News Search Search this site or the web powered by FreeFind Site search Web search Story archive		17-7-2003 Scotsman São Tome coup linked to oil reserves By Gethin Chamberlain THE tiny oil-rich West African nation of São Tome and Principe was under military rule last night after soldiers staged a dawn coup while the president was out of the country. Troops wielding machineguns patrolled the capital, having taken control of the television station, airport and central bank. They said they had decided to act in response to poor living standards and political instability, although it was suggested they wanted to take control of vast oil reserves. São Tome, a group of small islands off West Africa, is one of the continent's poorest nations, relying on millions of dollars of handouts from countries such as Taiwan, North Korea and Cuba. It also scratches a living from phone sex lines and commemorative stamps featuring the likes of Marilyn Monroe. But successful development of its oil reserves could bring a dramatic transformation of its fortunes, with one expert estimating the influx of cash could be worth up to dollars 1 million (GBP 625,000) for each of its 175,000 citizens. São Tome has agreed a deal with neighbouring Nigeria to develop the oil reserves and the oil giants - including Exxon Mobil and Royal/Dutch Shell - are keen to move in. But arguments over oil revenues have fuelled political and social strife. The president, Fradique de Menezes, dissolved parliament in January, partly because of a spat over the right to negotiate exploration deals with oil firms. Although the assembly did reconvene, a dispute has erupted over a payment the president says he received from an oil firm and used for political campaigning. Mr de Menezes was on a private visit to Nigeria. The Nigerian government described the takeover as "a gross violation" of the constitution of the African Union. The apparent coup leader, Major Fernando Pereira, declared a state of emergency on radio and told members of the government to gather at the police headquarters. Among those held were the prime minister, Maria das Neves, and key officials such as the public works minister, Joaquim Rafael Branco, who is responsible for the oil reserves that will determine the country's economic future. The prime minister was taken to hospital with heart problems, but was stable and under military guard.
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