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La'o Hamutuk asks the RDTL Court of Appeals
Please audit TimorGAP

La'o Hamutuk husu ba Tribunal Rekursu, RDTL
Favor ida, halo audit ba TimorGAP

5 August 2014.   Updated 2 February 2016

La'o Hamutuk has written the following letter to the Court of Appeals and other State agencies responsible for accountability and good governance. This web version links to documents referred to in the letter. Download the letter as PDF (English translation).

On 7 November 2014 TimorGAP and other institutions under the Ministry of Petroleum and Mineral Resources testified before Parliament Committees C and D (Tetum) on the proposed 2015 state budget. Although the President of TimorGAP left before MPs had a chance to ask questions, his staff distributed their 2011-12 and 2013 Annual Reports of TimorGAP, which were presented to the Council of Ministers two weeks later, and published on their website in mid-December:

On 30 January 2015, the Court of Appeals decided the work plan for the Audit Chamber for the coming year. Unfortunately an audit of TimorGAP did not make the list, although the Court did include as-yet-undecided audits requested by Parliament and audits of unnamed off-budget state entities.

TimorGAP's Annual Report for 2014 (also Portuguese) was released on 2 July 2015. On 18 November, TimorGAP told Parliament about its plans for the 2016 budget.

More recent information is on this page of our website.

La'o Hamutuk haruka ona karta aberta tuir mai, ba Tribunal Rekursu no ajénsia sira Estadu nian ho knaar governasaun di’ak. Versaun ida ne'e liga ba dokumentu sira refere iha karta laran. Bele download hanesan PDF.

Iha loron 7 Novembru 2014, TimorGAP no instituisaun sira seluk iha MPRM nia okos fó testemuña ba Komisaun C no D Parlamentu Nasionál kona-ba OJE 2015. Maski Prezidente TimorGAP sai molok deputadu/a sira bele husu pergunta, ninia staf fahe Relatóriu Anuál rua husi TimorGAP, kona-ba 2011-12 no 2013. Semana rua tuir mai, sira aprezenta relatóriu rua ne'e ba Konsellu Ministru no publika iha sira nia website iha fulan Dezembru:

Iha fulan Julhu 2015, TimorGAP publika:

Iha loron 18 Novembru 2015, TimorGAP koalia ho Parlamentu Nasional kona ba ninia planu iha proposta Orsamentu Estadu 2016.

Ita bele hetan informasaun atual liu husi ami nia website.

To:  S.E. Guilhermino da Silva, President of Tribunal de Recurso
S.E. Vicente Guterres, President of Parliament
S.E. Carmelita Caetano Moniz, President of Parliament Committee A
S.E. Virgílio Maria Dias Marçal, President of Parliament Committee C
S.E. Jacinta Abu Cau Pereira, President of Parliament Committee D
S.E. Adérito Tilman, Anti-Corruption Commissioner
S.E. Sebastião Dias Ximenes, Provedor for Human Rights and Justice

Cc:  S.E. Francisco da Costa Monteiro, President of TimorGAP, E.P.
S.E. Alfredo Pires, Minister of Petroleum and Mineral Resources
Media and public

Re:  Open letter asking for an audit and investigation of TimorGAP, E.P.

Date: 5 August 2014

Bodik ba : S.E. Guilhermino da Silva, Prezidente Tribunal de Recurso
S.E. Vicente Guterres, Prezidente Parlamentu Nasionál
S.E. Carmelita Caetano Moniz, Prezidente Komisaun A Parlamentár
S.E. Virgílio Maria Dias Marçal, Prezidente Komisaun C Parlamentár
S.E. Jacinta Abu Cau Pereira, Prezidente Komisaun D Parlamentár
S.E. Adérito Tilman, Komisáriu Anti-Korrupsaun
S.E. Sebastião Dias Ximenes, Provedor dos Direitos Humanos e Justiça

Cc : S.E. Francisco da Costa Monteiro, Prezidente TimorGAP, E.P.
S.E. Alfredo Pires, Ministru Petróleu no Rekursu Mineral
Media no públiku

Asuntu : Karta Aberta hodi husu audit no investigasaun ba TimorGAP, E.P.

