History

Colonial Period (1470-1975)

São Tomé and Príncipe were uninhabited when they were discovered, probably in 1470, by Portuguese navigators sailing around Africa. In the 1480s, the Portuguese sent out settlers (many of them Jewish "New Christians" expelled from Portugal by the Inquisition) and imported African slaves to grow sugar.

During the 16th century, São Tomé became for a brief time the world's largest producer of sugar, but the rise of Brazilian competition and the poor quality of São Tomé's badly dried product led to the decline of its sugar. This decline was accentuated by insecurity, as slaves escaped to the mountains and raided the plantations. Amador, the king of the fugitive slaves who nearly overran the whole island of São Tomé, is regarded by many as a national hero. Foreign pirates were another hazard, and the Dutch briefly captured São Tomé in 1641, only to be expelled three years later.

After the collapse of the sugar economy, the colony served as a bulking-up point for the Portuguese slave trade to Brazil; the cargoes of small slave ships were transferred to larger vessels for the Atlantic voyage, and provisions and water were obtained. The slave-worked plantations producing foodstuffs for the slave ships were mainly located on Príncipe, and the capital was moved to the port of Santo António on Príncipe in 1753. In 1777-78 the Portuguese ceded the islands of Bioko and Annobón, on either side of São Tomé and Príncipe, to the Spaniards, who wished to develop their own African slave trade.

With the suppression of the Brazilian slave trade and the introduction of coffee cultivation in the 19th century, the economic centre of gravity swung back to São Tomé, and in 1852 São Tomé city once again became the capital. Cocoa replaced coffee as the main cash crop in the 1890s, and during the first two decades of the 20th century the colony was in some years the world's largest producer of cocoa. This led to the maximum expansion of plantations on the islands. Although slavery was legally abolished in 1875, Angolan slaves continued to make up the bulk of the labour force until the early 1910s. They were then replaced by forced or indentured labourers from other Portuguese colonies.

Cocoa production fell after World War I, and the islands progressively became a stagnant backwater, notorious for the brutality and corruption that reigned on the plantations belonging to absentee planters and corporations. Attempts to force the local Forros to work on the plantations the Batepá Massacre in 1953, seen as the beginning of the nationalist movement.

A nationalist group, the Comité de Libertação de São Tomé e Príncipe, was formed in 1960 and became the Movimento de Libertação de São Tomé e Príncipe (MLSTP) in 1972, under the leadership of Dr Manuel Pinto da Costa. Following the military coup in Portugal in April 1974, the Portuguese government recognized the right of the islands to independence, although negotiations were delayed until September. In December Portugal appointed a transitional government which included members of the MLSTP, which was recognized as the sole legitimate representative of the people. At elections for a constituent assembly held in July 1975, the MLSTP won all 16 seats.

Post Colonial History (1975-Present)

Independence as the Democratic Republic of São Tomé and Principe took effect on 12 July, with Pinto da Costa as president and Miguel Trovoada as prime minister. The constitution promulgated in November effectively vested absolute power in the president and the political bureau of the MLSTP. Radical socialist policies were introduced, and any activity deemed contrary to MLSTP directives was viewed as treason.

MLSTP Government

During 1976-82 serious ideological as well as personal divisions arose within the MLSTP, and a number of prominent members who favoured a more moderate approach to social, economic and agrarian reforms were forced into exile. In March 1978 Angolan soldiers were brought to the islands, following an alleged attempt to overthrow the government. In March 1979 Dr Carlos da Graçã, a former minister of health who had left for Gabon in 1977, was tried in absentia and sentenced to 24 years' imprisonment. In April 1979 Trovoada was dismissed as prime minister. In September he was arrested, accused of complicity in the census riots of the previous month and detained without trial until 1981, when he was permitted to leave the islands. In December 1981 rioting broke out on Príncipe, where food shortages had led to agitation for that island's autonomy. During 1982 Leonel d'Alva, a former prime minister and minister of foreign affairs, fled to exile in Cape Verde, and Daniel Daio, the minister of defence and national security, was removed from office.

