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An African Union panel on illicit financial flows has
called for firm and comprehensive action against
the world’s tax havens and financial secrecy
jurisdictions.
The call followed the global furore in the wake of
the ‘Panama Papers’ leak, involving a cache of over
11.5 million secret financial records of politicians,
businessmen, celebrities, drug traffickers and
sports stars from the internal database of the
Panama-based law firm and offshore-provider,
Mossack Fonseca.

The leaked records followed investigations led by
the German newspaper, Süddeutsche Zeitung, in
collaboration with the International Consortium of
Investigative Journalists, ICIJ, consisting of over 100
media partners in 82 countries.

PREMIUM TIMES was the only Nigerian newspaper
involved in the over one-year long investigation.
The Chair of the African Union Panel and former
South African President, Thabo Mbeki, said the
global outrage over the leak indicated the need for
concerted global action to end illicit financial flows,
tax havens and financial secrecy jurisdictions.
The panel had issued a report endorsed by African
Heads of State and Government in January 2015,
which showed that the excess of $50 billion was
lost annually between 2000 and 2008 to illicit
financial outflows from Africa.
Mr. Mbeki said the panel was saddened by the
revelation that the Panamanian law firm had
worked with more than 14,000 banks, law firms,
company incorporators and other middlemen to set
up companies, foundations and trusts for
customers.

Describing the release of the Panama Papers as
“most welcome”, Mr. Mbeki said the leaked records
confirmed the findings in his panel’s report that
illicit financial flows, which derive from tax evasion,
deserved full attention of governments both
continentally and globally.
Apart from confirming the panel’s finding of the
existence of a network of offshore accounts and
complex investment vehicles that drive tax
avoidance and evasion, the former South African
leader warned against continuing to take lightly the
negative impact of such tax evasion.
“The staggering amount of illicit practices and the
large number of global actors exposed by the
Panama Papers demonstrate that Governments of
Africa and the rest of the world cannot avoid firm
action against the Tax Havens/Financial Secrecy
Jurisdictions,” he said.

Mr. Mbeki said it was disheartening that the
Panama Papers have revealed that the fourth most
used tax haven by Mossack Fonseca was an African
country.
Although Mr. Mbeki did not name the country, he
said the reports showed that the law firm only knew
the identities of the real owners of just 204 of
14,086 companies it incorporated in the said
country.

PREMIUM TIMES has so far identified over 130
names of former and serving Nigerian officials and
businessmen.
They include the President of the Senate, Bukola
Saraki, and his wife, Toyin; former Senate President,
David Mark; a retired army general and former
defence minister, Theophilus Danjuma, former
Delta State governor, James Ibori; and Africa’s
richest man, Aliko Dangote, and his oil-magnate
brother, Sayyu Dantata.

Although Mr. Mbeki noted the resolve by most
countries, including South Africa, Britain and France
to ensure that any of their citizens mentioned in
the Panama Papers were investigated by the
relevant agencies, he expressed the hope that
others would emulate. The Nigerian government is
yet to make any statement on the Panama leaks.
“It is a decent start to the efforts required. Now all
countries within and outside Africa must follow suit
and begin their own investigations. These
investigations should not only be limited to the
findings in the Panama Papers, but should go
further to uncover other possible destinations of
the proceeds from tax evasion,” he said.
Despite the global outrage, which has seen many
politically exposed person resigning from office, the
Nigerian government is yet to issue a statement on
what it intends to do with persons named in the
report.
But, Mr. Mbeki said more political pressure must
be put on the countries that continue to allow high
level opaque financial laws that promote banking
secrecy and registration of shell companies.
Top Nigerian politicians named in connection with
the ‘#PanamaPapers’ leak have continued to wave
off calls by concerned Nigerians and civil society
groups for government to order a probe or for
them to resign from office.

Mr. Saraki, the third most powerful political figure
in Nigeria, who is currently facing trial before the
Code of Conduct Tribunal, CCT, for alleged failure to
declare his asset while in office as the Kwara State
governor, is linked with at least four asset tucked
away in secret offshore territories.
Mr. Mark is also named in connection with a least
eight different companies.
Both have dismissed calls for their resignation from
the National Assembly.