Parliamentary Commission of Inquiry Detects Virus Eating Up Public Money Parliamentarians Request Minister’s Name Be Deleted From Report

Translation of Article in Tempo Semanal 24.8.2010 on Parliamentary Commission of Inquiry on Rice Report

Tempo Semanal

Dili, 24 August 2010

Parliamentary Commission of Inquiry Detects Virus Eating Up Public Money Parliamentarians Request Minister’s Name Be Deleted From Report

On 8 August 2007 when the President of the republic Jose Ramos Horta inaugurated the AMP government and swore in Kay Rala Xanana Gusmao, formerly President during the previous FRETILIN government as Prime Minister of the AMP, the head of government began to encounter problems with food shortages.

Although this problem did not result in a famine crisis, it nonetheless challenged the political determination of the government. Because of this the government, through its head of government decided to opt for signing contracts with a group of Dili based companies to supply rice to the state of Timor-Leste.  But the process in signing the contracts became complicated because the contracts were signed prior to the National Parliament’s approval of the Rectified Budget. Even worse is that the companies in signing rice supply contracts with some companies breached procurement laws, which covered the contracts and began to betray the trust of the Prime Minister who had thought of these contractors as development partners.

In its 50 page report the Parliamentary Commission of Inquiry (PCI) reported that though at first the head of government is not implicated as having breached the law but his actions may come to be seen as having put his credibility at risk, because these companies with whom the Prime Minister signed the contracts have to date not paid their taxes, and there are indications of manipulation of the price of rice which affects public funds.

The PCI was able to deduce that from the time of the transitional budget in 2007 until 17 September 2009 the state of Timor-Leste had spent a total of US$89,701,783 to acquire 155,150 tons of rice supplies.

The PCI report deduced that during the July to December 2007 budget period, the government spent public moneys totaling US$5,018,746 to acquire 13,225 tons of rice. The PCI formed the opinion that from 2008 to 2009, the government spent a total of US$83,783,032 to acquire 141,925 tons of rice. According to details provided by the government, to 10 December 2009 the government rice stocks totaled 26,100,225 tons in state controlled as well as private warehouses.

The PCI uncovered information that since the government began implementing the policy of intervention in the rice market by selling rice directly to the Timor-Leste public, according to the government’s own estimates for 2008, the return from sales of rice by the government were US$18,038,000 and for 2009 were US$25,000,000, but at the start of December 2009 when the general budget of the state for 2010 was being debated in the national parliament, it was only US$21,500,000 for 2009.

The report also said that the PCI was unable to reach any conclusions regarding the reported loss of 4,000 sacks of rice, which according to explanations from witnesses from the Ministry of Tourism, Commerce and Industry was still under investigation by the Timor-Leste National Police.

A number of Members of Parliament did not sign the report, including Carmelita Caetano Moniz, Hermes da Rosa Correia Barros, who insisted in writing “the report should not state that the Minister’s wife supplied rice.  It should say Ms Kathlyn”. Two other MPs, Domingos da Costa and Teresa Maria de Carvalho also did not sign the report.

The report numbered: 24/CPI.II/XII/2009 dated 9 March 2009 was signed by the President of the Commission Arsenio Paixao Bano along with other MPs; Cornelio da Conceicao Gama, Jose Teixeira, Jacob Xavier, Aicha B. Umar Bassarewan, Domingos Mesquita and Duarte Nunes.

The PCI concluded that the conduct which the government entered into with the company United Food Lda, and signed by the wife of the Minister for Development, Mr. Joao Goncalves, as the 50% shareholder of the share capital holding of the company holding and a director of the company, was in breach of article 3 of Parliamentary Law No. 7/2007.

It further states that according to documents provided by the government regarding contracts signed by it with companies to supply rice to the state of Timor-Leste and which the PCI was able to analyze in detail, during the 2007 transitional budget periods between July and December, the government spent US$6,018,746 to buy 13,225 tons of rice from the company star King Lda, the PCI was able to ascertain information of payments of US$1,464,075 for a total quantity of 3,615 tons of rice at a price of US$400 per ton.

This payment was made by the government on 17/03/2008 and on 21/04/2008, but the PCI was unable to find contract documentation or detailed information regarding the contract signed with the company Star King to justify the information provided from the Treasury of the state.

Insufficient information made it difficult for the PCI to conclude what the contractual obligations and rights were in pursuant to the law or of the conditions laid down in the contract, especially as regards the obligation to pay taxes to the state of Timor-Leste.

But, the PCI was able to find general information regarding payments made by the government to the company People Food for the total of US$1,600,000 based on a price of US$400 per ton.  This payment was made on 27/1/2008 and 27/5/2008 for a total amount of rice supplied of 4,000 tons.

However, the PCI was unable to obtain other information to reach any conclusions regarding how the government entered into these contracts with People Food, so the PCI was unable to rectify the information provided by the Treasury of the state.

Beyond this, the PCI was also only able to find information regarding the payment made by the government to the company Oriental Food for the total amount of US$1,116,000 to purchase 2,790 tons of rice at the price of US$4000 per ton.  This payment was made on 1/2/2008, but the PCI was unable to find other information to further analyze this payment, so the PCI was unable to verify the information from the Treasury of the state.