Loron : 5 Agostu 2014

Dear Excellencies:

We are writing to encourage your agencies to use their legal and Constitutional powers [1] and investigative capabilities to discover whether an indirect state-owned entity is managing and spending Timor-Leste’s resources for the benefit of our people. We believe that Timor GAP, E.P. may have committed legal violations, maladministration, poor management, and possible corruption, as well as ignoring legal obligations for accountability and transparency.

Three years ago, the RDTL Council of Ministers enacted Decreto-Lei N.º 31/2011 of 27 July, creating TimorGAP - Timor Gás & Petróleo, E.P. as a state-owned company. Less than three months later, the Council of Ministers approved Resolução do Governo N.° 29/2011 of 5 October, appointing the President of TimorGAP, and the company began operation.

According to Article 27 of Decree-Law 31/2011, TimorGAP is required to present and publish an Annual Report within six months after the end of each year. By now, they should have presented reports for 2011, 2012 and 2013. However, TimorGAP has never submitted an annual report. La’o Hamutuk has asked them about this many times, and TimorGAP said that problems with the internal audit of their GAP-MHS subsidiary prevented publication of these reports for more a year.

Because TimorGAP has been unable to conduct its own audits, we recommend that the Câmara de Contas should conduct an external audit, either on its own initiative or in response to a Parliamentary request. However, a thorough investigation will take time, as Timor GAP’s records may not be complete or well-organized. Therefore we suggest that the Provedoria and/or Anti-Corruption Commission should also explore whether there is prima facie evidence of maladministration or corruption. If they find such indications, they should look into them more deeply.

TimorGAP’s finances are largely hidden and are “excluded from the consolidated financial statements [the General State Accounts], as they are incorporated under different laws.” However, TimorGAP has already received $13.3 million in public transfers from the State Budget. They themselves have been awarded $8.4 million worth of contracts from the Infrastructure Fund, and they are entrusted with managing the Tasi Mane project, which involves hundreds of millions of Timor-Leste’s dollars. We have no information on what they have received or borrowed for the commercial activities of themselves and their subsidiaries, or on any of their expenditures.

It is important to get TimorGAP’s house in order now, before weaknesses in its internal control and accounting systems have more serious consequences for Timor-Leste. In the near future, TimorGAP will become involved with the new CPLP Petroleum Consortium, begin construction of the Suai Supply Base and contracting for the Betano Refinery and South Coast Highway, and incur significant expenses for petroleum exploration under Production-Sharing Contract JPDA 11-106.

In order to help this investigation get started, we are listing a few areas which should be explored, and we are eager to share what we know with investigating authorities.

Ita-boot sira ne’ebé ami respeita:

Ami hakerek karta ida ne’e atu enkoraja ita-boot sira nia ajénsia atu uza ita boot nia podér legal Konstitusional [1] no kapasidade investigativu nian hodi buka hatene oinsá entidade indiretu estadu nian jere no gasta rekursu Timor-Leste nian atu benefisia ita nia povu. Ami fiar katak TimorGAP, E.P. karik komete violasaun legál, maladministrasaun, jestaun ne’ebé fraku, no posibilidade iha korrupsaun, no mós ignora obrigasaun legál ba kontabilidade no transparénsia nian.

Tinan tolu liu ba, Konsellu Ministru RDTL aprova Decreto-Lei N.º 31/2011 iha 27 Jullu, hodi kria TimorGAP - Timor Gás & Petróleu, E.P. nudár kompañia estadu nian ida. Hafoin menus hosi fulan tolu, Konsellu Ministru aprova Resolução do Governo N.° 29/2011 iha 5 Outubru, hodi hili prezidente TimorGAP, no kompañia hahú ona halo servisu.

Tuir Artigu 27 hosi Dekretu Lei 31/2011, TimorGAP tenke aprezenta no publika Relatóriu Anuál ida dentru fulan neen hafoin remata tinan. Hosi ohin, sira tenke aprezenta ona relatóriu ba 2011, 2012 no 2013. Maski nune’e, TimorGAP nunka hatama sira nia relatóriu anuál ruma. La’o Hamutuk husu ona ba sira kona-ba asuntu ne’e dala barak, no TimorGAP hateten katak problema iha sira nia audit internal hosi sira nia subsidiariu GAP-MHS ne’ebé prevene publikasaun hosi relatóriu sira ne’e liu tinan ida tan.

