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East-West Debt october 2003 news, update : Angola

Angola   search for 'missing millions'

According to an internal report by the International Monetary Fund (IMF), some $1bn disappeared from Angolan government's finances last year. The sum exceeds the value of humanitarian assistance sent to the country this year. Over the past five years a total of over $4bn are unaccounted for, so the report.

Negotiations between the authorities, as well as technical help given in recent years, did not result in progress in the areas of governance and fiscal transparency. Angola has often been accused of corruption in the past, but financial mismanagement on such a scale had never been reported by an institution with the credibility enjoyed by the IMF. The Angolan government denied all accusations, yet the report says that more than $900m went missing last year alone. The Fund did not point out the destination of the missing money, but it suggested "extensive corruption" as one of the major problems which the Angolan government has to deal with. Another problem in the evaluation of the situation in the country is a lack of reliable data, said the IMF.

The spokesman for the Angolan Finance Ministry, Bestos de Almeida, denied the discrepancy of billions of dollars in public accounts, adding that the government was making an effort to improve financial transparency and to fight corruption.

Diplomats say that at least some of the irregularities identified may be due to bad accounting practices on the side of the government. Another possibility is that some indivi- duals may have diverted funds into their own bank accounts, taking advantage of the poor financial standards. Donor countries said they would continue to push for better financial management by the Angolan government.

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