The PCI found information regarding payment made by the government to the company Nabilan Food in the amount of US$1,131,000 to purchase 2,820 tons of rice, at the price of US$400 per ton.  The payments were made on 25/1/2008 and 12/2/2008.  However the PCI did not find other information to be able to verify the payment or the contract the government entered into with Nabilan Food, so the PCI was unable to verify the information from the Treasury of the state.

The PCI obtained information and some documents provided by the government regarding rice supplies purchased by the government through a contract entered into between the Ministry of Social Solidarity and the company Maubara Fitun LDA for a total amount of US$899,360 for 1,168 tons of rice at US$770 per ton.  The PCI also received some documents from the government like Payment Request, Receiving and Inspection Reports and other information.

Beyond this the PCI also obtained some information from the government regarding a contract entered into between the government and the company Timor Food to purchase rice totaling 2,500 tons at a price of US$350 per ton, for a total sum of US$874,398.

On another matter the PCI was able to analyze public contract documentation that the government entered into with the company Tres Amigos, before the National Parliament approved the Rectified General budget of the State 2008.

From the contract documents obtained by the PCI it was able to conclude that prior to the National Parliament approved the Rectified Budget of the State for 2008, the government had already entered into a contract with the company Tres Amigos for a total of US$14,400,000, despite the National Parliament having only approved and amount of US$4,080,000 to buy 8,000 tons of rice at a price of US$510 per ton in the Rectified Budget of the State for 2008.  However, the contract was later amended and increased to US$14,400,000 to acquire 16,000 tons of rice at a price of US$900 per ton.

The PCI also wrote in its report that the contract the government entered into on 22/10/2008 was not in compliance with the general rules and procedures stipulated in the Decree Law on the Legal Regime on Procurement No. 10/2005, and the Decree law 11/2005 Regarding Administrative Infractions of the Legal Regime on Procurement and the Legal regime on Public Contracts, as well as other laws binding the state of Timor-Leste, including National Parliament Law No. 7/2007 of 25 July 2007 on the Rights and Obligations of Officeholders of Constitutional Bodies.

Meanwhile regarding the contract the government entered into with the company United Food Lda, the PCI concluded that the contract with the wife of the Minister for Development as director and shareholder of 50% of the shareholding of the company United Food Lda breached article 3 of National Parliament Law No. 7/2007.

The PCI also concluded that the company United Food breached chapter IV, article 32 of the Decree Law on the Legal Regime on Public Contracts No.11/2005, regarding contractual warranties, and that it breached clause 21 of the Contract’s General Conditions of Contracts for Supply of Goods and Related Services regarding the payment of Taxes and Charges.  It is stipulated in clause 21.1 that “The Supplier shall be entirely responsible for taxes and charges levied by the state and its duly constituted authorities.”  To this date the company United Food Lda has not paid taxes to the state of Timor-Leste in breach of the above mentioned terms.

In addition, the contract for supply of rice entered into by the government with the companies Belun Feto, Atramor Success Supply, Star King Unipessoal Lda, and Maubara Fitun Unipessoal Lda, whereby each company was awarded a contract valued at US$3,842,5000 to buy 7,250 tons at a price of US$530 per ton, breached article 32 of the Decree Law on the Legal Regime for Public Contracts regarding Contractual Warranties, and clause 21 of the Contract’s General Conditions of Contracts for Supply of Goods and Related Services regarding the payment of Taxes and Charges, especially clause 21.1 that states “The Supplier shall be entirely responsible for taxes and charges levied by the state and its duly constituted authorities.”

Regarding the contract the government signed with the company Serba Jaya Makmur, which was signed by the Prime Minister Kay Rala Xanana Gusmao with the director of PT Serba Jaya Makmur, Mr. Sudarmado on 27/10/2008 for a total contract price of US$1,615,000 for 1,900 tons of rice at US$850 per ton, the PCI concluded that it did not comply with the government Decree Law on Procurement number 20/2005 because at the time it entered into the contract with PT Serba Jaya Makmur for the supply of rice at a price of US$850 per ton, it had entered into contracts with 6 other companies for the supply of rice at US$530 per ton.

The PCI concluded that there was a loss of US$608,000 to the state of Timor-Leste as a result of the contract the government entered with PT Serba Jaya Makmur in the amount of US$1,615,000 to purchase 1,900 tons at a price of US$850 per ton.

The PCI acknowledged that the government was acting to secure rice supplies for the state of Timor-Leste at a time when the people of Timor-Leste we in need of it.

Due the above the PCI recommended that:

1.        An investigation and audit be held into the entering of the contracts by the government for the period of the 2007 Transitional General Budget of the State with the companies Star King Lda, People Food, Oriental Food and Nabilan Food.

2.        That an investigation and audit be carried out to ascertain whether anyone should be held accountable for the additional payment on the contract entered into through the Ministry of Social Solidarity State General Budget with the company Maubara Fitun Lda for the total amount of US$899,360 to buy 1,168 tons of rice at a price of US$770 per ton.

