Media Releases
- 01 of January of 2010Meeting of the Council of Ministers 15 October 2008REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTEmore
IV Governo Constitucional
SECRETARIA DE ESTADO DO CONSELHO DE MINISTROS
DIRECÇÃO NACIONAL DE DISSEMINAÇÃO DE INFORMAÇÃO
PRESS RELEASE
Meeting of the Council of Ministers 15 October 2008
The Council of Ministers met this Wednesday, 15th October 2008, in the Council of Ministers meeting room, Government Palace, in Dili where it approved:
1. Decree-Law that approves the Regulation for Restaurants and Similar Establishments
Approved the Decree-Law that regulates the restaurant industry in order to protect the consumer and uphold food security. Since there is a growing concern with hygienic and environmental issues in general, but mostly in swimming areas and beaches, due to increasing tourism, hence there is a pressing need to create a regulation that disciplines the restaurant industry.
Thus, it is important to classify by categories, the several types of establishments and for the restaurants to have a Complaint Book.
In accordance with this Decree-Law, it is now necessary to verify the property and rental documentation, it is also necessary to verify the land titles of tourist establishments, specially those that occupy the beach areas.
2. Decree-Law that changes the Legal Regime of the Passport
The Council of Ministers approved the Decree-Law draft that regulates the new legal regime of the passports, ensuring a greater coherence and security to the system and it is more adjusted to the international security requirements. With this, the passport becomes an individual document, that makes possible optical reading and does not allow further registrations. Both security and red-tape issues were taken into account.
The Council of Ministries also considered:
3. Draft-Law that approves the Civil Code
The Draft-Law of the Civil Code follows the civilist model, and allows the legal actors and the general population, a greater stability regarding regulating the life of a community.
The Civil Code will regulate the legal-private relationships, in the areas of Law where there are relations between legal and natural entities, thus covering the gaps existing in the Indonesian Civil Code which is in force in Timor-Leste. Having said that the Civil Code is divided into five parts:
a. Book I: Illustrates the breath and scope of the Civil Code;
b. Book II: Defines the norms regarding the Law of Obligations ;
c. Book III: Regulates the Property Law;
d. Book IV: Regulates the Family Law;
e. Book V: Regulates the Inheritance Law.
- 01 of January of 2010Meeting of the Council of Ministers 08 October 2008IV GOVERNO CONSTITUCIONALmore
SECRETARIA DE ESTADO DO CONSELHO DE MINISTROS
IV Constitutional Government
SECRETARIAT OF STATE FOR THE COUNCIL OF MINISTERS
PRESS RELEASE
Meeting of the Council of Ministers 08 October 2008
The Council of Ministers met this Wednesday, 08th October 2008, in the Council of Ministers meeting room, Government Palace, in Dili where it approved::
1. Decree Law that approves the Regulation of Recretational and Social Games
Given the importance of avoiding impunity and the unregulated growth of activities outside the scope of the law, the need was felt to regulate the existing recreational games. To the present regimes for lottery we also add cock-fighting, under a special licensing regime. These measures are also against the transfer of illegal moneys and money laundering, and have as a goal the increase of public revenues and tourism throughout the country. These measures contribute to job creation and represent a valuable asset. These revenues are taxable, without prejudice of sharing the gains made by entities of the public and private sector, as well as the Church. This decree law should go for public consultation.
The Council of Ministers approved this Decree Law with minor changes.
The Council of Ministers also analysed:
4. The Private Investment Law
Considering that the private sector is an essential partner in the national development, since it creates wealth and jobs outside the framework of the State, the need was felt to replace the existing legislation with new laws that apply to investors, regardless of their nationality or residency.
The present law defines fiscal and custom's related benefits and incentives or in the form of special rental conditions of fixed assets belonging to the State or in the shape of subsidies to the training of national civil servants. This system of benefits and incentives follows a breakdown by geographic areas so as to develop the areas covered by this legislation. The approval of this law crates the need to adjust the Public Administration and its procedures so as to defend the rights and duties of the investors in this country. There will be a need to create a Specialised Development Agency that is more politically autonomous, that will have as a task to promote an active economic diplomacy. Summing up, this legislative revision aims to promote private investment made both by foreigners and nationals.
