The Zambia Institute of Chartered Accountants – ZICA has emphasized the need for the Zambian government to underpin institutions to address the issue of financial illicit flows and unaccounted wealth.
ZICA pointed to the Financial Intelligence Centre’s report, which revealed a significant increase in illicit financial flows and tax evasion in the first quarter of 2024, with a substantial amount attributed to foreign nationals operating businesses in Zambia.
Speaking at a media briefing attended by the Zambian Business Times – ZBT, ZICA President Yande Siame Mwenye emphasized the importance of accountability and transparency in the utilization of financial resources, stressing the need for tangible actions to deter misappropriation of funds.
Mwenya added that ZICA has adopted the International Financial Reporting Standards S1 and S2, emphasizing the growing integration of financial and sustainability information for decision-making and risk management.
“Both locally and internationally there is a move towards a future where financial data and sustainability information are inextricably linked, and this correlation is becoming increasingly necessary for decision making, useful reporting, and for business from a risk management perspective.” She stated.
Mwenye further alluded that there is a need for accountability and transparency when it comes to the utilization of financial resources.
“This should not just be on paper but should be seen to be done, where there is misappropriation of public or private funds there should be consequences and it is hoped that this would serve as a deterrent.” She alluded.
Mwenye added that the Financial Intelligence Centre (FIC) quarter 1 2024 Trends report highlighted an increase in illicit financial flows and tax evasion which amounted to about K61 Billion of which most of it was by foreign nationals that had set up business operations in Zambia.
“There is a need for the Government of the Republic of Zambia to strengthen institutions for them to tackle financial illicit flows and unaccounted wealth. As you would appreciate when resources do not go to the intended purpose, there is a regression in the growth of our economy as a nation.” She stated.
Meanwhile, Mwenye has urged the government that for 2024 to be a year of progress in terms of the successful implementation of the green growth strategy, there is a need for the climate and sustainability bill to be tabled in parliament otherwise the implementation of the strategy would be a pipe dream as it requires legislative backing.
She further called on the government to employ resources in the Metrological department as there are projections that the nation could experience the opposite of El Nino.