In its foreign relations, São Tomé and Príncipe avoided any formal commitment to the Eastern bloc, although close economic ties existed with the People's Republic of China and the German Democratic Republic. Cuba and the USSR provided the regime with military advisers. Gabon, the islands' nearest mainland neighbour, viewed these developments with disquiet, and relations consequently deteriorated. However, the republic extended the range of its international contacts by joining the lnternational Monetary Fund (IMF) in 1977, acceding to the Lome Convention in 1978 and participating in the foundation of the francophone Communaute economique des etats de l' Afrique central (CEEAC) in 1983. The bulk of the country's trade continued to be transacted with Western Europe, and relations with Portugal remained generally cordial.

In 1985, confronted by the threat of the complete collapse of the economy, Pinto da Costa began to abandon economic ties with the Eastern bloc in favour of capitalist strategies. Tradeagreements with Eastern bloc countries were allowed to lapse, and Pinto da Costa and his ministers made extensive visits to Western Europe and North America to solicit support for measures of economic liberalization. The two main Western nations seeking to exert influence in the country were Portugal and France; however, trade with Portugal was much more substantial than with France, and negotiations concerning São Tomé admission to the Franc Zone were eventually inconclusive. The USA accredited its first ambassador to São Tomé in 1985, and provided the country with a limited amount of military aid.

Ideological Liberalization

From 1985 a wider range of ideological views was represented in the newly elected national people's assembly, which confirmed Pinto da Costa as president, and in the new central committee of the MLSTP. By the end of 1985 there was an atmosphere of reconciliation in São Tomé politics: Carlos da Graça was pardoned and Miguel Trovoada was invited to return from exile.In October 1987 the central committee of the MLSTP announced a major constitutional reform, which included the election by universal adult suffrage of the president of the republic, and of members of the national people's assembly. The amended constitution also allowed 'independent' candidates to contest elections for the national people's assembly, although the president of the MLSTP, chosen by the MLSTP congress from two candidates proposed by the central committee, would continue to be the sole candidate for the presidency of the republic.In January 1988 the national people's assembly approved a constitutional amendment providing for the re-establishment of the post of prime minister, to which Celestino Rocha da Costa,until then the minister of education, labour and social security, was appointed. Rocha da Costa formed a new government in which Carlos da Graça became minister of foreign affairs. Da Graça however, was one of the few political exiles to return, as the majority of the opposition groups abroad regarded these reforms as insufficient. Although Miguel Trovoada, now resident in France, chose not to create any alternative political organization, three overseas opposition movements were already in existence: the National Resistance Front of São Tomé and Príncipe (FRNSTP), the National Democratic Action of São Tomé and Príncipe (ADNSTP) and the Independent Democratic Union of São Tomé and Príncipe (UDISTP). The FRNSTP was originally based in Gabon under the leadership of Carlos da Graça, but as relations between Gabon and São Tomé improved, the movement was expelled from Gabon in 1986.Carlos da Graça ceased to be a member and remained in Gabon, before returning to Sao Tome as minister of foreign affairs. The major part of the FRNSTP moved to Lisbon, formed a coalition with the UDISTP, and agreed to seek political changes by non-violent means. A small faction of the FRNSTP, led by Monsodos Santos, refused to give up the armed struggle as a means of overthrowing the São Tomé regime and moved to Cameroon, taking the name of National Resistance Front of São Tomé and Príncipe-Renewal (FRNSTP-R). In March 1988 Monso dos Santos led a sea-borne expedition of 44 men from his headquarters in southern Cameroon, in an attempt to invade São Tomé and seize power. The operation was poorly planned and executed, and the invaders were quickly captured. In September 1989 dos Santos was sentenced to 22 years' imprisonment, and 38 other defendants were also jailed.

Democratic Transition

Somewhat shaken by the failed coup attempt, increasingly alarmed by the domestic economic crisis, encouraged by Western exponents of economic reform, and by a progressive factionwithin the MLSTP, the regime embarked in late 1989 on a transition to full multi-party democracy, after strenuous debate at a national party conference. In August 1990, in a national referendum, 72% of the electorate voted in favour of the introduction of the constitution proposed by the MLSTP central committee. The new constitution provided for a multi-party political system, together with the abolition of the death penalty, guarantees on human rights, and a maximum of two five-year terms of office for the president.