Tanba TimorGAP labele hala’o sira nia audit rasik, ami rekomenda katak Câmara de Contas tenke halo audit external ida, hosi nia inisiativa rasik ka atu responde ba pedidu ruma hosi Parlamentu. Maski nune’e, investigasaun ida ne’ebé kompletu sei han tempu, tanba TimorGAP nia evidénsia dala ruma la kompletu ka la organiza di’ak. Tanba ne’e ami sujere katak Provedoria no/ka Komisaun Anti Korrupsaun tenke mós esplora keta iha evidénsia prima facie hosi maladministrasaun ka korrupsaun. Karik sira hetan indikasaun sira ne’e, sira tenke hare kle’an liu tan.

Finansas TimorGAP nian dala barak subar no “esklui hosi deklarasaun finanseiru konsolidadu [Konta Jerál Estadu], tanba sira inkorpora iha lei ne’ebé diferente nia okos.” Maski nune’e sira hetan ona osan tokon $13.3 hosi transferénsia públiku hosi Orsamentu Estadu. Sira rasik hetan ona ajudikasaun tokon $8.4 hosi kontratu sira hosi Fundu Infrastrutura, no sira hetan fiar atu jere Projetu Tasi Mane, ne’ebé sei envolve osan Timor-Leste tokon atus ba atus. Ami laiha informasaun kona-ba saida mak sira simu ka empresta ona ba sira nia atividade komersiál rasik ka ba sira nia subsidiariu sira, ka kona-ba sira nia despeza ruma.

Ne’e importante atu hadi’a TimorGAP nia uma laran ohin loron, molok frakeza sira iha nia kontrolu no sistema konta internal nian fó konsekuénsia boot liu ba Timor-Leste. Iha tempu badak oin mai, TimorGAP sei envolve ho Konsorsiu Petróleu CPLP foun, hahú konstrusaun ba Supply Base Suai no kontratu ba Refinaria iha Betano no Auto-Estrada iha Kosta Súl, no sei halo despeza boot ba esplorasaun petróleu tuir Kontratu Fahe Produsaun JPDA 11-106.

Ho hanoin atu ajuda investigasaun hodi hahú, ami lista area balu ne’ebé tenke esplora no ami prontu atu fahe saida mak ami hatene ho autoridade investigasaun nian.

Use and accountability of public transfers

A few months ago, the Tribunal de Recurso issued Audit Report No. 2/2014 on the National Petroleum Authority (ANP) [Portuguese original], which points out that the transfers to ANP from the Ministry of Petroleum and Mineral Resources (MPRM) are neither transparent nor accountable, a situation which should be rectified (Observation 2.8.3, Conclusion 2.8.2). The same applies to TimorGAP.

TimorGAP receives nearly twice as much in transfers from the State Budget as ANP gets, but these are also concealed in the budget law and supporting documents within public transfers from MPRM, and are not visible in Budget Execution Reports, the Transparency Portal or the General State Accounts. The money is considered ‘executed’ when MPRM transfers it to TimorGAP, and disaggregated information on allocation or spending is not available. However, we understand that SERN and MPRM have already provided $13.3 million to TimorGAP as public grants:

The lack of transparency for the allocation and use of this money violates Article 145.2 of the RDTL Constitution, which prohibits the existence of secret appropriations and funds.

Uzu no kontabilidade hosi transferénsia públiku sira

Fulan balu liu ba, Tribunal de Recurso fó sai Relatóriu Audit No.2/2014 kona-ba Autoridade Nasionál Petróleu (ANP), ne’ebé foka sai katak transferénsia ba ANP hosi Ministériu Petróleu no Rekursu Minerál (MPRM) la transparente no la kontavel, situasaun ida ne’ebé tenke muda (Observasaun 2.8.3, Konkluzaun 2.8.2). Ne’ebé aplika hanesan ba TimorGAP.

