The coup leaders will not be prosecuted for their takeover
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The parliament of Sao Tome and Principe has unanimously approved a general amnesty of the junta, hours after a deal was signed between the coup plotters and President Fradique de Menezes.
Hassan Turkur, one of the Nigerian delegates in the international mediating team, told the BBC Network Africa programme that under the deal, Mr de Menezes will resume his full responsibilities as the head of the state while the junta leaders withdraw to their barracks.
The coup plotters, led by Major Fernando Pereira had accused the government of corruption and the mismanagement of public funds and had called for fresh elections.
President de Menezes promised to salvage the reputation of his country, after signing a deal on Wednesday with the leaders of last week's bloodless coup.
The deal includes:
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provision for the creation of a new government of national unity;
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commitments to greater transparency in oil dealings placing the industry under the authority of the national assembly, which is to pass a law on oil resources;
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respect of financial rules and the establishment of a "national forum to listen to political parties and civil society".
'Cry for help'
Major Pereira described the coup as a cry for help for the international community to recognise the rampant corruption and poor life standards on the tiny West African islands with a population of about 140,000.
Many inhabitants hope that the coup will result in an improvement in living standards on the islands, where the average income stands at about $280 a year.
Mr Turkur says that the international community, Sao Tome's Government and the military have signed a memorandum of understanding which covers all the grievances that lead to the 16 July coup.