• Financial Crimes and corruption in Zambia have continued to be on the rise.
• Tax evasion by Multinational Companies robs the nation of resources.
• Stakeholders must put in the much needed effort to ensure financial integrity is maintained.
Zambia Tax Platform says it is alarming that financial Crimes and corruption in Zambia have continued to be on the rise.
Speaking at the meeting on implications of Financial Crimes on poverty and inequality, Platform Chairperson Leah Mitaba stated that tax evasion by Multinational Companies robs the nation of resources that can be used to fight Poverty and Development of the country.
Ms. Mitaba observed that according to the recent Financial Intelligent Center (FIC) Trends Report, dissemination of proceeds of crime from tax evasion rose from K195 Million in 2018 to K450 Million in 2019, a situation she says affects allocation and distribution of domestic resources.
She also noted that there was a significant increase in the value of suspicious transactions in terms of cash withdraws from K3 Million to K25 Million and deposit from K103 Million to K534 Million from 2018 to 2019.
“There is high suspicious transactions in terms of cash withdrawals and deposits recorded in the recent past. This trend has the capacity to compromise and has actually compromised the national economy.” Ms. Mitaba stated.
Ms. Mitaba urged stakeholders to put in the much needed effort and join hands in ensuring that financial integrity is maintained through the elimination of Financial crime.
And speaking at the same event, Centre for Trade Policy and Development (CTPD) Researcher Dr. Gabriel Pollen observed that high corruption reported by the Transparency International Zambia which suggested that corruption is being domesticated in Zambia is the main source of financial crimes.
Dr. Pollen told journalists that corruption does not exist independently from the financial crime but rather work side by side.
“Where there is a financial crime, there are elements of corruption taking place,” Dr. Pollen said.
Dr. Pollen noted that there is a high link between corruption and social inequalities which has seen many people being denied of their rights to enjoy the equal access to national resources.
He said it was not in the best interest of the country to allow only a few individuals to be the only to benefit from the state resources.
