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Press Release
Meeting of the Council of Ministers on July 30th 2025
The Council of Ministers met at the Government Palace in Dili and began the meeting by analyzing the final report of the internal audits of Public Administration services, carried out by EY Portugal, an auditing and consulting firm that is part of the international Ernst & Young network, covering 45 programs and 28 state entities.
EY Portugal is a member of EY Global, one of the world’s four largest professional services organizations, with extensive experience in auditing public and private entities.
During the meeting, the main conclusions and recommendations of the audits conducted at various entities under the State’s direct and indirect administration were presented. The main challenges and areas requiring improvements in processes and procedures were identified. The Government welcomed EY’s recommendations and reiterated its commitment to transparency, good governance, and continuous improvement in the efficiency of public finance management.
This audit process reflects one of the commitments made by Prime Minister Kay Rala Xanana Gusmão in his inauguration speech, in which he defined as one of his government’s priorities the carrying out of audits in various public institutions, with the aim of promoting greater accountability and rigor in the administration of the State.
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The Council of Ministers approved the Government Resolution Project expressing a vote of congratulations for the organization and participation in the 12TH Sports Games of the Community of Portuguese Language Countries (CPLP Portuguese acronyms) 2025, held in Timor-Leste between July 17th to 27th, 2025.
The resolution recognizes the remarkable organizational effort undertaken by the Special Interministerial Commission created to coordinate the event’s activities, as well as the personal commitment of the Minister of Youth, Sports, Arts and Culture, the Secretary of State for Arts and Culture and the entire ministerial team, whose dedication was decisive for the success of the initiative.
The Government also congratulates the Timorese athletes for their exemplary participation, commends the enthusiastic involvement of the population, and highlights the contributions of young volunteers, security forces, and the media. The resolution also emphasizes the spirit of unity, friendship, and celebration that marked the games, reflecting the warm welcome and hospitality of the Timorese people.
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The Government Resolution project presented by the Prime-Minister, Kay Rala Xanana Gusmão, regarding the celebrations of the 50th anniversary of the Armed Forces for the National Liberation of Timor-Leste (FALINTIL Portuguese acronyms), which will be celebrated on August 20th, 2025, was also approved.
Under the terms of the resolution, the celebrations will take place throughout the national territory, involving ceremonies and activities in the municipalities of Lautém, Baucau, Viqueque, Manatuto, Manufahi and Liquiçá on August 18th; in Ainaro, Covalima, Bobonaro, Ermera, Aileu, in the Special Administrative Region of Oe-Cusse Ambeno and on the island of Ataúro on August 19th; and in Dili on August 20th.
The program includes military parades, popular parades, thanksgiving masses, meetings to reflect on peace, security, healthy social coexistence and gender issues, as well as cultural activities and visits in honor of the cemeteries where the Martyrs of the Fatherland are buried.
In Aileu, a solemn mass will be held at the Church of Saint Paul and Saint Peter, followed by the laying of a wreath at the statue of the late Nicolau Lobato. In Dili, the main celebrations will take place at Largo de Tasi Tolu and include an international g7+ conference, a military parade, official speeches, decorations, the signing of a protocol with the People’s Republic of China for the construction of the Armed Forces Military Hospital, a dinner party, and a musical concert featuring national and international artists.
The Government Resolution also determines that, in addition to protocol and military ceremonies, cultural and sporting activities be promoted, including theater, poetry, traditional dance and musical performances, particularly involving young people and students.
The Government also established a day off in the municipalities covered, exclusively on the day of the FALINTIL 50th anniversary celebrations. It also mandated the establishment of an interministerial organizing committee, led by the Minister of Defense and in collaboration with the F-FDTL, responsible for coordinating all activities and ensuring the involvement of government officials in the celebrations in the various municipalities.
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The Council of Ministers also approved the Government Resolution project, presented by the Vice-Minister of Finance, Felícia Claudinanda Cruz Carvalho, regarding the definition of the composition of the Political Review Committee for the General State Budget for the year 2026.
The Political Review Committee’s objective is to ensure that the annual plans of the Public Administrative Sector services and entities are viable and aligned with the national priorities established in the 2011-2030 Strategic Development Plan, the Government Program, medium-term plans, and other strategic documents. It is also responsible for ensuring that the allocated budgetary allocations comply with these plans and the established expenditure ceilings, as well as ensuring that the inclusion of allocations in the General State Budget is conditional upon the prior inclusion of the respective activities in the annual plans of the services or entities in question.