TimorGAP simu besik dala rua kompara ho transferénsia ne’ebé ANP hetan hosi Orsamentu Estadu, maibé transferénsia sira ne’e ita labele hare iha lei orsamentu no dokumentu ne’ebé atu suporta ba iha transferénsia públiku hosi MPRM, no labele hetan iha Relatóriu Ezekusaun Orsamentu, Portal Transparénsia no Konta Jerál Estadu. Osan ne’e konsidera ‘ezekuta ona’ bainhira MPRM transfere ona ida ne’e ba TimorGAP, no informasaun disagregadu kona-ba alokasaun ka despeza nian ita labele hatene. Maski nune’e ita hatene ona katak SERN no MPRM fó ona tokon $13.3 ba TimorGAP nudár transferénsia públiku:

Transparénsia ne’ebé fraku ba alokasaun no uzu osan ida ne’e viola tiha Artigu 145.2 Konstituisaun RDTL, ne’ebé la permite ezisténsia dotasaun no fundu segredu sira.

Tasi Mane Project financing, planning and carryovers

According to the Procurement Portal, whose information is often incomplete, Timor-Leste has awarded two contracts to TimorGAP which will be paid out of the Infrastructure Fund:

TimorGAP has spent or managed much more on Tasi Mane from the Infrastructure Fund, according to the Budget Execution Portal and Book 6 of the 2014 General State Budget.

  • 2011: $ 8.7 million executed.

  • 2012: $ 9.7 million executed.

  • 2013: $ 5.7 million executed.

  • 2014: $21.1 million executed or obligated to date. $25.2 million more is allocated for 2014.

  • 2015-2018: $319 million expected. However, this does not include many components of the Tasi Mane Project and could increase to several billion dollars if the following, some of which are already out for tender, are carried out.

    • Construction of the South Coast highway
    • Detailed design and construction of the Betano Refinery
    • Detailed design and construction of the Beaçu LNG plant
    • Design and construction of the Sunrise gas pipeline

Although some of these expenses may be paid by foreign investors, doubts about the profitability of these facilities could oblige Timor-Leste to guarantee or finance a large portion of their costs.

Implementation of the TimorGAP-managed Tasi Mane project is also problematic:

Finansiamentu, planeamentu no carryover ba Projetu Tasi Mane

Tuir Portal Aprovizionamentu, ne’ebé nia informasaun dala barak la kompletu, Timor-Leste ajudika ona kontratu rua ba TimorGAP ne’ebé sei selu hosi Fundu Infrastrutura:

  • Kontratu RDTL 12004523 ba tokon $4.9, asina iha 30 Maiu 2011: Survey detailladu ba jeoteknikal no marina nian no Front End Engineering Design ba refinaria iha Betano. (Kontratu ida ne’e asina molok TimorGAP eziste nudár entidade legal ida.)

  • Kontratu RDTL 12005429 ba tokon $3.5, asina iha 1 Juñu 2012: Front End Engineering Design ba Fasilidade Marina LNG Beaçu.

TimorGAP gasta no jere barak ba Tasi Mane hosi Fundu Infrastrutura, tuir Portal Ezekusaun Orsamentu nian no Livru 6 husi Orsamentu Jerál Estadu 2014.

  • 2011: tokon $ 8.7 ezekuta ona.

  • 2012: tokon $ 9.7 ezekuta ona.

  • 2013: tokon $ 5.7 ezekuta ona.

  • 2014: tokon $21.1 ezekuta ona ka iha obrigasaun too ohin loron. Tokon $25.2 tan mak aloka ba 2014.

  • 2015-2018: ekspeta tokon $319. Maski nune’e, ida ne’e la inklui komponente barak hosi Projetu Tasi Mane no ne’e aumenta ba billaun dolar balu tan karik projetu tuir mai ne’e implementa ona, balu hosi projetu ne’e iha ona prosesu tenderizasaun.

    • Konstrusaun ba Auto-Estrada Kosta Súl
    • Dezeñu detailladu no konstrusaun ba Refinaria iha Betano
    • Dezeñu detailladu no konstrusaun ba planta LNG Beaçu
    • Dezeñu no konstrusaun ba kadoras Sunrise

Maski buat balu hosi despeza hirak ne’e mak selu hosi investidór estranjeiru, duvida ba profitabilidade hosi fasilidade sira ne’e bele obriga Timor-Leste atu garante ka finansia porsaun boot hosi kustu projetu sira ne’e.

Implementasaun hosi projetu Tasi Mane ne’ebé jere hosi TimorGAP mós iha problema:

Financial management

Although TimorGAP occasionally publishes tender notices in local newspapers, such as the one for cleaners and security published last week, most of its larger purchases and hiring are done without public announcement or open bidding. Perhaps because TimorGAP is outside the State’s normal procurement regime, its contract announcements and awards do not appear on the Procurement Portal. It would be important to have a better understanding of how such items as consultants, travel and purchases are procured, to see whether TimorGAP is averting collusion and getting good value for the people’s money.

