Every year, at least billions of dollars are lost to Africa as a result of corruption and other illicit activities. No-one knows exactly how much is involved but estimates for the amount of ‘illicit outflows’ range as high as US $60 billion a year. What is certain according to Thabo Mkebi, the former President of South Africa and now chairman of the ‘High Level Panel on Illicit Financial Flows from Africa’, is that addressing this issue should be a priority: “if we can stop Africa from losing resources in illicit outflows, then these funds can be directed to meeting the needs of the continent’s people and allowing them to build a better future.”
According to the High-Level Panel, research suggests that the amounts lost have been increasing over time particularly, in the past decade. The scale of these losses to the continent underlines the importance of action in identifying, freezing, confiscating and returning those funds to those they rightfully belong to. In addition, such confiscation and return is critical in sending a message that there can be no impunity for corruption.
Effectively addressing this issue is complicated and challenging. According to Thabo Mbeki, it requires a global effort, “we've got to try and understand this matter…… both from the point of view of we, the exporting continent, and then the receiving countries."
Action required between different parts of the world can also begin in Africa. For example, flows of corrupt assets have been identified within East Africa. But the countries of this region have different legal, political and judicial systems which are unused in dealing with each other on this issue, and are also constrained by limited capacity and resources. The more these jurisdictions share information or good practices, on issues such as mutual legal assistance, the more they will also build the experience and knowledge critical to deal with financial centers in the developed world.
At the end of last year, the Asset Recovery Inter Agency Network for Eastern Africa- (ARIN-EA) was set up to bridge this gap in resources and knowledge in the region. ARIN-EA consists of representatives from Burundi, Ethiopia, Kenya, Rwanda, South Sudan, Djibouti, and Uganda. While the amounts involved in potential cases between members of ARIN-EA likely represent only a small portion of the total stolen assets from the countries in the region, regional cooperation is an important element in creating a platform and momentum to pursue asset recovery more broadly. Experience from similar bodies elsewhere in the world, such as CARIN (in Europe), ARINSA (Southern Africa), RRAG (Latin America) have proven the worth of these regional networks.
ARIN-EA grew out of discussions by the East African Association of Anti-Corruption Agencies (EAACA) in 2013, in which StAR was involved. The establishment of the Network is a potential milestone in fighting corruption. But for it to be able to contend with the challenges it faces, its members should consider undertaking a number of steps:
- Promote the exchange of information on cases between countries in the region, to facilitate the freeze, confiscation and return of assets.
- Leverage the network of regional contact points to promote the sharing of experiences and good practices. As part of this, it can also act as an advisory group to national authorities and encourage members to establish national asset recovery functions. These steps are important in ensuring that domestic institutions are properly organized and understand how, and with whom they need to deal with, regionally and internationally.
- Help domestic institutions build up their technical capability and institutional standing to undertake asset recovery through training, support and advice to practitioners. Already StAR has been able to provide such assistance in various ways at country level in Uganda, Tanzania, South Sudan as well as at regional level to the East Africa Magistrates and Judges Association and the East African Association of Anti-corruption Authorities.
ARIN-EA is currently preparing a three year work plan, and StAR will continue to support these efforts. In particular, StAR intends to help the network learn from its regional counterparts elsewhere, and to assist ARIN-EA in reaching out to them. While outside support can help, the success of ARIN-EA in pursuing asset recovery and fighting corruption, will hinge upon the efforts and dedication of its members. We look forward to seeing countries involved in ARIN-EA working together towards their common aim, and wish them every success in pursuing justice and in recovering assets.
Jacinta Anyango Oduor is a Senior Public Sector Specialist with the Stolen Asset Recovery Initiative.