…as it highlights proposals to tackle the continued suspected illicit financial flows and tax evasion trend
By BUUMBA CHIMBULU
THE Zambia Institute of Chartered Accountant (ZiCA) has proposed measures to address matters raised in the Financial Intelligence Centre (FIC) for the first quarter of this year, resulting in K61 billion suspected illicit financial flows and tax evasion.
FIC in its first quarter of 2024 trends report highlighted an increase in illicit financial flows and tax evasion, amounting to K61 billion mostly by foreign nationals that have set up business operations in Zambia.
Reacting to the revelations, ZiCA president, Yande Siame Mwenye, proposed some measures on how Government could address the vice, while identifying loopholes in governance structure.
Ms Mwenye proposed to Government to consider strengthening institutions to tackle financial illicit flows and unaccounted wealth.
Re-evaluation and tailor capacity building programmes to specific institutional needs was another proposal made by Ms Mwenya at2024 second quarter media briefing on various national matters issued in public interest.
“To address these challenges, ZICA recommends that the Government of the Republic of Zambia should consider to: demonstration of accountability at all levels that ensure that reforms and changes are implemented, provide resources and funding to support institutional development and offer incentives and opportunities to spur private sector growth,” she said.
Before highlighting the proposal, Ms Mwenya identified possible challenges after reviewing the FIC report.
Among the identified challenges included implementation of reforms and changes which seemed to be hindered by unknown forces.
She also identified inadequate resources and funding to support regulating authorities and institutional tasked with investigating such matters accountability and transparency, saying it remained a significant obstacle.
“There does not appear to be a spirit of accountability and transparency
creating a huge disparity with expected results; seemingly public perception that there is no accountability by those charged with managing public resources,” Ms Mwenya said.
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