In April 1990 Monso dos Santos and his accomplices in the March 1988 coup attempt were granted an amnesty by presidential decree and dos Santos founded the Christian Democratic Front (FDC). Further organized opposition came from the Democratic Coalition of the Opposition (CODO), a merger of the three opposition groups formerly in exile, under the leadership of Albertino Neto. But the major challenge to the MLSTP came from the local opposition. A coalition of former MLSTP dissidents, independents and young professionals, formed the Democratic Convergence Party-Reflection Group (PCD-GR). Leonel d'Alva, returning from exile in Cape Verde, was elected president of the PCD-GR, while Daniel Daio became secretary-general. The MLSTP party congress, held in October 1990, appointed a new secretary-general, Carlos da Graça (the minister of foreign affairs), in succession to Manuel Pinto da Costa, the party's founding president. In addition, the party's name was amended to the Movement for the Liberation of Sao Tome and Principe-Social Democratic Party (MLSTP-PSD). On 20 January 1991 elections to the new national assembly resulted in defeat for the MLSTP-PSD, which secured only 30.5% of the votes and 21 seats in the 55-member legislature. The PCD-GR obtained 54% of the votes and 33 seats in the assembly. CODO, with 5% of the votes, took the remaining seat.

In February 1991 a transitional government, headed by Daniel Daio, was installed, pending the presidential election, to be held in March. In the same month, President Pinto da Costa confirmed his earlier decision that he would be retiring from politics and would not be contesting the forthcoming election. The MLSTP-PSD did not present an alternative candidate. In late February two of the three remaining presidential candidates, Monso dos Santos, of the FDC (which had received little support at the January legislative elections), and an independent candidate, Guadalupe de Ceita, withdrew from the election. Miguel Trovoada, who stood as an independent candidate (with the support of the PCD-GR and CODO), remained as sole contender, and in March was elected president, receiving 81% of the votes cast. Trovoada took office in the following month. The new government promised to expedite the process of political and economic liberalization, indicated that the harassment of the Roman Catholic church was at an end, and called for national reconciliation.

The Trovoada Presidency

In early 1992 a political crisis erupted when co-operation between the government and the presidency began to break down. The PCD-GR, which wished to limit the extent of powers granted to the president under the constitution of September 1990, attempted to introduce a constitutional amendment limiting the presidential powers. Meanwhile, widespread popular dissatisfaction followed the imposition in June 1991 of stringent austerity measures that had been imposed by the IMF and the World Bank as preconditions for economic assistance. These measures, which included a 40% devaluation of the currency and a substantial increase in petroleum prices, had contributed to a sharp decline in the islanders' living standards. Following two mass demonstrations held in April 1992 to protest against the austerity programme, Trovoada dismissed the Daio government, citing as his main reason the 'institutional disloyalty' of the prime minister, who had publicly blamed the president for the country's economic plight and attendant political unrest. The PCD-GR, which initially condemned Trovoada's actions as an 'institutional coup', was invited to designate a new prime minister. In May Norberto Costa Alegre (the minister of economy and finance in the former administration, who had been instrumental in the negotiation of the structural adjustment measures) replaced Daio as prime minister and formed a new administration.

On 6 December 1992, in the first local elections to be held since independence, the PCD-GR suffered a considerable reverse,obtaining only 15 of the total of 61 seats and failing to gain outright control of any of the seven districts. Conversely, the MLSTP-PSD won 38 seats and gained control of five districts. The newly formed Independent Democratic Action (ADI) party won the remaining eight seats and secured control of one district.However, the government refused to accede to opposition demands that it resign, form a government of national unity or call new legislative elections.

In February 1993 Daio resigned as secretary-general of the ruling PCD-GR, and in April was replaced, in an interim capacity, by the more moderate João do Sacramento Bonfim. Opposition expectation that the appointment of Bonfim would facilitate political dialogue, and perhaps lead to the formation of a government of national unity, proved unfounded; in November four opposition parties issued a joint statement accusing the government of authoritarianism and incompetence, and, in turn, were accused of fomenting instability.

