East Timor pecuniary battle lifts lid on Horta-Howard connection

As the East Timor Presidential election barely rates a mention in the Australian media I guess most readers of this blog are not aware that the personal wealth of the two Presidential candidates, Francisco Guterres Lu Olo and Jose Ramos Horta, is a hot election issue in that country.

Attempts to strengthen democracy and the long arm of the Australian government in East Timor politics are key elements of this saga that the Australian media has failed to fairly and fully report on.

Understandably many of the building blocks of the democratic process are still being assembled in East Timor. One of these – the all important pecuniary interests statement - is not yet a mandatory requirement for elected officials.

The ruling Fretilin party candidate Francisco Guterres, who won the highest share of votes (29 per cent) in last month's poll, ahead of Ramos Horta (22 per cent), has stolen a march on his rival by declaring his personal wealth

This story could have died in April when Mr Guterres made his public declaration. Dr Horta could have silenced the speculation about his personal wealth by issuing his own pecuniary interests statement. But despite being challenged to follow Mr Guterres lead Dr Horta has failed to reveal any details of his personal wealth.

When asked if he would issue a pecuniary interests statement Dr Horta has come up with a variety of responses.  Initially he changed the subject when questioned. He has also stated that he will provide a signed declaration of pecuniary interests if audited by a regulatory body. Another excuse is that he will issue a statement if elected President.

Dr Horta’s silence on this issue has allowed Mr Guterres to be identified as the candidate with integrity and honesty. Mr Guterres, “unilateral and voluntary act of transparency”, has understandably been strongly promoted by his campaign.

Mr Guterres has declared he has few assets - no savings or investments. He has provided details of the home he shares with his extended family.

In the absence of any statement from Dr Horta information about his interests is circulating. If Dr Horta filled out a pecuniary interests form he would most likely detail the two houses he owns in Dili and Sydney. It is also understood that Dr Horta has used his considerable earnings from the lucrative international speaking circuit to make a number of investments. It has been reported that one of these investments is a boat jointly owned with Australian businessman Wayne Thomas who has close links to loyal Howard supporter and former Australian Liberal Party president Shane Stone.

Mr Stoner has a long association with East Timor from his days as Northern Territory Chief Minister and through personal business dealings. When East Timor became a nation in its own right in 2000 the likes of Mr Thomas and Mr Stone were quick to look for ways to make money in the newly independent nation.

It is worth checking out the ABC Background Briefing program on the East Timor activities of the multi-millionaire, Mr Thomas, and Mr Stone, who also did a stint as Australian Liberal Party President, and more recently has helped find staff for Dr Horta. In 2000 Mr Thomas and Mr Stone developed the Dili Lodge in East Timor at a cost of $3 million. The United Nations ordered that the hotel, built on land formerly occupied by the Indonesian army, be closed down, and the buildings removed, deeming Wayne Thomas's lease unlawful because the ownership of the property was in dispute. After a long period the UN backed down and Mr Thomas was allowed to stay.

Dr Horta’s continuing association with Mr Stone and Mr Thomas in the current Presidential campaign has been a reminder for many of how close the hand of Australian politics and Australian business is in this Presidential campaign.

So maybe Dr Horta when confronted with questions about his personal wealth decided that he had more to loose than gain from following the example set by his rival for the job, Mr Guterres.

Wednesday May 9 is the second round of the East Timor presidential election. Hopefully the voters will have had time to consider why Dr Horta failed to declare his pecuniary interests.