3.        The PCI recommended an audit of the payment made on the contract the government entered into with the company Timor Food from the Ministry of Solidarity’s General Budget of the State to buy a total of 2,500 tons of rice at a price of US$350 per ton in the total amount of US$874,398, but then which by an invoice from Timor Food dated 28/4/2008, requested to the government that it pay US$874,398.36 for only 2,082 tons of rice based on a price per ton of rice of US$419.98.

4.        The PCI recommended that an audit be carried out to ascertain the principal reason for the difference in the price of US$350 per ton of rice in the contract the government entered into with the company Oriental Food for a total of US$899,360, with the prices of US$770 per ton in the contract with the company Timor Food.

5.        In respect of the contract the government entered into with the company Tres Amigos prior to the approval by the National Parliament of the 2008 General Budget of the State, the PCI recommends that the State Justice institutions investigate the legality and responsibility by the government in allowing an amendment to the contract with Tres Amigos in May 2008 increasing the contract amount from an initial amount of US$4,080,000 to US$14,400,000, which amount was never provided for in the 2008 General Budget of the State.

6.        The PCI recommended that State Justice institutions investigate the contract entered into between the government and the company Timor Food to determine the legality and whether anyone should be held accountable for the agreement which was signed by James Jong  Fu Kong and Epifanio da Silva da Costa Faculto, Director of the National Directorate of Tourism, Commerce and Industry on 14/5/2008 committing the State to a debt of State funds in the amount of US$5,100,000 for rice at US$1,000 per ton.

7.        The PCI requested that the State Justice institutions undertake an investigation to ascertain the legality and whether anyone should be held legally responsible for the tax exemption granted to the export company Kien Giang by the government on 18/8/2008 before the contract was signed with the company Serba Jaya Makmur on 29/8/2008.

8.        With respect to the contract the government entered into with the company United Food, the PCI determined there was a conflict of interest involving Ms. Fon Ha Tchong, Director of United Food and wife of the Minister for Development Mr. Joao Goncalves. The PCIU recommended that the State Justice institutions to undertake an investigation to determine whether anyone should be held legally responsible for the non compliance with article 3, sub articles 1 and 2 of the National Parliament’s Law Number 7/2007 regarding the Rights and Obligations of Officeholders of State Constitutional Bodies.

9.        The PCI recommended that the State Justice Institutions investigate the companies Juxibel Lda, Veterans General Store, Ran Aitana II, Lunarsol Unip Lda, Taci Tolu Holding and Monte Veado to determine whether there any taxes are owing by these companies to the State of Timor-Leste.

10.        The PCI recommended that the State Justice Institutions investigate the company Prima Food to establish whether there was a breach of the National Parliament’s Law Number 7/2007 on the Rights and Obligations of Officeholders of Constitutional Bodies given that Ms. Herguilina F. Alves, the daughter of Ms. Maria Domingas Fernandes Alves, the Minister for Social Solidarity held 11.18% of the shareholding in the company.

11.        The final recommendation from the PCI to the State Justice institutions was for it to investigate the company Hercio International Lda to ascertain with certainty whether the sale by this company on 20/6/2009 to the company Olifante of 777 tons of rice for US$2,999,146, was rice that had already been acquired by Hercio International for the state of Timor-Leste.

12.        Paragraph 10 of the PCI report states that the PCI recommended a thorough investigation as well as an audit be undertaken to establish the exact amount of rice that was sold by the government or how much was lost so that in 2009 it made an estimate of US$21,500,000 as receipts from the sale of rice.  (Ends)

Xanana’s Calling Mario Carrascalao Stupid Shows Emergence of a Crisis of Trust in the AMP Government

Translation from Tetum:

TEMPO SEMANAL
Friday, 3 September 2010
 
During the public consultation for the Vera Cruz Sub District held at the Former Municipal Markets in Dili last night, PM Xanana openly showed that he has lost confidence in the Deputy Prime Minister for State Administration Matters, Mario Viegas Carrascalao.
 
This declaration of open war between Xanana and his deputy occurred when Xanana was answering questions from a youth who had questioned him about US$3 million lost in the Ministry of Finance. “This person who has been making statements about these three million dollars lost in the Ministry of Finance is a stupid person and does not have an understanding of the system. I know what Mario Carrascalao wants to show. He wants to say that because he did not want even one cent to fall to the ground that he has grabbed onto this three million dollars thing. This only shows his stupidity, that he does not understand the system,” Xanana said harshly.  Some time ago the Deputy PM Mario Carrascalao condemned the Ministry of Finance in the media for having lost three million dollars and for which the PM is investigating.
 
The PM continued, “I know that Mr. Mario has the habit of raising this thing.  But I tell you all, Mr. Mario is lying to himself.”
 
The PM acknowledged that it is people who have often done wrong themselves yet everyday they yell all over the place as if they were saints and everyone else were sinners, saying, “I will not accept this.”  The former Commander in Chief of the Falintil during the period of the resistance wrote in a document on 20 August 1987 that as the Governor of the Province of Timur-Timor at that time was “Indonesia’s propagandist”, and last night Xanana mocked his deputy saying, “we sometimes forget that before we traveled all around Timor saying that independence is a daydream.  Now you come and yell at me, this I do not accept.”

