Tag: illicit

  • Nigeria, others lose $50b yearly from illicit financial flows, says EFCC

    Nigeria, others lose $50b yearly from illicit financial flows, says EFCC

    Nigeria and other African countries are estimated to be losing more than $50 billion annually in illicit financial flows (IFFs) annually, Executive Chairman, Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde has said.

    He said Nigeria is ranked first among 10 African countries by cumulative illicit financial flows, which is about 30.5 per cent share in Africa’s total IFFs.

    Speaking during the Anti-Money Laundering Workshop organsied by the Chartered Institute of Bankers of Nigeria (CIBN) in Abuja, he said the flows relate principally to commercial transactions, tax evasion, criminal activities like money laundering, drugs, arms and human trafficking, bribery, corruptions and abuse of office.

    He said: “If the report is not put in context of our immediate environment, and treated as any other body of statistics purveyed by ideal armchair academics and alarmist politicians, we are likely to completely miss the point”.

    He said the Global Financial Integrity, in its December, 2014 report, IFFs from The Developing World: 2003 to 2012, posited that developing and emerging economies lost $6.6 trillion in illicit financial flows from 2003 to 2012, while illicit outflows are increasing at a staggering average rate of 9.4 per cent per year-almost twice as fast as the global GDP.

    “These statistics all considered, are enough cause for worry as, Nigeria is in a very precarious position, considering our size, autochthonous cultures and deviant religious practices, which reinforce the practice of not looking a gift horse in the mouth, questionable business practices, weak regulations and peculiar enforcement environment.  If we throw in the myriad of other challenges that we have as a nation, then we would begin to see the faint outlines of the monstrosity that we face in money laundering,” he said.

    He urged every institution or agency represented here today to commit to apply our Ant-Money Laundering and Counter-Terrorist Financing (AML/CFT) measures.

    “It behooves all of us stakeholders therefore to put in more efforts to make the Nigerian AML/CFT regime the reference in the comity of nations.  But, even as we continually strive to get that which we desire, I believe that we would make an appreciable impact if we faithfully engage the AML/CFT regime that we currently have in place,” he said.

    He explained that while the crime of money laundering may be subtle and seemingly inscrutable, many of the crimes that predicate it are not so unobtrusive and certainly, the effects of each and every one of them are deleterious to the individual and the nation.

  • ‘Nigeria lost over $140b to illicit financial flows in nine years’

    ‘Nigeria lost over $140b to illicit financial flows in nine years’

    Nigeria lost over $140 billion, about N22.81 trillion, to illicit financial flows between 2002 and 2011, a period of nine years, the Director General (DG) of Securities and Exchange Commission (SEC), Ms. Arunma Oteh has said.

    In her presentation as keynote speaker at the 2nd Christopher Kolade Lecture on business integrity held in Lagos, Oteh said: “Nigeria has lost more to illicit financial flows than any other African country between 2002 and 2011, even being listed in the top 10 globally. Within a nine-year period we lost over $140 billion to illicit financial flows.”

    The DG of SEC disclosed thatpoor countries are losing an estimated $1 trillion yearly to such illegal financial activities as money laundering, tax evasion, transfer pricing and embezzlement. “This is money desperately needed for the Millennium Development Goals (MDGs) and could prevent as much as 3.6 million deaths annually in the world’s poorest countries,” she said, adding that in the case of Nigeria, an estimated $50 billion investment is required to ensure stable electricity supply. She said a lot of the illicit outflows was through the illicit commercial activities of multinational companies.

    She said because of such huge illicit outflows, “We now have a situation where these illicit outflows are not only depriving our country of desperately needed capital but are also being used to finance terrorism abroad and within our shores,” she added,  “A security expert who trained my staff at the SEC recently shared some pieces of intelligence with us indicating that Boko Haram received over $70 million between 2006 and 2011 through shady activities like money laundering, oil bunkering, kidnapping and dealing in drugs.”

    Oteh noted that illicit financial flows and corruption are two issues that countries have been battling with. She said Nigeria suffers greatly from both issues. “Corruption has been identified as the second most problematic factor to doing business in Nigeria ahead of factors including access to finance and terrorism,” she stated, adding that this year, the G-20 is focusing on combating illicit financial flows especially considering the fact that poor countries are losing a lot to such illegal activities.

    The DG of SEC however, said thatconsidering the impact of corruption and anti-money laundering violations on Nigeria, efforts have been made to strengthen the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime in Nigeria.“Other countries are also implementing reforms to make it harder for wrongdoers to find a hiding place. The United Kingdom (UK) has the Anti-Bribery Act 2010 that requires companies with any link to the UK to have robust structures to forestall shady dealings. The United States has long had the Foreign Corrupt Practices Act of 1977, which provides for up to $25 million in fines and 20-year jail term,” she said.

