São Tomé and Príncipe contests seizure of central bank account
By the AFREEQUE newsroom, based on Rádio Somos Todos Primos
São Tomé and Príncipe's government is challenging in court in Portugal the seizure of its central bank's account, sought by Synergies Investments Limited over compensation of 5,486,835.59 euros. The finance minister invokes sovereign asset immunity, according to Jornal Económico and Gareth Guadalupe.
São Tomé and Príncipe's Minister of Economy and Finance, Gareth Guadalupe, says the accounts of the Central Bank of São Tomé e Príncipe (BCSTP), the country's central bank, are protected against seizure under a United Nations convention on the jurisdictional immunity of states and their property. He also stressed that these accounts are used in particular for foreign exchange hedging operations needed for the purchase of medicines and fuel.
The proceedings brought in Portugal by Synergies Investments Limited, a Portuguese company, concern 5,486,835.59 euros and stem from a dispute over the operation of the Rio Contador hydroelectric plant. The compensation was set in 2009 by an international arbitration tribunal, after the São Toméan government terminated the contract in 2004 or 2005, according to Gareth Guadalupe.
The São Toméan government, led by Prime Minister Américo Ramos, had proposed that Synergies be paid one million euros due in May 2026, another million scheduled for May 2027 and 650,000 euros scheduled for May 2028, in order to anticipate full settlement of the debt. Gareth Guadalupe said the government was awaiting the company's response, after highlighting its "good faith".
