The IMF has agreed to release $133 million to Angola, despite calls from NGOs for the Fund to withhold the disbursement until the Angolan government accounts for a $32 billion “discrepancy” in its public accounts. In an April open letter to IMF managing director Christine Lagarde, Human Rights Watch and Revenue Watch Institute urged a delay in the disbursement until the government has “clearly and adequately” disclosed the use of the $32 billion, and “implemented key safeguards to combat corruption and mismanagement”. In reply the IMF said that the discrepancies were due to “large quasi-fiscal operations being conducted by [state oil company] Sonangol on behalf of the government”, adding that this practice will be gradually phased out.
World Bank & IMF in the news
The sovereign debt crises threatening states in the Global South are less about fiscal mismanagement and more about monetary power in the global currency hierarchy.