Meeting of the Council of Ministers on May 25th, 2022

Presidency of the Council of Ministers

Eighth Constitutional Government

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Press Release

Meeting of the Council of Ministers on May 25th, 2022

The Council of Ministers met at the Government Palace, in Dili, and approved the draft Law Proposal for legislative authorization regarding company recovery and insolvency, presented by the Coordinating Minister for Economic Affairs, Joaquim Amaral. The purpose of this request for legislative authorization to the National Parliament is to draft a modern Recovery and Insolvency law, as an essential element for the growth of the country's economic fabric and investment. This need arises from the intention of the 8th Constitutional Government to transform the foundations of the Timorese economy to increase resilience and growth potential, supporting and resolving the situations of companies in difficult financial situations, but that are economically viable. Furthermore, it also aims at responding to the demands of ASEAN and WTO integration, with a legislative framework that meets the needs of the country and the commitments assumed in the international arena.

 

The Council of Ministers approved the draft Decree-Law that proceeds with the first amendment to Decree-Law no. 45/2015, of December 30th, which creates the Investment and Export Promotion Agency of Timor-Leste, I.P., also presented by the Coordinating Minister for Economic Affairs, Joaquim Amaral. This decree-law aims to adjust TradeInvest's legal regime, reinforcing its competencies as the governmental entity responsible for promoting, facilitating and monitoring private investment and exports in Timor-Leste. In addition, this amendment aims to ensure the uniformity and consistency of the national legal system, namely adjusting the legal regime of this government agency to Decree-Law No 15/2017 of August 23rd, Private Investment Law, Decree-Law No 16/2021 of September 15th, on the General Bases of the Organization of Public Administration and Decree-Law No 30/2020 of July 29th, on the Direct and Indirect Organization of the State.

 

The Council of Ministers also approved three Decree-Law projects, presented by the Vice-Prime Minister and Minister of Social Solidarity and Inclusion, Armanda Berta dos Santos.

The first is the draft decree-law approving minimum values for disability and elderly pensions.

 

This proposal aims to guarantee minimum values for invalidity and elderly pensions, within the scope of the contributory social security regime, depending on the contributory career of the workers. Thus, the aim is to ensure that these pensions, under the contributory scheme, are never lower than the social pensions, to reward the contributory effort of the workers.

The second is the draft decree-law approving the Social Pension.

 

The new social benefit, created by this Decree-Law, has the nature of a social pension and not a subsidy, aiming to ensure a decent minimum income to all those who really need it because they have no other forms of income and are in a situation of old age or disability. This social pension replaces the Subsidy for Support to Elders and Invalids (SAII), to make the social security system fairer.

This legislative amendment aims at the following changes:

  • Changing the concept, from subsidy to a social pension;
  • Changing the personal scope to include workers who are in the contributory system but are not entitled to a pension;
  • Adjusting the value of the benefit, ensuring that the amount of the pension does not fall below the international poverty line;
  • Not allowing the accumulation of other income, for new beneficiaries;
  • Changing the periodicity of payments from biannual to monthly payments;

The third is the draft Decree-Law that creates the Disability Verification System.

This draft decree-law aims to create a system for verifying situations of disability to grant social benefits. With this decree-law, the administrative procedure of technical verification of the disability situation is defined.

The Disability Verification Service is a specialized technical instrument, composed of technical and material means, which will operate in two services integrated into the National Institute of Social Security (INSS): the medical expertise service and the administrative support service.

 

The Council of Ministers also approved the draft Decree-Law, presented by the Prime Minister and Minister of Interior, Taur Matan Ruak, which amends the Organic Law of the National Police of Timor-Leste. This organic restructuring of the PNTL seeks to adapt its response capacity to the current national and international challenges, improving the functional and operational conditions, in line with the Strategic Development Plan 2011-2030, the Strategic Concept for National Defence and Security and the Program of the 8th Constitutional Government.

With this amendment to the PNTL Organic Law, a hierarchical organisational model was adopted, consisting of three levels of command: a top-level, under the command of the General Commander and assisted by the 2nd General Commander; an intermediate level that comprises the Operational Command, the Administration Command and the Personnel Command; and a third level, made up of the municipal commands, including the recently created Ataúro municipal command, and the Oé-Cusse Ambeno regional command.

It is also envisaged that the regional command and municipal commands, the Higher Institute of Police Sciences and the special police units, which are assigned competencies in areas of police speciality at the national level, will function in the same hierarchical position.

Lastly, the Council of Ministers was given a presentation on the Public Perception Survey - 2022 TATOLI, presented by the Asia Foundation. This survey was conducted in January and February 2022, with the support of the Government of Australia.  A total of 2489 adult citizens were interviewed, in all municipalities of Timor-Leste.

The results include information on employment, type and value of income, international remittances, economic recovery aid payments, economic well-being and economic situation.

Furthermore, the survey addressed issues such as the path the country is taking, the main problems facing the country and the communities, and the difficulties women face.

The survey also sought to understand what the citizens' opinions are on Government action, namely what the main priorities should be and what the reasons are that prevent the Government from doing a better job.

The survey also addressed the issues of public service delivery, women's rights, infrastructure, perception of corruption, political perceptions, the role of women in politics and leadership renewal.

And lastly, the study addressed media-related issues, namely which are the sources of information, the use of digital media and media independence, and the use of social networks. END

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