Big talk but little action on illicit financial flows
New report highlights huge cost of illegal transfer pricing, but the problems are global and systemic, says the UN
Late last week the IMF’s senior representative in SA, Montfort Mlachila, observed that the country has the highest level of debt in its history, said this was “quite concerning” and concluded that the country’s debt trajectory is “not favourable and becoming uncomfortable”.
As SA struggles with how to navigate these uncharted waters, weighed down by an stagnant economy and faced with increasingly jittery ratings agencies and lenders, the issue of illicit financial flows (IFFs) from SA, and Africa more generally, has once again come into the spotlight. At the end of last week, during the 39th ordinary summit of the heads of state and government of the Southern African Development Community (Sadc), yet another research report came out detailing the hundreds of billions of rand being lost to the Treasury every year due to illegal transfer pricing.