NEW TOOL IN THE FIGHT AGAINST CORRUPTION

UNCLAS SECTION 01 OF 02 DILI 000194 SENSITIVE SIPDIS STATE FOR EAP/MTS, INL AND DRL STATE PLEASE PASS TO MCC E.O. 12958: N/A TAGS: PGOV EAID KCOR TT SUBJECT: NEW TOOL IN THE FIGHT AGAINST CORRUPTION REF: DILI 177 DILI 00000194 001.2 OF 002 ¶1. (SBU) SUMMARY: The Timorese parliament unanimously created a new Anti-Corruption Commission (ACC) on June 29, only the second time in the parliament's history a measure has been adopted without an opposing vote. The Commission is an independent criminal police body with full investigatory powers. It will begin to investigate corruption cases in the next several months. The ACC has the potential to jump start Timor's anti-corruption efforts at a time the Government's insufficient institutional oversight is becoming more apparent. END SUMMARY. ¶2. (U) Timor-Leste's National Parliament approved legislation on June 29 that will establish a new Anti-Corruption Commission (ACC). The ACC is to be a specialized and independent criminal police body, with the mission of preventing and investigating corruption crimes in any of its forms. The ACC law passed unanimously, only the second occasion in Timor's history that a measure has been adopted without an opposing vote. -------------- Basic Structure and Function -------------- ¶3. (U) The ACC consists of one Commissioner, up to three Deputy Commissioners, plus investigators and support staff. The Commissioner must be a law enforcement professional nominated by the Government and confirmed by the Parliament. The Commissioner serves a four-year term. ¶4. (SBU) The ACC Law incorporates the definitions of corruption contained in the new Penal Code, including three specific articles on corruption and six more articles that deal with corruption related offences such as abuse of power, embezzlement, improper usage and economic participation in business. (COMMENT: It is possible that further corruption-related legislation will be necessary, particularly given the relative newness of the overall legislative framework. END COMMENT.) ¶5. (U) In terms of investigatory powers, the Commission is competent to act as a criminal police body. It may conduct inquiries, carry out searches and inspections, seize objects and documents, and detain individuals. It may cooperate with the Prosecutor General in the freezing of bank accounts and the seizure of illicit assets. ¶6. (U) Once an investigation is completed, the Commission issues a final report to the Prosecutor General. Evidence produced before the Commission is admissible in a criminal proceeding. The Commission must submit an annual report to the National Parliament describing its activities and assessing the response by the competent authorities to its recommendations. -------------- Transition from Current System -------------- DILI 00000194 002.2 OF 002 ¶7. (U) The Government is required to nominate a Commissioner within 60 days of the law's publication so that the Commission can commence its operations within 30 additional days. The National Parliament must confirm with an absolute majority the government's nominee. Once it begins its activities the ACC will assume primary responsibility for corruption investigations from the Provedor for Human Rights and Justice. ¶8. (U) The current Provedor announced in July that he was recommending the Prosecutor General bring charges against Justice Minister Lucia Lobato in connection with a $1 million contract to rebuild a prison wall in Dili. He also confirmed that he had received a written request from President Ramos-Horta to investigate the award of rice contracts last year by the Ministry of Tourism, Commerce and Industry, one of which went to a company associated with the daughter of Prime Minister Xanana Gusmao (reftel). The Provedor indicated the rice investigation would be completed in two months. ¶9. (U) The Provedor stated his office has forwarded 28 possible corruption cases to the Prosecutor General for action, but not one has been brought forward as a criminal case. The Provedor blamed a lack of qualified prosecutors for the lack of action. -------------- Comment -------------- ¶10. (SBU) At its independence in 1999 Timor inherited a weak set of legal and judicial institutions from Indonesia, particularly in the area of anti-corruption. While Indonesia created an anti-corruption commission in 2003, Timor did not create a similar body until now with the establishment of the ACC. The stakes for Timor's anti-corruption efforts have risen dramatically in the last several years as billions of dollars in petroleum revenue has flowed into the Government's coffers. ¶11. (SBU) As evidenced by its unanimous adoption, the ACC is clearly Timor's highest-priority instrument for combating corruption. U.S. assistance should focus on empowering the ACC as it begins its activities; reinforcing its legislative mandate; and providing the specialized anti-corruption training Timorese investigators, prosecutors and judges desperately need, so that effective criminal cases can be developed and tried. KLEMM