The Intergovernmental Action Group against Money Laundering in West Africa (GIABA) has called for stronger parliamentary oversight across ECOWAS, warning that weak public financial management and illicit financial flows continue to drain billions of dollars from African economies and undermine business growth.
Speaking at the opening of the Second Regional Seminar on Preventing Financial Crimes and Enhancing Public Finance Management in Accra, GIABA Director General Edwin W. Harris Jr. urged Parliamentary Public Accounts Committees (PACs) to move beyond making recommendations and actively champion reforms that strengthen public financial management, transparency and accountability.
He said stronger oversight institutions are essential to reducing corruption, money laundering and other financial crimes that distort markets, discourage investment and weaken economic development.
Mr Harris noted that despite progress in strengthening Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) frameworks across ECOWAS over the past four years, significant weaknesses remain in public sector financial governance.
According to him, Africa loses an estimated US$88.6 billion annually through corruption and illicit financial flows, equivalent to about 3.7 percent of the continent’s Gross Domestic Product (GDP).
The losses, he said, deprive governments of resources needed to finance infrastructure, healthcare, education and job creation while increasing the risks of organised crime and insecurity.
He said much of the illicit financial activity is linked to weaknesses in public procurement systems, making stronger parliamentary scrutiny critical to protecting public finances.
“The fight against financial crime is no longer just a governance issue; it is an economic imperative,” Mr Harris said, stressing that safeguarding public resources would improve investor confidence and create a more transparent business environment across West Africa.
Representing the Minister of Finance, Mr Samuel D. Arkhurst, Coordinating Director for Technical Services at the Ministry of Finance, described illicit financial flows as one of the biggest threats to national economies.
He said opaque procurement processes, weak oversight and corruption continue to expose public finances to abuse, calling for stronger regional cooperation and practical reforms to improve financial governance.
Mr Arkhurst urged ECOWAS member states to strengthen collaboration in tackling financial crimes that reduce government revenues and constrain economic growth.
Chief Executive Officer of Ghana’s Financial Intelligence Centre (FIC), Mr Kwadwo Twum-Boafo, said effective information sharing and stronger institutional capacity are essential for detecting financial crimes before public funds are lost.
He noted that many members of Parliamentary Public Accounts Committees require continuous specialised training to analyse audit reports, identify indicators of financial crime and ensure that recommendations contained in Auditor-General’s reports are implemented.
Mr Twum-Boafo identified political interference, inadequate technical expertise and limited institutional support as key obstacles to effective parliamentary oversight.
He emphasised that preventing illicit financial flows requires proactive oversight rather than reactive investigations, adding that early detection remains the most cost-effective strategy for protecting public finances.
Secretary General of the West African Association of Public Accounts Committees (WAAPAC), Mr Clarence Gahr, called on governments to provide adequate funding, training and institutional support to strengthen parliamentary accountability and improve value for money in public spending.
The three-day seminar has brought together Parliamentary Public Accounts Committees, Supreme Audit Institutions, Financial Intelligence Units, anti-corruption agencies and governance experts from across ECOWAS to share strategies for combating money laundering, strengthening public finance management and protecting the integrity of regional financial systems.
Established in 2000, GIABA coordinates regional efforts to combat money laundering and terrorist financing across West Africa through policy development, capacity building and compliance with international AML/CFT standards.
