SAO TOME: ELECTION TIMING UNRESOLVED, ECONOMIC

C O N F I D E N T I A L SECTION 01 OF 02 LIBREVILLE 000365

SIPDIS

AF/C FOR LISA KORTE

E.O. 12958: DECL: 08/05/2019
TAGS: EAID ECON EINV PGOV PREL TP
SUBJECT: SAO TOME: ELECTION TIMING UNRESOLVED, ECONOMIC
HIGHLIGHTS

Classified By: Ambassador Eunice Reddick for reasons 1.4 (b) and (d)

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SUMMARY
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1. (C) Dates for country-wide National Assembly and
Presidential elections in Sao Tome and Principe (STP) are
unresolved due to the severe lack of funds of the Sao Tomean
Government. Originally scheduled for summer 2009, the
Government announced in June that it did not have the
required 2 million USD and would push the elections to
November. Since that declaration, the November date has been
pushed back as well, with the STP Government now debating
alternate dates after the 2010 new year ) most likely
between February or March. A bright spot on the economic
front ) STP has signed an agreement with Portugal linking
the Dobra to the Euro. END SUMMARY.

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NO MONEY FOR ELECTIONS
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2. (C) In meetings from July 15 to 17 PolOff met with Prime
Minister Joaquim Rafael Branco, Head of the coalition partner
PCD Albertino Braganca, and Acting President of the National
Assembly Carlos Eugino Tiny. In each meeting, the Sao Tomean
officials lamented the lack of funds for the government and
noted that a debate within the majority Movement for the
Liberation of Sao Tome and Principe (MLSTP) and its collation
partners regarding an acceptable date for the parliamentary
elections remains an issue. Public media reports that the
Government expects to require approximately 2 million U.S.
dollars to hold the elections, a sum they currently do not
have.

3. (C) Prime Minister Branco noted that STP has a choice to
make- to allow two different election cycles for the National
Assembly and the Presidency or to combine the cycle into one
comprehensive election. The Prime Minister said that he
strongly prefers one date for simultaneous elections as it
will be cheaper for Sao Tome. However, he pointed out that
many "high-ranking officials" within his own party oppose the
plan. When asked why government officials would oppose
saving money and holding the elections together, Branco said
that his opponents are worried that the presidential campaign
will overshadow the National Assembly elections. The
officials are concerned that their bids for office will
weaken with the country occupied with the presidential race.

4. (C) Prime Minister Branco said that he expects municipal
elections to still be held in November, the original
alternate date for the National Assembly elections.
Unfortunately, he added, National Assembly elections would
need to be postponed again due to lack of funds, and that the
"most likely" date would be between February and March of

2010.

5. (C) PCD Chairman Braganca said that elections were
essential to the international stature of Sao Tome and
Principe and echoed the Prime Minister,s belief that both
the National Assembly and presidential elections would be
held in February or March. When asked if he thought it would
be held on one day or different days, he answered that it was
"too early to tell." Acting President of the National
Assembly Tiny told PolOff that the elections were postponed
"indefinitely" and that he believed there was "no end in
sight" to the debate regarding timing.

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POSITIVE ECONOMIC SIGNALS
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6. (C) The bright spot on an otherwise gloomy economic
picture for STP was the recent signing of an agreement with
Portugal that linked its currency, the Dobra, to the Euro.
Also, Libyan private operators will invest 3 million U.S.
dollars over a four year period for the development of a
coffee plantation. The 230 hectare plantation belonged to an
STP state-owned company, Monte Cafe and has not produced
coffee since the mid-1990s. The Libyan investors have also
committed to rehabilitating Monte Cafe's facilities and
making further investments in STP's coffee sector. Monte
Cafe, with about 700 employees, produced about 90 percent of
the country's coffee exports in the past. Libya also plans
to invest in STP's tourism sector through hotel construction.

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COMMENT
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7. (C) The often-public debate surrounding the timing of the
elections suggests that MLSTP unity is coming under pressure,
though there is no viable opposition party to take advantage

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of any ruptures in MLSTP solidarity. Its no secret Sao Tome
and Principe are struggling with their national budget. It
is likely the Sao Tomean Government will look to the
Angolans, Nigerians, Brazilians or Taiwanese to fund their
elections. We hear that Nigeria's national assembly just
approved an executive request to grant a 10 million USD soft
loan to STP. END COMMENT.
REDDICK