The Political Review Committee will be chaired by the Prime Minister and comprises the two Vice Prime-Ministers, the Minister of Finance, the Minister of Public Works, and the Minister of Planning and Strategic Investment. The Secretary of State for Equality, the Chairman of the Civil Service Commission, the President of the Institute for the Defense of Children’s Rights, and a representative of the Timor-Leste Association of Persons with Disabilities will also participate in the Political Review Committee meetings as observers.
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The draft Decree-Law that creates the National Development Bank of Timor-Leste, SA (BNDTL Portuguese acronyms), presented jointly by the Offices of the Minister of Planning and Strategic Planning, the Minister of Finance and the Vice Prime-Minister and Coordinating Minister for Economic Affairs, was also approved.
The BNDTL will be a financial institution with exclusively public capital, with legal personality and administrative, financial and patrimonial autonomy, aimed at supporting productive investment and fostering the country’s sustainable economic growth.
Under the newly approved legislation, the BNDTL’s mission will be to address market gaps in access to medium- and long-term financing, promoting solutions tailored to the needs of Timor-Leste’s businesses, especially in strategic sectors such as agriculture, manufacturing, tourism, infrastructure, and social services. The bank may also manage strategic funds, under government mandate, ensuring their future sustainability and tax neutrality.
The decree also establishes that the initial share capital is set at US$30 million, fully subscribed by the State.
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In accordance with the projects presented by the Minister of Public Works, Samuel Marçal, the Council of Ministers decided to authorize the expenditure and the opening of the respective procurement procedures for the execution of four road infrastructure rehabilitation projects:
The Government also instructs the National Purchasing Commission to initiate the subsequent stages of the bidding procedures, in accordance with current legislation.
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The Council of Ministers approved the draft Bill, presented by the Minister of the Interior, Francisco da Costa Guterres, regarding Martial Arts’ Legal Framework.
This legislative initiative aims to establish a clear legal framework for the teaching, learning and practice of martial arts in Timor-Leste, to ensure that these activities take place in a safe, orderly manner and in accordance with the principles of public order.
The proposal aims to prevent and combat violence associated with martial arts practice, especially among young people, by creating effective monitoring, oversight, and accountability mechanisms for the centers, clubs, and agents involved. Therefore, the concept of a “risk profile” is introduced, applicable to organizations with a history of antisocial or violent behavior, subject to specific institutional control measures.
The diploma also proposes the creation of two new bodies: the Sports Regulatory Commission for Martial Arts (CRDAM) and the Martial Arts Monitoring and Inspection Commission (CMFAM), in order to ensure robust institutional coordination between the competent government bodies and civil society.
Among the guiding principles enshrined in the bill are the priority of public order, risk prevention and precaution, institutional coordination, individual and collective accountability, freedom of association and non-partisanship, ensuring that martial arts remain as practices of personal and cultural development, free from political-partisan influences.
With this proposed legal framework, the Government intends to safeguard the sporting and cultural character of martial arts, promoting their responsible practice and contributing to the safety and well-being of Timorese society.
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Lastly, the Council of Ministers approved the draft Decree-Law, presented by the Vice-Minister of Social Solidarity and Inclusion, Céu Brites, for the creation of the Conditional Health and Nutrition Allowance for Pregnant Women, Breastfeeding Women and Children aged 0 to 3 in Situations of Social Vulnerability.
This new social protection mechanism aims to combat chronic malnutrition and promote maternal and child health by providing mixed support consisting of adequate food and a quarterly financial incentive of US$ 25, quarterly.
The program will be implemented initially as a pilot project in the municipalities of Covalima, Ermera, and the Oe-Cusse Ambeno Special Administrative Region, regions identified as having particularly high levels of child malnutrition. The subsidy is intended for women and children in situations of proven socioeconomic vulnerability, and its granting is conditional on meeting minimum requirements for prenatal, postnatal, and child development monitoring, including regular health center visits, up-to-date vaccinations, and nutritional counseling sessions, in accordance with technical standards approved by the Ministry of Health.
The program will be managed and monitored by the Ministry of Social Solidarity and Inclusion, in collaboration with the Ministries of Health, Finance, State Administration, and the National Institute of Statistics of Timor-Leste, and may also receive technical support from development partners. The legislation also provides for the creation of a dedicated social database and an independent evaluation of the pilot project after 36 months of implementation, with a view to its eventual expansion nationwide. END