Sao Tome and Principe Makes Progress in Fight Against Corruption with New Anti-Bribery Measures

A Significant Step Towards Tackling Corruption

In a bold move towards combating bribery, Sao Tome and Principe has taken significant steps to tackle corruption in the finance sector. According to the State Department’s Investment Climate Statement, the government has implemented several reforms aimed at reducing corruption among civil servants and improving transparency.

New Anti-Corruption Law

One of the key measures is the new anti-corruption law approved in 2012. This law aims to track the flow of money and reduce corruption by requiring all payments to government entities over USD 5 be made directly at the Central Bank. Additionally, salary payments to civil servants are now paid directly to their accounts at commercial banks.

Managing Oil Revenue

Sao Tome and Principe has also made significant progress in managing oil revenue. In 2004, the country enacted an oil revenue management law aimed at responsibly managing future oil revenue. The country is a candidate member of the Extractive Industries Transparency Initiative (EITI), which aims to promote transparency and accountability in the extractive sector.

Reviewing and Updating Contracts

The government has taken steps to review and update existing contracts with foreign companies, supporting liberalization and free market competition. Furthermore, corruption has been denounced, and necessary steps have been pledged to prevent and combat it.

Modernizing Customs Procedures

A major success story is the modernization of customs procedures achieved through a Millennium Challenge Corporation (MCC) Threshold Program. The program introduced modern customs tracking software and eliminated manual procedures, removing the link between customs agents and cash payments. As a result, customs revenues have increased significantly while incidents of corruption reportedly have declined.

Combating Money Laundering and Terrorist Financing

Sao Tome and Principe has also made significant progress in combating money laundering and terrorist financing. In 2013, a fully amended and restated anti-money laundering/counter-terrorist financing (AML/CFT) law was adopted, complying with international standards. The Financial Information Unit is the central agency responsible for investigating suspect transactions.

International Cooperation

Sao Tome and Principe has signed and ratified the UN Anticorruption Convention and is a member of the Inter-Governmental Action Group against Money Laundering in West Africa (GIABA), a FATF-style regional body.

Challenges Ahead

Despite these efforts, Sao Tome and Principe does not have a designated agency responsible for combating corruption. However, with continued commitment to anti-bribery measures, the country is poised to further reduce corruption and promote transparency in its finance sector.