5. The Ministerial Diploma on the Pricing of Consumables
With the recent instability of the normal market prices, the world-wide surge of fuel prices, the Ministry of Tourism, Trade and Industry, without interfering in the prices and the free market, wishes to take an action without any penal consequences for the retail sector and that gives a greater transparency and promotes good practices throughout the population.
- 01 of January of 2010Meeting of the Council of Ministers 17 September 2008REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTEmore
IV Constitutional Government
SECRETARIAT OF STATE FOR THE COUNCIL OF MINISTERS
PRESS RELEASE
Meeting of the Council of Ministers 17 September 2008
The Council of Ministers met this Wednesday, 17th September 2008, in the Council of Ministers meeting room, Government Palace, in Dili where it approved:
1-Decree-Law that approves the Financial Incentives to be given to the Health Professionals
The diploma that the Council of Ministers approved in today’s meeting regulates the criteria and conditions to give financial incentives to the professionals in the Ministry of Health, and these are applied to the doctors, nurses, professionals and health assistants and also to administrative staff.
The Ministry of Health considers of utmost importance to introduce an additional retributive system, with the aim to improve the usage of the available human resources and the service delivery in the health area.
The introduction of this subsidy aims to achieve the streamlining of health sector professionals and is an attempt to equalize the salary level with the responsibility that the positions entail and to the high and specialized demand in the health sector. We also aim to improve customer satisfaction and overall performance.
2-Decree-Law that approves the Regulation of Licensing, Commercialisation and Quality of Drinkable Water
The Council of Ministers approved in today’s meeting the regulation of licensing, commercialisation and quality of drinkable water, which is one basic needs to sustain human life, and this aims to improve the quality of water that is made available to the consumer
The Council of Ministers also analysed:
3-The draft Law that approves the Organic of the Central Bank of Timor-Leste
The Council of Ministers analysed in today’s meeting the draft Organic Law for the Central Bank of Timor-Leste. A diploma that is in accordance with article 143 of the Constitution of the Democratic Republic of Timor-Leste, and this diploma will be scheduled for approval after the changes are made by the Council of Ministers.
The Central Bank of Timor-Leste is the institution responsible for price stability, for the financial system and for the decisive contribution to the economic development and reduction of social inequalities in Timor-Leste.
4-Decree Law that approves the Regulation of Recreational and Social Games
The Council of Ministers analysed and debated in today’s meeting the Regulation of Recreational and Social Games, with the purpose to integrate these activities in the legal economy and for them to be developed in social, economic and financial harmony.
It is vital to avoid financial impunity and the unregulated development of illicit activities, which have created an environment of public antipathy, and in some situations a feeling of insecurity that have not contributed at all, to the development of the country.
The Council of Ministers considered that the diploma requires some adjustments, and will be scheduled for presentation after these are made.
5-Presentation of the report made by LABEH regarding the national consultation on the Anti-Corruption Commission
The Council of Ministers heard a presentation on the report made by LABEH regarding the national consultation on the Anti-Corruption Commission.
6-Draft Law that creates the Anti-Corruption Commission
This draft Law which aims to create the Anti-Corruption was analysed and heavily debated in the Council of Ministers (CoM), after which it and was decided that it needs some changes and after these are made it will be presented again to CoM for approval.
- 01 of January of 2010Meeting of the Council of Ministers 3 September 2008REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTEmore
IV Constitutional Government
SECRETARIAT OF STATE FOR THE COUNCIL OF MINISTERS
PRESS RELEASE
Meeting of the Council of Ministers 3 September 2008
The Council of Ministers met this Wednesday, 3rd September 2008, in the Council of Ministers meeting room, Government Palace, in Dili where it approved:
1.Decree-Law that changes the Organic Law of the Government
The Decree-Law n..7/2007, 5th of September, is changed by the Decree-Law n. 26/2008, 23rd July, that sets out the structure of the IV Constitutional Government. In accordance with the Government's Program approved by National Parliament, the creation of a Civil Service Commission is one of the goals of this Government. While the relevant legislation is awaiting approval, it important to implement a National Service which has under its responsibility the Public Administration and make sure that the necessary procedures in order to develop the Civil Service Commission from National Directorate of the Civil Service under the Ministry of State Administration and Territorial Organisation.
