Africa’s development efforts are being undermined by massive financial losses linked to corruption and illicit financial flows, with an estimated US$88.6 billion lost annually, the Intergovernmental Action Group against Money Laundering in West Africa (GIABA) has warned.
GIABA says the losses, which represent about 3.7 per cent of Africa’s Gross Domestic Product (GDP), deprive governments of critical resources needed to invest in healthcare, education, infrastructure and job creation.
The warning was issued by the Director General of GIABA, Mr Edwin W. Harris Jr., at the opening of the Second Regional Seminar on Preventing Financial Crimes and Enhancing Public Finance Management through Parliamentary Public Accounts Committees in ECOWAS Member States held in Accra.
Mr Harris said weak oversight of public finances remains one of the major factors creating opportunities for money laundering, corruption and other financial crimes across West Africa.
He challenged Parliamentary Public Accounts Committees (PACs) in ECOWAS countries to strengthen their oversight responsibilities and move beyond issuing recommendations to actively pushing for reforms that improve financial management and accountability.
According to him, PACs have a crucial role in protecting public resources and ensuring that governments receive value for money from public expenditure.
“Financial crimes are no longer isolated incidents but systemic threats to development,” he said, noting that corruption and illicit financial activities contribute to poverty, weak public institutions and economic stagnation.
Mr Harris explained that criminal networks often exploit weaknesses in public procurement systems to divert state resources, making stronger parliamentary scrutiny essential in the fight against financial crimes.
He urged ECOWAS countries to equip PAC members with the technical expertise and institutional support needed to detect financial irregularities and strengthen Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) frameworks.
The Director General also called for deeper regional cooperation among parliamentary committees, audit institutions, financial intelligence units and anti-corruption agencies to tackle the growing sophistication of financial crimes.
Representing the Finance Minister, the Coordinating Director of Technical Services at the Ministry of Finance, Mr Samuel D. Arkhurst, described illicit financial flows as a major threat to national economies.
He identified public procurement as one of the most vulnerable areas for financial abuse, citing weak oversight, lack of transparency and corruption as key drivers of money laundering activities.
Mr Arkhurst called for stronger collaboration among ECOWAS member states to develop practical measures to protect public funds and improve governance systems.
The Chief Executive Officer of Ghana’s Financial Intelligence Centre (FIC) and GIABA National Correspondent, Mr Kwadwo Twum-Boafo, also emphasised the importance of information sharing and capacity building in combating financial crimes.
He said while PACs play an important role in ensuring accountability, many legislators require continuous training to effectively analyse audit reports, identify warning signs of financial crimes and ensure the implementation of recommendations from the Auditor-General.
Mr Twum-Boafo cited political interference, limited technical expertise and inadequate institutional support as some of the challenges affecting the effectiveness of PACs.
He stressed that the fight against illicit financial flows must focus on prevention and early detection rather than responding after public resources have already been lost.
Meanwhile, the Secretary General of the West African Association of Public Accounts Committees (WAAPAC), Mr Clarence Gahr, called on governments to strengthen support for PACs through training and improved institutional frameworks.
He said empowering parliamentary oversight bodies was essential to promoting prudent financial management and ensuring accountability in public spending.
The three-day seminar brought together representatives from parliamentary Public Accounts Committees, Supreme Audit Institutions, Financial Intelligence Units, anti-corruption agencies and governance experts from across ECOWAS member states.
The meeting forms part of GIABA’s broader efforts to strengthen regional cooperation in preventing money laundering, terrorist financing and other financial crimes while promoting transparency and sustainable development in West Africa.
