Aides to President Denis Sassou-Nguesso of the Republic of Congo startled staff at the Palace hotel on Madison Avenue by pulling out wads of $100 notes to settle a bill for 26 rooms.

Sassou-Nguesso, who is chairman of the African Union, representing all the continent’s governments, is negotiating with the World Bank and the International Monetary Fund (IMF) to cancel many of his country’s debts on the grounds that it cannot afford to repay them. Yet the president spent a week last September in the Palace hotel, one of Manhattan’s most prestigious addresses.

He paid $8,500 (about £4,875) a night for a three-storey suite with art deco furniture, a Jacuzzi bathtub and a 50in plasma television screen. His room service charges on September 18 alone came to more than £2,000.

More than 70% of the 3m people in the republic — known as Congo-Brazzaville to distinguish it from its larger neighbour, the Democratic Republic of Congo — live on less than £1.15 a day.

The president’s entourage of more than 50 people included his butler, his personal photographer and his wife’s hairdresser. The group also occupied 25 rooms at the Crowne Plaza hotel, near the UN headquarters.

Copies of the bills show that the delegation spent a total of $295,000 (more than £169,000) for an eight-night stay in New York, including more than $81,000 (£46,400) for Sassou-Nguesso’s suite. The main purpose of the president’s visit was to deliver a 15-minute speech to the general assembly’s 60th anniversary summit. He was also entertained by an American oil firm.

Details of the president’s extravagance have outraged Congo-Brazzaville’s creditors and raised new questions about the credibility of the country’s claim to qualify for debt relief under an agreement brokered by Tony Blair at last year’s G8 summit at Gleneagles.

Anti-corruption campaigners have written to Paul Wolfowitz, head of the World Bank, urging him to oppose debt relief for Congo-Brazzaville until there has been a “massive cleaning up” of the country’s finances, which are heavily dependent on oil revenues. The IMF is due to discuss Congo-Brazzaville at an executive meeting on Friday.

Global Witness, the anti-corruption group, claimed in a recent report on Congo-Brazzaville that its oil wealth “has for too long been managed for the private profit of the elite rather than for the benefit of its entire population”.

Sassou-Nguesso arrived at the Palace, which declares itself “the ultimate in urban luxury”, on September 11. A former Marxist who lost power in 1992 but regained it after a civil war in 1997, he was shown to a suite known as the Triplex. It boasts 18ft-high floor-to-ceiling windows, marble floors and an outdoor terrace with spectacular views of the skyline.

The hotel bills record that about £6,900 was charged to the president’s account as room service. No details were itemised, but the Palace offers guests menus that include pan-seared foie gras, Scottish langoustines, truffle crumbles, Dungeness crab and braised snails in chicken mousse.

Congo-Brazzaville’s UN mission paid a $51,000 deposit by cheque to secure the rooms. The final entry on the group bill shows that the balance was settled by a “cash payment” of $177,942.96 (£102,000) — an extraordinary sum for any hotel guest to be carrying.

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