Amongst the competencies of the Ministry is the study, proposition and execution of the policies and regulations regarding the civil service, social security of the Civil Service and other related administrative procedures that fall under the responsibility of the National Directorate of the Civil Service.
With this change and in accordance with the diploma approved by the Council of Ministers in today's meeting, these competencies passed to the Prime Minister, who manages them through a National Service.
2.Decree-Law that changes the structure of the Ministry of State Administration
Amongst the competencies of the Ministry is the study, proposition and execution of the policies and regulations regarding the civil service, social security of the Civil Service and other related administrative procedures that fall under the responsibility of the National Directorate of the Civil Service.
It is the intention of the Government, as stated Government's Program approved by National Parliament, the creation of a Civil Service Commission is one of the goals of this Government. While the relevant legislation is awaiting approval, it important to implement a National Service which has under its responsibility the Public Administration and the development of the afore mentioned Commission, which comes into fruition via the diploma approved by the Council of Ministers in today's meeting.
3.Decree Law that approves the Public Defender Statutes
The Diploma that the Council of Minister approved today establishes and regulates the Public Defender Statutes, where it is defined the attributions, the organisation, the functioning and the competences of the Public Defenders, as well as those of the organs.
In accordance to article 26 the Constitution guarantees to everyone access to courts in order to legally defend their rights, thus ensuring that Justice should be upheld regardless of the economic means of the individual.
4.Resolution that approves a donation to the Republic
The Republic of Cuba has been hit on August 30 by the hurricane “Gustav”, which is considered to be the most violent in sixty years. According to official Cuban sources, “Gustav” destroyed either totally or partially thousands of homes and public buildings, 3.500 tobacco curing warehouses, 136 high tension electrical towers, and provoked serious damage to power and telephone lines and to trees and agricultural fields.
Some of the destroyed buildings are schools, and a few of them are attended by timorese students.
Since the fundamental principles of solidarity and fraternity amongst nations are enshrined in the Constitution of Timor-Leste, the Council of Ministers approved in today's meeting a Resolution which will donate USD 500.000 to the people and Government of the Republic of Cuba, in order to minimise the nefarious impact of hurricane “Gustav”.
The Council of Ministers also analysed:
A presentation of the National Housing Recovery Policy
The Council heard today a presentation on the Implementation Manual for the Social Rehabilitation Program and Housing Assistance to the Victims of Disasters, having analysed the document and agreed with the proposals it contained.
- 01 of January of 2010Meeting of the Council of Ministers 13th of August 2008REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTEmore
IV Constitutional Government
SECRETARIAT OF STATE FOR COUNCIL OF MINISTERS
PRESS RELEASE
Meeting of the Council of Ministers 13th of August 2008
The Council of Ministers met this Wednesday, 13th of August 2008, in the Council of Ministers meeting room, Government Palace, in Dili where it approved:
1-The Decree-Law that approves the value of the presence vouchers to be given to the Members of the National Elections Commission.
The diploma, approved by the Council of Ministers in today's meeting defines the amount of the daily subsidy to be paid to the members of the National Elections Commission (CNE), as a monetary aid while carrying out their official functions.
The members of the CNE have the right to their salary, and in accordance with the approved diploma, to a daily subsidy for each meeting and work session in which they participate. They are entitled to communication and transport subsidies. They are also entitled to food and housing subsidies whenever, for official reason, they travel away from their usual working place. They are also entitled to any other remuneration supplements, with a purpose other than the stated above, in an amount equivalent to 50 per cent to what the Members of National Parliament are entitled, in accordance to the applicable legislation.
