Prime minister appeals for repatriation of funds

Prime Minister Abel Goumba appealed on Wednesday to local and foreign business people in the Central African Republic to repatriate funds they hold in foreign banks to enable the nation stabilise its economy, state-owned Radio Centrafrique reported. He made the appeal when he met a group of business people in the capital, Bangui. Ambassadors, directors of the five local banks and government financial officials attended the meeting at the presidential palace. Goumba, who is also the economic and finance minister, was quoted as saying that the repatriation of such funds would allow the government to pay civil servants' salaries for October. The business people agreed to repatriate their funds, the radio reported. Goumba’s appeal comes weeks after he summoned Lebanese traders - who own most of the shops and firms in the country - and asked them to pay tax arrears for the first half of 2003 or face legal action. He said the traders owed the government at least 1.5 billion francs CFA (US $2.8 million). In March, soon after Francois Bozize ousted President Ange-Felix Patasse, the government announced that civil servants' salaries would be paid monthly. By then, civil servants were owed months of salary arrears. However, due to a decrease in tax-generated income, the government failed to pay September salaries until China and Equatorial Guinea intervened in early November with grants of one billion francs CFA ($1.8 million) each and France with €1 million ($1.18 million). Goumba said that the decrease in government income was due to a rainy season that rendered transport routes impassable; and also because of fraud, corruption, smuggling and the destruction of factories. Meanwhile, a French team of financial experts is touring the country to audit the public treasury in order to determine the reasons for its persisting difficulties. Goumba received the team on Tuesday, Radio Centrafrique reported. The French team is due to be followed by another, which would prescribe measures to be taken to eradicate corruption and fraud, the radio reported.