The former leader of the CNRM warned the former Governor for the Suharto Regime, “I do not accept that some people who before made a lot of money from the spilling of our blood, today come and yell criticism at me,” Xanana publicly scolded Mario Carrascalao.
 
Some of the powers of the Deputy PM have already been suspended by a decree law approved on 25/08/2010 and has been promulgated by the President of the Republic Dr. Jose Ramos Horta.

Tempo Semanal attempted to get a comment from the Deputy PM on this matter but was unsuccessful because he has not been in his office and his media advisor has not been answering the phone.

According to a Political observer Felipe Rodrigues Pereira who has recently completed his masters degree in Political Science in Indonesia in an exclusive interview with Tempo Semanal, “Firstly I am very saddened to witness this current government reflecting itself in the eyes of the public as being disorganized and disoriented.  Such misunderstandings should be sorted out internally and ethically within the spirit of the alliance that exists so that the public can continue to have trust in this government.  But what has happened shows that the members of the government prefer to use the media to attack one another. This only shows that the government is not solid enough to continue functioning and governing, and ultimately it is the people who suffer because the government is making itself lame.

“This disagreement clearly shows that there is a crisis of trust within the top leadership of the AMP towards Mario Carrascalao.  The suspension of powers previously given to Deputy PM Mario Carrascalao means that he has been administratively sanctioned for his acts and conduct because it has been contrary to AMP policy.  But it would be better and so as not to cause speculation then this suspension handed out to Deputy PM Carrascalao should be extended to other members of government who during this time have not been performing their functions well or who have contradicted AMP policy,” said Filipe.
 
He added that, “The issue of what Deputy PM Mario Carrascalao must now do in relation to the suspension of his powers, as I said above, legally and morally the suspension of these powers must be considered as being a punishment. This is not just like sanctioning a public servant, because it is the Deputy PM, it has a number of significant aspects about it, namely that there is a lack or if there is any remaining confidence in him, so he must voluntarily resign or something like that.  If Deputy PM Carrascalao has any dignity left the best thing for him to do is to resign from the government, so as to give the government the opportunity to govern with more internal solidity. The people are sick and tired of the conflicts that have emerged within this alliance.  Deputy PM Carrascalao can return to the National Parliament to oversee the AMP’s governance as he did before.”

“Regarding allegations that Deputy PM Carrascalao himself was involved in corruption whilst he was Deputy PM, it would be better that the appropriate authorities investigate and wait the outcome of such investigations.  But the conflict that is currently occurring between the PM and the Deputy PM Carrascalao may indirectly smash Carrascalao further and at the same time smash the PSD as a political party before the 2012 elections,” he underscored.  (*ends*)

F-FDTL Soldier fires on Government Car: Liquica

FALINTIL-FDTL 20 Aug 2010, being reviewed by President Ramos-Horta

On the evening of 4 September 2010 an East Timor defence force (FALINTIL-FDTL) solider created a public disturbance, shooting into the air and at a Government vehicle in Liquica District west of the capitol city Dili.

According to a Tempo Semanal source, there were no injuries but the car received considerable damage from the soldiers bullets.

The soldier in question was in Liquica with his family and not on duty.  However, he was in possession of a military vehicle and firearm.

"He is an undisciplined soldier and has been transferred from his post before. In the morning he drove a comander to a ceremony then he was supposed hand over the car to another commander but he picked his wife up drove to Liquica. His actions are unacceptable so he is now under detention for investigation. He has created public disturbunces, destroyed state property and left behind his gun. This crime needs investigation then if found guilty the soldier will have to be held responsible." said an angry FALINTIL-FDTL Commander who asked not to named. He added that the soldier may be dishonorably discharged from the defence force.  

FALINTIL-FDTL did the same with another soldier in 2009.

An Indonesian Pro Democracy Wilson's Book Remind His Old Colleageus for The Past and bring Good For TL

A Luta Continua’s author, Mr. Wilson an Indonesian long Pro Democracy Activist who has been advocated for East Timor Independence since 1989. Wilson a 43 years old still as an activist even most of his old friends in Indonesian and East Timor now a days most of them are key people in the government.

In an exclusive interview to Tempo Semanal in Yayasan Hak Office Dili Wilson said his book is compiled from his own experience and data that he has during his involvement with the Pro Democracy movement and East Timor Struggled. He is a long standing activist to mobilised Indonesian University Student to understand the case of East Timor under Indonesia.
The Alumni of UI noted some extraordinary moment when he was imprison together with Timorese resistance Leaders Xanana Gusmao. After the Independence Wilson have visiting East Timor for several time but have a difficult accessed to meet his old prison mate Xanana. So he has to wait near PM’s car park out Side Government main building to meet Xanana after 12 years not see each other one on one.
In his book he has described the importance of East Timorese course for Indonesia Pro Democracy movement. But Wilson is annoyed by some of his colleagues which were fight for Democracy and in the mean time did want East Timor to have its independence.
In his book Wilson not only informed the past but he also talking about the current situation. He suggested to Timorese leaders to be carefully with the globalisation and foreign economic Domination. He said even Indonesia as a country has independence for 65 years but economically dependent to America, World Bank and multinational companies. He is recommended to Timorese leaders not to take some anti western investor but he wish the government could control these investors.
Wilson recommends the unity among the Timorese leaders for the sake of the country because if Xanana, Mari and Horta keep fight each other will give a room to the some other to use for their benefit.
The book is interesting because it’s written in Indonesian and may have a wider readers in east timor.

