Prof. Yemi Osinbajo |
Vice-President Yemi Osinbajo on Thursday lamented that the
tracing and returning of stolen assets had become difficult for most African
countries.
He attributed the phenomenon to lack of the adherence to the
rules promoting transparency in international banking and financial systems.
He said corruption directly fuelled the activities of Boko
Haram insurgents in the North-East of the country.
Osinbajo reportedly said this in his remarks at the
anti-corruption and integrity forum of the Organisation for Economic
Cooperation and Development in Paris.
The Vice-President called for a robust framework on the
reparation of stolen assets in order to ‘ensure quick restitution to victim
countries’.
He said, “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, such as banks that
ought not to have received those funds in the first place if even 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.
“There is a 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.”
According to a copy of the speech made available by the
Presidency, the Vice-President said it was no longer in doubt that corruption
and illicit financial flows constitute grave challenge to development.
He said corruption fuelled terrorism in the North-East,
invariably leading to serious humanitarian disaster.
Osinbajo said, “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 in Nigeria, in recent years, how
corruption directly fuelled the insurgency in the North-East. And how, in turn,
that has led to one of gravest humanitarian disasters in the world.
“Also, the adverse implications for education, health care,
social services, infrastructure and, indeed, quality of life no longer require
making a case.
“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.”
The Vice-President noted that 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.
He made a case for international collaboration which he said
remained the smartest and most effective approach to apprehend and deter
perpetrators, and ensure restitution of stolen assets.
Osinbajo said in West Africa, efforts towards regional
cooperation against graft was under way.
He said the draft ECOWAS Common Investment Code of 2013
backed a treaty allowing an exchange of information within the fiscal
authorities of the various jurisdictions.
Osinbajo added, “The treaty would also identify 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 (Wednesday), our cabinet
ratified a treaty on the ECOWAS Tax Administration Forum, which would open the
way for greater cooperation among West African states in the exchange of tax
information.”
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