Substantial changes proposed for East Timor’s Petroleum Fund law will expose the nation’s finances to high risk and open the door to corruption.
Just a few years ago the fund was widely praised as a model of prudential and sustainable management, and a means of possibly escaping the “resource curse” of waste and corruption.
That is all about to change.
East Timor's AMP government, led by Xanana Gusmao, has a bill before parliament that removes most of the prudential controls on the fund.
Xanana Gusmao
In a July 6 speech to the Lowy Institute Gillard announced that her government was pursuing a regional agreement for offshore processing of "unauthorised arrivals".