East Timor President stands by Xanana Gusmao
Updated
East Timor's President has defended Prime Minister Xanana Gusmao's approval of a multi-million dollar contract to a company linked to his daughter.
President Ramos-Horta says he fully supports the Prime Minister.
Presenter: Steve Holland
Speakers: Jose Ramo Horta, East Timor President; Mario Carascalao, East Timor Deputy Prime Minister; Jose Teixeira, Fretilin MP
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HOLLAND: Prime Minister Xanana Gusmao has not been available to respond to revelations that he approved a multi-million dollar rice contract to a company linked to his daughter and the three other contracts to companies part-owned by the wife of another Minister.
But President Jose Ramos Horta says he backs Prime Minister Xanana Gusmao.
HORTA: Just because someone became president, became prime minister, became a minister, does not mean his family all have to go into unemployment, all have to sell their business and stop.
HOLLAND: Prima Food last year won a government contract to supply rice worth $US3.5 million.
Last week, Radio Australia revealed that Zenilda Gusmao, the prime minister's daughter, is listed as a Prima Food shareholder.
Kathleen Gonsalves, the wife of Minister of Economic Development Joao Goncalves, has also profited from government tenders signed-off by Prime Minister Gusmao.
But President Ramos-Horta says the prime minister deserves the benefit of the doubt.
HORTA: There are allegations about [the] Prime Minister Gusmao and his relatives. I say the same, allegations are allegations until they are proved by investigation and in court. Until such a time I have full confidence.
HOLLAND: Deputy Prime Minister Mario Carrascalao says the Prime Minister is required to sign-off on all government contracts exceeding one million US dollars.
But he says that doesn't make him responsible for the whole process of awarding government contracts.
CARRASCALAO: So he had to sign it. He doesn't have to look after the process, whether there are some of his relatives included there or not.
HOLLAND: Mr Carrascalao says he is looking into the circumstances surrounding Prima Food's multi-million dollar government tender.
CARRASCALAO: Not because the prime minister signed a contract that his daughter is a member of the enterprise. This is not the wrong doing. The wrong doing is, for instance, she got the contract because she was the daughter of the Prime Minister, this is wrong, but as far as I know until now there is no evidence that shows this.
HOLLAND: The opposition Fretilin Party says it has not yet been able to voice its concerns in Parliament regarding the rice contract scandal. Tuesday's debating period was cancelled.
Fretlin MP Jose Teixeira says the opposition is unsatisfied with that result.
TEIXEIRA: It's absolutely unusual. It is not only unusual, it also concerning because our Parliamentary regulations say that every Monday and Tuesday there is meant to be parliamentary sittings. There is also no viable reason why this should have been done.
HOLLAND: The Opposition plans to voice its concerns in Parliament on Monday.
