FM Pequeno, Back In Sao Tome, Denies Wrongdoing

The embattled Foreign Minister of Sao Tome and Principe, Ovidio Pequeno, is back from a U.S. vacation and says that his use of $450,000 required no authorization from the Prime Minister, as she has declared, because it was "direct aid" from Morocco's king - a gift, in other words, with no strings attached - that allowed him to buy vehicles and other equipment for the nation's overseas consulates, the Portuguese news agency Lusa reports this morning.


Update, 1/9/06, 8:49am EST Lusa has a follow-up on the Pequeno story that doesn't reveal much more except in relating the local reaction to the issue. At this stage, the affair appears to be deteriorating into an intraparty power struggle rather than a case of scandalous wrongdoing:

Sao Tome: FM Pequeno disloyal, 'improper' in foreign aid flap, says Gov't

Sao Tome, Jan. 9 (Lusa) - The government of Sao Tome and Principe says Foreign Minister Ovídio Pequeno has been disloyal to the cabinet and that his explanation of the irregular use of foreign aid funds was "improper".

Prime Minister Maria do Carmo Silveira's cabinet held an extraordinary meeting Saturday to discuss the week-old scandal, issuing a harsh statement condemning the spending of Moroccan aid funds by Pequeno, an ally of President Fradique de Menezes, the government's political rival.

The cabinet, however, did not say what if any sanction it would take towards Pequeno, whose resignation has been demanded by parties backing the government.

"As government, the Foreign Affairs Minister is hierarchically subordinate to the Prime Minister, before whom he has the duty to inform and the obligation of loyalty, leaving no room for secrecy", the government's statement said.

It described Pequeno's explanation of his use of euros 407,000, without government authorization, to buy goods, equipment and protocol vehicles through and STP embassy account in Gabon as "improper".

Silveira ordered an "urgent" inquiry into the affair last Tuesday after the newspaper "Equador" reported the alleged misuse of foreign aid funds by Pequeno, who was then absent on vacation in the United States.

On his return home Friday, the foreign minister issued a statement saying the funds had been a one-off and "direct" donation from the king of Morocco to de Menezes and, as such, could be transferred and spent without authorization from Silveira, who also serves as finance minister.

Previous presidents had followed the same practice with such personal donations, Pequeno added.

President de Menezes has yet to comment publicly on the affair which broke Dec. 31.

Observers said that, regardless of the immediate outcome for Pequeno, the affair was embarrassing for the president, who leads forces challenging the ruling MLSTP party in legislative elections expected in March.

The president and government are also involved in a feud, also involving allegations of corruption, over the awarding of five offshore oil exploration blocks in the Joint Development Zone shared with Nigeria.

In another development, electoral officials announced Saturday they were extending the period for voter registration by four days, until Wednesday, to deal with late heavy interest by potential voters.

Officials have said they expected to add between 7,000 and 10,000 new voters to the little more than 60,000 registered in 2003.

The islands have a population of about 140,000.

The Lusa story seems fairly balanced, leaving readers to guess at his guilt or innocence of the charges raised by Prime Minister Maria do Carmo Silveira in the nation's high-pressure run-up to national elections. However, it does try to tie him closer to President Fradique de Menezes than may be justified. Pequeno is an independent.

Here is the Lusa story:

Sao Tome: FM Pequeno denies wrongdoing, oppositionists form elex front

Sao Tome, Jan. 6 (Lusa) - Sao Tome and Principe's foreign minister, who is facing a corruption investigation, has denied allegations he misused foreign aid funds.

Foreign Minister Ovídio Pequeno, issued a statement Thursday on his return home from vacation in the United States, denying a published report he had transferred abroad and spent, without government authorization, euros 407,000 provided by Morocco.

Pequeno, a close ally of President Fradique de Menezes, said the funds had been given on an "ad hoc and direct" basis to the islands' head of state by Moroccan King Mohammed VI and was not part of bilateral "institutional help", thus not requiring government authorization for its use.

The funds, he added, had been transferred to an STP embassy bank account in Gabon and used to pay for goods, equipment and ministry vehicles.

Pequeno said unnamed previous presidents had also received and used direct personal aid from foreign counterparts without first seeking government approval.

Prime Minister Maria do Carmo Silveira, whose ruling MLSTP party views Menezes as its chief rival in upcoming legislative and presidential elections, ordered an "urgent" inquiry Tuesday into the newspaper report last week of alleged misuse of foreign aid by Pequeno, who is politically independent, but close to the president.

In another development, the islands' two main opposition parties announced Thursday they planned to renew their past electoral alliance to "defeat" the MLSTP in the legislative poll expected in March.

Leonel D'Alva, head of the PCD party, said his biggest opposition group would revive its alliance with Menezes' MDFM-PL party.

D'Alva said the two allied opposition parties were "open to discussing" a broader electoral front with other parties in order to remove the MLSTP from power and "work to modernize" the archipelago and "give a better standard of living" to its 140,000 people.

The MDFM-PL and PCD first joined forces in the 2002 legislative elections, winning 23 of parliament's 55 seats, one less than the traditionally dominant MLSTP.

Presidential elections are also slated for a still undetermined date this year, with Menezes and MLSTP chief Guilherme Posser da Costa considered to be the prime contenders.