Audit Reveals Senegal’s Debt and Deficit Higher Than Reported, According to Reuters

DAKAR (Reuters) – Senegal is currently in discussions with the International Monetary Fund (IMF) regarding necessary corrective measures following an audit that revealed its debt and budget deficit were significantly larger than previously reported by the prior administration, according to the country’s economy minister.

Abdourahmane Sarr stated that an audit initiated by newly elected President Bassirou Diomaye Faye indicated that the deficit at the end of 2023 was over 10%, in contrast to the approximately 5% reported by the previous government.

"The authorities we replaced misled the country and its partners by falsifying figures," remarked Senegal’s Prime Minister Ousmane Sonko during a press conference on Thursday.

Faye, who came to power in a decisive election victory in April amid public dissatisfaction with former President Macky Sall’s administration, had pledged to conduct audits of the previous government’s financial management.

Sarr explained that due to the inaccurate figures provided by the prior authorities, Faye’s government opted not to submit Senegal’s request for an IMF disbursement in July, following the fund’s review in June.

Last year, the IMF approved a three-year credit facility worth $1.8 billion, and Senegal was expected to receive some distributions from this arrangement post-review.

"An evaluation of Senegal’s situation based on false information would have resulted in what is termed misreporting to the IMF," Sarr noted, emphasizing that any potential disbursements derived from misreporting would need to be reimbursed, and corrective actions taken.

"The IMF has been notified, and Senegal is engaged in discussions with the IMF regarding the corrective measures that should be implemented, either within the existing IMF program or in the framework of a separate program to be negotiated as soon as possible," he added.

The IMF has not yet responded to requests for comments.