Browsing by Author "Chege, Kennedy"

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    Illicit Financial Flows in Zambia's Integrated Economy: Analysing the effects of illegal taxation practices in the extractives industry on value addition
    (2022) Mulenga, Mwaba Chileya; Titus, Afton; Chege, Kennedy
    Mining is an important sector of Zambia's economy. Using the Constitution, legislative measures, and other policy pronouncements, efforts are being made by the Zambian government to maximise opportunities for diversification and value addition from mining to other sectors of the economy. Opportunities have been identified mainly in the form of employment creation, skills development, increased production using local goods and services, and integration into the mining value chain. Traditionally, Zambia's mining industry has been dominated by foreign multinational companies since the early 1900s. Therefore, multinational companies as major capital investors are key actors that anchor other service providers in the mining value chain. Their involvement therefore largely contributes to, and in some instances detracts from, the success of these measures to maximise value addition. This research explores the interaction of these companies and other local Zambian businesses in the light of the country's goals for industrialisation and diversification in an integrated multi-sector economy. By analysing the overall legal and economic context in which multinational companies operate, this research demonstrates that illegal tax practices by multinational companies have discernible adverse effects on revenue where funds are syphoned out of the economy illicitly. Also, this research evaluates the multi-dimensional effects of these practices and emphasises that value addition efforts throughout the mining value chain are particularly adversely impacted. The research identifies and critiques inadequacies in the law that fail to address the resultant challenges for local businesses such as lost opportunities for funding and capacity.
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    To amend, repeal or enact: Analysing the legislation that regulate anti-illicit financial flows in Namibia's Natural Resources Sector
    (2021) Zongwe, Leezola R; Hattingh, Johann; Chege, Kennedy
    This dissertation is premised on the understanding that the legislation meant to curtail illicit financial flows (IFFs) in Namibia is poorly drafted and does not adequately curtail IFFs in the country's natural resource sector resulting in low levels of domestic resource mobilization. IFFs refer to the illegal gain and/or movement of money between entities and persons. Namibia's natural resources span from its sustainable fishing sector to various non renewable mineral resources such as uranium, gold, diamonds, tin, copper, cadmium, lead, lithium, vanadium, salt, and zinc. The country is resource rich and politically stable. However, despite this its industrialization is stagnant and its development is rudimentary with about a third of its population living in extremely poor socio-economic conditions. Over the past decade, it has become increasingly evident that Namibia's efforts to curb IFFs have not yielded the desired results. In this regard, Namibia's anti-illicit financial flow laws do not adequately prevent IFFs within the natural resources sector. To paint the full picture of Namibia's anti-IFF legal framework, this dissertation engages in the monism versus dualism debate to ascertain Namibia's position concerning international law within its territory. Evaluating Namibia's international law position and the treaties that apply in Namibia allows this dissertation to ascertain whether the country can use international law to better equip its law enforcement, regulators, and courts with more effective rules for regulation and prosecution. Following this evaluation, this dissertation analyses Namibia's national laws aimed at curbing IFFs in its natural resource sector. From this analysis, this dissertation draws its conclusion that, although there are a few gaps within these laws, the identified shortcomings are material in that their absence greatly undermines the aims and functions of the legislation and their enforcement bodies. Finally, this dissertation proffers recommendations to cure the mischief identified.