West Africa is losing an estimated $50 billion every year to illicit financial flows, with public procurement systems now identified as a major entry point for criminal activity, the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA) has warned.
The alarm was raised on Monday, June 8, 2026, at the opening of a regional workshop in Monrovia focused on strengthening anti-money laundering and counter-terrorism financing measures within public procurement systems.
Speaking at the event, GIABA Director General Edwin W. Harris, Jr. described procurement across the region as “one of the most vulnerable corridors” for financial crimes, warning that systems meant to deliver development are increasingly being manipulated for illicit gain.
Public procurement accounts for about 12 percent of GDP in West African countries, making it one of the largest areas of government spending. However, its scale and weak oversight structures have made it an attractive target for criminal networks.
“These are not isolated incidents,” Harris said. “Criminals are systematically exploiting procurement systems, creating shell companies, hiding ownership, manipulating tenders, inflating contracts, and moving illicit funds through seemingly legitimate payments.”
He noted that the consequences extend far beyond financial losses. Funds meant for critical services such as roads, schools, and hospitals are diverted, undermining development efforts and eroding public confidence in government institutions.
To address these vulnerabilities, GIABA has developed a regional Procurement Guidebook aimed at helping member states detect and prevent financial crimes throughout the procurement cycle—from planning and bidding to contract execution and payment.
The guidebook promotes stronger due diligence, transparency in beneficial ownership, improved coordination among oversight institutions, and the use of digital systems to enhance accountability.
Over the next four days, participants are expected to validate the guidebook, identify key risk indicators, and develop country-specific strategies to strengthen enforcement mechanisms.
Harris stressed that identifying risks alone is not enough. “Oversight without enforcement has no impact,” he said. “Red flags must lead to investigations, prosecutions, and asset recovery.”
Also addressing the gathering, Dr. Anna Brzozowska of the European Union Delegation to Liberia emphasized that protecting procurement systems is essential for sustainable development.
“When procurement is manipulated, the damage goes beyond money,” she said. “It weakens trust, distorts competition, and discourages investment.”
Liberia’s Minister of Finance and Development Planning, Augustine K. Nguafuan, welcomed the initiative, describing the guidebook as a timely tool to strengthen safeguards in one of government’s most exposed sectors.
“This provides a practical framework for tackling procurement-related financial crimes,” Nguafuan said, urging stronger collaboration among institutions responsible for oversight and enforcement.
The workshop has brought together representatives from across West Africa, including procurement authorities, auditors, and financial intelligence units, with the goal of adopting a unified regional approach to curb illicit financial flows.
As discussions continue in Monrovia, the message from GIABA is clear: without stronger controls and enforcement, public procurement will remain a critical gateway for financial crime, costing the region billions each year.