Little information is available on how much TimorGAP pays its nearly 100 personnel, who do not follow civil service rules, or on how they are recruited. Last November, TimorGAP told Parliament that it spends about $150,000/month on salaries. TimorGAP pays much more for advisors and consultants than it does on salaries, and also calls some of its expenditures ‘overhead,’ so we cannot determine the cost of the compensation their people receive. The Tribunal Recurso audit of ANP [Portuguese original] found many irregularities in this area, and we fear that the entitled petroleum elite mindset it exposed may also exist in TimorGAP.

Jestaun finanseiru

Maski TimorGAP okasionalmente publika avizu konkursu ba tenderizasaun nian iha jornál lokál, hanesan avizu ida iha semana kotuk ba ema atu hamoos eskritóriu no seguransa nian, maibé despeza boot sira atu sosa ka aluga buat ruma, TimorGAP la halo avizu públiku ka konkursu nakloke. Dala ruma tanba TimorGAP ne’e ketak hosi rejime normal ba aprovizionamentu estadu nian, ne’ebé nia avizu kontratu nian no ajudikasaun nian la fó sai iha Portal Aprovizionamentu. Ne’e importante tebes atu komprende di’ak liu tan kona-ba oinsá rubrika sira hanesan konsultador sira, viajen no sosa sasán nian halo tuir prosesu aprovizionamentu nian, hodi nune’e ita bele hare TimorGAP ne’e bele evita an ba iha kollusaun no hetan valor di’ak ba osan povu nian.

Laiha informasaun mak ita bele hare kona-ba osan hira mak TimorGAP selu ba nia ema besik na’in 100, se mak la tuir regra funsaun públiku nian, ka kona-ba oinsá rekruta ema sira ne’e. Iha fulan Novembru tinan kotuk, TimorGAP hateten ba Parlamentu katak sira gasta maizumenus $150,000 kada fulan ba saláriu. TimorGAP nia total despeza boot ba asesór no konsultór sira duke gasta ba saláriu, no mós iha despeza balu mak bolu ‘overhead,’ nune’e ami labele determina kustu kompensasaun ne’ebé nia emar sira simu. Tribunal de Recurso nia audit ba ANP hetan irregularidade barak iha area ne’e, no ami ta’uk katak hanoin ida katak ‘elite ne’ebé iha priviléjiu ba petróleu’ bele mós eziste iha TimorGAP.

Supplying fuel to EDTL

According to Resolução do Governo N.° 11/2013 of 13 March [Portuguese original], TimorGAP was to supply fuel for the Hera Power plant, and on 23 April 2013 the Council of Ministers referred a contract with them to the Tribunal Recurso. On 8 May, TimorGAP announced the opening of a temporary fuel terminal and delivery of the first shipment. However, the process did not work out as expected, and the Ministry of Public Works had to purchase $40 million worth of generator fuel from Esperança Timor Oan on an emergency, single-source basis. [2]

We have been told that the principal obstacle to TimorGAP’s supplying fuel for EDTL was that TimorGAP wanted to use its status as a State-owned institution as an implicit guarantee to foreign suppliers so that they would extend credit, rather than the normal practice of requiring cash on delivery. TimorGAP preferred a brief interagency MOU with EDTL for this transaction worth more than $50 million, rather than a normal contract which would protect Timor-Leste’s interests by spelling out who is responsible for what. After several months of negotiations, TimorGAP and other State agencies failed to reach agreement, and the effort was dropped. We believe that TimorGAP sold the fuel it had already brought to Hera to ETO, and never had financial transactions with EDTL, but this was not mentioned in TimorGAP’s report to Parliament six months later.

This experience indicates that TimorGAP may not give adequate attention to proper contracting procedures, and thereby fail to sufficiently safeguard Timor-Leste’s rights. The Court of Appeals has done preventive review of some Tasi Mane Project contracts and required revisions before they could be submitted to the Council of Ministers. An audit report on TimorGAP should ensure that the company does not shortcut good practice in its governance and, more importantly, in arrangements with foreign entities who may try to obtain more than their fair share of Timor-Leste’s wealth.

