February 21, 2018. The European Commission (EC) has levied fines totaling €546 million on four maritime car carriers and three major car parts...
Written on 15/02/2018, 17:39
first-uae-built-satellite-nears-launch-dateDUBAI: February 15, 2018. The first satellite developed and built at the Mohammed Bin Rashid Space Centre (MBRSC) by Emirati engineers has been flown to...
Written on 14/02/2018, 22:30
saudi-arabia-and-uae-provide-mobile-lift-for-yemen-aid-programSANA'A, Yemen. February 12, 2018. Prior to disbursing US$1.0 billion in humanitarian aid to Yemen next month, Saudi Arabia and the UAE recently arranged...
Written on 14/02/2018, 16:09
master-showjumpers-travel-in-styleHONG KONG: February 14, 2018. The latest Longines Masters equestrian event ended last weekend with a Grand Prix win by France's Patrice Delaveau on his...
Written on 12/02/2018, 18:37
humanitarian-logistics-databank-launchedDUBAI: February 11, 2018. The Humanitarian Logistics Databank, an information-sharing platform for aid agencies, has been launched by Princess Haya bint...
Written on 10/02/2018, 23:29
gac-to-manage-yamal-lng-icebreaker-fleetSABETTA PORT, Russia. February 09, 2018. The Yamal LNG gas project has appointed GAC Russia to manage its fleet of icebreaker tankers at Sabetta for the...
Written on 09/02/2018, 18:26
drones-about-to-take-off-in-singaporeSINGAPORE: February 07, 2018. Airbus has partnered with the Civil Aviation Authority of Singapore and Singapore Post to test its Skyways package delivery...
Written on 06/02/2018, 15:55
singapore-tops-new-belt-road-indexSINGAPORE: February 05, 2018. According to an index of real estate prospects in 67 countries along China's Belt & Road Initiative (BRI), Singapore,...
Written on 04/02/2018, 21:56
record-profit-for-amazon-undermines-the-need-for-tax-breaksWASHINGTON, DC: February 01, 2018. A report from the U.S. Economic Policy Institute (EPI) concludes Amazon fulfillment centers do not boost overall...
Written on 04/02/2018, 21:27
tiaca-adopts-new-vision-with-makeoverMIAMI: January 31, 2018. The International Air Cargo Association has announced a new vision that includes more training and consultancy projects to ensure...
Written on 04/02/2018, 20:26
cartel-members-fined-169-millionLUXEMBOURG: February 01, 2018. The Court of Justice of the European Union has upheld €169 million in fines originally imposed by the European Commission...
Written on 01/02/2018, 20:16
iata-confirms-a-record-year-for-air-cargoGENEVA: January 29, 2018. IATA reports a 9.0 percent year-on-year increase in freight tonne-kilometers (FTKs) in 2017, noting it was the strongest...
Written on 28/01/2018, 18:01
us-4-5-trillion-circular-economy-goes-mainstreamDAVOS, Switzerland: January 24, 2018. BMW has joined 29 major corporations with collective annual revenues of US$1.3 trillion in supporting a circular...
Written on 27/01/2018, 01:21
low-marks-for-russian-corporate-transparencyMOSCOW: January 25, 2018. Transparency International (TI) Russia has published a first-ever study on the financial transparency of 200 Russian companies...
Written on 27/01/2018, 00:09
boeing-loses-bombardier-anti-dumping-caseWASHINGTON, DC: January 26, 2018. In a blow to the Trump administration and Boeing, the U.S. International Trade Commission (ITC) has ruled unanimously...
Written on 26/01/2018, 21:28
ndia-s-gst-expected-to-reduce-tax-ratesKUWAIT CITY: January 25, 2018. According to the latest survey of global logistics executives by Agility, India's GDP is accelerating again after early...
Written on 23/01/2018, 20:30
logistics-industry-optimism-for-emerging-marketsBAAR, Switzerland: January 22, 2018. Emerging markets have ignored growing populism in the U.S. and parts of Europe to "look brighter than they have in...

- powered by Quickchilli.com -