UNREGULATED ECONOMIC ACTIVITIES DRIVING ILLICIT DEALS - ZICA
ESCALATION of sophisticated conspiracies employed by companies and individuals involved in illicit financial transactions in the country has worried the Zambia Institute of Chartered Accountants (ZiCA).
This has led to the accountancy body to call for investment in skills and technology, capable of handling the sophisticated machinations employed by companies and individuals involved in these illicit transactions.
According to the ZiCA president, Yande Siame Mwenye, Zambia currently had too many economic activities outside regulated financial entities.
Ms Mwenye attributed this to lack of a full scope of the economic activities in the country due to lack of resources and data to capture this information.
She also attributed this to lack of financial inclusion which
remained a key ingredient in the tracking system of economic activities.
Ms Mwenye said this at the 2024 first quarter media briefing on various national matters issued in public interest on Tuesday in Lusaka.
“As ZICA, we have observed the colossal sums of money that have been lost as a country through illicit financial flows as reported by the Financial Intelligence Centre. The said losses have been from tax evasion, smuggling of natural resources, corruption and money laundering activities.
“There is need for a greater commitment to this fight not just by the Government but by the private sector as well, including every well-meaning Zambians,” she said.
Ms Mwenye, however, acknowledged the mechanisms the Government had put in place to curb the vice.
She pointed out the enactment of the Anti-Corruption Act No. 3 of 2012, Prevention of Money Laundering Act No. 14 of 2001 and the establishment of the Financial Crimes Court as one of the measures.
Meanwhile, Ms Mwenye, during the briefing, proposed some measures Government should undertake to actualise the anticipated economic growth after the debt restructuring.
The included re-orienting economic expansion, attracting outside capital, reforming the mining industry and improving the economic governance.
Ms Mwenye noted Government’s need to redirect its economic growth trajectory away from debt-fuelled consumption and towards investments in profitable sectors such as manufacturing, tourism and agriculture.
These measures, she explained, would result in increased employment and exports thus increasing the amount of financial resources available that were critical to paying off the country’s debt.
“To support economic growth and create jobs, Zambia will need to continue to attract foreign direct investment across different sectors of our economy.
“In order to accomplish this, the Government is urged to improve the business climate, provide incentives to investors, both local and foreign and make sure that laws and regulations are transparent and predictable to achieve this policy measure,” Ms Mwenye said.