Extraordinary Meeting of the Council of Ministers on September 25th, 2023
Presidency of the Council of Ministers
Ninth Constitutional Government
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Press Release
Extraordinary Meeting of the Council of Ministers on September 25th, 2023
The Council of Ministers met at the Government Palace in Dili and approved the draft Law Proposal that approves the third amendment to Law No. 3/2014 of June 18th, which established the Special Administrative Region of Oe-Cusse Ambeno (RAEOA) and the Special Social Market Economy Zone of Oe-Cusse Ambeno and Ataúro.
To boost national development, it is intended to establish an appropriate legal framework for Special Social Market Economy Zones throughout the territory, promoting the population's well-being and national solidarity. To this end, it is proposed to remove all references to the Special Social Market Economy Zone of Oe-Cusse Ambeno and Ataúro to establish a new legal framework for Timor-Leste's Special Social Market Economy Zones that can be applied to various areas of the national territory and not be restricted to the enclave of Oe-Cusse Ambeno and the island of Ataúro.
According to the draft Law Proposal that has now been approved, the power of tutelage over the RAEOA will be exercised exclusively by the Prime Minister instead of the Government. References to special economic zones have been removed, which will be regulated by special legislation to be approved. The RAEOA's regulatory power will align with the Constitution and the Law, and concepts from foreign legal systems incompatible with the national reality, such as "executive orders", will be eliminated. The approval of administrative regulations by the RAEOA will depend on a binding opinion from the Prime Minister. The RAEOA's budget will be an integral part of the General State Budget.
Taxes and fees collected in the region will be the region's revenue, per the legislation to be approved that will regulate their allocation. Assets in the public and private domain of the State that are in use shall not pass to the RAEOA. The organisation and functioning of the regional bodies will be regulated by decree-law. The Council of Ministers will appoint the Oe-Cusse Ambeno Special Administrative Region Authority members on a proposal from the Prime Minister. The Oe-Cusse Ambeno Special Administrative Region Authority will answer only to the Prime Minister, guaranteeing the independence of powers.
The President of the RAEOA Authority will have defined legal impediments, similar to members of the National Parliament. In cases of absence or impediment of the President of the Authority, he will be replaced by a member appointed by the Prime Minister. A new article will regulate the procedure for dismissing the President of the Authority. The Advisory Council will act as an advisory body to the President of the Authority. A representative from each municipality in Oe-Cusse Ambeno may be appointed to the Advisory Board.
RAEOA revenues will be invested in the region as a priority, and investments outside the region will require Government authorisation. The independent tax regime has been eliminated, but differentiated tax rates may be established in the RAEOA. The Special Procurement Regime has been revoked, and the National Procurement Legal Regime now applies. The Authority will not have financial regulation and supervision functions, which the Central Bank will retain. There is no longer a customs regime of its own, but special or simplified customs procedures can be established by law.
A government decree-law will regulate the management of the Regional Development Fund. The civil service system in the region will be aligned with that of the rest of the country, with exceptions defined by decree-law. The Government will regulate the degree of autonomy of the Special Administrative Region of Oe-Cusse Ambeno. The rules relating to the mandate of the President of the Authority shall apply to other members of the Authority. The terms of office of the Authority and the President will automatically cease upon the entry into force of the new laws.
Contracts signed by the RAEOA on behalf of the Oe-Cusse Ambeno and Atauro Special Social Market Economy Zone will be automatically transferred to the RAEOA. END
