Tag: GreatLakesNews

Countries in the East African Community saw a combined $1.33 billion moved out of the region through illicit financial transactions over the past decade, a new report shows, raising questions over the efficiency of regulations meant to curb illegal capital outflows.

Uganda leads the pack in the EAC, ranking 66th out of 143 economies surveyed, with illicit financial transactions costing it at least $680 million over the 10-year period.

According to the Global Financial Integrity report, Tanzania, which was ranked 86, lost $333 million over the same period. Rwanda was ranked at 106, having lost $158 million. Kenya lost an estimated $112 million while Burundi, the region’s smallest economy, lost $49 million.

EAC countries have been grappling with capital flight, with individuals setting up companies and accounts in tax havens.

The estimates by GFI are based on parameters such as smuggling, cross-border movements of cash and trade mis-pricing in invoices exchanged between importers and exporters.
Tax havens

The researchers said they lacked reliable figures, meaning the illicit flows from emerging markets and developing countries could be much higher.

Most of the billions stashed away in foreign bank accounts by influential businessmen and powerful politicians are suspected to be proceeds from defence and security-related contracts and payment of fake debts.

“Astronomical sums of dirty money flow out of the developing world into offshore tax havens and developed country banks,” GFI director Raymond Baker said.

“Whatever strengthened financial regulations may be in place or may be contemplated, cannot yet be seen to have an effect on the continued passage of funds out of poorer countries, through the global shadow financial system, and ultimately into richer Western economies,” said Mr Baker in the report titled “Illicit Financial Flows from Developing Countries.”

In June, the Swiss National Bank (SNB), the central bank of Switzerland, said EAC countries had at least $1.3 billion stashed in the country. Kenya topped the list with $857 million followed by Tanzania ($178 million), Uganda ($159 million), Rwanda ($29.7 million) and Burundi ($16.7 million).

Global pressure has been rising on Switzerland to compel its banks to share information about their clients with foreign governments. It is suspected that foreigners holding illicit wealth in Swiss banks may be moving their funds out for fear of being exposed due to growing scrutiny.

The news about growing illicit outflows comes as the EAC countries battle budget deficits that have seen them go on a borrowing spree.

Malawian President Joyce Banda has banned the export of maize to neighbouring country, including Tanzania.

Ms Banda has also ordered tighter security along the borders to curb rampant smuggling of the grain. The move follows an acute shortage of maize, which is a staple in the southern African country.

President Banda announced the ban on Monday after visiting the country’s main grain reserves run by the National Food Reserve Agency (NFRA).

About two million people face starvation in Malawi after adverse weather affected maize production.

Police have in recent months seized hundreds of tonnes of maize along the country’s borders. Authorities believe some of the maize was destined for Tanzania and Kenya.

President Banda said she had been informed that most markets had no maize, adding that the export and smuggling of the commodity had caused an “artificial” shortage in the country.

“I have therefore with immediate effect ordered that police and Agriculture ministry to check and seal our borders against these illegal exports,” she said.

President Banda said it made no sense that Malawi was experiencing a food shortage when the country was implementing a farm input subsidy programme that was aimed at enabling poor people to achieve food security.

Malawi police recently arrested four Tanzanians and a Malawian as they were allegedly trying to smuggle out about 200 bags of maize.

However, a local leader in Karonga, the district bordering Tanzania, has accused Malawian police of profiteering from maize smuggling, and said the Malawi Defence Forces should be deployed to man the borders.

The Congolese Minister of Health, Felix Kabange Numbi said, Sunday, Dec. 23, that the government would help seven children seriously injured in clashes between M23 rebels and Congolese troops last November.

He noted, “The damage [fighting] is greater than what we saw,” acknowledged the minister, saying he met children aged 5, 8 and 12 seriously injured and some of them would be in danger.

“We also saw children whose future is compromised: a 6 year old child has both his legs amputated. We need to give these children the chance to grow, “says Kabange Numbi.

About nine tons of drugs were delivered to North Kivu.

Uganda government has declared that the East African country is now free of Landmines.

The Announcement was made by the country’s State Minister for Relief and Disaster Preparedness, Musa Ecweru.

“Government was making arrangements to rehabilitate and compensate victims of landmines planted during insurgencies,” Ecweru said.

“Following the landmine clearing exercise that was started in 2006 by the Uganda Mine Action Unit, 46 mine areas in northern Uganda, West Nile and Ruwenzori sub-regions were cleared and are now free of mines,”Mr Ecweru said.

