The Finance Minister of Sao Tome and Principe has criticized the seizure of the archipelago's Central Bank account in Portugal. The seizure was initiated by a Portuguese company to recover compensation under a contract terminated more than ten years ago.
Gareth Guadalupe stated that there is a United Nations convention concerning the jurisdictional immunity of states and their assets. He emphasized that the Central Bank is a state, and according to this convention, sovereign state assets, especially state accounts, cannot be seized.
Despite acknowledging the financial, administrative, property, and operational autonomy of the Central Bank, Gareth Guadalupe added that the Central Bank's accounts are also protected from seizure. This is because the Central Bank is used to resolve currency hedging issues when the state purchases medicines, fuel, and other goods.
The newspaper Jornal Económico reported on Tuesday that Synergies Investments Limited filed a lawsuit in Portugal against the Democratic Republic of Sao Tome and Principe for the amount of 5,486,835.59 euros (about 5.5 million euros). This dispute relates to an old case regarding the operation of the Contador River hydroelectric power plant, for which compensation was set by the international arbitration court in 2009, and to which interest and other charges have since been added.
The Minister of Economy and Finance of Sao Tome and Principe acknowledged the existence of this dispute, noting that it began between 2004 and 2005 when the government at that time terminated the signed contract.
According to Gareth Guadalupe, the government of Sao Tome and Principe, through Prime Minister Americo Ramos, negotiated with Synergies and proposed a plan to repay the overdue debt and early close all outstanding liabilities. Guadalupe explained that the proposal included not only the payment of one million due in May 2026 but also the early payment of millions due in May 2027 and May 2028 to fully settle the debt with the creditor Synergies.
The official stressed the good faith of the government of Sao Tome and Principe, which awaited a response from Synergies Investments Limited. However, Guadalupe clarified that the Central Bank accounts seized in Portugal do not belong to the State Treasury, so the government of Sao Tome and Principe retains the ability to conduct receipts and payments.
He also announced that the Central Bank has already formed a legal team working on a 'call for the inviolability of state accounts'. Simultaneously, State Treasury services will take steps to pay not only the overdue amount but also amounts distributed until 2028, in order to lift the seizure.
