MAURITANIA: Junta announces anti-corruption pay hikes for civil servants

[This report does not necessarily reflect the views of the United Nations]


NOUAKCHOTT, 28 December (IRIN) - Civil servants will be able to celebrate the 
New Year in Mauritania safe in the knowledge that their pay packets will be up 
to 50 percent thicker come 1 January.

The military government on Wednesday announced civil servant pay rises of at 
least 30 percent, with a 50 percent increment for the top brass.

According to Mauritanian head of state, Ely Ould Mohamed Vall, the changes are 
intended to crack down on corruption.

The changes are intended to create "adequate conditions for the establishment 
of social justice and the implementation of the principle of good governance 
for a more equitable distribution of the national wealth," said Vall.

The government has also promised to slash a 30 percent income tax, known 
locally as the ITS tax, by half. That tax is levied on salaries of all 
government and private sector employees.

Civil servant and military pensions will also be increased by 15 percent.

In March, former president Maaouya Ould Taya announced a six-fold pay rise 
back-dated to January for government ministers, also in a bid to tackle 
corruption, he said.

But this failed to do the trick and the military government that ousted Taya in 
an August coup cited government corruption as their main motivation. Vall's 
junta has promised to restore democracy to the Islamic Republic and scheduled 
elections for March 2007.

The new measures come days after the International Monetary Fund (IMF) 
announced Mauritania's exclusion from a list of 20 countries that qualified for 
100 percent debt relief under the Highly Indebted Poor Countries initiative 
(HIPC).

Mauritania could again be incorporated into the HIPC programme as soon as 
"required policy options are taken," said Thomas Dawson, IMF's director of 
external relations earlier this month.

In 2002, the IMF calculated that servicing debt cost the Mauritanian economy 
the equivalent of 36 percent of annual export earnings.

But in early 2006, economic growth is set to rocket in Mauritania as the desert 
nation's first deep-sea oil well begins production.

The reduction of the widely disliked ITS tax was welcomed in the dusty capital 
Nouakchott.

"I welcome the cutting of the ITS tax, which represented a 30 percent claw-back 
of worker's salaries. The reduction of the ITS has been a union demand for more 
than a decade," said trade union leader Mohamed Salem.

But Salem warned that inflation, which has soared since oil investment started 
flowing into the country, also needs to be tackled if the benefits are to have 
any lasting effect. 

"If this cut is accompanied by a stabilisation of the price of basic goods, 
these measures will go a long way to helping workers and maintaining social 
stability."


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