Malawi: Rex Chikoko analyses extent of illicit deals
Rex Chikoko, of The Nation, has examined the implications for Malawi of a recent report by Global Financial Integrity on Illicit Financial Flows and Development Indices.
The story, published on 6th June 2015, sheds light on the extent of Malawi’s illicit flows, the ways in which money is moved out of the country and how the government is attempting to tackle the problem.
Malawi losing K200 billion annually to illicit deals
Malawi has been named among the world’s 25 worst countries where money laundering is flourishing, with over K274 billion (US$608.9 million) illegally being moved out of the country annually, a Global Financial Integrity (GFI) report released this week has revealed.
The June 2015 Illicit Financial Flows and Development Indices report observes that funds amounting to 16.9 percent of the country’s GDP – which is at K1.6 trillion ($3.705 billion), according to World Bank’s 2013 report – is siphoned out of the country through illicit financial flows.
The lost funds represent approximately 30 percent of this year’s proposed national budget of K901.6 billion (US$2 billion) and more than the K228.7 billion (US$508.2 million) allocated for the civil service wage bill for the new financial year. Click here for full article.