2-Decree that changes the Government Decree n º 2/2007, 1 Agosto
After the Law n. 7/2007 25th July being approved by National Parliament, approving the Statute of the Heads of the Sovereign Bodies, the Government has regulated the expenditures, which should be read as “right to a house being allocated by the Government” and at the same time regulated that the situation of the members of Government that do not have a house allocated by the State.
However, the indexes which regulate those supplements were not defined, either regarding the payment of the house rents, either regarding the payment of the usual charges that come with rented houses, like power or water, this for the cases where the State cannot make a house available, so as to mitigate the different treatment. Which is a situation that the present diploma, that the Council of Ministers approved in today's meeting, rectifies.
3-The Resolution that approves for ratification the Convention to Aid in Penal Issues between the Member States of the Portuguese Speaking Countries.
The Council of Ministers approved today, the proposal for Timor-Leste to be a member of the Convention for Legal Aid in Penal Issues among the member States of the Portuguese Speaking Countries (CPLP).
This convention streamlines the penal processes for people involved in more than one CPLP country, through mutual aid. In includes the dissemination of information, of procedural and other public acts, as well as acts connected to the loss, apprehension or freezing, or the recovery of personal instruments, goods, objects or the proceeds of a crime and also ensuring the presence of people.
The Diploma, which was approved today by the Council of Ministers will now be sent to National Parliament.
4-Resolution that approves for ratification the Convention on Extradition between Member States of the Portuguese Speaking Countries.
The Council of Ministers has approved today, the proposal for Timor-Leste to sign the Extradition Convention among the Community of Portuguese-speaking Countries (CPLP) member states .
The Council of Ministers approved the Extradition Convention among the Community of Portuguese-speaking Countries (CPLP) member states. The accord obliges the CPLP countries to hand over people in their territories being sought by another state, so that the criminal procedures and the sentence can be carried out.
The diploma approved today by the Council of Ministers will now be sent to National Parliament.
5-Resolution that approves for ratification the Convention on the Transfer of Condemned People among the State Members of the Portuguese Speaking Countries
The Council of Ministers approved in today's meeting the proposal for Timor-leste to sign on the Convention on the Transfer of Condemned People among the Community of the Portuguese Speaking Countries .
This convention allows people that are deprived of their freedom, due to a judicial decision, to carry out their sentence in their own social and family environment. However, it will not be possible to change the content of the judicial decision.
The diploma approved today by the Council of Ministers will now be sent to National Parliament.
6-Resolution that approves for ratification an Instrument that creates an International Legal and Judiciary Cooperation Network for the Portuguese Speaking Countries
The Council of Ministers approved in today's meeting the proposal for Timor-Leste to create an International Legal and Judiciary Cooperation Network for the Portuguese Speaking Countries.
This instrument aims develop a network that streamlines the cooperation in the legal and judiciary sectors amongst the eight member countries of CPLP in the areas of civil, commercial and penal law, so as to intensify the colaboration of the institutions, the exchange and discussion of relevant information on international institutions.
The network will have a secretariat headed by a secretary general, elected by the ministers of Justice, within the scope of the Permanent Secretariat of of the Conference of the Ministers for Justice of the Portuguese Speaking Countries, and at the end of two years an assessment will be made.
The diploma approved today by the Council of Ministers will now be sent to National Parliament.
The Council of Ministers has also analysed:
7-Military Drafting
The Council of Ministers discussed also today the military drafting, having decided to send to National Parliament a draft law, with the aim to make some changes to the law on military service which is now in force, so as to include Voluntary Military Service.
- 01 of January of 2010COUNCIL OF MINISTERS 31 ST OF JULY 2008The Council of Ministers met this Thursday, 31 st July 2008 in the Council of Ministers meeting room, Palacio do Govern in Dili. It analysed, discussed and approved a document on “Initial Licensing and Accreditation of the Higher Education Institutions of Timor-Leste”, made by the World Bank at the request of the Government.more
The document includes a report regarding the scope of the initial licensing and accreditation process in the higher education institutions of Timor-Leste. The report was drafted by an international assessment commission, composed of seven elements coming from six countries, led by Dr. Marjorie Peace Lenn, a consultant hired by World Bank and President of “The Centre for Quality Assurance in International Education” based in Washington D.C., to whom the Council of Ministers is deeply thankful for the excellent workd that was presented.
