Study urges deployment of real-time technologies to address illicit financial practices

The government has been called upon to implement real-time satellite and drone technologies to address illicit financial practices in the mining industry at the extraction stage.

At the processing stage, government institutions have been advised to collaborate to enforce stricter controls on the reporting of the quantity, value, and quality of processed minerals.

This was in a recommendation at the launch of a study report titled “Mapping of Illicit Financial Flows Risks (IFF) Along the Supply Chain of Gold Mining in Ghana.”

The report was presented and conducted by Dr Charlotte Kpogli-Dzadey, Lead Researcher, Integrated Social Development Centre, in collaboration with the Global Financial Integrity (GFI) and financed by the Norwegian Agency for Development Cooperation.

The report was conducted at the community level with the combination of desk research and primary data collection in Talensi, Kenyasi, and Obuasi.

In all, 81 individual interviews were conducted with 77 responses cleared as valid for analysis.

At the transportation stage, the report urged the government to increase its oversight role and introduce anti-corruption mechanisms for customs and transportation authorities to ensure the legal movement of minerals across borders.

With the marketing stage, the government has been advised to insist on full disclosure of sales transactions of gold trading entities.

That, the report stressed, would improve transparency and reduce tax evasion and profit-shifting practices.

The report also recommended the promotion of public awareness and stakeholder engagement about the consequences of IFF in the mining sector.

The findings of the report revealed that corruption among government officials was widely perceived as a major issue of IFF in the mining sector.

It revealed that 66.23 per cent of respondents believed that corruption contributed to these illicit activities “to a very large extent.”

The report showed that the influence of multinational mining companies in driving IFFs played a significant role.

Also, 74.03 per cent of the respondents viewed the role of these companies as “very significant,” highlighting the need for greater scrutiny and accountability in their operations.

Mr Samson S. Danse, the Executive Director, ISODEC, said the report would serve as a call to enhance transparency, combat financial malpractices, and promote sustainable development within the mining sector.

The report, he stated, was timely with bold action and partnerships necessary to tackle systemic issues and ensure that the wealth accrued from the natural resources benefitted all.

Mr Philip Nyakundi Gichana, Policy Director-Africa, GFI, expressed concerns about the effects of IFF within the continent, of which over $80 billion was lost through the system.

He was confident that the recommendations would catch the attention of authorities to fix the gaps in the system.

Mr Ben Aryee, from the Ministry of Lands and Natural Resources, underscored the importance of the report to help the government to shape its policies and formalise the mining supply chains to address challenges in the processes.

Source: GNA

The post Study urges deployment of real-time technologies to address illicit financial practices appeared first on Ghana Business News.

Read Full Story