By Daanyaal Matthews
The Republic of Senegal is grappling with a severe financial crisis following revelations that the previous administration underreported the country’s fiscal situation.
According to the Court of Auditors, the administration of former President Macky Sall had understated crucial financial figures. Notably, in 2023, Senegal’s debt was misrepresented as 74.41% of GDP, when the actual figure stood at 99.67%.
These underreported figures have now burdened the current administration, which faces a daunting financial future. The International Monetary Fund (IMF) has recently withdrawn its extended credit facility program, further exacerbating the country’s economic troubles.
Speaking on VOC NewsBeat, Doctor Paul Kariuki, Executive Director at the Democracy Development Programme, stressed that the damage of the previous administration has put the present government in a precarious position as it now must navigate both historic faults and present crises.
“The lack of disclosure, in this case financial reporting, that the former administration did has now affected the current administration’s capabilities and possibilities of now delivering what they promised,” stated Kariuki.
A significant point of focus has been Senegal’s accounting system, which remains largely based on outdated cash-based accounting instead of the modern accrual accounting method. Kariuki explained that the previous administration’s reluctance to adopt modern financial standards stems from its commitment to outdated governance practices, which often involved corrupt activities.
“When an administration is hellbent on continuing corrupt activities, as the previous administration was accused of corruption, such an administration would want to stay with something dysfunctional because that’s the only way to siphon resources from the public coffers,” argued Kariuki.
Photo: WikiMedia
