Wall Street Journal on the "Segura Affair"

The most widely read newspaper in the United State, The Wall Street Journal, has an article today on the highly controversial "going away present" to departing IMF country representative Alex Segura... The top-of-the-fold article in the Journal's "World News"section is titled "Gift from Senegal President Spurs IMF Inquiry," and features a picture of President Abdoulaye Wade. The Wade government is sticking to its characterization of the $200,000 cash given Sequra at his going away party as just an example of traditional Senegalese "terranga." An anti-corruption source in the article calls it "outright bribery." Still, we wonder, what is the quid pro quo? Without expecting something in return, it's simply a gift. Presumably that's one of the questions that the investigation by the International Monetary Fund will seek to answer.

The Segura Affair: "reverse Teranga"?

The Senegalese government in statements today seemed to acknowledge giving a pile of cash to outgoing IMF country representative Alex Segura. But it was not a bribe, they say. According to the prime minister Souleymane Ndéné Ndiaye, the cash was simply a (very sizable) going away gift to Segura, in the hospitable tradition of the Senegalese people. He notes that Segura never did any favors for the Senegal government while he was stationed at Dakar, and he was on his way out, unable to do any future favors, so it couldn't be a bribe.

L'affaire Segura: it's classic Senegal

It has been called bribery, but the real story behind "the Segura Affair" may be more interesting than that. Wittingly or not, the Senegal representative for the International Monetary Fund (IMF) seems to have been what we call in California politics a "bag man," carrying 65 million CFA (about $150,000).

The hapless bagman, Alex Segura, was ending his third tour in Senegal for the IMF. I had spoken to him a couple times by phone (or was it email) in Spring 2008, but was unable to meet him personally because of his travels. It can safely be said that no other foreigner in Senegal was better known--or at least in the media--than Segura (yes, even more than Obama). He was the point man steering the Senegalese economy for the international community.

Segura's role/complicity/whatever is pretty vague. At least that seems to be the picture in the Senegalese press. Some of those reports are supposedly based upon statements from the IMF. But I can't find anything about it on the IMF website and there is virtually no media reports on the "Segura Affair" outside Senegal.

The "real" story, augmented by my informal sources, is that Segura was delivering the money to the Senegalese embassy in Barcelona. He found that he had the money (delivered to him by means uncertain) and let his superiors know. My Senegalese contacts are convinced that he was being used--again wittingly or not--to deliver the money for Senegalese government higher ups. Since the Wade administration does a lot of "cash transactions" their conclusion is that hanky-panky was involved. Maybe it was a bribe. But to who? Segura was exiting his post in Dakar. It doesn't seem to make sense that he was being paid off retrospectively or prospectively.

The IMF is reportedly (by Dakar press) investigating the "Segura Affair." Meanwhile, Senegalese in the U.S. have announced a protest gathering at the IMF headquarters in Washington D.C. to voice their indignation with the Senegalese government and the perception of its corruption galvanized by the "Segura Affair," set for October 31.

A new Senegal energy source: openness

A unique solution to Senegal's energy dilemma was recommended recently by Alex Segura, the IMF's resident representative. The solution is two part: cash and transparency. And the two go together. Senegal's utilities are stuck in a spot market rut: they buy fuel oil one tanker at a time, in cash, frequently borrowed cash, from who-knows-where... Instead Segura urges transparent bidding. International finance experts have always pushed open bidding in African economies, with little progress. In the energy sector it makes sense, but is no easier than other sectors such as infrastructure. Oil powers Senegal's feeble generation capacity. That's imported, refined oil--especially subject to the world extaction, refining and transportation market, and its very evident vagaries, especially recently... It will take some real arm twisting for Senegal's utility sector (hardly deserving the name) to institute the discipline, and smarts, necessary for a successful open bidding program. But the payoffs would seem great: the consequent tools of hedge and option trading of supplies could create a buffer in hard economic times as these... Segura's recent comments were larded with praise for the progress being made by Senegal's establishment in the area of budget reform and accountability, setting the foundation for sophistication in its energy policies and practices...