Tempo Semanal Video Of The First Timor Animal Clinic In East Timor

The Majority of east Timorese are farmers. many family have farm animals but most of them don't know how to look after their chicken, goat, bufalo farms. After several months even years these farmers sell their animals to look after their kids study and feed their family. There many deases challenging the Timorese farmers. Here is Antonino do Carmo the first animal doctor who is now helping the farmers in a region in East Timor to take care their animal.

Xanana Dehan Mario Carrascalao Beikten No Beiten Hatudu Krize de Konfianca Mosu Ona Iha Governu AMP

Durante de konsultasaun Planu Estratejiku Dezenvolvimentu Nasional iha sub distritu Verza Cruz hodi kalan, ne'ebe hala'o iha Eis Merkadu Municipal, Dili, PM Xanana apertamenta hatudu momoos lakon tiha ona ninia konfianca ba Vice Primeiru Ministru Asuntu Administrasaun jestaun do Estadu, Ir. Mario Viegas Carrascalao. Deklarasaun funu aperta entre PM ho ninia vice ne'e mosu hodi hataan ba perguntas mai husi joven ida ne'ebe kestiona kona ba osan Milaun Tolu lakon iha Ministeiru Financas. "Ema ida ne'ebe ko'alia kona ba Milaun Tolu lakon iha Finansas, ema ne'e beik ten i la hatene sistema. Ha'u hatene se Enj. Mario Carrascalao hakarak hatudu. Nia dehan doit la monu ba rai maka lori buat ida dehan trez miloeins. Ne'e hatudu de'it nia beik ten, la hatene sistema," Xanana hateten ho lian maka'as. Antes ida ne'e iha momentu balun kotuk Vice PM Mario Carrascalao kondena liu husi Media katak osan milaun tolu lakon iha Ministeiru Financas nune'e PM no ninia parte investiga hela.
PM kontinua dehan, "ha'u hatene Sr. Mario maka kostume loke bu'at ida ne'e. Mas ha'u dehan ba ita bo'ot sira hotu, Enj. Mario habosok nia aan rasik."
Primeiru Ministru ne'e rekuinese hanesan ema dala balun halo sala mas loro-loron hakilar-hakilar hanesan ema ida sai santo i ema hotu maka aat, "ida ne'e ha'u la aseita.
Durante periodu rezistencia iha fulan Agusto 1987 eis komandante em Xefe das Falintil ne'e, iha  ninia surat loron 20 fulan Agusto 1987 dehan Enj. Mario Carrascalao hanesan Governador Provinsia Timor-Timur momentu ne'eba hanesan "Propangador ba Indoneisa ninian," no hodi kalan Xanana so'e viadas ba ninia vice dehan, "ita dala ruma haluha tiha katak, uluk ita la'o haleu Timor dehan Kemerdekaaan adalah mimpi di siang bolong. ohin mai hakilar fali ha'u, ne'e ha'u la simu."
Eis Lider CNRM ne'e bolu atensaun ba eis Governador iha rezime Soeharto ninian. "Ha'u la aceita ema balun ne'ebe uluk manan osan barak ho ita nia raan, ohin hakilar ha'u,"Xanana Trata Mario Carrascalaoiha publiku.
Vice PM ne'e ninia fungsaun balun suspende ona ho lei ne'ebe aprova iha 25/08/2010 no promulgadu ona husi Prezidenti da republika DR. Jose Ramos Horta.
Atu hatene klean liu tan Tempo Semanal sei tenta atu hetan deklarasaun ruma husi Vice PM ninia parte maibe too agora ami seidauk tan Vice PM rasik la iha ninia gabinete no ninia fungsionariu husi parte media ninia la atende telefone.
Tuir Observador Politika no social, Filipe Rodrigues Pereira ne'ebe foin mak finaliza ninia mastradu iha Indonesia tuir intervista exkluxivu ho Tempo Semanal dehan,"Dahuluk hau hakarak dehan katak tristeza bo'ot ba ita asiste governasaun aktual ne'e tamba estrutura governu leno ba publiku hanesan fali governu ne'e fika disorganizadu ka disorientadu. Mosu disentendimentu hanesan ne'e lolos sira buka solusiona internalmente tuir etika politka aliansa nian atu nune'e publiku bele tau konfiansa diak nafatin ba governasaun ne'e. Maibe buat nebe mak akontese durante ne'e hatudu estrura governu gosta liu uza imprensa hodi ataka-malu. Ataka-malu liu husi imprensa estruturamente hatudu governu la solidu hodi hala'o ninia funsaun, governu la solidu maka sei fo'o impaktu ba funsionamentus governasaun nian no ikus povu mak terus tamba governasaun la'o ho kudeik- a'an.
"Disintedimentu ne'e hatudu momos krizi de konfiansa husi lideransa maximu AMP nian ba VPM Mario Carrascalao. No suspensaun de poder ba Mario Carrascalao signifika VPM Carrasacalao hetan sanksaun administrativu ba ninia lalaok no hahalok balun mak la tuir politika AMP nian. Maibe sei furak liu no atu la hamosu impresaun oi-oin maka suspensaun de poder hanesan fo’o dadaun ba VPM Carrascalao presiza fo’o mos ba membros governu nebe’e mak durante ne’e hala’o k’nar servisu la los ka la tuir politika AMP nian." dehan Filipe.
Nia hatutan katak, "Kestaun konaba saida mak VPM, Mario Carrascalao tenki halo relasiona ho suspensaun de poder, hanesan hau hateten ona iha leten katak legal no moralmente presiza konsidera katak suspensaun nudar sanksaun. Sanksaun ba staff ida nudar buat bai-bain, maibe sanksaun ba ema ida ho kargu VPM maka ninia signifikasaun bele oi-oin, hanesan falta ka la’iha konfiansa tan ona, husu atu voluntariamente resigna a’an no sel-seluk tan. Tamba ne’e, karik VPM Carrascalao sei iha ninia dignidade maka dalan diak liu ba nia mak resigna ninia a'an husi estrutura governu ida  ne'e, atu nune'e bele fo'o oportunidade ba governu ne'e ukun iha kondisaun ne'ebe solidu nia laran. Hau hanoin povu baruk mak injoa ona ho konflitus no polemika nebe’e sempre mosu iha governu aliansa ne’e nia laran. VPM Carrascalao bele fila ba fali PN hodi taumatan-lesuk ba governasaun AMP tuir buat nebe mak antes ne'e nia halo."
"Sobre kondenasaun nebe dehan katak Eng. Carrascalao halo mos KKN durante nia ka'er kargu nudar VPM diak liu entrega ba instituisaun legal atu investiga no hot-hotu hein rezultadu investigasaun nian.
Maibe konflitus nebe agora dadaun mosu entre PM Vs VPM Carrascalao inderectu bele harahun liutan Eng. Carrascaloa ninia pessoal no iha ao mesmu tempu bele harahun mos instituisaun PSD nudar partidu iha eleisaun 2012 nebe sei mai," Observador ne'e sublina. **end**

