The AFROSAI 2017/18 Coordinated Audit on Corruption as a driver of Illicit Financial Flows
In 2017, members of the AFROSAI from South Africa, Senegal, Togo, Tanzania, Kenya, Niger, Uganda, Sierra Leone, Zimbabwe, Chad, Côte d’Ivoire and Liberia undertook a coordinated audit, focusing on corruption as a driver of Illicit Financial Flows, especially on Asset Declaration and Public Procurement Systems which was completed in April 2018.
On the topic of Asset Declaration Systems, the audit revealed that:
- Systems have been put in place in all but one country, but they differ substantially.
- There is a need to revisit the regulatory frameworks.
- The sanction regime needs to be strengthened and fully applied.
- In most countries, the verification of declarations needs to be urgently improved.
- Public accessibility of declarations needs to be reconsidered.
On the topic of Asset Declaration Systems, the audit revealed that:
- Systems have been put in place in all countries with regulatory frameworks that provide for transparency.
- Public procurement systems need to deliver on competitiveness and efficiency.
- Conflicts of interest in public procurement need to be better managed.
- Inclusion of procurement officials in asset declaration regimes is essential.
- Corruption reporting mechanisms need to be made fully operational.
- Oversight over procurement, including follow up and sanctions, must be strengthened.
- Capacity for implementation of procurement laws and regulations is weak.
The overall conclusion of the AFROSAI 2017/18 Coordinated Audit on Corruption as a driver of Illicit Financial Flows:
- The Governments audited have made substantial progress in putting the asset declaration and procurement systems required by AUCPCC and UNCAC in place. It is now imperative to improve their operations.
- As an overarching finding, it is imperative to strengthen the controls of these systems, whether it is the verification of asset declarations, the procurement audits by oversight bodies or the control of declarations of conflict of interest in procurement. These controls combined with adequate sanction regimes must be put in place to prevent impunity.
- Supreme Audit Institutions are essential actors in providing recommendations for improving these and other public finance systems. Their role in national governance systems should therefore be strengthened.