Senegal aims for a new IMF programme by June after audit discrepancies revealed underreported debt and budget deficits from the previous government. Finance Minister Cheikh Diba seeks prompt agreement, while Justice Minister Ousmane Diagne announced investigations into potential embezzlement and financial misconduct. The APR party contested the audit’s findings, and the IMF is reviewing the court’s report for further consultation.
Senegal is optimistic about establishing a new programme with the International Monetary Fund (IMF) by June, as announced by Finance Minister Cheikh Diba. This comes in the wake of an audit revealing significant discrepancies in financial data reported by the previous administration under former President Macky Sall. The existing $1.8 billion IMF credit facility is currently suspended pending a review of the country’s financial status.
During a recent press conference, Minister Diba expressed hope for agreement on a new programme with the IMF, anticipating that funds could be disbursed shortly after its establishment. Concurrently, Justice Minister Ousmane Diagne confirmed that the government would delve into allegations of public fund embezzlement, forgery, and money laundering related to the findings of the audit, potentially involving former officials from 2019 to 2024.
Minister Diagne refrained from naming specific individuals but indicated that the investigation could encompass former ministers and heads of public institutions. The ruling Alliance for the Republic party (APR) has disputed the findings of the Court of Auditors, which recently scrutinized the nation’s finances and validated prior budget settlement laws.
As of now, the IMF has not issued a comment regarding the situation in Senegal. However, it did acknowledge the receipt of the Court’s report and indicated it would engage in discussions with Senegalese authorities to tackle the identified financial challenges.
Senegal’s government is proactively seeking to launch a new IMF programme by June, responding to alarming audit findings that discredited previous financial reports. The investigation into potential financial misconduct may involve high-ranking officials from the former administration. The APR party’s denial of wrongdoing contrasts with the IMF’s ongoing assessment of the situation, which may have significant implications for Senegal’s financial health.
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