The international assessment team has worked between the 24 th of March and 5 th of April 2008 by assessing the 14 higher education institutions that have submited the necessary documentation within the deadline. From this work a report was produced making recommendations, which the Council of Ministers approved, stating that these recommendations were quite relevant and that the quality of the work presented reflects great rigour and quality.
The institutions that meet 70 per cent of the defined criteria receive an accreditation for a five-year period, during which they should improve on the standards that have not yet been met. The institutions that meet only 50 to 69 per cent of the criteria are given a one year period to improve the deficiencies, should this fail to happen the accreditation will be denied. Where only up to 49 per cent of the criteria has been met, the accreditation is rejected.
- 01 of January of 2010Food Security – The FactsREPÚBLICA DEMOCRÁTICA DE TIMOR-LESTEmore
GABINETE DO PRIMEIRO-MINISTRO
Press Conference
Food Security – The Facts
9 July 2008
Preamble
It is general knowledge that the issue of food security is neither new nor recent. In financial year 2006/07 the previous government spent around US$ 11,089 million on the importing of food products, especially rice.
In addition to this, the current government has spent around US$ 6.6 million from the Transitional Budget on the purchase of rice.
As it appears no one is questioning the wisdom behind these purchases, since it is held as a universal truth that presently Timor-Leste does not produce enough quantities of rice to meet internal demand on the other hand the prices of the free market are beyond the purchasing power of most Timorese, particularly in these times of scarcity.
Hence the need for Government to monitor and intervene, when and as required to ensure an adequate response in terms of both price and quantity in the supply of rice which is a staple food for the Timorese
The recent purchase of 16,000 metric tons of rice has caused a great deal of discussion in the last few days. I will be addressing this issue shortly, but before that I have something to say:
More than many of those who speak ‘in loud voice’, I know what it is to want for food. I want to make it very clear that I did not fight for the best part of my life just to free the country from foreign oppression – I have also fought for my people’s right to a dignified life, a life without hunger. The first goal has been achieved; the second is my current challenge.
I am sorry that certain people feel compelled to distort the truth. It seems that no one remembers that for the last few months, we have been facing an international crisis with a global shortage in rice, increased prices and market instability.
Regardless of the international and national opinions, especially the opinion of those who have done very little to combat hunger and to improve human rights, I shall do all that I can under the laws of this country in order for the population to have access to that which is their right.
AND NOW THE FACTS:
1.The Budget for 2008 included a sum of US$ 4,080 million for food security.
2.In late January 2008 it became evident that the rice reserves were below what is considered an acceptable level. Also, there were restrictions in the world market regarding the sale of rice by countries that normally export this product.
3.The estimated stock on hand was 7,900 metric tons – we need 24,000 to ensure food security for a three month period.
4.In light of this situation, the Minister of Tourism, Trade and Industry took the initiative to test the market and so arranged for a meeting with the suppliers/importers of rice
5.This meeting took place on 29 January 2008. According to the attendance record, the following importers participated:
Julio Alfaro, Director of the People Food Company
Lay Siu Hing, Director of the Star King Company
Gerry Koul, Director of the Nabilan Food Company
Germano da Silva, Director of the Oriental Food and Três Amigos Companies
Julio Lo, Director of the Juxibel Company
Frederico da S. Sam, Director of the Timorese Company
James Jong, Director of the Timor Food Company
The meeting minutes are attached (attachment 1)
6.On February 1st, the Minister of Tourism, Trade and Industry and I met with the rice and cement importing community, so as to verify the availability and readiness of the importers. The importers who participated were:
Kathleen Gonçalves, Director of the People Food Company
Julio Alfaro, Director of the People Food Company
Mr Amir, Manager of the Kuda Ulun Company
James Jong, Director of the Timor Food Company
Mr Marsidi, Director of the Victoria Lda Company
Mr Rully, Manager of the Nabilan Food Company
Frans Holiwono, Director of the Holiwono Company (BTK)
Mr Charles, Vice-Director of the Lay Shop Company
Germano da Silva, Director of the Oriental Food and Três Amigos Companies
Julio Lo, Director of the Juxibel Company
Lay Siu Hing, Director of the Star King Company
Frederico da S. Sam, Director of the Timorese Company
(see the respective minute in attachment 2)
7.At this meeting I highlighted the following essential aspects: capacity to import rice immediately and capacity to store it
8.Few had capacity to store rice, except for Mr. Germano da Silva, no one was ready to import immediately the quantity the government required – 16,000 tons.
