The International Monetary Fund (IMF) has confirmed that the administration of former Senegalese President Macky Sall deliberately concealed up to $7bn in public debt between 2019 and 2024, following an audit commissioned by the new government.
The IMF’s validation of the findings, reported by APA News, supports earlier claims made by President Bassirou Diomaye Faye shortly after taking office.
In response to the reported discrepancies, the IMF suspended its $1.8bn credit facility to Senegal in 2024, pending a full review of the country’s fiscal reporting. The suspension remains in place as the IMF awaits adequate corrective measures from the new government to address the misreporting of key economic indicators.
A delegation from the IMF, led by mission chief Edward Gemayel, endorsed the findings of Senegal’s Court of Auditors, which revealed that Sall’s administration had understated national debt, causing the actual debt-to-GDP ratio to approach 100%, significantly higher than the official figure of 70%. This misrepresentation allowed the country to access international loans under more favourable terms, misleading global investors and financial institutions.
The audit’s publication has fuelled political tensions in Dakar, with opposition groups accusing President Faye and Prime Minister Ousmane Sonko of leveraging the investigation to undermine the former regime. However, the IMF has publicly supported the new leadership’s emphasis on transparency and commitment to fiscal reform
The Court of Auditors has also revised Senegal’s 2023 budget deficit from 4.9% to 12.3% of GDP, intensifying concerns over the country’s financial stability. Credit rating agencies Moody’s and Standard & Poor’s have since downgraded Senegal’s sovereign rating, further complicating the government’s economic recovery plans.
Justice Minister Ousmane Diagne has confirmed that criminal investigations are underway against former officials implicated in alleged offences, including embezzlement and money laundering, as part of a wider anti-corruption initiative.
Reuters
