• by IPS Correspondents (brazzaville)
• Sunday, November 13, 1994
• Inter Press Service

BRAZZAVILLE, Nov 13 (IPS) - SATISYING THE INTERNATIONAL MONETARY FUND (IMF) WILL BE A TOUGH TASK FOR CONGO, WHICH HAS BEEN BALKING AT IMF DEMANDS THAT IT REDUCE PUBLIC SECTOR SPENDING.

AN IMF MISSION ARRIVED HERE THIS WEEK FOR THE SECOND SEMESTRIAL EVALUATION OF THE CENTRAL AFRICAN NATION'S STRUCTURAL ADJUSTMENT PROGRAMME THIS YEAR, OFFICIAL SOURCES CONFIRMED.

ITS MANDATE INCLUDES MONITORING THE BRAZZAVILLE GOVERNMENT'S PROGRESS IN CUTTING EXPENDITURE ON SALARIES FROM 130 BILLION CFA FRANCS (ABOUT 255 MILLION DOLLARS) TO 122 BILLION CFA FRANCS (ABOUT 240 MILLION DOLLARS).

IN A REPORT ISSUED IN JULY AT THE END OF THE PREVIOUS HALF- YEARLY REVIEW, AN IMF TEAM HAD EXPRESSED DOUBTS ABOUT BRAZZAVILLE'S ABILITY TO COMPLY WITH THE COST-CUTTING DEMAND.

THE IMF HAD ALSO CALLED ON THE CONGOLESE GOVERNMENT TO UNIFY ITS THREE TREASURIES - THE PUBLIC TREASURY, THE CONGOLESE RESERVE FUND AND THE PARIS ACCOUNTS FUND.

THE JULY REPORT FOUND THAT BRAZZAVILLE HAD SPENT 22.1 BILLION CFA (THEN EQUIVALENT TO ABOUT 40 MILLION DOLLARS) NOT PROVIDED FOR IN ITS BUDGET AND COUNSELLED AGAINST ANY FURTHER UNBUDGETTED

EXPENDITURE.

THE IMF SAID THAT IF CONGO WANTED TO RELAUNCH ITS ECONOMY, IT WOULD HAVE TO IMPROVE ITS TAX COLLECTION SYSTEM, SLASH ITS PUBLIC SECTOR, CUT BACK ON SPENDING AND REVIEW ITS PRIORITIES.

IT ALSO URGED BRAZZAVILLE TO TIGHTEN UP ITS CUSTOMS DEPARTMENT WHICH HAS LOST UPWARDS OF 63 MILLION DOLLARS THROUGH FRAUDS SINCE 1993, ACCORDING TO PRIME MINISTER JOACHIM YHOMBY- OPANGO.

ON THE EVE OF THE ARRIVAL OF THE IMF TEAM, THE BRAZZAVILLE GOVERNMENT ANNOUNCED A SERIES OF MEASURES AIMED AT TIGHTENING UP ITS FINANCIAL MANAGEMENT.

THESE INCLUDE IMPROVING CUSTOMS SERVICES, REDUCING DUTY EXEMPTIONS, CENTRALISING THE COLLECTION OF REVENUE AND DECREASING THE EXPENDITURE COMPONENT OF THE 1995 BUDGET.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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