Finding Africa’s Missing Money

Investigation and Research Methods

John Reynolds

Company Accounts Examples

Tullow Oil in Ghana

Modec

• Tip: Get a qualified accountant to check your interpretation of the accounts.

http://www.actionaid.org.uk/sites/default/files/doc_lib/calling_time_on_tax_avoidance.pdf

A complex web

http://www.actionaid.org.uk/sites/default/files/doc_lib/sweet_nothings.pdf

“Zambia’s share of the taxes levied on profits sent back to Zambia Sugar’s foreign parent, and on interest paid to foreign banks financing the company’s expansion, is being avoided by routing those overseas payments through a maze of tax haven sister companies”

Inter-company loans, interest and dividend payments to offshore subsidiaries

Summary: What To Look For

• Offshore company subsidiaries: Try to build a picture of the corporate structure

• Related party transactions – eg. Loans• Interest payments related to inter-company loans• Management fee payments• Payments for royalties or IP• Dividend payments• Focus on profits and anything that reduces them.

Challenges of investigations in Africa

• Occasional requests for bribes

• Lack of public information about companies / poor record-keeping

Thanks for listening

john@johnreynolds.ie

@JohnReynlds