In April 1994 the national assembly began discussion of a draft bill providing local autonomy for the island of Príncipe Its proposals, which were approved later that year , included provision for the creation of a regional assembly and a five.member regional government.

In early 1994 relations between the government and the presidency again began to deteriorate. In April Trovoada publicly dissociated himself from government policy. In June political tension increased when the PCD-GR accused Trovoada of systematic obstruction of the government's programme. The same month opposition parties petitioned the president to dismiss the government and to appoint foreign auditors to investigate the management of public funds under its term of office.

On 2 July 1994 Trovoada dismissed the Alegre administration citing 'institutional conflict' as the justification for the decision.Moreover, the president accused the ruling party of ignoring presidential vetoes and of attempting to replace the semi.presidential system with a parliamentary regime without executive powers for the head of state. On 4 July Trovoada appointed Evaristo do Espirito Santo de Carvalho (the minister of defence and security in the outgoing administration) as prime minister.The PCD-GR, which refused to participate in the new government, subsequently expelled Carvalho from the party. An interim administration, comprising eight ministers, took office on 9 July. On the following day, in an attempt to resolve the political crisis, Trovoada dissolved the national assembly and announced that a legislative election would be held on 2 October. This election resulted in a decisive victory for the MLSTP-PSD, which secured 27 seats, one short of an absolute majority. The PCD-GR and the ADI each obtained 14 seats.The level of voter participation, which was as low as 52%, was believed to reflect public disillusionment at the failure of democracy immediately to realize their expectations of a transformation of the country's social and economic prospects.

In late October 1994 da Graça was appointed prime minister and subsequently announced his intention to form a government of national unity with those parties represented in the legislature. However, both the ADI and the PCD-GR rejected the proposal. The council of ministers that took office in late October thus was comprised almost entirely of members of the MLSTP-PSD.

Social and Economic Problems

In early February 1995 the government appealed for international aid to mitigate the economic effects of the imminent return of some 6,000-7,000 Santomeans from Gabon, from where all immigrants who had not by that month legalized their status were to be expelled. In the event some 1,500 migrant workers were forced,to return to São Tomé. In April about 50 returnees attempted to occupy the prime minister's office in protest at the alleged disappearance of foreign funds intended to support their reintegration.

In mid-February 1995 the government announced that a general salary increase, of 64%-90%, for public. and private sector employees would be introduced at the end of the month, in an effort to assuage increasing social tension caused by the constantly rising cost of living. Later that month, with the aim of securing the release of suspended funds from the World Bank, the government announced the introduction of austerity measures, including a 25% increase in fuel prices, the dismissal of some 300 civil servants, and an increase in interest rates.

In March 1995 the first elections to a new seven.member regional assembly and five-member regional government were conducted on Principe, which had been granted local autonomy by the national assembly in 1994. The elections resulted in victory for the MLSTP-PSD, which won an absolute majority.The ADI and the PCD-GR did not themselves offer candidates, but instead supported a local opposition group. The new regional government began functioning in April. At the end of March 1995, a privatization agreement with an Angolan commercial enterprise, the Mello Xavier Group, provoked a wave of protest in the country. The agreement provided for Mello Xavier to assume control of the Porto Alegre cocoa estate and gave the Angolan company priority in the privatization of a further four non-agricultural enterprises. In addition, the government was to grant Mello Xavier a concession for offshore banking. Both Trovoada and the opposition parties strongly rejected the agreement, and, in the light of the protest, Mello Xavier did not pursue the original agreement. In early 1996 Mello Xavier finally acquired the management contract for the Porto Alegre estate.

