The International Monetary Fund clarified on Friday that it did not assess Cape Verde’s budget execution during a recent technical visit to the country, as it had not received the necessary data — a statement that directly contradicts claims by Prime Minister Francisco Carvalho that the mission had identified a significant overspend in public expenditure.
“As a rule, the IMF does not comment on internal political matters. The team that visited Cape Verde between 21 and 24 July was on a technical visit, not a programme review mission,” an IMF spokesperson told the Portuguese news agency Lusa.
“Although the team discussed the main points of the revised budget with the authorities, no data on budget execution was provided and, as a result, it was not in a position to assess the allegations regarding the implementation of the 2026 budget or the need for a supplementary budget,” the spokesperson added, concluding that the Fund had not evaluated those matters during the visit.
On Wednesday, during the presentation of a proposed supplementary budget, Prime Minister Carvalho had described the IMF mission as “excellent” and said it had allowed his government to identify a gap between the 2026 budget as approved and projected budget execution.
“It was precisely that mission that allowed us to identify that difference, because during the visit we analysed the accounts in depth and compared the approved 2026 budget with the budget execution as of June,” he said.
According to the prime minister, the gap stemmed from expenditure running approximately €72.6 million above projections. He accused the previous government of the Movimento para a Democracia (MpD) of having “deceived” the IMF.
On Friday, during a debate on the State of the Nation, Carvalho repeated the accusations against the former administration.
“The IMF was misled by the MpD government, which manipulated the accounts — let that be clear. The IMF technicians come here to analyse data, but when a government is irresponsible and conceals its accounts, it is obvious that they will only analyse the figures that were presented to them,” he declared.
The parliamentary leader of the MpD, Luís Carlos Silva, described the accusation that the previous executive had “deceived” the IMF as “extremely serious and false.”
“It is irresponsible and deeply damaging to national interests. The prime minister has either confused legal mechanisms of budget execution with illicit practices, or deliberately chose to distort those mechanisms to sustain a political narrative,” Silva said.
Luís Carlos Silva also argued that the prime minister’s statements were undermining Cape Verde’s credibility with international partners, investors, and creditors.
“A country’s credibility is built over years, through solid institutions, transparent accounts, and honoured commitments. Cape Verde has never missed a single external debt payment. This is a legacy that has been handed to you and that you will have to protect,” he stressed.
According to Prime Minister Carvalho, the 2026 State Budget — approved by the previous MpD government and promulgated by President José Maria Neves in December 2025 — projected total expenditure of €868 million.
When the current government took office in June, following the Partido Africano da Independência de Cabo Verde (PAICV) victory in the 17 May legislative elections, projected budget execution had risen to €943 million, according to figures presented by the prime minister.
The IMF technical mission, which ran from 21 to 24 July, was aimed at establishing initial contacts with the new Cape Verdean executive. At the conclusion of the visit, the IMF Executive Director for Cape Verde, André Roncaglia, expressed “greater hope and confidence” in the continuation of cooperation with the country and in the commitment of the Cape Verdean authorities to macroeconomic stability and ongoing reforms.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/08/03/mundo/africa/cabo-verde-fmi-esclarece-missao-tecnica-apos-afirmacoes-do-pm-sobre-despesa-publica/
