REMARKS BY HIS EXCELLENCY, PROF. YEMI
OSINBAJO, SAN, THE VICE PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA, AT THE
OECD GLOBAL ANTI CORRUPTION FORUM, PARIS , 30th March 2017.
Mr. Secretary-General,
Your Excellencies,
United Action is the Key
There is now hardly any credible opposition to the
notion that corruption and Illicit financial flows constitute perhaps the
gravest challenge to development. And this is especially true of developing
countries.
Besides, we have seen how in Nigeria, in recent years,
how corruption directly fueled the terrorist insurgency in the North-East,
Nigeria. And I how in turn this jhas led to one of gravest humanitarian
disasters in the world; 20,000 fatalities and 2 million people displaced. Also
the adverse implications for education, healthcare, social services,
infrastructure and indeed quality of life no longer require making a case .
Indeed there is a sense in which corruption, grand
corruption should be regarded as a crime against humanity. Corruption and
illicit financial flows are different. But they really must be twinned. This is
because for practical purposes it is an eminently more sensible approach to
treat most of the sources of illicit financial flows as corrupt activity,
within a broader use of the term.
It is also clear that most economies ravaged by
corruption, usually-both as a cause and consequence-do have institutions
that are too weak to fight corruption and illicit financial flows.
International collaboration is therefore the smartest and most effective
approach to apprehend and deter perpetrators, and ensure restitution of stolen
assets.
Already much commendable work has been done in creating
a robust international framework for tackling corruption and illicit financial
flows and the OECD has been a remarkable effective actor in this effort.
These initiatives include:
*The Global Forum for Transparency and Exchange information
for Tax purposes (OECD)
*The Multilateral Convention on Mutual Cooperation in
Tax matters (OECD)
*The Extractive Industries Transparency Initiative
(EITI)
*Base Erosion and Profit Shifting Project (OECD + G20)
*Sections 1502 and 1504 of the Dodd Frank Act (US
regulation)
*Automatic Exchange of Information (OECD, G20, G8)
*Anti-Bribery Convention (OECD)
*Public Registry (U.K.)
*United Nations Convention Against Corruption (UNCAC)
*The Recommendations of the Financial Action Task
Force
*Open Government Partnership and the
*United Nations Tax Committee.
In West Africa efforts regional cooperation
is underway . The draft ECOWAS Common Investment Code of 2013 provides in
Art. 29 (4) and (5) that Member-States should conclude treaties to allow for
exchange of information between the fiscal authorities of the various
jurisdictions.
The treaty would also provide for identifying tax
havens and examining their taxable basis, rates and fiscal administration
through the establishment of a regional body in accordance with the ECOWAS
Revised Treaty.
Before I left Abuja yesterday our cabinet ratified a
treaty on the ECOWAS Tax Administration Forum, which would open the way for
greater cooperation amongst West African States in the exchange of tax
information.
Internally, we have established a seven man
Presidential Advisory Committee Against Corruption. We also established an
Anti-Corruption and Criminal Justice Reform fund with the support of
three international Development Partners; Ford Foundation, MacArthur Foundation
and the Open Society West Africa.
Our Whistleblower initiative launched barely eight
weeks ago has achieved great success and praise both locally and
internationally.
We also announced a tax amnesty within the context of
politics. We signed several bilateral mutual legal assistance treaties on
collaboration on financial crimes and corruption
with numerous countries within and outside our region,
the latest being with the United Arab Emirates, this we ratified just this
week.
Of particular note on the continental level
is the ground breaking work of the of the Thabo Mbeki Panel on
illicit financial flows from Africa. The initiative which was sponsored by a
joint commission of the AU and the ECA, alarmed at the prospect that most
African States despite earnings and official development assistance, would
still not meet MDG targets in 2015, noted that Africa loses USD50billion
annually, in illicit financial flows.
The Panel's far reaching conclusions and recommendations
again underscore the overwhelming importance of global collaboration,
especially to bridge the huge capacity gap between the large corporations and
organized crime identified as the foremost perpetrators and facilitators of
corrupt activity in and also illicit flows from Africa.
Yet more needs to be done.
First as rightly noted by the Thabo Mbeki Panel, the
global architecture against corruption and illicit flows remains weak,
incomplete and complicated in many important respects. For many African
countries, operationalising some of these mechanisms may be expensive,
cumbersome or simply sometimes beyond their existing capacities.
Second, developing countries are often left out
in the crafting of important initiatives, as for example, the current
conversations and measures being taken on the OECD Base Erosion and Profit
Shifting Project, (BEPS) the components of which are of importance to economies
of developing countries. The OECD, G20 and G 8 Anti-Corruption and
Integrity initiatives should have developing countries on the table. The
demand and supply side of international corruption and illicit financial flows
may be better served by this approach.
Secretary-General, Your Excellencies, We must work
collaboratively to ensure transparency in financial transfers, and outlaw
secrecy jurisdictions.
There must be more rigorous enforcement of rules
promoting transparency in the international banking and financial systems,
especially more stringent KYC rules on customer identity, source of wealth, and
even country of origin.
Countries hosting global financial centers, and other
usually targeted destinations of illicit flows must be held more accountable to
enforce mechanisms which ensure transparency of ownership, control, beneficial
ownerships, trusts and other legal contrivances that may be used to camouflage
financial or other assets.
Open contracting and information systems, are also
crucial. Responsible government authorities ought to have information
about which companies won what contracts, and what they have paid as
taxes to governments in host and home countries . This is especially important
for the extractive industry. Nigeria is committed to these standards
having joined the Open Government Partnership in 2016.
The tracing, freezing and Return of stolen assets has
proved in many cases to be exceptionally difficult for most African
countries. We in Nigeria have seen just how difficult it is to get back stolen
assets from the international financial system, banks that ought not have
received those funds in the first place if the most routine questions were
asked.
A robust global framework on repatriation of
stolen assets which ensures quick restitution to victim countries is long
overdue.
Your Excellencies, there is consensus that
corruption and illicit financial flows out of Africa, inexorably delay the attainment
of development goals, worsen practically all human development indices and trap
the majority of her people especially the most vulnerable in a cycle of misery.
Only a united global action has the power to reverse
this trend. We respectfully urge that this power be exercised more vigorously
and without further delay.
Thank you for your attention.
Tags
Business