ICP Asks IMF of Talks with "Money Launderer" in Congo, Pakistan Minister Dar Charged

By Matthew Russell Lee


UNITED NATIONS, September 28 – When the International Monetary Fund held its biweekly embargoed briefing on September 28, Inner City Press asked among other things about the IMF negotiating with a reputed money launder in Congo-Brazzaville, and about corruption charges against Finance Minister Ishaq Dar of Pakistan, also in IMF talks. On the former, IMF Deputy Spokesman William Murray said the IMF is again in Brazzaville, for the third time, having a “series of contacts” on financial assessment. He declined to confirm or deny the IMF is talking with Orion Oil's Lucien Ebata, but this is widely known, as is his dealings in cash, via the Panama Papers. We'll have more on this. Inner City Press' Pakistan question was and is: “On Pakistan, it is reported that “the IMF said it had been told by Pakistani officials that the restrictions [on luxury imports] would be removed within a year but Mr Abbasi now says his government was planning to impose more.” Also, what is the IMF comment on the corruption charges against Finance Minister Ishaq Dar?” But when re-submitting through the IMF's online form, with allows only 300 characters, Inner City Press took out “[on luxury imports]” thinking the IMF would know what restrictions were being referred to, since they imposed them. They did not, and did not address the Ishaq Dar corruption allegations. Yet. Watch this site. When the International Monetary Fund re-started its biweekly embargoed press briefings on September 14, Inner City Press submitted questions about Hurricane Irma and moratoria, Mozambique, DR Congo and Ghana: "what is the IMF's response to civil society saying 'the Finance Minister, in particular, is facing conflict of interest investigation with USA SEC, Ghanaian SEC and the Commission on Human Rights and Administrative Justice (CHRAJ) in Ghana... We are losing hope as the IMF seems not concerned about all these developments”? The first two got answered, during the briefing, then this on Ghana, from an IMF Spokesperson: "We are aware of the allegations raised in Parliament and the related debates that have been reported on by the media. The Minister of Finance testified before Parliament to clarify the issue. Since the approval of the ECF arrangement we have been working with the authorities on strengthening debt management and improving governance and transparency of government operations. The enactment and ongoing implementation of the Public Financial Management Act, along with the implementation of the debt management strategy, indicate progress in these areas."  Inner City Press asked: "On Antigua and Barbuda, and Hurricane Irma impacted countries more generally... will there be no moratoria? What is the IMF doing?" IMF spokesperson Gerry Rice said, "There's a question from Matthew Lee on moratorium... on that, I would refer to what Mme Lagarde said a few days ago, of course the IMF has tremendous sympathy. She also said we stand ready to help. There are a number of options we can look at in that context. At the moment we are still trying to make an assessment. As a factual member, none of our members including Antigua and Barbuda have formally requested assistance from the Fund." Oh. On Mozambique, he called again for the publication of the full audit. Inner City Press also asked, "On the DR Congo, what is the IMF's response to civil society requests it has received that the Fund end its dealings with the National Petroleum Company of the Congo (SNPC), specifically that “if the IMF obtained the dissolution of Cotrade, a subsidiary of the SNPC, it can also demand and obtain the dissolution of the SNPC and the major works”? Watch this site and see IMF's July 20, 2017 transcript: , with Inner City Press' question at that time: "Ghana President, Nana Akufo-Addo, on Tuesday said the country will not extend its three-year aid program with the IMF beyond April 2018. The IMF had urged it to do so to give it time to complete the program’s goals. Did the IMF so urge? A step back real quick for some context. Right now, we’re in the process of completing the fourth review of Ghana’s ECF program. We’ve made significant progress in program discussions, and we expect to reach understandings in all remaining issues in the coming days. The discussions are going to continue and as a result of these continuing discussions, a Board discussion to complete the fourth review probably won’t take place until late August. Again, Media Relations will get back to everyone on the exact timing. But it’s probably late August when Ghana’s fourth review will be taken up by the Executive Board.
Now, the question that was just posed was regarding a comment about extension of the ECF next year when it’s scheduled to expire. The President made it clear that he would like to move Ghana beyond aid. And successful completion of the IMF-supported program could be instrumental in achieving this goal by restoring macroeconomic stability in Ghana. A request for program extension is essential for our ability to complete the review of this program overall. And given the significant fiscal slippages from last year, it will also take longer to bring debt onto a clearly declining path, which explains the need for the program to cover performance into later next year. This was something that was outlined in a press release issued by the finance minister on July 18th. Mozambique: the IMF’s Mr. Lazare, our mission chief, has said that, quote, “critical information gaps remain unaddressed regarding the use of loans, proceeds”, close quote. Please be more specific about what the IMF sees as the information gaps, and how they can be filled, with what information and in what detail? First of all, we welcomed and continue to welcome the fact that the delivery of an international forensic audit on three companies to the office of the public prosecutor of Mozambique has taken place. We commend Mozambique public prosecutor for undertaking this important audit and for releasing the summary of the report. Transparency and good governance are key conditions for sustainable, inclusive growth, and that applies to all countries. Now we look forward to the publication of the entire audit report in due course. At that point, we will be able to provide an informed view on the audit and its implications. Still UNanswered: "On Zambia, Fitch has “said the key risk stemming from the current political tension if it escalated could jeopardize an IMF aid package as well as other lender's willingness to provide the southern African nation with external financing” and that “progress towards an IMF program has remained slow and may be delayed further by domestic political events, adding that expectation of an IMF program was key to Zambia's B/negative sovereign rating.” Please comment on if progress is slow and on these risks. In Sri Lanka, Joint Opposition’s Parliamentarian Bandula Gunawardana on July said that the country's Inland Revenue Act, in accord with the agreement arrived at with the IMF, is “an attempt to sabotage all forms of tax relief provided by former President Mahinda Rajapaksa during his tenure as the Finance Minister, and clarified that state-sponsored relief was also included under the new Act.” Is that the IMF's understanding of the Inland Revenue Act? Please comment. If there is an updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring “Silicon Mountain." Back on June 22 Inner City Press submitted questions about Zambia, Cameroon and Haiti, where it was. During the embargoed briefing, IMF Spokesperson Gerry Rice read out Inner City Press' Zambia question and said, "implementation of the remaining actions in the next few weeks will enable us to present the authority's request for an Extended Credit Facility arrangement to the Board, and we expect that to be in August of this year." But this Haiti question has yet to be answered: "Chris Walker said reconstruction from the effects of Hurricane Matthew, and investments in health, education, and social services... will be achieved in part through the elimination of excessive subsidies, including subsidies for retail fuel sales. Please specify the IMF's thinking on time timing and range of subsidy elimination and ideas for EDH utility." On this and Cameroon (see below), we'll have more.  On Cameroon, Inner City Press has repeatedly asked for the IMF's "updated view about the Internet cut off (lifted only after 94 days) and other restrictions in the Anglophone regions of Cameroon injuring 'Silicon Mountain.'" Watch this site: we'll stay on this.