  • Twists and twists on illicit tobacco trade

    Twists and twists on illicit tobacco trade

    The publicity that the media has given to the training of men of the Lagos State Police Command on implementation of the recently-passed Smoke-free Public Places Law by British American Tobacco Nigeria (BATN) has come as a rude shock to public health advocates. It is simply the case of a mosquito giving training on how to treat malaria!

    Not only is the timing of the exercise suspicious, it reveals also the desperate maneuvers of tobacco companies in ensuring that tobacco control laws are interpreted in their own language thereby undermining their effectiveness.  The tobacco companies will talk about health but will reject that health should take precedence over their profit motifs.  Instead, the industry advances economic arguments to rationalize, though erroneously, why effective tobacco control laws should not be promulgated.

    Such arguments, especially against increasing taxes on tobacco products to reduce the number of people taking to the smoking habit were again raised to high pitch at the Public Hearing on the National Tobacco Control Bill (NTCB) which held on July 16, 2014 in Abuja.

    In turns, BATN and other tobacco trans-national merchants poked sections of the bill they felt opened doors to possible increase in taxes, a key recommendation of the World Health Organisation Framework Convention on Tobacco Control (WHO FCTC) which Nigeria has signed and ratified.

    Their fears (real or imagined) centered on the possibility of smugglers exploiting gaps in the demand and supply chain after taxes are raised, to market supposed fake or substandard tobacco products to consumers at cheap rates, besides being readily available.

    While verifiable statistics were not provided to back up these claims, public health groups feel the fears are mere hypes, pinning their argument on the need to prioritise health over profits, not the other way round. They point to Article 6 of the WHO FCTC which states that: “Parties recognise that price and tax measures are an effective and important means of reducing tobacco consumption by various segments of the population, in particular young persons.”

    Some of the groups that were vehement against arguments for whittled down regulation include the Environmental Rights Action, Civil Society Legislative Advocacy Centre (CISLAC), Nigeria Tobacco Control Alliance (NTCA), among others.

    It is pertinent to note however, that for those who understand the “abracadabra” that the tobacco industry is known for the question of raising tobacco products’ taxes is one that goes beyond our shores. It is common knowledge that the tobacco trans-nationals have consistently used the threat of illicit tobacco to argue against any form of regulation but most especially taxes.

    A case study readily cited is a recent research in the UK, where the tobacco trans-nationals were all over the media warning that levels of illicit trade would increase if standardised packaging is implemented.

    Standardised packaging do away with glamorous and alluring pictures etc from tobacco packs to discourage the underage from patronising tobacco products. It was identified as a means of cutting down on the number of youths who would normally be attracted by packs to attempt buying. The study showed that the alarm was actually a strategy concocted by the tobacco firms to thwart the legislation as it showed that media stories citing industry data on growing illicit tobacco actually began in June 2011, just two months after the Tobacco Control Plan for England, which heralded standardised packaging, was published.

    The study further unearthed the murky business of tobacco trans-nationals that were found to be very much involved in the global illicit tobacco trade.  As far back as the 1990s some of the tobacco companies operating in the UK were accused of facilitating smuggling by deliberately oversupplying brands to countries like Bulgaria where there was no demand for them.

    It noted that even after signing an anti-smuggling agreement with the European Union (EU) the transnational tobacco companies like Japan Tobacco International (JTI) continued the practice. JTI is still under investigation by the European Anti-Fraud Agency (OLAF) following evidence of its involvement in illicit even after signing the anti-smuggling agreement.

    In year 2000, British American Tobacco (BAT) was also accused of benefitting from smuggling. In an expose by The Guardian in the UK, journalists who got hold of once secret internal industry documents found that BAT had “for decades secretly encouraged tax evasion and cigarette smuggling in a global effort to secure market share and lure generations of new smokers”.

    But the bogus claims of illicit trade and complicity by the tobacco industry are not limited to the EU. In South Africa where illicit trade in tobacco always makes the news, a group, the National Council Against Smoking (NCAS) recently countered the Tobacco Institute of South Africa (TISA) – a lobby group for the tobacco industry – which had alerted that up to a third of the South African cigarette market goes toward the illegal trade.

    Armed with such evidence about an industry that cries wolf when there is none, it is no wonder that public health groups in Nigeria insist taxes must go up.

    At the height of the first shot at a national legislation on tobacco in 2007, ERA/FoEN and groups like the National Tobacco Control Alliance (NTCA) went a step ahead with doubts about the motives of BAT Nigeria (BATN) for donating Hilux jeeps to the Nigerian Customs Service (NCS) supposedly to combat the illicit trade in tobacco. Their argument was that the vehicles were “Greek Gifts” to pull wool over the faces of Nigerians to divert attention from what they may actually be suspecting.