In early June 1995 the police assumed control of the national radio station following several days of strike action by employees of the station in support of salary increases of up to 300%. In the wake of the dispute the government suspended a 350% salary increase awarded earlier to bank employees, and created a commission to review state administration salaries. Social unrest continued in the following months with teachers and doctors striking in support of demands for increased salaries and improved working conditions. In June the minister of planning and finance, Carlos Quaresma Batista da Sousa, was dismissed and assumed fully the position of governor of the central bank, a post which he had held in an acting capacity since December 1994. The finance portfolio was assumed by the minister of economic affairs, Joaquim Rafael Branco. Coup Attempt on 15 August 1995 a group of some 30 soldiers, led by five junior officers of the armed forces, seized control of the presidential palace. Trovoada was detained at the headquarters of the armed forces, da Graça was placed under house arrest and a curfew imposed. The insurgents cited widespread corruption and political incompetence as justification for the coup. São Tomé Príncipe aid donors, including the USA and Portugal, immediately condemned the coup and demanded the reinstatement of constitutional order under penalty of the withdrawal of development assistance. Confronted by both international pressure and the lack of rofessionals to establish a military regime, the five-member military commission, headed by Lt Manuel Quintas de Almeida, abandoned its initial proposal to establish a junta of national salvation and began negotiations with Trovoada, the government and political parties, Talks were mediated by an Angolan delegation, led by the Angolan minister of foreign affairs, Dr Venancio da Silva Moura. Six days after the initial coup attempt, the military insurgents and the government signed a 'memorandum of understanding', providing for the reinstatement of Trovoada and the restoration of constitutional order. In return, the government gave an undertaking to restructure the armed forces, and the national assembly granted a general amnesty to all those involved in the coup. Following the coup attempt, Alberto Paulino was replaced as minister of defence by Capt. Carlos Carneiro Paquete da Silva.

In early September da Silva's appointment as c-in-c of the army prompted a protest by the officers who had promoted the coup, on the grounds that it contravened the 'memorandum of understanding' .As a consequence, da Silva was replaced in that roleby Capt. António do Nascimento. In a national address that month Trovoada expressed his wish to form a government of national unity in order to establish a more stable foundation for government. In addition, he acknowledged the high level of corruption prevalent in Sao Tome and the rising incidence of crime.

Consensus Government

At the end of December 1995 Armindo Vaz d'Almeida wasappointed prime minister, at the head of the government ofnational unity. The new administration, which took office in early January 1996, included six members of the MLSTP-PSD,four members of the ADI and one of the PDSTP-CODO. The PCD-GR, however, refused to participate in the new government. In February 1996, at the request of the national electoral commission, the forthcoming presidential election, which had been scheduled for early March, was postponed pending the finalization of the electoral rolls. In March the date of the election was set for 30 June, and in early April the national assembly approved the extension of the existing presidential mandate by a further five months. At the congress of the MLSTP-PSD, held in March, Pinto da Costa was selected as the party's official candidate in the forthcoming presidential election, while Francisco Fortunato Pires was appointed secretary-general of the party. In April Trovoada declared his candidacy for the presidential election, in which he was supported by the ADI and the PDSTP-CODO.

At the presidential election of 30 June 1996 no candidate secured an absolute majority. Consequently, a second ballot,between the two leading candidates, was conducted on 21 July,at which Trovoada won 52.74% of the votes, defeating Pinto da Costa, who secured 47.26% of the votes. In late July da Costa, who had initially acknowledged Trovoada's victory, contested the results of the election, claiming that irregularities had occurred in the registration process. In early August the supreme court declared that it was unable to adjudicate on the appeal made by Pinto da Costa, and recommended that the government seek international legal arbitration. However, on 20 August Pinto da Costa withdrew his challenge and Trovoada was confirmed as president. In mid-September the Vaz d'Almeida administration was dissolved, following its defeat in a confidence motion in the national assembly. The motion had been proposed by Vaz d'Almeida's own party, the MLSTP-PSD, which accused the government of inefficiency and corruption, and had received the support of the PCD-GR. Vaz d' Almeida remained as prime minister in a caretaker capacity, pending the appointment of a successor. In late October the MLSTP- PSD and the PCD-GR signed an accord providing for the establishment of a nine-member coalition government. In mid-November following Trovoada's refusal earlier that month to appoint Fortunato Pires as prime minister, the president appointed Raw Wagner da Conceiçao Bragança Neto, assistant secretary-general of the MLSTP-PSD, to the position. The new coalition government, which included five members of the MLSTP-PSD, three members of the PCD-GR and one independent, was inaugurated later that month. The ADI had refused to participate in the new administration.