Fornesimentu kombustivel ba EDTL

Tuir Resolução do Governo N.° 11/2013 iha 13 Marsu, TimorGAP atu fornese kombustivel ba Sentrál Elétrika Hera, no iha 23 Abril 2013 Konsellu Ministru haruka kontratu ne’e ba Tribunal de Recurso. Iha 8 Maiu, TimorGAP anunsia abertura ba terminal temporáriu ba kombustivel nian no simu karegamentu primeiru. Maski nune’e, prosesu ne’e la la’o hanesan ema sira ekspeta, no Ministériu Obras Públiku tenke sosa kombustivel ba jeradór nian ho valor tokon $40 hosi Esperança Timor Oan ba emerjénsia nian, ho baze ‘single-source’. [2]

Ami rona katak obstákulu prinsipál ba TimorGAP atu fornese kombustivel ba EDTL mak TimorGAP hakarak atu uza nia estatutu nudár instituisaun Estadu nian nudár garante absoluta ba fornesedór estranjeiru hodi nune’e fornesedór estranjeiru sira ne’e bele fó kombustivel maski TimorGAP seidauk iha osan atu selu ba sira duke halo tuir pratika normal ne’ebé ezije osan cash bainhira halo distribuisaun. TimorGAP prefere orden MOU simples entre ajénsia rua ho EDTL ba tranzasaun ida ne’e ne’ebé nia valor liu tokon $50, duke kontratu normal ida ne’ebé sei proteje interese Timor-Leste nian hodi foka sai se mak responsabilidade ba asuntu saida. Hafoin negosiasaun durante fulan balu nia laran, TimorGAP no ajénsia Estadu nian seluk falla atu hetan konkordánsia, no esforsu ida ne’e lakon tiha. Ami hanoin katak TimorGAP fan ona kombustivel ne’ebé sira lori ona ba Hera ne’e ba ETO, no nunka iha tranzasaun finanseiru ho EDTL, maibé buat ida ne’e la mensiona iha relatóriu TimorGAP nian ba Parlamentu iha fulan neen depois.

Esperiénsia ida ne’e indika katak TimorGAP dala ruma la fó atensaun adekuadu ba prosedimentu kontratu nian ne’ebé di’ak, no ho maneira hanesan ne’e falla sufisientemente proteje direitu Timor-Leste nian. Tribunal de Recurso halo ona analiza preventiva ba kontratu balu ba Projetu Tasi Mane no husu revizaun molok sira haruka ba Konsellu Ministru. Relatóriu audit ida ba TimorGAP tenke asegura katak kompañia labele korta pratika di’ak iha nia governasaun nian no importante teb-tebes mak, iha dispozisaun ho entidade estranjeiru ne’ebé dala ruma koko atu hetan barak liu kompara ho saida mak sira loloos bele hetan hosi riku-soin Timor-Leste.

Relations and obligations with other institutions

TimorGAP is involved with a variety of international businesses, all of whom place their own interests before those of the people of Timor-Leste. The history of the global petroleum industry is filled with examples of greed, corruption, human rights violations and outright theft. We are concerned that TimorGAP’s inexperience, haste or eagerness to be accepted as a major international player could place Timor-Leste’s assets and credibility at needless risk. We encourage auditors and investigators to look into such arrangements, including the following:

  • The CPLP petroleum consortium which is about to be created. This will include Equatorial Guinea, one of the most corrupt, dictatorial and petroleum-stealing regimes in the world, as well as national oil companies with a long record of malfeasance, like Sonangol. TimorGAP’s decision-making and management processes must protect Timor-Leste from being infected by such bad practices.

  • Malaysian Helicopter Services (MHS) has been in a joint venture with TimorGAP for several years, and we have heard reports of undue pressure on oil companies to use them as a supplier, as well as a total opacity about their finances and operations. TimorGAP told La’o Hamutuk that poor accounting by their GAP-MHS subsidiary has been the main obstacle to completing their audits and annual reports.

