U.S. tells Senegal aid hangs on anti-graft effort

DAKAR, (Reuters) – The United States warned Senegal  yesterday that maintaining a recent $540 million aid grant  depended on its success in fighting corruption, after a series  of incidents raising doubts over its anti-graft efforts.

Withdrawal of the aid would be a huge political and economic  blow to President Abdoulaye Wade, the 83-year-old leader who has  confirmed he plans to run for a third term in a 2012 election.

The West African country has enjoyed a better anti-graft  reputation than many of its neighbours but that image was  muddied last year by an admission that it paid a cash gift to an  IMF official, and by a recent scandal over a telecom licence.    “The American people insist that their development dollars  need to meaningfully improve the lives of the people of  Senegal,” Marcia Bernicat, U.S. ambassador to Senegal, said in a  commentary circulated to media.

Referring to a five-year package of grants won last year  under the U.S. Millennium Challenge Corporation (MCC) programme  to reward countries with good governance, she added: “To qualify for and, more importantly, maintain MCC funds,  countries must demonstrate positive policy performance and fight  corruption.”

Wade spokesman Mamadou Bamba Ndiaye said Senegal had  launched efforts to tackle corruption before the MCC award and  was determined to see them through.

“We decided on our own account to tackle corruption,  irrespective of the Millennium Challenge,” he said.

After initially issuing a denial, Wade’s government admitted  last October it gave a cash gift of some $172,000 to outgoing  International Monetary Fund representative Alex Segura, saying  such leaving presents were an African tradition. Segura handed  the money back soon after leaving the country. Senegal said in March it was holding the former head of its  telecommunications regulator on suspicion of embezzling funds  from the award of a $200 million mobile licence to Sudan’s  Sudatel. Local media have since alleged the affair goes much  higher, something the government has not commented on.