President says he'll dissolve parliament

Guinea-Bissau President Kumba Yala said on Thursday he would dissolve parliament, call early elections and seek a popular mandate to strengthen his powers, news organisations reported.

Yala accused the legislature of "subversion" and charged his minority Social Renovation Party (PRS) government with corruption, the Portuguese news agency LUSA reported on Friday. "I'm not prepared to work with people who are incapable of doing their job," BBC quoted Yala as saying with reference to the government's inability to collect taxes.

LUSA quoted diplomatic sources in the capital, Bissau, as saying they were "very concerned" over Yala's remarks since increased political uncertainty could sink international efforts to help create stability and channel new financial aid to a bankrupt government.

A major cause of tension between Yala and the opposition has been his refusal for more than a year to sign a constitutional amendment approved by parliament that limits the power of the president, LUSA said.

Yala came to power in January 2000, since then, the country has been wracked by crises, including a rebellion by members of the former military junta in November 2000, a coup attempt in December 2001, and the dismissal of several ministers in recent months. Opposition parties recently demanded Yala's resignation, blaming him for the country's economic crisis and political instability.