Published: 03 March 2014

Zimbabwe has reportedly lost over $12 billion over the last three decades from illicit financial flows by powerful and unscrupulous international companies, agencies or individuals, Sunday Business has heard.

Illicit financial flow is money that is illegal in its origin, transfer or use and reflects the proceeds of corruption, crime and tax evasion.

Addressing journalists at a workshop on debt extractives and illicit outflows, organised by the Zimbabwe Coalition on Debt and Development in Bulawayo last week, Transparency International Zimbabwe regional programme co-ordinator Sibonokuhle Ndhlovu-Ncube said illicit financial flows were bleeding the economies of Third World countries such as Zimbabwe.

"According to a study carried out by a research institute, Global Financial Integrity Report, Zimbabwe has lost a cumulative $12 billion in the last three decades through illegal financial outflows ranging from secret financial deals, tax avoidance and illegal commercial activities," said Ndhlovu-Ncube.

Ndhlovu-Ncube said tax evasion and money laundering were the most common sources of illicit financial flows.

The research vindicates what then Mines and Mining Development Minister Obert Mpofu said when he accused one of the biggest global diamond companies, De Beers, of looting the country's Marange diamonds for over 15 years under the guise of exploration.

He said records showed that De Beers collected more than 100 000 tonnes of diamond concentrate and never returned them.

African Forum and Network on Debt and Development policy officer for economic governance Tafadzwa Chikumbu also echoed similar sentiments and said illicit financial flows were not common only in Zimbabwe but in Africa as a whole.

- Sunday News

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