Congo must tackle corruption to get debt relief

BRAZZAVILLE – The Republic of Congo needs to tackle corruption in its oil sector in order to qualify for massive debt reduction, the World Bank’s director for central Africa said on Friday.

Congo must “reinforce transparency in its management of oil revenues” and eliminate the conflicts of interest plaguing the state’s national oil company if it hopes to qualify for the debt-cutting Heavily Indebted Poor Countries (HIPC) programme, Pero Alba told the press. Alba also said that the central African nation must elaborate programmes to combat corruption and poverty.If certain conditions are fullfilled, he said, Congo could see its international debt – which stood at US$9,2 billion (N$57,96 billion) as of 2004 – slashed by 61 per cent.Reaching the “tipping point” to qualify for debt reduction could take several years, and in the meantime Congo must negotiate with each of its “creditors to obtain the cancellation of debt,” he said.Congo’s Minister of Finance Pacifique Issoibeka, meanwhile, said that the “government was committed to pursuing reforms to fulfill the requirements of the HIPC.”The World Bank last week agreed in principle to let Congo join the HIPC, but said it had to show proof of good government and transparency in public finances and oil revenue to achieve “irrevocable” debt reduction.”Debt reduction is not something we give on the basis of promises, but on the basis of performance,” World Bank President Paul Wolfowitz said.Wolfowitz pointed out that while the west African country’s oil sector generated US$2 billion annually, 70 per cent of its population live on less than one dollar per day.- Nampa-AFPAlba also said that the central African nation must elaborate programmes to combat corruption and poverty.If certain conditions are fullfilled, he said, Congo could see its international debt – which stood at US$9,2 billion (N$57,96 billion) as of 2004 – slashed by 61 per cent.Reaching the “tipping point” to qualify for debt reduction could take several years, and in the meantime Congo must negotiate with each of its “creditors to obtain the cancellation of debt,” he said.Congo’s Minister of Finance Pacifique Issoibeka, meanwhile, said that the “government was committed to pursuing reforms to fulfill the requirements of the HIPC.”The World Bank last week agreed in principle to let Congo join the HIPC, but said it had to show proof of good government and transparency in public finances and oil revenue to achieve “irrevocable” debt reduction.”Debt reduction is not something we give on the basis of promises, but on the basis of performance,” World Bank President Paul Wolfowitz said.Wolfowitz pointed out that while the west African country’s oil sector generated US$2 billion annually, 70 per cent of its population live on less than one dollar per day.- Nampa-AFP