9.I took the opportunity to remind all those in attendance that it was government policy to set up mechanisms to facilitate a sharing scheme for the import of rice, an all inclusive and collective effort for food security
10.Following these meetings, the Três Amigos Company, represented by Mr. Germano da Silva, presented a bid to the government for the supply of 16,000 metric tons of rice imported from Vietnam, at a price of US$ 510.00 per ton. The bid also included the option to divide the payment into two parts. The first part would be paid by June 2008 and the second part would be paid around August, after the approval of the mid year review (MYR) budget
11.I want to stress that Mr Germano da Silva is not Vice-President of the CNRT.
12.The Government decided to accept this bid on three deciding factors: 1.)The market search by way of the meetings held with the suppliers of rice indicated lack of ability to import; 2) the bid from Mr. Da Silva was reasonable, represented value for money and offered favourable payment conditions, 3) the country’s need for rice stocks was becoming an urgent issue,
13.As a consequence on February 29th the Government signed a contract with the Três Amigos Company regarding the purchase of 8,000 tons of rice, at a price of US$ 510.00 per ton, totalling US$ 4,080 million (Attachment 3). The balance of 8,000 tons would be bought at the contractor’s risk and paid only after the mid year review (MYR) budget
14.In early April, the price of rice in the international market increased considerably, reaching as much as US$ 1,150 per ton in Thailand. It was within this environment of global scarcity and constant fluctuation of prices that the contracting company was informed by the Vietnamese supplier that it could no longer supply rice at the price of US$ 510.00, as previously agreed.
15.The supplier requested a new price of $800.00 at origin, with the Três Amigos Company adding US$ 100.00 more for transportation costs (adjustments considering rising fuel prices), insurance, operational costs and profit. Therefore the price for the government became US$ 900.00 per ton. (Attachment 4)
16.In view of the economic situation at the time, the government decided to be prudent and not to risk losing the secured rice shipment. The agreement for the purchase of 16,000 tons of rice was rectified to an overall cost of $14,400 million.
17. Given the risk of considerable food shortages and its impact on the most underprivileged sectors of our society, the government took the view that in this circumstance, price would have to be a factor of secondary importance.
18.All negotiations with the contracting company were open, transparent and within the terms of the law.
In view of the recent accusations by the opposition, the government decided to undertake a review of previous government’s purchase of rice and food products.
The results are as follows:
1.In the financial year 2006/2007 the previous government spent US$ 11,089 million on purchasing rice and food products.
2.The table below show that 76% of the purchases of the former Government’ were single source contracts
Supplying Company
Type of market consultation
Amount
Timor Global
Direct adjustment (single source)
US$ 550,982.00
Landmark Trading
Direct adjustment (single source)
US$ 2,816,000.00
Tropical Hotel
Direct adjustment (single source)
US$ 1,387,000.00
Monte Viado Lda
Direct adjustment (single source)
US$ 3,538,663.00
Various
Direct adjustment
US$ 136,419.00
Subtotal
US$ 8,429,064.00
Nabilan Food Corporation
Invitation to tender
US$ 940,000.00
*Nadira Supplier
Invitation to tender
US$ 1,720,000.00
Total
US$ 11,089,065.00
* To date Nadira Supplier is yet to supply 700 tons of rice.