    Similar alarm bells sounded when the top echelon of BATN visited the Lagos State Governor, Babatunde Fashola in September 2013 when the state was on the verge of passing legislation prohibiting smoking in public places. At that time it was also alleged that the visit was to be complimented with the donation of Hilux jeeps to the Lagos Security Trust Fund.

    Current statistics from the WHO indicate that 5.4 million people die yearly from tobacco smoke. The global body painted a gloomier picture recently when it said that unless urgent action is taken, the annual death toll could rise to more than eight million by 2030.

    Ironically, it posits that early 80 per cent of the world’s one billion smokers live in low- and middle-income countries like Nigeria. Among a wide range of measures that can cut down the mortality rate on tobacco, the WHO says that tobacco taxes are the most cost-effective way to reduce tobacco use, especially among young people and poor people. It adds that a tax increases that push up tobacco prices by 10 per cent decreases tobacco consumption by about 4 per cent in high-income countries and about 5 per cent in low- and middle-income countries.

    The WHO recommendation is one that the House Committee on Health must not overlook if the wellness of Nigerians today and in the future must be secured. In the quest to keep the nation’s revenue base intact, the health of the citizenry must always come first.

    Adamu Musa wrote from Sabon Gari in Kano

  • ‘NDLEA seized N3.4b illicit drugs in 2013’

    ‘NDLEA seized N3.4b illicit drugs in 2013’

    ational Drug Law Enforcement Agency (NDLEA) Chairman/Chief Executive Ahmadu Giade has expressed concern over the danger increased drug trafficking and abuse pose to the nation.

    He said the agency in 2013 alone seized 339,968 kilogrammes of illicit drugs valued at N3.4 billion.

    The NDLEA chairman said the agency also closed down six methamphetamine production laboratories and arrested 13 suspects in connection with the laboratories.

    This is even as the 2014 World Drug report reveals that about 243 million people between the ages of 15 and 64 used illicit drug in 2012.

    The report also puts the figure of problem drug users at 27 million, with about 12.7 million individuals who injected drugs. Of the  number, 1.7 million are said to be living with the Human Immuno-deficiency Virus (HIV).

    Giade spoke yesterday in Abuja at the dissemination of the 2014 World Drug Report and the 2013 International Narcotics Control Board (INCB) report.

    In his key note address, Giade said drug production, trafficking and abuse were among the biggest security challenges confronting humanity.

    The agency chief called for urgent attention to combat them.

    He stressed that most criminal acts are perpetrated under the influence of drugs.

    Giade said: “Drug production, trafficking and abuse represent one of the biggest security challenges confronting humanity today. The situation is so frightening that an urgent intervention is needed for a guaranteed global peace and development.

    “Drug is a catalyst for crime. Most criminal acts are perpetrated under the influence of drugs.

    “The public need to know that globally an estimated 200,000 people die yearly due to drug abuse. Most of these preventable deaths occur among the youths. It is important to know also that those who die of substance abuse also cut across age, sex, religion and social status.”

  • PDP: United only by the illicit, not manifesto

    PDP: United only by the illicit, not manifesto

    …Bowing to the wishes of Nigerians, General Abubakar unveiled an eleven-month transition programme, which will terminate on May 29, 1999. The “five fingers of the leprous hand”, which operated as “political parties”, namely, the UNCP, CNC, NCPN, DPN and GDM were dissolved. Nigerians were now free to form genuine political parties to compete for political space without the suffocating tailoring by agents of the state. The G-34, which was now established as an embodiment of the hope and democratic aspirations of Nigerians having demonstrated courage when it was convenient to show docile acquiescence became the rallying point of a blossoming trans-ideological movement willing to offer leadership to Nigerians.According to Chief Solomon Lar, the first elected chairman of PDP, the G-34 captured the excitement of Nigerians “because of the quality and integrity of its members”. To him, Nigerians were no longer willing to gamble away their future to fortune seekers who dominated the failed politics of the Abacha era. As a consequence of sustaining the momentum of democratic struggle, the G-34 attracted several political associations that shared the vision of a truly formidable national political platform.On August 19, 1998, several political associations including the All Nigerian Congress (ANC), Peoples Consultative Forum (PCF), Social Political Party (SPP) Peoples Democratic Movement (PDM), Peoples National Forum (PNF) and twenty-five other associations resolved to form a political party known as the Peoples Democratic Party (PDP). The overriding goal of the new party was to bring together all patriotic and like-minded Nigerians into a single formidable political party capable of organising and making productive the energy of the people.’

    Obviously not many of them, members of the largest ‘rally’ in Africa, would ever know that the above extract came from the official website of their party, the Peoples Democratic Party. And this is so for many reasons. For one, the venerated ‘quality and integrity’ Chief Solomon Lar spoke so glowingly about are long gone with the winds but much more importantly, the party and its original raison d’être have changed so fundamentally since former President Obasanjo’s entry into it that were the likes of Abubakar Rimi and Okadigbo to suddenly resurrect today, they would not as much as recognise the party they risked all to form.