  • PTT, Thailand’s National Oil Company, has had unpublished arrangements with SERN since 2009 regarding the proposed oil refinery in Betano, including a ‘Joint Trading Agreement and Joint Cooperation Agreement’ signed with TimorGAP early in 2013. This is the same company that operated the Montara oil rig in the Timor Sea, where a disastrous spill a few years ago contaminated West Timor’s coastline, probably including Oecusse. PTT has a history of violating local community and environmental rights in Thailand. According to the ‘SDP Matrix’ presented to the Development Partners Meeting last month, a Final Investment Decision will be made on this project by the end of 2014. [3]

  • The JPDA PSC 11-106 joint venture, of which TimorGAP is a 24% shareholder, is about to begin an offshore drilling campaign. TimorGAP’s share of the costs could be tens of millions of dollars. If TimorGAP borrows from its JV partners or other financers and the project turns out to be non-commercial (as the great majority of exploratory oil and gas projects do), who will be responsible for the debt?

Relasaun no obrigasaun ho instituisaun sira seluk

TimorGAP envolve iha negósiu internasionál oi-oin, ne’ebé sira hotu ne’e tau sira nia interese uluk liu duke povu Timor-Leste. Istória indústria petróleu global ne’e prense ho ezemplu kaan-teen, korrupsaun, violasaun direitus umanus no duni nauk ten. Ami preokupa katak TimorGAP ne’ebé ladún iha esperiénsia, ambisiozu no iha hakarak hodi sai jogadór internasionál ida ne’ebé boot bele tau asset no kredibilidade Timor-Leste iha risku ida ne’ebé ita la presiza. Ami enkoraja auditor no investigadór sira atu hare ba iha dispozisaun sira ne’e, inklui sira ne’ebé tuir mai ne’e:

  • Konsorsiu petróleu CPLP ne’ebé atu harii ona daudauk. Ne’e sei inklui Giné Equatorial, ida hosi nasaun ne’ebé iha mundu ne’e korruptu liu, rejime ditadór no naukten ba petróleu, nune’e mós ho kompañia mina-rai nasionál ne’ebé ho istória naruk ho hahalok ladi’ak, hanesan Sonangol. TimorGAP nia prosesu halo desizaun no jestaun nian tenke proteje Timor-Leste atu labele hetan infeksaun hosi pratika aat sira hanesan ne’e.

  • Malaysian Helicopter Services (MHS) iha konsorsiu hamutuk ho TimorGAP ba tinan balu nia laran, no ami rona relatóriu sira ho presaun inapropriadu ba kompañia mina-rai sira ne’ebé tenke uza sira nudár fornesedór, nune’e mós sira totálmente la bele haree finansas no atividade sira nian. TimorGAP hateten ba La’o Hamutuk katak konta ne’ebé fraku ne’e hosi sira nia subsidiariu GAP-MHS nudár obstákulu prinsipál ba sira atu kompleta sira nia relatóriu audit no anuál nian.

  • PTT, Kompañia Mina-Rai Nasionál Tailándia, halo ona dispozisaun ne’ebé la publika sai ho SERN dezde 2009 kona-ba refinaria petróleu iha Betano, inklui ‘Akordu Merkadoria Konjunta no Akordu Kooperasaun Konjunta’ ne’ebé asina ho TimorGAP iha inísiu 2013. Ne’e kompañia hanesan ne’ebé halo servisu iha kampu mina-rai Montara iha Tasi Timor, ne’ebé hetan dezastre iha tinan balu liu ba ne’ebé halo kontaminasaun ba tasi ibun iha Timor Osidentál, ne’ebé dala ruma inklui Oecusse. PTT iha istória ida ba violasaun direitu komunidade lokál no ambientál nian iha Tailándia. Tuir ‘SDP Matrix’ ne’ebé aprezenta iha Enkontru Parseiru Dezenvolvimentu nian fulan kotuk, Desizaun Investimentu Final ida sei halo ba projetu ne’e molok 2014 nia rohan. [3]

  • Konsorsiu ba JPDA PSC 11-106, ne’ebé TimorGAP iha asoens 24%, ne’e atu hahú nia kampaña perfurasaun tasi laran nian. TimorGAP nia parte ba kustu ne’e bele ba tokon ba tokon dolar. Karik TimorGAP empresta hosi nia parseiru iha nia konsorsiu ka institutu finanseiru seluk no projetu ne’e sai la komersiál (tanba maioria projetu mina-rai no gas sai hanesan ne’e), se mak sei responsabilidade ba tusan ida ne’e?