Open War Press Released From Council Minister to Suspended The Competencies for Deputy PM

As  Mid day today the Secretary of State for the Council of Ministers and Official Spokesperson for the Government of Timor-Leste, Mr. Ágio Pereira on behalf of the council minister issued a hard hiting Press Release attacking East Timor deputy PM. Acording to a high level Government officer told Tempo Semanal today that the law to removed the power from Deputy PM has aproved and promugated by President Jose Ramos Horta.

The Press released hurt the credibility of deputy PM Mario Carrascalao and seems like told the Public that the Vice PM is incompetent in carrying out his task. The statement begins to clarify the government position in regard to some statement put out by the office of deputy PM. "The Government of Timor-Leste wishes to clarify the statements made by the Office of theVice Prime Minister of State Administration, Mr. Mario Carrascalão on Wednesday August 25; assertions which are erroneous and misleading in the representation of the national interest of Timor-Leste," said in the first Parragraph.

"These statements were not approved, supported or endorsed by the Council of Ministers. Given the disparity of facts presented; the public record should now be clarified. Last February, the Council Of Ministers (C0M), in response to the unexpected non-stop heavy rain and floods which affected many parts of the country, devised a rapid response strategy to counter damage to roads, bridges and soil erosion. The Council of Ministers approved the purchasing of heavy and light civil construction equipment, which included trucks to facilitate transport of the equipment throughout the country where and when needed."

"The Vice-Minister of Infrastructure José Manuel Carrascalão undertook the purchasing process, including obtaining the guarantee that the purchase of heavy and light civil construction equipment, including the necessary trucks for transport, would be of quality and the supplier would deliver the goods to Díli according to the terms of the contract. The Vice-Minister procured a quotation which met the terms of the necessary and required provisions. The time frame for the Díli handover of all products in totality was three months. Vice-Prime Minister Mario Carrascalão rejected the quotation and instructed his Ministry to prove the quotation was over-priced to the value of USD$700 000 (seven hundred thousand US dollars)."

"In March, the Office of the Vice Prime Minister Mario Carrascalão presented an alternative quotation; which, at first instance, was comparatively very low. However; after further review it was revealed the Vice Prime Minister’s preferred supplier only agreed to ship the goods to Surabaya not Díli. The quotation excluded third party costs for the intermediary company, excluded the additional transport costs from Surabaya to Díli and included a clause holding the Government liable for “unforeseen expenses” without limit."

