Malawi has committed to examine its national tax laws and policies towards preventing illicit capital flight.
Currently, Malawi ranks 75th out of 143 countries for largest average illicit financial flow estimates for 2001 to 2010.
Malawi has lost USD 4,691 million between 2001 and 2010 due to illicit financial flows where Companies and individuals are able to avoid paying taxes by shifting large sums of money from one jurisdiction to another.
According to Mining in Malawi for every USD 1 developing countries receive in official development assistance, usually from nations that are home to the head quarters of companies engaged in nefarious financial practices, USD 10 is lost through illicit outflows.
Malawi made the commitment during the recent African Commission on Human and People’s Rights 53rd Ordinary Session, held from 9 -23 April, in the Gambia through adoption of resolution 236 on Illicit Capital Flight from Africa.
The resolution calls on nations to put in place rules and regulations to curb capital flight from the continent.
Malawi Ministry of Justice’s Senior Deputy Chief State Advocate Pacharo Kayira, the Malawi Human Rights Commission’s Director of Children’s Rights Noris Mangulama, and the Centre for Human Rights and Rehabilitation’s Programme Manager Timothy Pagonachi Mtambo represented Malawi.
“Malawi’s participants will be responsible for communicating the actions required by civil society and government based on the three resolutions: 234 Resolution on the Right to Nationality, 235 Resolution on Transitional Justice in Africa, 236 Resolution on Illicit Capital Flight from Africa,” Mining in Malawi said.
According to Global Financial Integrity’s December 2012 report on illicit flows, Malawi will lose more money if the government does not embrace policy recommendations in the next decade.
The organizations then observes that Malawi faces a challenge in taming illicit financial flows… due to the increasing number of mining companies granted rights to explore and extract resources within the nation’s borders.Follow and Subscribe Nyasa TV :