Christian Aid's report into bribery and tax evasion, Power and
Corruption also says that an estimated £200 billion is now believed to
flow annually from Africa to the UK and other western banks through
corruption, money laundering and other criminal means.
Was a fraud
It adds that the total amount that corruption costs Africa is a
staggering US$148 billion each year, 25 per cent of annual national
income.
The report by the London-based aid agency comes barely a week after
Britain's Serious Fraud Office discontinued investigations into the Sh8
billion Anglo Leasing scandal due to what it said was Kenya's failure
to provide evidence.
The investigations began in July 2007 after it was discovered that a
British firm, Anglo Leasing, that had been involved in tenders for
security equipment, passports and forensic equipment was a fraud.
Kenya Anti-Corruption Commission head Justice Aaron Ringera said
investigations into the scandal had collapsed. This was after a
decision last October by Mr Justice Joseph Nyamu barred his team from
investigating security-related cases.
Banking secrecy
The Christian Aid report also blames western financial institutions
because banking secrecy and trust services provided by globalised
financial institutions operating offshore provide a secure cover for
laundering proceeds of political corruption, fraud, embezzlement,
illicit arms trading and the global drugs trade.
Christian Aid also points to a recent study by the African Development
Bank that says corruption in developing countries can cost governments
as much as 50 per cent of tax revenues annually.