    Readers will remember that to mould the party in Obasanjo’s image, and, almost unprecedented in the annals of political party evolution, the maximum civilian ruler and leader of the party, as he then was, caused all members to be de-registered and decreed a fresh registration. So mystifying, but self-serving was it, that even Atiku Abubakar, his Vice President and, technically, the No. 2 in the party, was casually humiliated in his own village when he was refused registration only for the entire party leadership to later beat a retreat and head to his office, tails behind their backs, to present him with a membership card at Abuja, the federal capital.

    All this history becomes relevant now that leaders of the leading opposition political parties in the country are, for the very first time ever, working seriously towards ending the reign of impunity by a political party that has, far more than the military, pulverised the country beyond the widest imagination of its enemies in its 13-year strangle-hold. It is heartening that for the same first time, these opposition party leaders have all verbalised their readiness to subsume all narrow interests, personal, regional, political or economic, in the larger service of the country we call our own.

    Nothing confirms this seriousness more than the recent launch of the manifesto of the incubating merger, an event which witnessed the presence of nearly all the relevant leaders of the agenda. Those who could not make the occasion physically, were specifically represented. To understand the import of that event is to appreciate that without a manifesto, a political party is nothing more than a rally –read PDP- the clueless party that continues, unabated, the ruination of Nigeria with each of its leaders, as President, coming with either a 7-point Agenda which the current CBN governor, at his confirmation hearing advised should be reduced to one, or one nebulously called a Transformation Agenda but singularly devoid of any positive transformation.

    Beginning from Prime Minister, Sir Robert Peel’s address to his Tamworth constituents in preparation for the 1835 British general election, a political party manifesto has come to be known as the public declaration of the aims, objectives and policies of that political party, especially where issued ahead of a coming election and to which the electorate can hold it, in or out of power.

    It will be recalled that all we can remember of PDP’s manifesto or that of the late Yar Adua’s campaign at which Nigerians could not quote him on one single subject was: PDP: Power!, as then President Obasanjo played the role of campaign spokesperson.

    In my recent 3-part article on corruption, I drew attention to the fact that salvaging Nigeria was the duty of all and that the worst we could do is leave the country to continue its present path of retrogression under the lead of the PDP.As you read this, the party is again in the news for the wrong reasons; for jejune reasons completely unexpected of a ruling party in a country like ours. Whether at the Wadada Plaza, where the falcon can no longer hear the falconer, or in Adamawa State as in sundry other states, especially in the South West, where its one-time poster boys have since been banished to political Siberia, it is war; total and unremitting war, the very end of which none can predict with any measure of certainty as the countdown to the presidential roforofo unfolds. It needs be said, however, that the ‘casus belli’, this time around, is tied to Obasanjo’s unedifying marriage to impunity. Time and again, he has indulged in these thoroughly illegal and indecent ‘fehingbe pons’ –acts of impunity- until now that Kashamu, who though a party financier, is young enough to answer thrice to a single Obasanjo call, has decided that enough was enough and decided to fight him eye ball to eye ball. Unlike what happened elsewhere, Obasanjo had merely decreed who should be what, at the South West PDP zonal congress, but as is usual in his home state of Ogun, he is being told again that there is a limit to one- ups-man ship. The silly things he rammed through PDP governors then in Oyo, Osun, Ondo and Ekiti, he never dared try with governor Gbenga Daniel of Ogun State, and where he did, he failed signally.

    Nothing any longer unfazes a PDP member, whatever his level in the party; not thieving of billions of pension funds, not stealing billion dollars voted for modernisation of roads or the power sector nor are they collectively averse to creaming Nigerians off billions of naira claiming that ships which never visited any port on the African continent, indeed, actually delivered petroleum products at Apapa.

    But it gets far worse when a President, elected on the platform of such a party, looks askance, with such rogues left free to go about their illegitimate businesses and presidential aides eagerly trying to exculpate him with the spurious claim that the presidency is not the judiciary; conveniently forgetting the aphorism that the buck stops at the president’s table. Of course, it must be conceded that ours is now a poor caricature of the American president who knows that he occupies, not the coziest but the hottest, part of the kitchen.

    In the weeks and months ahead the 2015 elections, indeed from now on, given the vacuity and the all-round negativity of the Peoples Democratic Party on Nigeria and its peoples, I intend, God willing, to do my utmost best in promoting the manifesto of the emerging merger in the full knowledge that it will provide the much- needed elixir for the hapless citizens of an abundantly resource -rich country which has, unfortunately, been more than blighted by a succession of rigged-in, soporific and inane, PDP governments at the federal level.

    That much I promise.