Sao Tome and Principe governments annul contracts
New governments in Sao Tome and Principe routinely cancel prior deals, citing 'damaging' terms.
New governments in Sao Tome and Principe consistently annul contracts signed by their predecessors, claiming the deals are damaging to the state. This practice, repeated with each change in administration, raises questions about potential corruption within the governmental process.
The core issue arises when an annulled contract leads to legal action by the aggrieved investor. The government is then compelled to appoint a lawyer to defend its decision. This lawyer requires payment, creating a financial arrangement potentially involving the head of government who initiated the contract annulment.
This cycle of contract cancellation and subsequent legal defense payments creates a win-win situation for both the appointed lawyer and the government official responsible for the annulment. The Tela Non outlet suggests this arrangement could be a form of governmental corruption.
Why it mattersNew governments in Sao Tome and Principe annul contracts, leading to legal fees that benefit government officials.