In July 1996 São Tomé and Príncipe was among the five lusophone Mrican countries which, together with Portugal and Brazil, formed the Comunidade dos Pafses de Lingua Portuguese (CPLP), a Portuguese-speaking commonwealth seeking to achieve collective benefits from co-operation in technical, cultural and social matters.

In mid-August 1996 demonstrators blockaded roads in the capital in protest at the shortage of energy and water supplies.The demonstration had been prompted by reports that the government had spent US $500,000 of state funds, derived from a structural adjustment credit disbursed in January, on luxury cars for cabinet ministers. Several injuries resulted as riot police were deployed to disperse the demonstrators.

In December 1996 the Bragana administration accused the former government of Vaz d'Almeida of corrupt practices, including embezzlement and the illegal diversion of public funds. Earlier that month Vaz d'Almeida had been expelled by the MLSTP-PSD, having declined the party's request that he volunteer his resignation. In mid-December the MLSTP-PSD and the PCD-GR presented the national assembly with a proposal for a revision of the constitution. The proposal, which aimed to redefine the extent of the powers invested in the president, included provision for the establishment of a state council which would have to be consulted before the president could dissolve the legislature. In addition, the president would no longer direct foreign policy. Whilst Trovoada recognised the need for a review of the constitution, he favoured a strengthening of the presidential powers and advocated the replacement of the existing semi-presidential system with a presidential regime.

In April 1997, as part of an initiative to promote national reconciliation and political stability, Trovoada held discussions with former president Pinto da Costa. In order to end the continuous political struggle between the presidency and the government, Trovoada proposed the creation of a unity forum for national reconciliation to debate the country's problems.

In April 1997 an increase of some 140% in fuel prices, and a concomitant rise in the prices of transport, food and consumer goods, precipitated violent popular protests in São Tomé city.

Hundreds of anti-government demonstrators blockaded roads, and the security forces were deployed to quell rioting. In that month the government announced a 200% salary increase for the public sector. The announcement was criticized by the IMF, which stressed that the increase would hinder efforts to control the budget deficit, and recommended that the government postpone the increase, pending a rationalization of the civil service (which would entail the dismissal of some 1,000 employees).

Following Trovoada's unilateral decision in May 1997 to establish diplomatic relations with Taiwan, in July the People's Republic of China (PRC) suspended diplomatic relations with São Tomé, ceased all development co-operation, and demanded the repayment, within 90 days, of bilateral debts amounting to US $17m. In exchange for diplomatic recognition, Taiwan promised São Tomé, $30m. in development aid over a three-year period. Trovoada declared that, in view of the economic condition of São Tomé, the Taiwanese aid could not be rejected. By contrast, the government declared that the aid promised by Taiwan could not compensate for the loss of the long-standing co-operation enjoyed with the PRC. Since 1975 the PRC had granted donations totalling $32.7m., as well as providing interest-free loans totalling $18.7m. Consequently, the government refused to accept $4.3m. in aid offered by Taiwan and prohibited its officials from receiving the four high-ranking diplomats appointed to represent Taiwan in Sao Tome. In October, in order to avoid an open conflict with Trovoada, the government withdrew its opposition to the diplomatic recognition of Taiwan and subsequently accepted the Taiwanese development aid. In January 1998 Taiwan's ambassador presented his credentials to Trovoada, and in February the Taiwanese minister of foreign affairs visited S8.o Tome as part of a promotional tour of several African countries.

