Cape Verde Opposition Denies Hidden Accounts Allegations
The political battle over Cape Verde’s national finances has intensified as the main opposition party, the Movement for Democracy (MpD), hit back against government allegations of “budget slippage” and secret accounts.
No Evidence of Hidden Debt
Luís Carlos Silva, the parliamentary leader of the MpD, categorically rejected claims that his party’s previous administration manipulated public accounts. Speaking in response to a newly released report from the Public Finance Council (CFP), Silva argued that the document actually vindicates the former executive.
“Recommendations aimed at improving transparency do not constitute proof of hidden accounts, manipulation, or the concealment of debt,” Silva stated. He accused Prime Minister Francisco Carvalho of “failing to tell the truth” to justify a recent Rectifying Budget, a move Silva claims could damage Cape Verde’s standing with international partners.
Clarifying the Numbers
The controversy stems from an increase in budgeted expenditure, which rose from 95.7 billion escudos (€867.9 million) to 102.7 billion escudos (€931.3 million). While the current government pointed to this as evidence of mismanagement, the CFP report clarified that the 80.4% surge in external resources was not due to new debt. Instead, it reflected the proper recording of previously secured loans and grants.
Key economic indicators from the first quarter show a mixed but stable picture:
- Tax Revenue: Grew by 12%.
- Total Expenditure: Rose by 16.6%.
- Budget Balance: Remained positive at 1.4 billion escudos (€12.7 million), or 0.4% of GDP.
Calls for Better Reporting
Despite dismissing the “hidden accounts” narrative, the CFP offered several recommendations to improve fiscal governance. The council urged the government to ensure greater predictability when drafting the State Budget and called for the publication of a consolidated framework that tracks all budgetary amendments throughout the year.
The Rectifying Budget
The revised budget, recently enacted by President José Maria Neves, introduces a slight 0.1% reduction in overall projected spending while shifting funds toward critical social sectors. These reinforcements include 139 million escudos for education, 300 million escudos for medicines, and 50 million escudos for social benefits.
As the government and opposition continue to clash over the numbers, the CFP’s report suggests that while there is room for improved transparency, the nation’s fundamental fiscal health remains intact.
Image: Pexels – Thuong D
