I. Introduction
1. The present report is being submitted pursuant to paragraph 14 of Security Council resolution 1233, by which the Council requested me to keep it informed, through the submission of reports, on developments in Guinea-Bissau and on the activities of the United Nations Peacebuilding Support Office in Guinea-Bissau (UNOGBIS). Additionally, in paragraph 11 of its resolution 1580 (2004), the Council requested that I submit a written report to it every three months on the aforementioned subject.
2. The present report focuses particularly on recent developments within the prevailing political and economic situation in the country since my last report, dated 29 September 2006 (S/2006/783).
II. Political developments
3. During the period under review, the political climate has been marked by the ongoing national reconciliation process; the difficult reintegration of the dissidents of the African Party for the Independence of Guinea and Cape Verde (PAIGC); the return of former President Koumba Yalá, on 28 October 2006, to contest the elections for the leadership of the Party for Social Renewal (PRS); and growing challenges to the current Government headed by Prime Minister Aristides Gomes.
4. Mr. Yalá, who had been away from the country for a year, announced that he had returned to lead the PRS to victory in the 2008 legislative elections. He subsequently won the contest for leadership at the PRS national congress, which was held from 8 to 12 November, securing almost 67 per cent of votes cast. Though Mr. Yalá had initially supported the establishment of the present Government, he recently declared as illegitimate the Forum para a Convergência do Desenvolvimento and the coalition of parties, including the PRS, that supports the current Government in the National Popular Assembly, as well as the Government itself. His actions have heightened political tensions and raised concerns that the Government may be forced to dissolve.
5. While Mr. Yalá has called for holding legislative elections before 2008 as scheduled, the leader of the biggest party in parliament, PAIGC, along with former Prime Minister Carlos Gomes Junior and the party's candidate in the 2005 presidential poll, Malam Bacai Sanha, have said that early elections are not necessary. They have instead called for the current Government to be replaced by a government of national unity. The main opposition parties accuse the Government of incompetence and corruption. For his part, Prime Minister Aristides Gomes has warned that, as political stability constitutes a precondition for the disbursement of pledges made at the donor round table in Geneva on 7 and 8 November, if the current political climate continues, the future of pledged donations is at stake. In view of the chorus of criticisms, President Vieira has initiated consultations with the various political actors in order to help stabilize the political situation in the country.
6. Mr. Yalá has stated that the African Union (AU) had asked him to support President Vieira in the second round of the 2005 presidential elections. That statement led the losing PAIGC candidate, Malam Bacai Sanha, to ask the AU to clarify its position. Some of Mr. Sanha's supporters accused the AU of interference in the internal affairs of the country and questioned the legitimacy of President Vieira's victory in 2005.
7. Meanwhile, efforts have continued to reunify and stabilize PAIGC, which suffered major internal divisions after several of its key members pledged support for Mr. Vieira over their own party's candidate in the 2005 presidential election. In October, seven leading dissidents were reintegrated into the party's decision-making organ, the Political Bureau. The process of intra-party reconciliation, however, is far from settled as several other dissidents have continued to accuse the party leadership of blocking progress.