"In August, the Council of Ministers discussed the matter in an extraordinary meeting and after a comprehensive review considered the submission by Vice Prime Minister Mario Carrascalão to have a number of flaws including but not limited to:
a) Inconsistency in declaring the costs, having the declared written costs different from those numbers expressed in the Contract.
b) Lack of understanding of the rules governing contracts in terms of excess liabilities for the delivery, storage and insurance of the equipment upon handling in Surabaya, not in Díli.
c) Discrepancies in the contract. The contract proffered by the Vice Prime Minister for the Minister of Infrastructure only included heavy equipment, some of which would only arrive in Timor-Leste in December and excluded the totality of heavy and light equipment with trucks for transport of equipment originally proffered in the quotation provided by the Vice Minister of Infrastructure.
e) The Contract would hold the Government of Timor-Leste liable to pay unforeseen expenses without limit, and payments would have to be paid according to invoices presented by the third party supplier who was chosen by the Office of the Vice Prime Minister."

"When questioned over excess costs, the Office of the Vice Prime Minister responded to the Council of Ministers that costs could be upwards of USD$500 000 (five hundred thousand US dollars). However, the amount would be only for the heavy equipment included in the said contract. The amount, however, would not include ‘unforeseen expenses’ as well as the costing for the purchasing, transport and delivery of the trucks, without which the entire work of procuring equipment would be pointless as the equipment could not be transported to locations as necessary."

"The Council of Ministers rejected the quotations by Vice Prime Minister Mário Carrascalão and further instructed the Minister of Infrastructure not to sign the contracts. Additionally, having considered all the additional expenses, the Council of Ministers rejected the original assertions of Vice Prime Minister Mário Carrascalão that his Office would guarantee savings and efficiency in the provision of the heavy equipment, transport and light equipment needed to respond to the emerging needs of Timor-Leste caused by heavy rain and floods and rejected the accusation initially asserted by Vice Prime Minister Mário Carrascalão regarding ‘corruption’ and the savings of USD$700,ooo in relation to the original quotation by the Vice Minister of Infrastructure which; in entirety, met the original contractual terms as agreed by the Council of Ministers."

"The Council of Ministers then proceeded to revoke the powers entrusted upon the Vice Prime Minister Mário Carrascalão on this matter. Additional delays in other capital works projects across Ministries were discussed in depth in the same extraordinary session of the Council of Ministers with equal concern. Further
threats to procurement were compounded by a current and potential further law suits resulting from the actions of the Office of the Vice Prime Minister."

"Due to these actions, budget delays and impaired service delivery resulted across Ministries. Accordingly, the unanimous decision was made to suspend the mandate of the Office of the Vice Prime Minister of future procurement duties."

"Therefore; the claims by the Office of the Vice Prime Minister of Budget execution is inaccurate. Budget execution is when the payment has been transferred and the transaction is completed. Budget execution does not include contracts “in the processing phase” or contracts in the “proposal received” phase. Budget execution also does not include the “tender process”, “evaluation process”, “implementation process”, or “proposals waiting to enter the contract phase”. Claims being made by the Office of the Vice Prime Minister to defend the delays and inaction of capital development illustrate a lack of understanding of simple budget concepts; the statement deemed misleading in conduct."

"A clear reason for the delays is the fact that when The Office of the Vice Prime Minister was established, the Office failed to pursue or implement the mandate as agreed with the Prime Minister, His Excellency Xanana Gusmão, in consultation with the Council of Ministers, to establish two vital organs of the State to ensure transparency and accountability. Resources were allocated to establish a qualified and fully staffed technical procurement secretariat which, for checks and balances, should have more than two staff (part of the reason for such vast delays and low budget execution) and an independent procurement commission which would include members of civil society, and other key independent bodies for due diligence and oversight. This was not achieved."

Regarding to a Timorese international advicer who has a contract value US$17,000 per month Mr. Pereira stated thagt, "The technical advisor whose contract is now in question was a quality control officer, not an
implementation or procurement expert, whose experience was to be utilized in establishing both organs of the State with a view to ensure quality control; not implementation of highly technical and legal matters concerning large sums of public funds which was not her area of expertise. It is apparent that Vice Prime Minister Carrascalão kept a highly centralized operation with minimal staff, little oversight and lacked accountability, breaching those mechanisms entrusted to his mandate which affected line ministries from doing their jobs; rebuilding the country as approved by the National Parliament for projects in the 2010 budget."

"As the actions of the Vice Prime Minister demonstrates a clear breach of competencies; the Council of Ministers unanimously agreed to the action to suspend the procurement mandate of the Office of the Vice Prime Minister. It is the Government's deep regret that Vice Prime Minister Mario Carrascalão has made
unfounded allegations of corruption. Despite numerous investigations having been completed, with no corruption or wrongdoing cited, the Vice Prime Minister has taken no responsible action to rectify his damaging statements, or to clear the allegations, often blaming journalists for misreporting. Mr. Carrascalão has deliberately withheld the outcomes of such investigations despite the damage caused to key Government ministries and officials. To date the Office of Vice Prime Minister Carrascalão has made no advancements in identifying, discovering or uncovering any corrupt activities. On the contrary; he has established a highly centralized system which is not a deterrent from fraud, corruption, collusion and nepotism."

