Offshore banking is too complex for David Himbara Muruganwa. The self-publishing fraud, almost always high on weed, is fronting a fake controversy which he simply does not understand. As part of his routine work, he is paid to do anti-Rwanda propaganda by designing fallacies to denigrate and disparage. This time, he picked something he doesn’t understand.
In his obscure anti-Rwanda narrative, he produces a World Bank report that attempts to link three different concepts: foreign aid, off-shore banking, and tax haven banking. The World Bank paper, Elite Capture of Foreign Aid, covers the period of 1990 to 2010, and the Bank is clear:
“The leaks averaged about 5% of the bank’s aid to these countries.”
“And the 5% of “leaks” might include some innocent money, earned by aid contractors who just happen to prefer offshore havens to other financial centres.”
On the 13th of February 2020, The Economist wrote an article on the subject and reported on the world bank paper which tried to mix apples and oranges. It elaborated on how the research initially began as a private paper that ended up receiving the World Bank stamp by its Chief Economist Penny Goldberg. Goldberg, conspicuously, quickly left the World Bank to return to Yale University barely 15 months after her World Bank appointment. She obviously didn’t want to wait for her dismal letter for gross incompetence.
Read: The World Bank loses another chief economist, The Economist
Offshore banking is basically banking outside your residential jurisdiction. There are many valid and legal reasons for the practice, but the generally negative perception is that offshore banking is a preserve for the elite, hiding their wealth from the taxman. The paper’s innuendo is that foreign aid is diverted to Offshore Banks simply because nationals and residents of aid receiving countries bank outside their jurisdiction is false and denigrating.
Contractors, expats, investors, and many others use Offshore Banking on a regular and legal basis.
With the case of Rwanda, in 1994 the genocidal regime emptied the central bank and ran away with their loots. In the reconstruction effort, Rwanda received significant aid and grants from various development partners. For fugitive Himbara and other anti-Rwanda lobbyists to insinuate that the use of Offshore Banking is an indication of corruption or other illegal practices is both due to his ignorance and his anti-Rwanda paycheques.
On Rwanda, the Elite Capture of Foreign Aid paper contains several other distortions such as its estimated quarterly growth rate. It estimates the quarterly GDP growth rate at 1.0%, when in reality the figure floats between 8 and 12%. The numerous omissions can only be the classic case of researching to prove a point as opposed to research to discover knowledge.
Himbara tries a propagandist trick widely referred to as an inductive fallacy or a generalization, whereby a conclusion is drawn for little of no evidence.
The RNC propagandist Himbara thinks that deposits in offshore banking are President Kagame’s money; on the contrary these deposits in the havens and non-havens represent all individuals, NGO’s, contractors and cooperation residing in Rwanda from 1990 to 2010. These would include one of his sponsors, the corrupt Rujugiro, nicknamed beeping ankles from the ankle monitor he once had to wear in UK.
To summarize, the paper covers offshore deposits of residents of Rwanda (not to be confused with Rwandans only) in 17 countries including Belgium from 1990 to 2010