In mid-March 1998 the country's 3,750 civil servants organized an indefinite strike in support of demands for the payment of salary arrears; when, in September 1997, the government had agreed to increase civil servants' salaries by 200%-300%, it had promised to pay the new salaries retroactively for the first six months of that year , but subsequently failed to do so. The strike ended after three days, when the government produced a schedule for the payment of the arrears. In May 1998 members of the armed forces at São Tomé international airport prevented the minister of finance and planning, Acácio Elba Bonfim, from leaving the country. The troops detained Bonfim, who was on his way to attend a meeting of the African Development Bank, to demand the payment of promised salary increases. The situation was resolved following renewed promises of payment by the prime minister and the minister of defence and internal security.

International Political Development

At an extraordinary congress of the MLSTP-PSD held in May 1998, the former president and party leader, Manuel Pinto da Costa, was elected unopposed as president of the party. (The ruling party of Angola, the Movimento Popular de Libertaçao de Angola (MPLA) had made the resumption of financial support for the MLSTP-PSD conditional on Pinto da Costa's election; following his defeat in the 1996 presidential election, the MPLA had ceased payments, creating serious problems for the MLSTP-PSD). New party statutes were approved, creating the position of party president, together with three vice-presidential posts. The pass national council was enlarged from 95 to 120 members and it subsequently elected the three vice-presidents: Dionisio Dias, the party's parliamentary leader, became vice-president for party affairs, Guillerme Posser da Costa was appointed vice-president for parliamentary affairs, and Damião Vaz d'Almeida, the president of the regional government of Príncipe, was elected vice-president for issues related to Príncipe. The former secretary-general of the party, Francisco Fortunato Fires, refused to assume any leading position within the party and declared the new leadership structure to be unsuitable.

At a legislative election held on 8 November 1998 (postponed from October owing to delays in the electoral process) the MLSTP-PSD secured a majority, with 31 seats, while the ADI won 16 seats and the PCD obtained the remaining eight seats.The level of voter participation was 64.7%, considerably lower than at the 1996 presidential election, but higher than at the 1994 legislative election. In December 1998 Guilhenne Pósser da Costa (a vice-president of the MLSTP-PSD and former minister of foreign affairs and co-operation) was appointed prime minister. However, the MLSTP-PSD accused Trovoada of interfering in areas outside his jurisdiction when, later that .month, he vetoed Pésser da Costa's initial nominations for the council of ministers. A revised council of ministers was finally led on 5 January 1999. At the instigation of the IMF, the number of ministries was limited to nine; responsibility for international co-operation was assumed by the ministry of finance and planning, while the portfolios of agriculture, fishing, industry, tourism and trade were combined in a single ministry, he economy. At his inauguration Posser da Costa promised re-establish the authority of the state, reinforce the law,restore macroeconomic stability and combat mass poverty. On 18 March the national assembly approved the government's programme.

In March 1999 the governor of the central bank, Carlos Quaresma, was dismissed for his alleged involvement in corrupt financial practices. The allegations arose following the detention in Brussels, Belgium two months earlier of three men who had attempted to sell falsified Santomean treasury bonds worth US$500m. The bonds bore the signature of Quaresma, who allegedly had links with the men concerned. Maria do Carmo Trovoada Silveira was appointed to replace Quaresma. The government subsequently appointed a commission comprising the ministers of planning, finance and co-operation and ofjustice and parliamentary affairs, to conduct an inquiry into the case. In their report, released in mid-March, the commission concluded that the bonds had been issued illegally and the case was referred to the attorney-general for investigation. Quaresma, meanwhile, denied all allegations of corruption and declared that the deal had been intended to finance development projects in the country and that former prime ministers Vaz d'Almeida and Bragança, and President Trovoada had been completely aware of the proceedings. Trovoada immediately denied these allegations. In late March the minister of planning, finance and co-operation, Monso da Graça Varela da Silva, resigned; he was replaced by Adelino Castelo David. In mid-April the Belgian authorities issued an international warrant of arrest against Quaresma. In May the national assembly lifted Quaresma's parliamentary immunity to allow him to be questioned by the office of the attorney-general. Despite pressure from the IMF to pursue the affair, the process was repeatedly delayed; by mid-June it had still not been concluded and it was widely believed that charges would not be brought against Quaresma. In July the council of ministers underwent a minor reshuffle.

Timeline of Recent History (1999-Present)