Finally, we encourage you to look into TimorGAP’s intention to spend $3 million for onshore oil and gas exploration this year. This would be an extralegal project, since neither the Mining Law nor the ANP Onshore regulations or model onshore PSC have yet been adopted. TimorGAP created many problems by their rush to ‘liberate’ land in Suai before legal expropriation regimes were in force, and we hope that similar illegal haste does commence onshore exploration without proper laws, regulations and guidelines. Potential environmental and community disruption from oil and gas drilling is far more serious than that from Suai’s port, warehouses and airport.

La’o Hamutuk appreciates your attention to these concerns, and we would be pleased to collaborate in whatever ways we can. Unfortunately, we do not have the capacity to compel evidence or examine internal records or practices that Parliament, the Tribunal Recurso, Provedoria and Anti-Corruption Commission have. We wish you well as you undertake this technically and politically challenging investigation, and are confident that your work will protect and improve the financial, governance and economic well-being of the people of Timor-Leste.

Obrigado barak,

Juvinal Dias, Adilson da Costa, Celestino Gusmão, Charles Scheiner, Cristiana Ximenes Belo
Natural Resources and Economy Team, La’o Hamutuk

Finalmente, ami enkoraja ita-boot sira atu hare intensaun TimorGAP nian atu gasta tokon $3 ba esplorasaun petróleu no gas iha rai maran iha tinan ida ne’e. Ida ne’e sei sai projetu extralegál ida, tanba Lei Mineira ka regulasaun ANP nian ba rai maran ka modelu PSC rai maran nian seidauk iha. TimorGAP kria problema ba rai iha sira nia ‘libertasaun’ rai ne’ebé ansiozu iha Suai molok rejime legál ba esplorasaun nian vigora, no ami espera katak ansiozu ilegál sira hanesan ne’e hahú ona ba esplorasaun iha rai maran lahó lei, regulasaun no matadalan ne’ebé di’ak. Potensialidade ba estragu ambientál no ba komunidade sira hosi perfurasaun petróleu no gas ne’e sériu liu duke portu, armazén no aeroportu iha Suai.

La’o Hamutuk apresia ita-boot sira nia atensaun ba preokupasaun sira ne’e, no ami kontente atu kolabora iha dalan saida de’it ne’ebé ami bele. Infelizmente, ami laiha kompeténsia atu obriga evidénsia ka ezamina rekorde ka pratika ne’ebé Parlamentu, Tribunal de Recurso, Provedoria no CAC iha. Ami espera ita-boot sira sei halo di’ak tanba ita-boot sira halo servisu ba asuntu ne’e ne’ebé teknikamente no politikamente sei fó dezafiu ba investigasaun, no ami fiar katak ita-boot sira nia servisu sei proteje no hadi’ak povu Timor-Leste nia finanseiru, governasaun no ekonómiku sai di’ak liu tan.

Obrigado barak,

Juvinal Dias, Adilson da Costa, Celestino Gusmão, Charles Scheiner, Cristiana Ximenes Belo
Ekipa Rekursu Naturais no Ekonomia, La’o Hamutuk


  1. Articles 95.3(e), 129.3 and 145.3 of the RDTL Constitution assign Parliament and the Tribunal da Contas responsibility to monitor the execution of the State Budget and the lawfulness of public expenditure. [return to text]

  2. Although TimorGAP’s EDTL fuel supply activities ended in mid-2013, their January 2014 newsletter, page 2, describes them as ongoing. [return to text]

  3. Item 2.3.4 in the Economic Strategic Sector  [return to text]


  1. Artigu sira 95.3(e), 129.3 and 145.3 iha Konstituisaun RDTL fó ba Parlamentu Nasionál no Tribunal da Contas knaar atu monitoriza ezekusaun Orsamentu Estadu nian, no legálidade despeza públiku. [fila fali ba textu]

  2. Maski TimorGAP nia programa atu fornese kombustivel ba EDTL hapara tiha ona iha tinan klaran 2013, sira nia publikasaun iha Janeiru 2014, pájina 2, deskreve katak sira kontinua. [fila fali ba textu]

  3. Hare pontu 2.3.4 iha Setór Estratéjiku Ekonómiku  [fila fali ba textu]


The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua D. Alberto Ricardo, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
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