1.An agreement for the supply of rice between the Timor Global company and Mr Arsénio Bano, then Minister of Labour and Community Reinsertion, dated 13 June 2006, has attached a note by the then Minister of Finance, in which she states: “this was an emergency purchase, i.e. based on a contract signed by Minister Bano and myself, the supplier offered to provide rice on the understanding that payment would be made at a later stage”. Signed 01 September 2006. How is this agreement any different from the one that has been causing such polemic over the past few weeks? At least the present government will settle the accounts at the end of the fiscal year in which the expenses were incurred, unlike what happened with the previous government. It should be noted that in this case we are talking about expenses of US$ 849,188.00 not accounted for in the fiscal year in which they took place. This means that expenses in the 2005/06 annual report are wrong by at least this amount - US$ 849,188.00 (Attachment 5).
2.But I understand, the previous government was not used to recording its debts, and the present government is getting used to paying those debts. In addition, there seems to be some question as to the quantities imported.
3.A payment of $500,000 was charged to the Contingency Reserve in excess of the amount charged to the Solidarity Fund for a major acquisition of rice by the previous Government. A contract with a value of $960,000 was entered into by the Ministry of Labour and Community Reinsertion, Ministry of Finance and Timor Global (TL) Pte Ltd for 2,000 Metric tons of rice. Although the request to use the Contingency Reserve was authorized by the Prime Minister, there was no shipping documentation attached to the payment order.
4.The auditor’s report states “One very poor photocopy of a cargo manifest was found attached to a separate payment voucher made out to the stevedore company handling the same rice acquisition for $35,200. However this shipping mandate was for a different quantity of rice (3,000 Metric ton) and annotated as “donated by P. R. China” inconsistent with the Timor Global contract. Further, the costs charged to the Timor Government for the transport and warehousing of the rice shipment were charged for an amount of 3,000 Metric tons rather than the 2,000 Metric ton in the contract”
5.When this Government took office it was found that the bank account for revenues from the sale of rice by the State only held US$ 830,000. Considering that around US$ 11.9 million were spent in purchases, these revenues seem extremely low. Is this a good example of good administration and governance? Furthermore, even though the State started its purchases within the first few months of 2006, the bank account statement does not have entries prior to February 2007. Why is that?
6.I will tell you that this appears consistent with the overall financial management of the country by the former Government. Shortly after taking office it was discovered that Fifty Four percent (54%) of the value of all government expenditure for the 2006/2007 financial year under the previous government was coded to a supplier called “no vendor”. This means we will never know where more than half our public State budget went or how it was spent because there is no documentation. The audit team stated: “There was essentially no reporting or review process in place within the Procurement Services. A large number of payments in the general ledger are incomplete. This has resulted in a situation where there is a very poor audit trail and retrospective investigations of malpractice or fraud would be very difficult.”
7.And let us not forget, the largest contract awarded by the previous government was to Tafu Oil Company Ltd for the supply of fuel, owned and operated by Djafar Bim Amude Alkatiri, the brother of the former Prime Minister Mari Alkatiri, which on average exceeded over $1.2 million USD per month. It was noted by recent auditors that, “Despite the size of this contract, which covers the major source of fuel supply for the country, no performance bond appears to have been set.” And as for the contract there was a
1.Failure to follow open tender processes,
2.Breaches of delegation authorities in the letting of the contract,
3. Lack of authority to extend the contract,
4.Failure to properly inform the Finance Minister of certain aspects of the contract
5. Failure to validate payment requests and
6. Failure to identify and recover significant over payments to the vendor.”
Sometimes you want so badly to score a goal that you end up scoring in your own goal post ……
Lastly, I wish to respond to former Minister Arsénio Bano, who claimed that I was guilty of poor administration in the Presidency, simply because I had to pay State expenses from my own money.
1.As a member of Government, Mr Arsénio Bano will recall that in 2002, I invited him every Friday for meetings with the needy. He stopped coming on his own accord, because he could not respond to the requests made to him.
