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lalenok ba ema hotu (labeh) - East Timor & Indonesia Action Network

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Executive SummaryAvailable data point to challenges ahead. We should not give a single chance for corruptionin the government administrations. We are the poorest country in Asia, with an averageincome of US$478 per person per year; more than 40% of our people survive on less than 55cents a day. Social and economic problems has marked our nation and making it difficult tomeasure the progress of the government, we are also faced with huge developmentchallenges, with about half our population lacking on a formal education, high youthsunemployment and most of our people living beyond the poverty line.However, since there have been indications of corruption in government administration, asreported by the Office of the State Inspector General, (OIG), and the Provedoria dos DireitosHumanose e Justica (PDHG), including NGO LABEH. Corrupt activities have beenidentified in Ministry of Planning and Finance, customs, public procurement, governmentrecruitment processes, Public Works, National Police, Immigration, Ministry of Education,Ministry of Health, Ministry of State Administration, Ministry of Justice, Ministry of Laborand Solidarity, Ministry of Foreign Affairs and Corporations, Ministry of Development andthe Prime Minister’s Office to mention but a few. Thus, corruption reduction and preventionmeasures need to be addressed as a national priority.However, the sustainability of such efforts will heavily depend on the formulation andexecution of enforceable domestic anti-corruption policies. “Establishing the HighAdministrative, Tax and Audit Court as enshrined in our national Constitution and ratifyingUN convention against Corruption would be a testimony to this commitment”. It is alsoimportant that the government recognize the need for the civil society’s involvement inmonitoring corruption as an independent watchdog. The engagement of the civil society, andthe private sector at large, is critical in this struggle. The civil society is particularlyimportant, <strong>ba</strong>rring any conflict of interest, to serve as an independent oversight body, whichwould lend significant credibility to the government’ s effort towards com<strong>ba</strong>ting corruption.Corruption is a symptom of something gone wrong in the management of the state.Institutions designed to govern the relationships between citizens and state is used instead forthe personal enrichment of public officials and the provision of benefits to the corrupt.Corruption is at most a second best response to the failure of the first Constitutionalgovernment led by Dr. Mari Alkatiri, at worst it was a highly distortionary method of publicchoice. Corruption restricts investment and holds <strong>ba</strong>ck economic growth, it underminesprograms designed specifically to aid the poor. The poor are harmed by systemic corruption,but the causes of poverty seem more fundamental and deep-seated. It is difficult to documenta simple relationship between the distribution of the national wealth and the level ofcorruption in <strong>Timor</strong>-Leste.Furthermore, in a state without any social safety net like <strong>Timor</strong>-Leste where there are feweconomic opportunities for the very poor, the bribes collected by civil servants can perform aredistributive function, albeit one that is very inefficient and inequitable. Poor families thathave relatives in the government benefit, while others are made worse off.LABEH Corruption Watch Report 2007 identifies ministries and departments indicated forindication of corruption, mal-administration, abuse of authority, financial fraud, misuse anduneconomical use of public goods and procurement fraud and lack of internal controlenabling individuals to seek their own personal benefits.7

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