He said 1,617, 156 square metres of area has already been released and is free for cultivation.

Uganda signed the Anti-Personnel Mine Ban Convention in 1997 through which it was supposed to clear all landmines accumulated during the years of conflict between the army and insurgents in northern and western Uganda.

Peace talks between DRC government and M23 rebels have been extended upto January 4th 2013.

This follows a statement issued on Friday by the office of the facilitator of the dialogue, the talks were being pushed to January due to the constraints that may arise as a result of the absence of support staff who will be on holiday over this festive season.

The statement noted that the process cannot go on without their availability and in consultation with both sides; the talks were adjourned to January.

Uganda’s defence Minister Dr Crispus Kiyonga is the facilitator of the talks that have been on-going for the last two weeks.

Agriculture, Mechanisation and Irrigation Development deputy minister and MDC-T legislator for Nketa, Seiso Moyo, has died.

Moyo who was also the MDC-T’s secretary for elections in the national executive died a few minutes after being admitted to the Avenues Clinic in Harare Friday morning.

MDC-T spokesperson Douglas Mwonzora confirmed Deputy Minister Moyo’s death and said it could have been caused by a suspected heart failure.

“This morning (yesterday) he phoned his colleagues in Government and was taken to the Avenues Clinic but did not last long. We suspect that he died of a heart problem or failure,” he said.

Mwonzora said as a party they were saddened by the loss of Moyo whom he described as level headed.

“At the time of his death he was preparing the party for primary elections and confirmations to start in January in preparation for the elections to be held next year,” he said.

Mwonzora said funeral arrangements would be announced in due course since his family was in Bulawayo.

Moyo is survived by his wife Sinini and five children. Moyo was sworn in as deputy minister in October last year.

Kenya and Somalia have jointly intensified the push to have the African Union Mission forces in Somalia (Amisom) granted a fresh mandate beyond March next year.

On Friday, Somalia’s President Hassan Sheikh Mohamoud and his Kenyan counterpart Mwai Kibaki called on the UN Security Council (UNSC) to extend the authority for the forces, arguing it would sustain the road to stability, for a country that was slowly returning to normalcy.

The two governments said Amisom had already contributed to Somalia’s pursuit of peace and that it would be important for the forces to continue staying longer.

The council extended the mandate for Amisom in November for four months, instead of the expected 12, meaning Amisom would run out of authority to combat militia group, Al-Shabaab, by March 7, next year.

At the time, UNSC argued it needed time for a review of operations by the forces that included considering whether to lift an arms embargo and resumption of charcoal trade in the newly liberated Kismayu port.

The combined African Union mission consists over 17,600 peacekeepers.

Prof Mohamoud is visiting Nairobi for the first time, at the invitation of the Kenyan government, since he was elected president of the war-torn country.

At least five people were killed on Saturday morning in separate road accidents in Busia County.

Three people were killed after a speeding bus overturned in Mundika, Busia County injuring 39 people.

Two cyclist also died after a speeding pick-up rammed into them at Rakite near Bumala market along the Busia – Kisumu highway.

According to Busia OCPD Kenneth Kimani, a speeding bus attempted to overtake another bus but the driver lost control of the vehicle resulting into the accident.

“Among the dead include two women and a child. 10 people have been seriously injured and rushed to Tanaka Hospital and 39 more have slight injuries,” he said.

About 55 people have drowned or are missing after a boat capsized off the Somali coast on Tuesday evening, the United Nations Refugee Agency said Thursday in a statement.

Ethiopians and Somalis were on the boat. Twenty-three of the 55 victims have been recovered, the agency said. The dead include more than a dozen women and a boy believed to be about 4.

The incident marks the largest loss of life in the Gulf of Aden since February 2011, when 57 Somali refugees and migrants from the Horn of Africa drowned while attempting to reach Yemen.

Five survivors told refugee agency representatives that the boat was overcrowded and started having trouble soon after leaving the port of Bosasso in northern Somalia on Tuesday.

It’s capsized 15 minutes into its journey.

At least 100,000 people have crossed the Red Sea and the Gulf of Aden this year, despite warnings from U.N. and aid agencies about the risks of those kind of trips.

Before Tuesday’s incident, 95 people had drowned or gone missing this year in the waters between Somalia and Yemen.