"Unfounded allegations of corruption to intimidate or defame for political advancement or to elevate professional status and merit is a very real form of corruption that cannot be accepted by a coalition Government working cohesively and systematically for national development."

"The Secretary of State for the Council of Ministers remarked “The coalition is to be congratulated for their political maturity, having succeeded in advancing Timor-Leste through sheer will, determination and putting our people first. The Council of Ministers was deeply concerned about the recent turn of events and unanimous in this decision demonstrating unity, professionalism and the consolidation of the effective running of the State under the leadership of the Prime Minister Xanana Gusmão. This does not impact, but enhances our ongoing mechanisms of sovereignty, transparency and accountably, of all members of the Government. Furthermore, the public service should be congratulated for their due diligence across line ministries in quickly identifying discrepancies, irregularities, and concerns which could have affected national development. This demonstrates a new level of transparency, understanding of the procurement processes and communication between all departments and organs of the State.” ENDS

Horta Visit PDT Critised Donors - Media Coverage Horta Visit

East Timor President Jose Ramos Horta is not satisfied yet by the way of the donor’s countries spending their aids money in East Timor. Last two months Horta has criticised badly Aus Aids by cut it funds towards Peace Dividend Thrust. After Horta sent a protest letter to Australian Ambassador and believed has raised the issue with Canberra the Aus Aids increased not significantly but very small some more amounts make it up to more or less US$400,000.

Even the Aus Aid has gave US$ 400,000,- to PDT but likely the fund is not enough. Which cost some offices in the districts have to closed down. Again President Jose Ramos horta who is very concerning of reducing the Timorese poverty again annoyed at the donors rhetoric yesterday. He is very unhappy with the donors and will asked East Timor PM to help the organisation which help build Local economy.
Told Tempo Semanal was told that some of the donors not happy with the media coverage of Horta’s visit to PDT.

East Timor Deputy PM Mario Carrascalao did not attend Today’s Council Minister

After dispute during last week Council Ministers meeting East Timor PM Xanana Gusmao today Deputy PM Mario Carrascalao is not attend the council Ministers seat. He Cars Park is vacant. Usually the car of Deputy PM Carrascalao park side by side with the secretary state for SEPI, Idelta Maria Rodriques. Mario Carrascalao has threaten to resigned from his post after PM Xanana asked him to be quiet while PM is speaking during the last week Council Ministers seating. "Mr. Carrascalao just stood up and walked out from the room," TS source said. According to a source with the East Timor council Minister said, “Mr.Carrascalao has wrote Prime Minister to informed he is not healthy.”
Mr. Carrascalao has informed the journalist sometimes ago that he was become deputy PM because appointed by East Timor President. Some newspaper in Dili Published last week that as soon as he left the council Minister meeting on 25/08 he has sent a SMS to president horta to informed his resignation but Horta said it’s the government business.

East Timor President Proposed to send The Indonesian Drug Dealers for Death Penalty in Indonesia

East Timor President Jose Ramos Horta is proposing to send the alleged foreign drug dealers to Indonesia, Malaysia and Singapore. President reacted strongly to those two Indonesian alleged Drug Dealers which arrested by Timorese police on the night of August 9th. These two Holywono or BTK company’s Engineer and accountant have been under preventive detention in Becora while in last week East Timor Police has conducted a search to the BTK compound in Dili opposite to Democracy field. In a police report which leaked to Tempo Semanal alleged the involvement of BTK boss in smuggling drugs in the country.

“I would like to let those foreigners who are become drug dealers here that if they are still vendor drugs, we will hand over them to Indonesia, Singapore, Malaysia and Thailand. They all aware the consequences if anybody found as a drug dealers in those country. They will get death sentence or death Penalty. I don’t want after East Timor arrested them and detained here because will increased our spending for their meals in Becora prison. But after the investigation and made the allegation I want hand over these defendant to Indonesia, Singapore, Malaysia and Thailand which have adopted death Penalties.”

He explains, “Because of that I want to appeal to those people not to playing around with East Timor by b ringing their dirty business to our country. I myself will defend our position to handover those drug dealers to those countries even though we have signed the universal Human right convention but by bringing drugs here to destroy our Timorese society and our Timorese youth I want to hand over them to Singapore, Malaysia, Thailand or Indonesia or send them back to their countries origin which they have come from. Even in their country there is death Penalty for such crime.”

Until today there several Indonesian citizen have been question by East Timorese police and the Dili district court have sentence two Indonesian who have arrested on May last year. One of them escaped from East Timor and believed to be back in Indonesian west Timor and Budi Santoso in now in Becora prison. He has found guilty and sentence to nine years imprisonment by Dili court. There three Indonesian Citizen in Becora Prison involved in allegation of Drug dealers in Dili.

A Timorese security personnel informed Tempo Semanal that there have been an Indonesian official attach to Indonesian Embassy in Dili has been intervene on behalf of their citizen. “There is an Indonesian official who is working in the embassy came here and raised some question in regard to PNTLBTK search and the arrest of the two alleged Indonesian drug dealers,” said a PNTL officer who asked not to name.