VZCZCXRO2851
RR RUEHCHI RUEHHM RUEHNH
DE RUEHDT #0194/01 2150730
ZNR UUUUU ZZH
R 030730Z AUG 09
FM AMEMBASSY DILI
TO RUEHC/SECSTATE WASHDC 4477
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 1304
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEHLI/AMEMBASSY LISBON 1139
RHEHAAA/NSC WASHINGTON DC
RHHJJPI/PACOM IDHS HONOLULU HI
RUEKJCS/SECDEF WASHDC
RUEHC/USAID WASHDC
RHMFIUU/FBI WASHINGTON DC
RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
RUEHDT/AMEMBASSY DILI 4014

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. 
 
 
 
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Comment 
 
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¶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