Good Financial Governance in Africa

The Good Financial Governance in Africa programme promotes transparency and accountability in public financial management and is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union (EU). Its objective is to foster Good Financial Governance in Africa, more specifically to equip decision-makers in African public finance to use region-specific services, products and further education to improve financial governance.

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African SAIs prepare contribution on African Union’s Anti-Corruption efforts

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Jan, 29
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Addressing Illicit Financial Flows

African SAIs prepare contribution on African Union’s Anti-Corruption efforts

By Julia Bastian

The African Organisation of Supreme Audit Institutions (AFROSAI) is addressing Illicit Financial Flows from an audit perspective. Since the publication of the High-Level Panel on Illicit Financial Flows from Africa (Mbeki Report) in 2015 the topic has been high on the African political agenda. Illicit Financial Flows (IFFs) are defined as money that is illegally earned, transferred or used. Recent research indicates that not only are there significant outflows, there are significant inflows as well. These flows, whether incoming or outgoing are bypassing existing legal frameworks in the sending and recipient countries and undermining governance. In particular, this concerns the state’s capacity to mobilize resources. Corruption has been identified as one of the sources of IFF and a major facilitator of these illicit flows.

Addressing Illicit Financial Flows
The Opening Ceremony of the Review and Communication workshop was marked by interventions by the Manager of the Knowledge Sharing and Management Committee, Florence Kiriinya, the Auditor General of Uganda, Mr. John Muwanga, the Auditor General of Kenya as Chair of the KSC, Mr. Edward Ouko, and the GFG Technical Advisor on external audit, Ms Julia Bastian

That is why in 2016 AFROSAI agreed upon a coordinated audit on IFF with a focus on corruption. 13 countries participated in the planning meeting in February 2017 in Nairobi. Twelve countries undertook a combined compliance and performance audit on two selected topics featured prominently in the United Nations and African Union’s Anti-Corruption Conventions, that is, asset declaration and public procurement. The majority of audit teams had reached the reporting phase in last quarter of 2017. To facilitate a joint outcome, a revision and communication workshop was organized from 27 November to 1 December 2017 in Kampala, Uganda. The objective of the workshop was to quality review the draft national reports of all participating SAIs by the panel of experts provided by the Good Financial Governance in Africa (GFG) programme, but also by their peers auditing the same topic. These reviews provided inputs for the teams and will assist in completing their reports by the end of January 2018.

Audit and Illicit Financial Flows
The audit teams from SAI Sierra Leone and SAI Kenya peer reviewing their respective audit reports on asset declaration systems with the support of their mentor.

The coordinated audit will have two distinct products: a national audit report, as well as a regional report. For the national report, the audit teams developed communication plans to prominently present their audit findings and recommendations in their country. At the same time, the review served to identify common findings and recommendations for the planned regional compendium on the audit. This compendium will present the key messages and findings of the audit to international stakeholders, such as the African Union or the High-Level Panel on IFF. Importantly, the compendium will highlight strengths and weaknesses of the implementation of the African Union’s and United Nation’s Anti-Corruption on the ground and be a relevant contribution to the African Union’s 2018 Year on Anti-Corruption!

Illicit Financial Flows
After intense discussions, David Gichana, Deputy Auditor General of Kenya and Mentor for the IFF audit, re-establishes the level of energy.

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