2.I then chose to call Mr Arsénio Bano and his directors, after having been denied, as President of the Republic, the reimbursement of expenses of some zinc sheets, wood planks, nails, etc. for persons who requested assistance in late 2002. I had instructed the finance division of the President’s Office to recover these costs; however the Ministry of Finance returned the request to me, saying that the President of the Republic should not carry out such activities. This is why I had to use money from my own pocket to pay the State. From that moment on I started summoning Mr Arsénio Bano, who said that “ he could not respond to everything.”
3.In early 2003 former Prime Minister Mari Alkatiri informed me that he had appointed the Taibessi veterans’ garage as the only garage for maintaining State vehicles. Many months later former Prime Minister Mari Alkatiri complained to me that the Taibessi veterans garage had proved unworthy of his trust, as it ruined the cars sent to it for repairs.
4.The former Prime Minister also informed me that there was corruption in that garage, namely that a Pajero would leave the garage as a Tata and a Tata would leave as a Pajero. I thanked the former Prime Minister for the information and told him that I would be sending the vehicles of the Presidency to more professional garages, also because the Presidency of the Republic did not have much money.
5. The former Prime Minister concurred with my decision, and from then on, whenever a vehicle of the Presidency required maintenance I would send it to the Beimori garage. However, during fiscal year 2003/2004, when the time for paying invoices came, the then Minister of Planning and Finance or the Ministry of Planning and Finance returned my invoices saying that they would not pay them because the veterans’ garage had been given a contract for the exclusive repairing of State vehicles.
6.I paid these expenses from my own pocket. Although I knew that the veterans’ garage was no longer in operation and that the Government policy had changed enabling government fleet to be sent to any garage in Dili.. This policy remains to this day. But just to open people’s eyes, I inform you here that I called Brigadier Taur Matan Ruak to express my disappointment with the working conditions, the irresponsibility and the poor management in the veterans’ garage. The Brigadier told me that he asked the Government more than 3 times to have the garage inspected, but that this never happened. The truth is that a nephew of the former Prime Minister, together with a Malaysian, had been making up false invoices and exchanging car parts, all this without the veterans being able to do anything.
7.Another example used to demonstrate poor administration in the President’s Office derives from the following fact: Very late after taking office, I received a Taruna vehicle, which is used by common traders in Indonesia. It so happens that this type of vehicle is not suitable to make trips to the interior. Therefore, whenever that I had to travel to the interior I used my private car, and because I was going on official business I filled the tank with Government fuel. The invoices sent to the Government for the fuel used only for my official trips to the interior were returned because Government fuel could not be used in private cars.
8.With deep regret, I stopped visiting the populations in the interior, and I take this opportunity to say that even the current President of the Republic stated in an interview to Australian newspapers that I never visited the interior. The reason for this is simple: I went for two years, paying the trips from my own pocket, and then I stopped because I did not have the money to do so.
9.Since November 1999 I have also gone abroad several times in order to request the assistance of the international community to Timor-Leste. As President of the Republic, I also visited countries and participated in international state meetings. In each of these visits I always sought financial support for the Government of Timor-Leste. As Head of State I wanted to take with me gifts for the hosting nation as per international protocol, therefore I ordered State gifts that I ended up paying from my own pocket, because I did not acquire them following the tender processes.
In closing, I have always served my nation with transparency, in good faith, and in accordance with the law. The continual allegations of corruption against me and my Ministers are unsubstantiated and part of an overall aggressive political plan by a small few who put the need for power before the good of the nation and will pursue this power at any cost to any individual.
It saddens me to see that those who are expected to serve the people choose to serve themselves instead.
I will also say that when the AMP Government took office we made the decision to govern with dignity, void of political squabbling which is not conducive to nation building or in the best interest of the people of our nation but the Opposition has led this systematic campaign to destabilize the country with misinformation.
What is equally disappointing is that the media, both national and international reports misinformation as fact, without due diligence for the truth. So what I ask for you today, is to strive to discern the truth from propaganda so as to provide the people of this nation, and the wider international community, with an honest assessment of Governments activities.
Thank you.
